Mata kuliah : J0444 - Manajemen Operasional
Tahun
: 2010
Operations Strategy
in a Global Environment
Pertemuan 02
Learning Objectives
Identify or Define:
– Mission
– Strategy
– Multinational Corporations
– Specific approaches used by OM to
achieve strategies
– Four Global Operations Strategies
– Why Global Issues are Important
Management Issues in
Global Operations
Global Strategic
Context
– Differentiation
– Cost leadership
– Response
Supply Chain
Manageme
nt
Location
Decisions
Logistics
Manageme
nt
Supply-Chain Management
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Sourcing
Vertical integration
Make-or-buy decisions
Partnering
Location Decisions
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Country-related issues
Product-related issues
Government policy/political risk
Organizational issues
Materials Management
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Flow of materials
Transportation options and speed
Inventory levels
Packaging
Storage
Defining Global Operations
• International business - engages in cross-border
transactions
• Multinational Corporation - has extensive
involvement in international business, owning or
controlling facilities in more than one country
• Global company - integrates operations from
different countries, and views world as a single
marketplace
• Transnational company - seeks to combine the
benefits of global-scale efficiencies with the
benefits of local responsiveness
Reasons to Globalize Operations
Tangible
Intangiblel
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Reduce costs (labor, taxes, tariffs, etc.)
Improve the supply chain
Provide better goods and services
Attract new markets
Learn to improve operations
Attract and retain global talent
Achieving Global Operations
-Four Considerations•
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Global product design
Global process design and technology
Global factory location analysis
Impact of Culture and Ethics
Global Product Design
• Remember social and cultural differences
– packaging and marketing can help make product
seem “domestic” but • “liter” versus “quart”
• “sweetness” and “taste”
Global Process Design and Technology
• Information technology enables management
of integrated, globally dispersed operation
• Texas Instruments: 50 plants in 19 countries
• Hewlett-Packard - product development
teams in U.S., Japan, Great Britain, and
Germany
• Reduces time-to-market
Global Facility Location Analysis
Using CSFs for Country Selection
• Select CSFs based on parent organization;’s
strategic or operations objectives
• Obtain country-specific information on the CSFs
• Evaluate each country’s CSFs using a 1 (bad) to 5
(good) rating scale
• Sum the ratings
You May Wish To Consider
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national literacy rate
rate of innovation
rate of technology change
number of skilled workers
stability of government
product liability laws
export restrictions
similarity in language
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work ethic
tax rates
inflation
availability of raw materials
interest rates
population
number of miles of highway
Global Impact of Culture and Ethics
• Cultures differ! Some accept/expect:
– variations in punctuality
– long lunch hours
– expectation of thievery
– bribery
– little protection of intellectual property
To Establish Global Services
• Determine if sufficient people or facilities exist to support
the service
• Identify foreign markets that are open - not controlled by
governments
• Determine what services are of most interest to foreign
customers
• Determine how to reach global customers
Managing Global Service Operations
Must take a different perspective on
• Capacity planning
• Location Planning
• Facilities design and layout
• Scheduling
Some Definitions
• International business
– A firm that engages in cross-border
transactions.
• Multinational Corporation (MNC)
– A firm that has extensive involvement in
international business, owning or
controlling facilities in more than one
country
Some Global Strategies
• International Strategy: uses exports and licenses
to penetrate the global area
• Multidomestic Strategy: uses decentralized
authority with substantial autonomy at each
business
Some Global Strategies
• Global Strategy: Uses a high degree of
centralization, with headquarters coordinating to
seek standardization and learning between
plants
• Transnational Strategy: Exploits economies of
scale and learning, as well as pressure for
responsiveness, by recognizing that core
competencies reside everywhere in the
organization
Why Some Organizations Fail
• Too much emphasis on short-term financial
performance
• Failing to take advantage of strengths and
opportunities
• Neglecting operations strategy
• Failing to recognize competitive threats
Why Some Organizations Fail
• Too much emphasis in product and service design and
not enough on improvement
• Neglecting investments in capital and human
resources
• Failing to establish good internal communications
• Failing to consider customer wants and needs
Mission/Strategy/Tactics
Mission
Strategy
Tactics
How does mission, strategies and tactics relate to
decision making and distinctive competencies?
Strategy
• Mission
– The
reason for existence for an organization
• Mission Statement
– States
the purpose of an organization
• Goals
– Provide
•
detail and scope of mission
Strategies
–Plans for achieving organizational goals
• Tactics
– The
methods and actions taken to accomplish strategies
Planning and Decision Making
Mission
Goals
Organizational Strategies
Functional Goals
Finance
Strategies
Tactics
Operating
procedures
Marketing
Strategies
Operations
Strategies
Tactics
Tactics
Operating
procedures
Operating
procedures
Strategy Example
Rita is a high school student. She would like to have
a career in business, have a good job, and earn
enough income to live comfortably
Mission:
• Goal:
• Strategy:
• Tactics:
• Operations:
Live a good life
Successful career, good income
Obtain a college education
Select a college and a major
Register, buy books, take
courses, study, graduate, get job
Strategies for Competitive Advantage
• Differentiation
• Cost leadership
• Quick response
Competing on Differentiation
Uniqueness can go beyond both the physical
characteristics and service attributes to
encompass everything that impacts customer’s
perception of value
Competing on Cost
Provide the maximum value as perceived by customer
Does not imply low value or low quality
Competing on Response
• Flexibility
• Reliability
• Timeliness
Requires institutionalization within the firm of the ability to
respond
Four International Operations Strategies
• Multidomestic Strategy
Operating decisions are decentralized to each country to
enhance local responsiveness
• Global Strategy
Operating decisions are centralized and headquarters
coordinates the standardization and learning between
facilities
• Transnational Strategies
Combines the benefits of global-scale efficiencies with
the benefits of local responsiveness
• International Strategy
Global markets are penetrated using exports and
licenses
The End