Professional Documents
Culture Documents
Entorno Global
1
Operations Strategy in
a Global Environment 2
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
HEADQUARTERS
SUPPLIER COUNTRY COMPONENT
Latecoere France Passenger doors
Labinel France Wiring
Dassault France Design and PLM software
Messier-Bugatti France Electric brakes
Thales France Electrical power conversion
system and integrated
standby flight display
Messier-Dowty France Landing gear structure
Diehl Germany Interior lighting
HEADQUARTERS
SUPPLIER COUNTRY COMPONENT
Kawasaki Heavy Japan Forward fuselage, fixed
Industries sections of wing, landing
gear wheel well
Teijin Seiki Japan Hydraulic actuators
Mitsubishi Heavy Japan Wing box
Industries
Chengdu Aircraft Group China Rudder
Hafei Aviation China Parts
Korean Airlines South Korea Wingtips
Saab Sweden Cargo and access doors
© 2014 Pearson Education,
© 2014Inc.Pearson Education, Inc. 2-9
Global Strategies
60 –
55 –
50 –
45 –
Percent 40 –
35 –
30 –
25 –
20 –
15 –
| | | | | | | | |
10 –
1970 1975 1980 1985 1990 1995 2000 2005 2010
Year Figure 2.1
© 2014 Pearson Education, Inc. 2 - 12
Reasons to Globalize
► Punctuality ► Thievery
► Lunch breaks ► Bribery
► Environment ► Child labor
► Intellectual
property
► Braun Household
Appliances 1. Volkswagen
► Firestone Tires 2. Bridgestone
► Godiva Chocolate 3. Campbell Soup
► Haagen-Dazs Ice 4. Tata Motors Limited
Cream
5. Proctor and Gamble
► Jaguar Autos
6. Nestlé
► MGM Movies
7. Pillsbury
► Lamborghini Autos
8. Sony
► Alpo Petfoods
► Braun Household
Appliances 1. Volkswagen
► Firestone Tires 2. Bridgestone
► Godiva Chocolate 3. Campbell Soup
► Haagen-Dazs Ice 4. Tata Motors Limited
Cream
5. Proctor and Gamble
► Jaguar Autos
6. Nestlé
► MGM Movies
7. Pillsbury
► Lamborghini Autos
8. Sony
► Alpo Petfoods
Figure 2.2
Figure 2.2
Philosophy
and Values
Profitability and
Environment Growth
Mission
Benefit to
Society
Organization’s
Mission
Functional Area
Missions
Finance/
Marketing Operations Accounting
Figure 2.3
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Sample Missions
Figure 2.3
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Sample Missions
Figure 2.3
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Sample Missions
Figure 2.3
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Strategy
Product DIFFERENTIATION:
Innovative design Safeskin’s innovative gloves
Broad product line Fidelity Security’s mutual
Quality funds
After-sales service Caterpillar’s heavy equipment
Process service
Experience Hard Rock Café’s dining
Location experience
▶ Resources view
▶ Value-chain analysis
▶ Porter’s Five Forces model
▶ Operating in a system with many
external factors
▶ Constant change
Figure 2.5
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Product Life Cycle
Introduction Growth Maturity Decline
Product design Forecasting critical Standardization Little product
and development Product and Fewer product differentiation
critical process reliability changes, more Cost
Frequent product Competitive minor changes minimization
and process
OM Strategy/Issues
Figure 2.5
© 2014 Pearson Education, Inc. 2 - 45
SWOT Analysis
Mission
Internal External
Strengths Opportunities
Analysis
Internal External
Weaknesses Threats
Strategy
Form a Strategy
Build a competitive advantage, such as low price, design, or volume
flexibility, quality, quick delivery, dependability, after-sale service,
broad product lines.
Figure 2.6
© 2014 Pearson Education, Inc. 2 - 47
Strategy Development and
Implementation
Service Leverage
Distribution Cost of capital
Promotion Working capital
Channels of distribution Receivables
Product positioning Payables
(image, functions) Financial control
Lines of credit
Competitive Advantage:
Low Cost
High Frequent,
Aircraft Reliable
Utilization Standardized Schedules
Fleet of Boeing
737 Aircraft
Figure 2.8
© 2014 Pearson Education, Inc. 2 - 50
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Competitive Advantage:
No seat assignments
No Low
baggageCost
transfers
No meals (peanuts)
High Frequent,
Aircraft Reliable
Utilization Standardized Schedules
Fleet of Boeing
737 Aircraft
Figure 2.8
© 2014 Pearson Education, Inc. 2 - 51
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
No meals (peanuts)
Lean,
Lower gate costs at secondary airports Short Haul, Point-to-
Productive Point Routes, Often to
High number of flights reduces employee
Employees Secondary Airports
idle time between flights
Competitive Advantage:
Low Cost
High Frequent,
Aircraft Reliable
Utilization Standardized Schedules
Fleet of Boeing
737 Aircraft
Figure 2.8
© 2014 Pearson Education, Inc. 2 - 52
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
TABLE 2.3 Factor Ratings Applied to National Architects’s Potential IT Outsourcing Providers
OUTSOURCING PROVIDERS
Score for BIM = (.2 * 3) + (.2 * 4) + (.2 * 5) + (.1 * 4) + (.1 * 5) + (.1 * 4) + (.1 * 2) = 3.9
Cost Reduction
International
strategy
(eg, Harley-Davidson
U.S. Steel)
• Import/export or
license existing
product
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 66
Global Operations Strategy Options
High
Figure 2.9
Global strategy
Cost Reduction
(eg, Caterpillar
Texas
Instruments
International
• Otis Elevator)
Standardize
strategy
product
(eg, Harley-Davidson
• U.S.
Economies
Steel)
of scale
• Import/export or
• Cross-cultural
license existing
product
learning
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 67
Global Operations Strategy Options
High Global strategy
(eg, Caterpillar Figure 2.9
Texas Instruments
Otis Elevator)
• Standardize product
• Economies of scale
Cost Reduction • Cross-cultural learning
International
strategy
(eg, Harley-Davidson
U.S. Steel)
• Import/export or
license existing
product
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 68
Global Operations Strategy Options
High Global strategy
(eg, Caterpillar Figure 2.9
Multidomestic
Texas Instruments
Otis Elevator)
strategy
•
•
(eg,
StandardizeHeinz,
product
Economies of scale
McDonald’s
Cost Reduction • The
Cross-cultural Body Shop
learning
Hard Rock Cafe)
• Use existing domestic
International
model globally
strategy
(eg, Harley-Davidson
• Franchise, joint
U.S. Steel)
• ventures,
Import/export or
license existing
subsidiaries
product
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 69
Global Operations Strategy Options
High Global strategy
(eg, Caterpillar Figure 2.9
Texas Instruments
Otis Elevator)
• Standardize product
• Economies of scale
Cost Reduction • Cross-cultural learning
International Multidomestic
strategy strategy
(eg, Harley-Davidson (eg, Heinz, McDonald’s
U.S. Steel) The Body Shop
Hard Rock Cafe)
• Import/export or • Use existing domestic
license existing model globally
product • Franchise, joint
ventures,
subsidiaries
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 70
Global Operations Strategy Options
High Global strategy
Figure 2.9
Transnational
(eg, Caterpillar
Texas Instruments
Otis Elevator) strategy
• (eg,
Standardize Coca-Cola,
product Nestlé)
• Economies of scale
Cost Reduction • Move material,
• Cross-cultural learning
International Multidomestic
strategy strategy
(eg, Harley-Davidson (eg, Heinz, McDonald’s
U.S. Steel) The Body Shop
Hard Rock Cafe)
• Import/export or • Use existing domestic
license existing model globally
product • Franchise, joint
ventures,
subsidiaries
Low
Low High
Local Responsiveness
(Quick Response and/or Differentiation)
© 2014 Pearson Education, Inc. 2 - 72
Ranking Corruption
Rank Country 2012 CPI Score (out of 100)
1 Demark, Finland, New Zealand 90 Least
4 Sweden 88 Corrupt
5 Singapore 87
6 Switzerland 86
7 Australia, Norway 85
9 Canada, Netherlands 84
13 Germany 79
14 Hong Kong 77
17 Japan, UK 74
19 USA 73
37 Taiwan 61
39 Israel 60
45 South Korea 56 Most
80 China 39 Corrupt
123 Vietnam 31
133 Russia 28
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without the prior written permission of the publisher.
Printed in the United States of America.
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