Operations Strategy in
a Global Environment
MGT 475.01 & .02 Fall 2008
On-Line Assignment for 8/29/08
• Read Chapter 2 in the text.
• Run this PowerPoint slide show.
• Complete the quiz on the last slides and
turn in your Scantron Quizstrip 815-E at
the beginning of class on 9/3/08.
• Do problem 2.6 on page 48 of the text (for
practice—not to be turned in).
MGT 475.01 & .02 Fall 2008
Reasons to Globalize
The text lists 6 reasons to globalize in Figure
2.1. They all are focused on becoming
more effective and efficient in serving
customers.
MGT 475.01 & .02 Fall 2008
Cultural Issues for Globalization
• Country Risk Assessment (would you want
to locate a business in Iraq this year?)
• Currency Conversion Risk (will the dollar
strengthen or weaken? At what value will I
be able to bring profits from overseas
operations back to the U.S.?)
• Political Risk Assessment (how likely is it
that the current government policies will
continue into the future?)
MGT 475.01 & .02 Fall 2008
Cultural Issues Continued
• How well will my current managerial
policies work in another culture?
• Language issues.
• Possible differences in cultural values.
• What is legal (and often expected) in the
host country may not be legal at home
(e.g. bribes).
MGT 475.01 & .02 Fall 2008
Developing Mission and
Strategies
Mission – The purpose or rational for an
organization’s existence. Enables an
organization to focus on a common
purpose.
Strategy – How an organization expects to
achieve its mission and goals. An action
plan designed to achieve the mission.
MGT 475.01 & .02 Fall 2008
Developing Mission and
Strategies
The organizational mission should be
developed with participation throughout
the organization. As Figure 2.4 shows,
Functional Area and Departmental
missions must be consistent with the
Organization mission.
Organization
Mission
Functional
Area Mission
MGT 475.01 & .02 Fall 2008
Departmental
Mission
Strategy Development and
Implementation:
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Internal
External
MGT 475.01 & .02 Fall 2008
CSF and Activity Maps
Identify Critical Success Factors (CSF)
which are key to achieving competitive
advantage.
Use Activity Maps to link competitive
advantage, CSFs, and supporting
activities (Figure 2.8).
MGT 475.01 & .02 Fall 2008
Operations Strategy
Table 2.1 lists 10 strategic operations
decision areas.
MGT 475.01 & .02 Fall 2008
Homework Assignment
For practice—not to be turned in:
Do Problem 2.6 on p. 48 of the hardbound
edition of the text.
MGT 475.01 & .02 Fall 2008
Quiz
Answer the questions on the next slides.
Select the BEST answer. Record your
answers on a Scantron Quizstrip Form
815-E. You must turn in your Quizstrip at
the beginning of class on 9/3/08.
MGT 475.01 & .02 Fall 2008
Quiz
1.
Which of the following did the authors not suggest as a reason for
globalizing operations:
a. reduce costs
d. attract new markets
b. improve the supply chain e. all of the above were suggested
c. stockholder approval ratings
2.
The term maquiladora is most synonymous with:
a. free trade zone
d. areas that do not meet US safety
b. Chinese forced labor camps
standards
c. home-based industry
e. none of the above
3.
Critical Success Factors are those relatively few activities that make a
difference between having and not having a competitive advantage.
a. True
b. False
MGT 475.01 & .02 Fall 2008
Quiz
4.
Which of the following is true about business strategies?
a. An org. should stick with its strategy for the life of the business.
b. All firms within an industry will adopt the same strategy.
c. Well defined missions make strategy development much easier.
d. Strategies are formulated independently of SWOT analysis.
e. Organizational strategies depend on operations strategies.
5.
The acronym MNC stands for:
a. Mexican National Committee for trade
b. Maquiladora Negates Competition
c. Maytag-Nestle Corporation
d. Multinational Corporation
e. none of the above.
MGT 475.01 & .02 Fall 2008
Quiz
6.
It is safe to assume that the management style that works in one culture
will be equally effective in another culture.
a. True
b. False
7.
The risk that a new government might nationalize the assets of foreign
owned firms with operations in their country is assessed in:
a. country risk assessment
b. CSF analysis
c. political risk assessment
d. overseas business plan
e. currency risk assessment
8.
Departmental missions may differ significantly from the overall
organization’s mission.
a. True
b. False
MGT 475.01 & .02 Fall 2008
Quiz
9.
_____________________ are the set of actions designed to enable the
organization to achieve its mission.
a. Goals
d. CSFs
b. Tactics
e. Strategies
c. Action plans
10. The organization’s mission should normally be developed at the top levels
of the organization without input from lower levels.
a. True
b. False
MGT 475.01 & .02 Fall 2008