GLOBAL OPERATIONS

MANAGEMENT
OPERATIONS
MANAGEMENTS
Operations management refers to the administration of
business practices to create the highest level of efficiency
possible within an organization. It is concerned with
converting materials and labour into goods and services as
efficiently as possible to maximize the profit of an
organization.
 GLOBAL OPERATIONS
•MANAGEMENTS
Global Operations Management (GOM) concentrate on state-of-
the-art knowledge of managing operations in a global context. The
focus will be on contemporary issues related to operations
function which are of relevance in a firm’s ability to effectively
collaborate with its supply chain partners in order to remain
competitive in a global economy. The GOM deals with global
manufacturing, management of materials, quality, supply chains,
services, global projects, and operations strategy.
 OPERATIONS MANAGEMENT AND
COMPETITIVE ADVANTAGE

• Competing on differentiation
• Competing on cost
• Competing on response
a. flexible response
b. reliability of scheduling
c. quickness
IMPORTANCE OF MANAGING GLOBAL
OPERATIONS
1. Reduce cost
2. Reduce risk
3. Secure supply sources
4. Improve customer services
5. Attract new markets
6. Learn to improve operations
7. Attract global talent
STRATEGIC ISSUE IN OPERATION
MANAGEMENT
When an international company possesses a particular technology
and decides to begin manufacturing, it needs to adopt a sound
operation strategy so as to enjoy competitive advantage.

Manufacturing involves transformation or conversion of new

materials and inputs into good and services.
It is therefor associated with activities or decisions related with
manufacturing.
The operation strategy in a manufacturing company involves many
issues. The more important among them are:

1. Manufacturing management
2. Procuring(Purchase Department)
3. Supply chain & Logistics management
4. Other issues in managing global operations
operations research
MANUFACTURING
MANAGEMENT
International manufacturing management provides an unparalleled
opportunity for companies to grow into new markets while at the
same time boosting their competitiveness. However, most of today’s
networks are legacy structures only a fraction was strategically
planned. As a result, there is huge potential to be captured from
rethinking traditional structures, approaches and supply relations,
and huge potential for getting it wrong.
FORCES ACCELERATING GLOBAL
MANUFACTURING

1.Huge factor cost differences

2.High growth in emerging markets
3.Lower transaction cost
 KEY ISSUES IN INTERNATIONAL
MANUFACTURING
MANAGEMENT
1. Geographical dimension
2. Regulatory regimes dimension
3. Working issues for labour force
4. Location issues
5. Increase in cost of production
 LOGISTICS
MANAGEMENT
GLOBAL LOGISTICS is the process of planning, implementing
and controlling the flow and storage of goods and services
and related information from a point of origin to appoint of
consumption located in a different country. The global
logistics function management function is naturally more
complex than the logistics function managed within one
particular country.
COMPONENTS OF GLOBAL
LOGISTICS
1. International transportation
2. International insurance
3. Packaging needs
4. International means of payment
5. Teams of trade
6. The crossing of borders
7. Inventory
8. Environment of international logistics
INTERNATIONAL LOGISTIC
DECISION
1. Warehouse managements
2. Packaging
3. Inventory management
4. Material handling
5. Information systems
6. Transportation
a. railway transportation
b. road transportation
c. water transportation
d. air transportation
7. insurances
PROCURI
NG

Global procuring or sourcing occurs when buyers purchase goods

and services from sellers located anywhere in the in the world.
Global sourcing of goods, crops and other commodities has been
common for many years in industries such as manufacturing and
agriculture, used as appositive strategy to reap economic advantage.
ENABLING FACTORS OF GLOBAL
PROCURING

1. Growing pools of highly skilled resources

2. State-of-the-art facilities
3. Advances in telecommunications
4. Improvement in collaborative tools and
platforms
5. Maturing delivery models
MODES OF GLOBAL
PROCCURING

1. Importation
2. Establishment of international procurement offices (IPOs)
3. Sourcing through direct investment
OTHER ISSUES IN MANAGING GLOBAL
OPERATIONS
1. Make or buy
2. International standardisation of production facilities
3. Robotics and flexible manufacturing
4. Contract manufacturing
5. Strategic role of foreign plants
6. Managing technology transfers
7. Internationalisation of R&D
8. International quality standards
TECHNOLOGY
TRANSFER
Technology transfer is the process of sharing of skill, knowledge,
technologies, methods of manufacturing, sample of manufacturing
and facilities among governments and other institutions to ensure
that scientific and technological developments are accessible to a
wider range of users who can then further develop and exploit the
technology into new products, processes, applications, materials or
services.
REASONS FOR TECHNOLOGY
TRANSFER
1. Profit from selling technology
2. Location and logistics advantage
3. Competitive edge
4. Grants and subsidiaries
5. Limitations of home country
6. superior capital market
7. Enhance competence
METHOD OF TECHNOLOGIC
TRANSFER
1. FDI
2. Licensing
3. Franchising
4. Management Contracts
5. Contract manufacturing
6. Joint Venture
7. Technological consortium and joint R&D projects
IMPORTANCE OF TECHNOLOGICAL
TRANSFER

1. Encourage use of technology

2. Create competitive advantage
3. Promote research and development
4. Enhance capability and innovations
5. Leverage business environment
MARKETING
• Responsibilities of Marketing Management
MANAGEMENT
1. Market analysis
2. Set Goals
3. Forecast sales & profits
4. Strategies, policies & procedures
5. Evolve appropriate marketing mix
6. Organize marketing activities
7. Organize resources
8. Participation in product planning
9. Managing Supply chain
10. After Sales activities
BENEFITS OF INTERNATIONAL
MARKETING
• Provides higher standard of living
• Ensures rational & optimum utilization of resources
• Rapid industrial growth
• Benefits of comparative cost
• International cooperation and world peace
• Facilitates cultural exchange
• Better utilization of surplus production
• Availability of foreign exchange
• Expansion of tertiary sector
• Special benefits at times of emergency
MAJOR ACTIVITIES IN INTERNATIONAL
MARKETING

• Market Assessment
• Product decisions
• Promotion strategies
• Pricing decisions
• Place or distribution strategies
THANK
YOU