Global Business Conditions

29/12/2006 1
 CTV SALES
2005 2006
• 10 LAKHS • 11.5 LAKHS
• PLASMA& FLAT PANELS(0.5 LAKHS) PLASMA& FLAT PANELS (2LAKHS)

ESTIMATES FOR 2007: (3.5 TO 4.0

LAKHS)

29/12/2006 2
 Reality of Global Competition

• All of the international trade has resulted

in a global economy that inter connects
the economies of all nations into what has
been termed as GLOBAL VILLAGE.
• A RECESSION IN ONE COUNTRY
AFFECTS ALL OTHER COUNTRIES,
One country’s recession can become a
global recession.

30/12/2006 3
Slow down in US economy- Impact
on Indian economy

29/12/2006 4
• NET TRAFFIC HERE FEELS TAIWAN
QUAKE IMPACT.
• UNDER SEA CABLE DAMAGE
DISRUPTS SERVICES
• ISP SERVICE AFFECTED
• VSNL BLAMED ISP FOR NOT PUTTING IN
PLACE RESTORATION MECHANISIM WHILE
SIGNING THE DEAL WITH PROVIDERS
( BL –PAGE NO4- 27/12/2006)
29/12/2006 5
Market dynamics create the need for
international companies , those whose
operations span the globe as they buy,
produce and sell in world markets.
International companies from across the
world search out opportunities for profits
relatively unencumbered by national
boundaries.
The global expansion has a great impact on
operations Manager who must coordinate
geographically dispersed nations
30/12/2006 6
Prices are coming down
Operations strategy?

Costs to be driven down

29/12/2006 7
 HLL Super value stores

29/12/2006 8
 Strategic Alliance and Production Sharing
Production sharing a term coined by Peter Drucker
A product may be designed and financed in one
country.
RM can be produced in many countries and sent for
further processing.
Parts may be shipped to yet another country for
assembly.
Product may be sold throughout the world markets.

30/12/2006 9
Fluctuation in International financial conditions

Yen appreciation vs US dollar

Euro appreciation vs US dollar
Common euro currency- view of France
Chinese currency- free float not allowed.

30/12/2006 10
Quality, Customer Service & Cost Challenge

•Perfect product & Service Quality

•Advanced Technologies and Automation

29/12/2006 11
 Scarcity of Operations resource

•Skilled Manpower- IT & ITES

•Iron Ore Export
•Heavy dependence on Fossil Fuels in India
•Uranium availability- Nuclear power
•Quality of coal in India

30/12/2006 12
 Acquire Product capabilities to
tolerate Product Proliferation
• Low volume- High Variety
• High Volume- Low Variety
Operations Management to address
complexities arising out of above
requirement

12/01/2007 13
 Social- Responsibility issues

•Consumer attitudes

•Government regulation

•Self interest

30/12/2006 14
 Impact on Environment, Employees & Safety

ISO 14000 Standards

Product Safety- warnings
Employee Health Hazards
Night Shift in BPO operations
365 days operations in Retail sectors

30/12/2006 15