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Global Business Conditions

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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)

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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.

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Slow down in US economy- Impact
on Indian economy

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• 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)
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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
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Prices are coming down
Operations strategy?

Costs to be driven down

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HLL Super value stores

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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.

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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.

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Quality, Customer Service & Cost Challenge

•Perfect product & Service Quality


•Advanced Technologies and Automation

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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

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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

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Social- Responsibility issues

•Consumer attitudes

•Government regulation

•Self interest

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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

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