Chapter 2 Operations Strategy in a Global Environment

Chapter 2 Operations Strategy in a Global Environment

1. Reasons for global operations

   • Improve the supply chain
     • Locate in countries with: -Low cost labor -Raw material.
   • Reduce costs
     • -Less stringent goverment regulations. -Cut taxes and tariffs. Thanks of Free Trade agreements.
   • Improve operations
     • Learn from better understanding of differences in the business is handle in different countries. Reduce response time to meet customers changing product and service requirements.
   • Undestarnd markets
     • .-Diversity of their customer base. -Expand the life cycle
   • Improve products
   • Attract and retain global talent

2. Competing on differentitation

   • Distinguishing as adding value.
     • Broad product line
   • Experience economy
   • Providing uniqueness beyond
     • Physical
       • Innovative design
     • Service
       • After sales service

3. Competing on cost

   • Use of financial sources effective
   • Cost advantages
     • Low overhead
     • Effective capacity use
       • Southwest airlines
     • Inventory managment
       • Walmart distribution
   • Low cost leadership
     • Achieving maximum value as perceived by the customer

4. Competing on response

   • Flexible
     • match changes in markertplace
       • HP
   • Reliable
     • scheduling
       • FedEx
   • Quick
     • Pizza Hut 5 minutes

5. Product life cycle

6. Key Succes factors

   • of 1 Activities that are necessary for a firm to achieve its goals.

7. Core competencies

   • Skills
   • Talents
     • World class standard
   • Capabilities

8. Factor-rating analysis (outsourcing)

   • Increased techological expertise
   • More reliable and cheaper transportation
   • Rapid development and deployment of advancements in TELECOM

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