INTERNATIONAL IN

PRODUCTION AND
OPERATION
MANAGEMENT
■ International production and operations
management deals with production of goods
and services in international locations and
markets. It involves management process which
has to take into consideration local production
market (labor and capital) and international
customer requirements.
 Nature of IPOM
■ The foundation for international production and operations is no
different to domestic production and operations management. But
there are certain aspects which make international exposure a
challenge for an organization.
■ The very 1st difference is international business environment where
not just economics but also international quality standards have to be
maintained.
■ The 2nd aspect is the international stint makes the company more
aware of its surroundings thus making it more competitive.
 ■MEETING THE
INTERNATIONAL
CHALLENGES IN
PRODUCTION AND
OPERATIONS MANAGEMENT
■Product Management is an
organizational lifecycle function within a
company dealing with the planning,
forecasting, and production or marketing
of a product or products internationally
at all stages.
■ Organization Management, focusing on
relations between people which interact in
the same organization, promoting team
work, career development in an international
context under the new economic
challenges.
 MEETING THE COMPETITIVE
CHALLENGES IN PRODUCTION
AND OPERATIONS
MANAGEMENT
■ Culture: Domestic POM has to content with homogenous culture where as IPOM has to content
with multi-culture multi-ethnicity scenario.

■ Business Environment: Domestic POM has to consider local economical and social factors where
as IPOM has to deal with economical and social factors across geography and countries.

■ Quality Standards: Domestic POM has to look at single local market therefore not much variation in
quality standards where as IPOM has to consider different international markets with different
quality standard requirements.

■ Pricing: Pricing for Domestic POM may not be a challenge as competition would also operate in the
same environment. IPOM has to consider the customer paying capacity which may vary from
developed country to developing country.
.
■ Technology: In domestic environment innovation and usage of technology is much more
comparable among competition. For IPOM owing to different quality and pricing requirements
investment in technology becomes important.

■ Economies of Scale: Domestic POM has to deal with limited local market, hence limiting scope of
economies of scale whereas IPOM has to access to larger market thus providing a change of
achieving larger economies of scale.

■ Market Segmentation: Domestic POM is around local market where as IPOM has to developed
and diversified market.

■ Usage of resources: Domestic POM has to deal with in-flexibility of moving around of resources
within one location while IPOM has advantage of moving around of resources from high cost
market to low cost market