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Chapter 2 Operations Strategy in a Global Environment
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Chapter 2 Operations Strategy in a Global Environment
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
- Improve the supply chain
Competing on differentitation
- Distinguishing as adding value.
- Broad product line
- Experience economy
- Providing uniqueness beyond
- Physical
- Innovative design
- Service
- After sales service
- Physical
- Distinguishing as adding value.
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
Competing on response
- Flexible
- match changes in markertplace
- HP
- match changes in markertplace
- Reliable
- scheduling
- FedEx
- scheduling
- Quick
- Pizza Hut 5 minutes
- Flexible
Product life cycle
Key Succes factors
- of 1 Activities that are necessary for a firm to achieve its goals.
Core competencies
- Skills
- Talents
- World class standard
- Capabilities
Factor-rating analysis (outsourcing)
- Increased techological expertise
- More reliable and cheaper transportation
- Rapid development and deployment of advancements in TELECOM