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THE GLOBAL ENVIRONMENT and OPERATIONS STRATEGY, Global Strategies -…
THE GLOBAL ENVIRONMENT and OPERATIONS STRATEGY
Reasons to Globalize
Reduce costs
Improve supply chain
Provide better goods and services
Understand markets
Learn toimprove operations
Attract and retain global talent
Cultural and Ethical Isuues
Cultures and attitudes can be quite different towards punctuality, thievery, lunch breaks, bribery, environment, child labor, and intellectual property
Companies Want To Consider
National litercary rate
Rate of innovation
Work ethic
Tax rates
Phone system
Developing Missions and
Strategies
Mission statements tell an organization where it is going
The strategy tells the organization how to get there
Factors Affecting Mission
Philosophy and Values
Profitability and Growth
Public Image
Benefit society
Customers
Environment
Sample OM Department Missions
Location
Layout design
Human resources
Product design
Quality management
Process design
Maintenance
Scheduling
Inventory
Supply-chain management
Strategy
Action plan to achieve mission
Functional areas have strategies
Strategies exploit opportunities and strengths, neutralize, threats, and avoid weaknesses
Strategies for Competitive Advantage
Differentiation - better, or at least different
Cost leadership - cheaper
Response - rapid response
Competing on Cost
Competing on Response
10 Strategic OM Decisions
Goods and service design
Quality
Process and capacity design
Location selection
Layout design
Human resources and job design
Supply chain management
Inventory
Scheduling
Maintenance
Global Strategies
Benetton
Boeing
Volvo
Sony
Haier