Global Environment & Strategic Management
(Week 2)
Operation strategies for
competitive advantage
Differentiation
Response
Cost Leadership
Provide max value as perceived by customer
Flexibility in matching market changes in design innovation and volumes
Distinguishes offerings in a way that customers perceive as adding value
Reasons to globalize
Reduce cost
Improve supply chain
Provide better goods & services
Learn to improve operations
Attract or retain global talents
Understand markets
10 Strategic OM Decisions
Goods & service design
Quality
Process & capacity design
Location selection
Layout design
Human resources & job design
Supply chain management
Inventory
Scheduling
Maintenance
Global Operations Strategies
International Strategy
Global Strategy
Multidomestic Strategy
Transnational Strategy
Import / Export / License existing product
Standardized product
Economies of scale
Cross-cultural learning
Use existing domestic model globally
Franchise, joint ventures, subsidiaries
Move material, people, ideas across national boundaries
Economies of scale
Cross-cultural learning