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2. Operations Strategy in a Global Environment.ppt

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2. Operations Strategy in a Global Environment.ppt

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2. Operations Strategy in a Global Environment.ppt

文档介绍

文档介绍:Operations Strategy in a Global Environment
Reasons to Globalize
Reduce costs
Improve the supply chain
Provide better goods and services
Understand markets
Learn to improve operations
Attract and retain global talent
Tangible Reasons
Intangible Reasons
Reasons to Globalize
Reduce costs
Lower wages
Maquiladoras
Trade agreements
NAFTA, APEC, SEATO, MERCOSUR, EU
Allows faster and more business between various countries
Lower costs for imported goods
Improve the supply chain
Locating facilities closer to unique resources
Reasons to Globalize
Provide better goods & services
Customization to meet cultural needs
Reduce response time
Improve customer service
Understand markets
Interaction with foreign customers and suppliers can lead to new opportunities
Expand the product life cycle
Reasons to Globalize
Learn to improve operations
GM partnered with a Japanese auto manufacturer to learn
Attract and retain global talent
Better growth opportunities
Insulation against unemployment
Provide incentives for people who like to travel
Disadvantages of Globalization
Relinquish proprietary technology
Political risks
Economic factors - Taxes, currency valuations, trade barriers
Non-economic factors - Riots, terrorism, war, even political elections
Employee skills are lower, requiring additional training time
Might actually alienate customers back home if jobs are lost to offshore operations
Cultural and Ethical Issues
Cultures can be quite different
Attitudes can be quite different towards
Punctuality
Lunch breaks
Environment
Minimum wage levels
Intellectual property
Bribery
Child labor
Discrimination against minority and women
National literacy rate
Rate of innovation
Rate of technology change
Number of skilled workers
Political stability
Product liability laws
Export restrictions
Variations in language
Work ethic
Tax rates
Inflation
Availability of raw materials
Interest rates
Population
Number of miles of highway
Phone system
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