Z M Chapter 2, Problem 1P [1 eBoowmans Problem Show all steps: Match the product with the proper parent company and country in the table below Product Parent ‘Company Country Arrow Shirts a. Volkswagen 1. France ‘Braun Housenold Appliances b. Bidermann International | 2. Great Britain Volvo Autos c. Bilogestone 3. Germany. Firesione Tires 4d. Campbell Soup 4, Jepan Godiva Chocolate . Credit Lyonnais 6.US. Haagen-Dazs Ice Cream (USA) | f. Tata 6. Switzeriand Jaguar Autos g. Procter&Gambie 7. China MGM Movies h. Michelin 8. India Lamborghini Autos i Nestlé Gooerich Tires: 1 Geely Alpo Pet Fooas: Step-by-step solution Step 1012 A Parent company is a company that owns the ownership and stock in another fm. It has control over the operation and the management by electing the board of directors of the firm. Comment Step2012 ‘The following are the matches of product along with thelr parent company and country: Product Parent Country Arrow Shirts Bidermann International | France Braun Household Appliances | Proctor and Gamble _| US. Lotus Autos Proton Malaysia Firestone Tires Bridgestone Japan Godiva Chocolate Campbell Soup us Haagen-Dazs Ice cream Nestle Switzerland Jaguar Autos Tata India MGM Movies Credit Lyonnais France Lamborghini Autos Volkswagen Germany Goodrich Tires Michelin us. Alpo Pet Foods Nestle Switzerland1 Chapter 2, Problem 2° [) 7Bookmarts Show all steps: REST Problem < Based on the corruption perception index developed by Transparency Intemational ( > ‘wwwtranspareney.org |, rank ie ‘llowing countries trom most corupt to least Venezuela, Denmark the US , Swizeland, and China Step-by-step solution step 1012 A ‘The website www.transparency.org publishes regularly reports on corruption for most ‘countries in the world, Almost 168 countries are included the in the comparative study of the level of corruption which is published as a Corruption Perception Index. The index ranges from 0 meaning highly corrupt to 100 meaning very clean, The last published index is for 2015. Comment step 2012 A ‘Corruption Perception index basically defines corruption as the misappropriation of Public power for private benefit. ‘According to the latest index, the listed countries are ranked from most corrupt to least as Tollons: (COUNTRY CrL2815) (Chima 17 Vememeta a7 (United States 76. ‘Seitrestond 86 (Demmark 1 Its evident trom ine auove table tnat that the most corrupted country in the world Is China, {followed by Venezuela and the third from the top is United States Chapter 2, Problem 3P [1 4Bookmarks Show all steps: (EN Problem Based on the competitiveness ranking developed by the Global Competitiveness Index ( ‘wew.weforum.org ). rank the following countries from most competitive to least. Mexico, ‘Switzerland, the U.S. and China. Step-by-step solution Step1of3 A ‘The Global Competitiveness Index (GCI) is calculated and published by the WEF on an annual basis. The latest set of reports available with them Is for 2016-17 and can be found on their website vivw.werorum org, Comment Step 2013 ~ GCIs calculated using the performance parameters like basic requirements, efficiency ‘enhancers and innovation and sophistication factors. Each of tnese categories are further broken down into 12 pillars like institutions, infrastructure, and higher education and training, market efficiency, business sophistication, innovation and the like In addition, there are also problematic factors in doing business like coruption, tax regulations. restrictive labor regulations, inadequacy of educated workforce. poor public health and the like. Comment Stepsora ~ All the above parameters, both pillars and problematic factors are further broken down so that a detailed analysis could be made. This is then aggregated into a composite GCI for that country. ‘The ranking of the countries mentioned ranking from most competitive to least are as below: foounrey [Gc 2016-17| [Switzerland 1 luUnited States! 3. \chana 28 [Mexico a It is evident from the table above that Switzerland is the competitive and developed country in terms of infrastructure, education and training and infrastructure,Chapter 2, Problem 4P [7] SBo0kmarks Showalisteps: CRE 3% Problem ‘ne te rowses wee pr stceoeeprcecnesenermtaton cost enaresprcever =} schema conpatine sovanage Powe stanlestecrn nok nen nine uni your nce nat Nutt omenes povdesnthe ee) Step-by-step solution Step 10f9 ~The Key for achieving competitive advantage through product aferentiation Is, ofering 2 product fo the market hat is diferent nan is competitors. + In products, Ck Zero, ight beer, non-tat ce creams are some of the products that are available, + There are many players in the som ciink market, many players n the caffeinated som drink ‘market, But CK is Lying to aitferentiate itself rom the market by offering a product that is ‘supposed to taste the same as its mainstream products, but have less calories, sugar, etc. + Light beer follows the same markeling concepts, as well as non-fat ice cream. + Also, examples of differentiation strategy can be cleatly visualized in theme based cortee and al-out restaurants who engage customers only for their ambience and experience. Comment step2or3 ~ cost: + Low cost leaciership plays a pivot rale in the cost competition strategy. This slrategy explains about investing lowr cost and creating a more delightful and needful experience to the consumer. + SW airines is one such type of aitines, that runs on low-cost strategy equally offering feasible operation strategies that are flexible and adantive both to company and consumers. + CSTC is always the store that comes to mind when product differentiation in the cost arena is iscussed. Although you have to buy in bulk, you can buy (usually per unt) at a cheaper price. = Because CSTC buys in such huge volumes, they can pass those savings on to their customers. comment step 3of3 6 Response: + Response is defined as a set of values that refer to reliable and quick response. HP computers is one such example of flexible product: both in design and volume. + Company Les Schwab is an excellent example of dferentiation through response. Pull up to Les Schwad to buy new tires, and someone runs cut to greet you. Get a flat tre. and they will janve one of their work trucks out (sometimes even to remote locations) to change a tre you purchased trom them. They are wiling, eager, and able to nelp you. This sets them as a very reliable and quick service provider. This also sets them in the category of competing on response. Chapter 2, Problem 5P [,] 2Bockmans Show all steps: CE 5 Problem inn he asec ny esac serve mens ocr bt sas > sey tne anbesthne ht tans easied spon sosne by cortisone we Tijcoduneann Changes ma hentai cle ne sare ment wea pute nasnbicaccinr nauaratonthoce Doretiee nerhee nate fall Sreaoes prov acsoprans nuopontycopeamntontagrtscme channes ane ‘Step-by-step solution Step tof t A Cost leadership — Taco Bell, as discussed in chapter one, has implemented a system that allowed them to serve twice the volure of food for half the cost. Through operational improvements. they lowered costs and improved volume. Response — Taco Del Maris a “Yast food” type of restaurant, but they make your burrito with fresh ingredients, 2s you want it, in an assembly line type of set up. They start from the beginning, and walk thraugh the process 2s you tell them what you want on your burrito, Diferentiation — The nappy meal tom McDonalds nas been a leader in this category for many years. Kids go to McD's Just to get a happy meal so they can get a toy along with the food.Problem Identty how changes within an organization affect the OM strategy for a company. For mstance, ‘ciscuss what impact the following intemal factors might have on OM strategy: 2) Maturing of a product. ») Technology innovation in the manufacturing process. ‘c) Changes in laptop computer design that builds in wireless technology. Step-by-step solution step tors ~ a, ‘As a product matures the OM strategy changes to pricing ine product at a competitve rate s0 as to defend its market positon, standardizing the product, and improving the product to cut costs. As the product is produced, It will be produced at optimurn capacity, with long production runs, ‘and because the product has been standardized, few changes will need to be made. Also, during the produc! maturly phase, when the market Nas stablized in tenms of product features, key competiors and market shares, n fact some overcapacily might have also been ‘established, and therefore, the key concern for the companies is to presene their market share by implementing OM strategy by offering a reliable product al competitive prices Comment step 20f3 A b. ‘Technology innovation in the manufacturing process will usually make the process easier faster, and more efficient Machines are built to produce a certain amount in a certain and time, and with innovation those amounts increase. “Technological innovation smootnens the process of manufacturing and allows reaching targets or goals of manufacturing effective without any pitfalls. Comment Step 3063 ~ « ‘Achange in laptop computer design with wireless technology brings a whole added dimension to production. A production facilty may be able to be controlled from a remote location. This could prove useful ine machines are dangerous, use dangerous chemicals, of the climate outside Is aren. >unapter z, Proviem rr JA) veeennains uw an StH. | Problem Identity how changes in the external environment affect the OM strategy for a company. For instance. discuss what impact the following extemal factors might have on OM strategy’ a) Major increases in oil prices. b) Water- and air-quaity legislation, c) Fewer young prospective employees entering the labor market. 4) Inflation versus stable prices. e) Legislation moving health insurance from a pretax benefit to taxable income. Step-by-step solution Step 1016 A (OM (Operations Management) can inform a response to a change in extemal environment By identifying core competencies and key factors for success. companies can analyze their environment, determine a corporate mission, and forma strategy. Comment Step2o1G A (a) A major increase in oil prices can be evaluated with a manager's resource view and value- chain analysis. Resource view would evaluate higher oil prices as a strategic disadvantage. Managers would seeka strategy that reduces oil or finds an alternative energy source. Value- chain analysis would view oll as a value-added resource, but seek a way to maximize this value with minimum cost. Comment Step3.oig A (b) Water- and ~air quality legistation would change the OM strategies in the areas of costs and geography. Managers would seek to reduce water and air pollution so as to reduce or eliminate associated fines and penalties. If this is too expensive or impossible, the company will seek an ‘OM geography change to an area with different pollution rules. Comment Step4oi6 ~ (c) Fewer young prospective employees entering the labor market would change the OM. strategies of mission, operation decisions. An exciting and relevant company mission could aliracl employees in an increasingly dificult employee supply market. Operations decisions (goods and services, quality, process design, location, layout, human resources, job design, ‘supply chain management, inventory, scheduling and maintains) would evolve to reduce the ‘company’s personnel needs through increased efficiency or automation. Comment Step5or6 ~ (@) Inration versus stable prices woula change a companys OM sirategy in tne areas of global ‘operations strategies and operations decisions. A stable currency allows a company to hold a larger cash balance, which allows for quick operations decisions. An instable currency could quickly devalue a company’s cash stores. This would encourage the company to work in another and more stable currency (operation strategy). Comment Step6o16 ~ (€) Legistation making health insurance a taxable form of income would change a company's ability to attract and retain global talent, An OM decision may involve a change in human resources and design by changing the benefits structure to maximize employee and company salary package value.Problem Claudia Pragram Technologies, Inc. has narrowed is choice of outsourcing provider to two fms, lacatec in arent countnes. Pragram wants to ccd wien one of the two countries Is the better choice, based on isk-avoidance criteria She has poled her executives and established four eritena. The resulting retings forthe two countnes are presented in the table onthe next page, where 1 isa lower isk and 3 Isa higher risk. Selection crterion Englana | Canada Price ot service romoutsourcer | 2 | 3 Neamess of actos to cont a fa Level of technology vis History ot suecesstutoutsourang | 1 2 “The executes nave aetermined four ertena weightings: Paice, win a weight of 01: Nearness, with 0.6; Technology, with 0.2; and History, wih 01 2) Using the tactorrating metnoa, which county would you select? Double each ofthe weights used in part (a) (to 0.2, 1.2, 0.4, and 0.2, respectively). What effect ‘does this have on your answer? Why? ‘Step-by-step solution Step 1012 Outsourcing means transfer ofthe non-core activites ofan organization to outside suppliers CGurscureing can be risky and complex i not planned ana analysed propery. However, also nas 8a temendous potential and hat fs tne reason of expansion of outsourcing actives in recent years “The selection of he outsourcing providers Is generally done through factor-ating analysis. Unger Factor-ating metnoa, points are assigned to each of the selection enter ana then \weights are assigned fo them as per their importance in he outsourcing decision The combined weighted average score of lthe outsourcing providers are compared against each other before Selecting ane of them, “The weighted score ofthe countnes using the factor rating method is presented in tne table below: ‘outsource Providers ‘country Selection Criteria | Weight | Rating WeightedScore | Rating | WeightedScore nce ot service tram or [2 02 a fos outsourcer Neamess of facies os fa 18 1 Joe to tent Leveloftecnnoicgy |o2 [1 02 3 jos History oreuecessts |) | oO > oe outsourcing Teta! 10 23 wn ete: The welgntea score obtaned by mulpying he rang of eacn county wn he assigned \Weighls foreach selection citia and dvdng the same by the total weight ‘Weighted Score = (Weight * Rating) Total weight Therefore, CPT company should selec EauREay Gas its combined weighted score is 47 which Is lower an 23 for Country "CT company is selecting onthe basis of isk aveizance cera where 11 ower risk and Ss higher sk and Hence County C would all under ower Sk comment ‘Step 2012 © ®. “The revised weighted score of the counities using factor-ating method is shown in the table elowe Outsource Providers countye | country“ selection criteria | weight | Rating Weighteascore| Rating | WeightedScore Price ofservice fom fo | 02 3 jos joursourcer Neamess oftacties |, | te + los to ctent Levetoriecnnoiogy Jos [1 02 3 jos History of successful outsourcing o2 | on 2 oz Total 20 23 7 Note:The welahtec score is obtaned by multisyng the rating of each country vith the assigned weights for eacn selection ere ane chang the same by the fra weg ‘Weighted Score = (Weight * Rating) /Total weight “Tere sno erect on te ansver ana ne answer remains tne seme tat CPT company should selecl(Counly C}. Tiss Because the weights for al the selection ceria are ncreasedin the same proportionChapter 2, Problem 9P- [| 15Bookmarks Show all steps: Problem Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to eventual business success with the provider. Ranga has reviewed outsourcing provider directories and found that the four countries in the table that follows have an ample number of providers irom which they can choose. To aid in the country selection step, he has enlisted the aid of a cultural expert, John Wang, who has provided ratings of the various criteria in the table. The resulting ratings are on a1 to 10 scale, where 1 is a low risk and 10 is a high risk. John has also determined six criteria weightings: Trust, with a weight of 0.4; Quality, with 0.2; Religious, with 0.1; Individualism, with 0.1; Time, with 0.1; and Uncertainty, with 0.1. Using the ‘actor-rating method. which country should Ranga select? ‘Culture Selection Criterion Mexico | Panama | Costa Rica | Peru Trust 1 2 2 1 Society value of quality work 7 10 9 10 Religious attitudes 3 3 3 5 Individualism attitudes 5 2 4 8 Time orientation attitudes 4 6 7 3 Uncerainty avoidance attitudes | 3 2 4 2 Step-by-step solution Step tol1 ~ ‘Outsourcing means transfer of the non-core activities of an organization to outside suppliers. ‘Outsourcing can be risky and complex if not planned and analysed properly. However, it also has ‘a tremendous potential anc that Is the reason ot expansion of outsourcing activites in recent years. ‘The selection of the outsourcing providers is generally done through factor-rating analysis. Under Factor-ating method, points are assigned to each of the selection criteria and then weights are assigned to them as per their importance in the outsourcing decision. The combined weighted average score of all the outsourcing providers are compared against each other before selecting one of them. ‘The weighted score of the countries using the factor rating method is presented in the table below: Outsource Providers, Country | Co country try | Country | Country PR ‘CR’ “PE Culture Selection is wik wR R wR R|WR|R | WR Criteria Trust 04/4 04 2 08 2fos|1 jos Society value of 02/7 14 10 20 9/19 |10]20 quality work Reigious attitudes |0.1|3 03 a 03 sas |s jos Individualism 01/5 05 a 02 aoa |s jos attitudes Time orientation o1}4 04 6 06 Tlo7|3 jos attitudes Uncertainty 01/3 03 a 02 aoa }2 fo2 avoidance attitudes Total 1.0 3.3 4a 44) 42 ‘Therefore, ‘RR’ operations manager should select [County TM] as its combined weighted score is 3.3 which are lower than others. ‘RR’ operations manager is selecting on the basis of risk avoidance criteria where 1 is low risk and 10 is high risk and hence Country ‘M’ would fall under low risk, Note: 4. In the above table, ‘W" is weight, ‘R’ is rating and ‘WR’ is weighted rating 2. The weighted rating is obtained by multiplying the rating of each country with the assigned weights for each selection criteria and dividing the same by the total weight. Weighted rating = (Weight * Rating) /Total weightProblem Feiando Garza’s firm wishes to use factor rating to help select an outsourcing provider of logistics services. a} With weights from 1-5 (6 highest) and ratings 1100 (100 highest), use the following table te help Garza make his decision b) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. How does this change your conclusions? ny? ¢) IT Overnight Shipping's ratings tor each of the factors increase By 10%, wnat are the new results? Rating of Logistics Provicers Cmtenion | wetant | Overnignt Sniping | wortawiae Delivery | United Freignt auany | 5 90 20 7s pewery | 3 10 2s. 70 cost 2 10 20 95. Step-by-step solution Step tors ~ Under Factor-rating metiod, one chooses decision based on the weighted score of the avaliable options. Calculate weighted score using the following formula as shown below: Weighted Seore=¥ (Weight « Score) ‘The weighted score of the logistics provider using the factor rating method is presented in the table below: Rater \Crterien Wee | OS [ WD | OF Quality | 5 90 ‘20, 75 Deiwery [3 70 85 70. ‘Cot | 2 70 ‘80, 95 Comment stap2ore a) Calculate weighted average scores to obtain the best outsource provider as shown below: : Rating Weighted scores 2 (Criterion) Weight os. Wp [UF] os ‘WD oF 3 | Quaity [5 [50 [sors [nasecs —|osseps —[=as-Es 4 [Detvery [3_[70 les [70 [maieca_[>naeDs 3| Con [2 [70 Iso [os SDS 6 SUMPFSFS [-SUM(GSGS [-sUMGISES) Overnight shipping ‘weighted ratings Would delivery weighted ratings 2 l-ce10 United fiegtt weighted satings ‘The resultant table is as shown below, 1 Rating Weighted scores 2 Criterion Weight | os [ wo | ur | os | wp | UF 3 _ Quality 5 90 80 73 450 400. 375 4 [Delivery [3 to|~ss_| 70 [210 | 255_| 210 5 [Cox [2 70 [80 | _9s_[140_|_160_| 790 6 soo | sis 775 1 | Overnight| shipping | go wweiahted| 8 ratings World dekvery weighted S13 2 ratings United Sioghe ms 10 ‘ratings Hence, the best provider is [World wide delivery] Comment Stepsors A >) Calculate the best provider when GA decides to Increase the Weights on quality, delivery, and on cost aspects as shown below: . c ole f + Ratin 2 [Criterion] Weight ‘08 wp [UF os, 3 Quality [io [50 [so [rs [mBsacs 4 | Deivery [6 [70 Iss |70 [=Birca 5 Con _|é 70 jso__|os |=Bs*cs 6 [=SUMESFS) ‘Overnight shipping weishted ratings e l-r620 | Wortdwide detvery| vweiehned ratings ° |acs-20 United Sight weiahted ratings 10 |-116-20Step 4 of6 A 8 c Di e|Fil¢ oH 1 Rating Weighted scores 2 Criterion| Weight os WD | UF os | WD UF 3 Quality | 10 90 | 80 | 75 | 900 | 800 | 750 4 Deilvery | 6 7o__| 85 | 70 | 420 | 510 | 420 5 Cost | 4 7o__| 80 | 95 | 280 | 320 | 380 6 1600 | 1630 | 1550 7 ‘Overnight SiPPRE | gq weighted | 8 ratings World . weighted 81s > ratings United Srieght 773 weighted 10 ratings r Hence, it can be suggested that the best output provider is [World wide delivery| Comment Step 5 of6 From the above calculations, it can be observed that there is no change in the weighted ratings ‘on the three aspects i.e. quality, delivery, and cost. Hence, the bets output provider is World wide delivery| Comment Step6 of6 °) Calculate the new results if the OS's rating factors are increased by 10% as shown below: A Bic D E 1 [Rating Weighted scores 2 | Criterion | Weight | OS | Increased OS by 10% 3 | Quality [5 [90 [=a0%*C3}+90 4 | Delivery [3 70_|=(10%*C4)+70 5 | Cost_|2 70_|=10%*C5)+70 6 Total 7 OS weighted score The resultant table is as shown below, A Bc D E 1 [Rating Weighted scores| 2. Criterion | Weight [OS| Increased OS by 10% iy 3 Quality [5 [90 99 495 4 Delivery | 3 [70 77 231 5 Cost 2 70, 7 154 6 Total 880 7 OS weighted score 88 { Hence, the new results are as shown above.Problem Walker Accounting Software is marketed to small accounting firms throughout the U.S. and, Canada. Owner George Walker has decided to outsource the company’s help desk and is considering three providers: Manila Call Center (Philippines), Delhi Services (India), and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which ‘outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) Provider Ratings Criterion Importance Weight | Manita] Dethi| Moscow Flexibility 05 5 | 4 9 Trustworthiness ot 5 | 5 2 Price 0.2 4 | 3 6 Delivery 0.2 so | 6 6 Step-by-step solution Step1 oft A ‘Outsourcing means transfer of the non-core activities of an organization to outside suppliers. ‘Outsourcing can be risky and complex if not planned and analysed properly. However, it also has ‘a tremendous potential and that is the reason of expansion of outsourcing activities in recent years. The selection of the outsourcing providers is generally done through factor-rating analysis. Under Factor-rating method, poin's are assigned to each of the selection criteria and then weights are assigned to them as per their importance in the outsourcing decision. The combined weighted average score of all the outsourcing providers are compared against each other before selecting one of them. ‘The weighted score (Wid. Score) of the outsourcing providers using the factor rating method are presented in the table below: Provider Ratings it is Firm Firm ‘Ma’ | Firm ‘D° ‘Mor Criteria Weight] Rating | Wtd.Score | Rating | Wtd.Score | Rating | Wtd.Score Flexibility 05 |5 28 1 05 9 45 Trustworthiness 0.1 | 5 08 5 05 2 02 Price o2 Ja 08 3 06 6 12 Delivery 02 5 10 6 12 6 12 Total 10 48 28 77 [Fim (MOJhas the bast rating. Therefore, ‘GW’ owner should select Firm ‘MO’ as its combined weighted score is 7.1 which is higher than others and hence more desirable outsourcing provider. Note: 1. The weighted score is obtained by multiplying the rating of each country with the assigned weights for each selection criteria and dividing the same by the total weight. Weighted score= (Weight * Rating) /Total weightProblem Rao Technoiogies, a California-based high-tech manutacturer, Is considering outsourcing some ‘of fs electronics production. Four firms have responded to Its request for bids, and CEO Mohan Rao has siarted fo perform an analysis on the scores his OM team has entered in te table below, Ratings of Outsource Providers Factor went} a | 8 | c | o Labor wis fa]s|a Gualtyprocecures | a0 | 2 | 3 | 5 | 4 Logisncssysiem | 5 | 3 | a | a | 5 Paice wij s fs |a | a Trustworthiness sijsaf2]a fs Tecnnologyinpiace| 15 | 2 | 5 | 4 | 4 Managementieam | 15 | 5 | 4 f 2 | 4 ‘Weights are on a scale from 4 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for he labor factor is shown as a w because Rao's OM team cannot ‘agree on a value ‘or this weight For what range of values of w,ifany. is company Ca recommended outsourcing provider, accoraing to the tactor-rating method? Refer to MyOMLab for this adcitional homework problem: 2.13. Step-by-step solution Step tof) ‘Outsourcing means transfer of the non-core activities of an organization to outside suppliers, ‘Outsourcing can be risky and complex ifnot planned and analysed properly. However, it also has ‘a tremendous potential and that is the reason of expansion of outsourcing activites in recent years ‘The selection ofthe outsourcing providers is generally done through factor-rating analysis. Unger Factor-rating method. points are assigned to each ot ne setection cater and then ‘weights are assigned to them as per thelr importance In the outsourcing decision. The combined welgnted average score of all he outsourcing providers are compared against each other Detore: selecting one of them, ‘The weighted score of the outsource providers using the factor rating method is presented in the table below: Outsource Providers A B |c|p Factor w |r we]R|we|R [we] R|WR Labor w |s aw |4 faa [aw |5 ow Quality procedures }30 2 60 |s 90 ]5|150]1 Jao Logistics system fs fa a5 |4]20 Ja]as fs fas pice 2 |o 128375 |4| 100] | 100 Trustwortiiness [5 | 16 |2]10 |s|a5 [sas Technology in piace |15 | 2 so ]5|75 Ja|eo |4]oo Management team fis [5 7 |4]60 |2]o0 fa fas Total ese From tne above table, the Total Weighted Rating (WR) of the outsource providers can be shown as follows: Total weighted rating for A = (320-+ 5W)(95-+ W) Total weighted rating for B= (330+ 4W)/(95+ W) Total weighted rating for C= (370-+ 3WY(95-+ W) ‘Total weighted rating for D = (255+ SW)/(95+ W) If Company is the recommended outsource provider, then the tolal weighted rating of ¢ should be greater than A, 8 & D. Hence. we can develop the following equations: Total weighted rating of C > Total weighted rating of A. (0 (370+ 3W)(95 + W) > (320 + SW)(95 + W) or, 370-320 >5W -3W or, W<25 ‘Total weighted rating of C > Total weighted rating of B (oF, (370-4 3W)/(95 + W) > (330 + 4WY(95 + W) or, 370-330 >4W -3W or, W<40 Total weighted rating of C > Total weighted rating of D or, (370 + 3W)(9S + W) > (255 + SW(9S + W) 0£,370-255>5W-3W or, W<37 “Therefore, i © is he recommended outsource provider, the weight for labor tactr should be [ess nan 25]as weignts are on a scale rom 1 through 30 Note: 1. nthe above table. Wis woIght. “R'is rating ana WR" Is weighted rating, 2. The weishied rating is obtained by multiplying the rating of each country withthe assigned ‘weights for each selection crteria and dividing the same by the total weight Weighted rating (Weight * Rating) ‘Total weight CommentProblem Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy? Support your choice with specific references to Boeing's operations and the characteristics of each type of organization. Step-by-step solution Step1of2 A A multi-national strategy involves the organization owning and operating various faciities in two or more countries. These facilities maybe belong to the same business vertical or from diverse businesses. Under this strategy, lot of the decision making is localized, while there may be a degree of central contral A global strategy is pursued when the products manufactured by the company are standardized and there is very litte localization requirements. In this case, all facilities, which may be owned by the organization or outsources, are centrally controlled to ensure standaraization ana economies of scale. A transnational strategy combines the benefits of a global strategy with a degree of locaization, This is used where the degree is minimal like outer packaging or small deviations in the specifications to meet local rules and regulations. Comment Step 2012 In light of the stated case, 3@ is following a global strategy since it is sourcing its parts from various suppliers from all over the world built ta a standard specification. This is why one model of plane supplied to China is the same as that supplied to India, except for the interiors and exterior paint. For instance, the company could get the following things to execute the supply process smoothly, 4. Passenger doors from France and cargo and access doors from Sweden. 2. Engines from one firm in the UK and the tue! pumps and valves from another unrelated firm in the UK, 3. Landing gear from France and the hydraulic actuators for the same from Japan The company requires tremendous amount of co-ordination during design, manufacture and testing to ensure that no time is lost once the various parts arrive at the assembly plant. Also, the supply chain has to be coordinated and integrated to ensure that there is no unnecessary buildup of inventory or stock-out of parts.