1.

Based on the descriptions and analyses in this chapter, would Boeing be better
described as a global firm or a transnational firm?

Boeing would be better described as a global firm because it has expanded its
operations to many countries in which operation decision are decentralized to each
country enhancing responsiveness. For example the Boeing 787 is built all over the
world with a huge financial risk of over 5$ billion. Moreover, Boeing has its supplier
builders in other companies from many different countries

2. List six reasons to internationalized operations.

1. Reduce costs (labor, taxes, tariffs, etc.)
2. Improve the supply chain
3. Provide better goods and services
4. Understand markets
5. Learn to improve operations
6. Attract and retain global talent

3. Coca cola is called a global product. Does this mean that Coca-Cola is
formulated in the same way throughout the world? Discuss
Coca Cola Company works locally, tailoring their drinks to local tastes. Some
flavours are more popular in one country than another, and often are different
ingredients available in different countries.

4. The reason for an organization’s presence is known as the

mission . That mission is further elaborated in the mission
statement. However, the strategy of an organization is there to
ensure that an organization follows guidelines and procedures to
accomplish its mission. Fiji Water is a perfect example of an
organization that has a mission and has various strategies in place
achieve that mission. Their mission, “FIJI Water, the world’s
finest water, is committed to quality and excellence in our product,
people, profitability, and strategic partners. We are dedicated to
communicating the passion and unique properties of our brand to
consumers worldwide and continuing to invest in the future while
preserving and cherishing the pristine source.” [CITATION Fij \l
1033 ] Another Pacific example is the Fiji Revenue and Customs
Authority . Their mission, “To be recognized as a leading
contributor to Fiji’s economic, security and social programs,
through effectively collecting the majority of Government revenues,
carefully protecting its border, facilitation of trade and providing
quality advice to key stakeholders.”

5. Identify the mission and strategy of your automobile repair garage. What are the
manifestations of the 10 OM decisions at the garage? That is, how is each of the 10
decisions accomplished?
Mission of the Automobile repair garage: – the following are the details of the
missions of the automobile repair garage: – 1) Services: – to deisgn the services of the
garage in such a manner so that it can satisfy the customers. 2) Quality management:
– to deliver the quality in the type of services that the garage is providing to the
customers. 3) Process design: – the designing of the process such that equipments
used and other factors should help in providing lost cost services with high quality. 4)
Location: – to find the location where the market is strong enough to run the business
and can provide effective and efficient services to the customers. 5) Inventory: – to
achieve low investment in the inventory without compromising the quality of the
services and high customer satisfaction. 6) Scheduling: – to deliver the vehicles on
time with effective services which can be possible with the effective scheduling. 7)
Maintenance: – making the equipments and machines effectively working so that it
would not create any problem while providing the…

services. Strategies that can be used to achiev these missions are: – 1) Differentiation:
– different and unique services, better than others will provide the competency in the
market. 2) Cost leadership: – leadership in the cost effectiveness and the quality of the
services will provide the cost leadership in the market which will contribute in
building the customers value and 3) Response: – It is the response given by the
customers after getting the services. Ten strategic OM decisions 1) Goods and
services designs 2) Quality 3) Process and capacity design 4) Location selection 5)
Layout design 6) Human resources and job deisgn 7) Supply chain management 8)
Inventory 9) Scheduling 10) Maintenance

6. An OM strategy changes during a product’s life cycle because

there are different strategies to be implemented depending on what
stage the product is in. In the introduction phase, product design
and development is critical and there are frequent changes being
made. There is a great focus on quality and production costs will be
higher. When a product moves into the growth stage, forecasting for
production is critical and there is a focus on improving the product
to be more competitive, on increasing capacity and enhancing
distribution. In the mature phase, changes made to a product are
minor and the focus is on cutting costs. Lastly, in the decline
stage, the strategy shifts again and the focus is minimize all costs,
eliminate products that are no longer returning a good margin and to
reduce capacity. All in all, the OM strategy must change as the
product moves through the life cycle in order to meet the goals of
the firm and to correct address the different issues that arise as a
product ages.

7. An operations strategy must integrate with marketing and

accounting by identifying and executing the key success factors of
these functional Areas. In marketing, an operations strategy is
affected by the service, distribution, promotion, channels of
distribution, and product positioning. Accounting identifies
leverage, cost of capital, working capital, receivables, payables,
financial control, and lines of credit

8. Outsourcing, going to be more and more of a mainstream phenomenon,

is now a business essential. The next wave in globalization is
focused on the transplantation of entire IT departments offshore.
Recent trends suggest that the outsourcing market will continue to
grow. Contracts are awarded incessantly and study indicates that
companies are expanding the range of IT services they outsource.

9.

- More funds can be injected into the organization to further grow

and expand the core business.

- Staff may have more flexibility in doing other tasks that are
related to the organization’s business.

- Organizations can outsource some of their given functions to

vendors who specialize in that field of work and may even carry out
that work more efficiently than the company itself.

10.

Outsourcing is not always successful and there are risks that are
associated with it. So it is important for Managers to first identify
the company objectives, the best strategic plan, benefits and the
risks that may be involved. Managers may want to look at their
competitors as well. Competiton opens up opportunity for all
potential suppliers to conduct business with various companies. By
evaluating businesses that have undertaken outsourcing and learn from
their sucess and mistakes is a great way to avoid failure. Managers
should consider cost benefit analysis of all internal and external
provisions.

11. Choosing the right outsourcing provider for certain company

success is not easy. In today’s fast-paced business world,
outsourcinghas become very popular and useful for the needs of small
to medium sized businesses. A multitude of outsourcing companies have
popped up in the business environment and that’s why it is more
important than ever to do thorough research and assessment to
choosing the right partner for your business. Selecting an
outsourcing partner that is aligned with your needs will also help
your business minimize risks that you might encounter. We have some
useful tips to help you make the most informed decision.

12.

Misleading information and limited talent

When you outsource bookkeeping and financial services with the aim of focusing on
your goals, you must take into account the risk that it comes with.

Confidentiality is compromised
Outsourcing can increase your productivity and efficiency but can also drill holes in
the confidentiality of the company and its financial matters. Offshore accounting
poses these serious threat of confidentiality in countries that do not have the same law
as your country in these matters.

Problems with communication

It is a good idea to get the customers that satisfaction that your business is operating
24×7. This so happens when you outsource bookkeeping accounting services to a firm
in a country of a different time zone.

Less transparency in reports and data

Initially outsourcing and offshoring was used to increase the company profits. Only
low key jobs that consumed companies time and resources were outsourced. Since,
the outsourcing industry grew, high key jobs which require higher responsibility and
meticulousness have also started to get outsourced.

Can make your firm lose credibility and reputation

When the financial records are not accurate, it can land you in serious trouble with the
authorities. You will lose the face and credibility of your company if inaccurate
financial reports are filed.

Compromises your standards of delivery and quality

There are benefits of outsourcing as long as you choose what services and work to
outsource. Outsourcing bookkeeping services is not an option if you want to scale
your business and grow.

Breach of data security and privacy

Financial data requires layers of technology and encryption methods protecting the
data of the firm.

Reduces the want of skilled employees

Outsourcing highly skilled jobs offshore or to other domestic locations can cause a
gap the finding skilled people in your own location.

You lose intellectual capital and competitive advantage

The skills and knowledge that your employees posses is lost through outsourcing.
This can also make you lose your competitive advantage as the proprietary
information that belongs to your company is handled by another firm.

Allocating more resources

Accounting work outsourcing can only reduce the efficiency of operations and
productivity of the business. By outsourcing, you are allocating more of your time and
activities to the work that is an essential part of your core competencies.

Cannot spot anomalies

When you choose a poor outsourcing option, there is a good chance of fraud
happening and it might not be easier to detect unless and until you check up with the
firms regularly.
Gives you stress

Handling a business and its functions is not a stress free activity. You do not want
poorly outsourced services adding up to your stress. Accounting and bookkeeping is
one of the backbones of the business.

Penny wise pound foolish

This could be true in the case of offshore outsourcing services. Most of the firms take
the decision to outsource jobs to poor countries in the hope of getting more work done
for lesser pay.

13. McDonalds, the world’s largest fast food restaurant chain, uses
the strategy of franchising their products in order to maximize their
profits. They have over 35,000 outlets around the globe with totaling
of 68 million customers daily. [ CITATION McD10 \l 1033 ] With
franchising, McDonalds gets most of its revenue through rent,
royalties and fees that franchisees have to pay in order to operate
under the McDonalds brand.