2–1OperationsManagementOperationsManagementChapter2–OperationsStrategyinaGlobalEnvironmentChapter2–OperationsStrategyinaGlobalEnvironmentPowerPointpresentationtoaccompanyPowerPointpresentationtoaccompanyHeizer/RenderHeizer/RenderPrinciplesofOperationsManagement,6ePrinciplesofOperationsManagement,6eOperationsManagement,8eOperationsManagement,8e2–2OutlineOutlineGlobalCompanyProfile:BoeingGlobalCompanyProfile:BoeingAGlobalViewofOperationsAGlobalViewofOperationsCulturalandEthicalIssuesCulturalandEthicalIssuesDevelopingMissionsAndDevelopingMissionsAndStrategiesStrategiesMissionMissionStrategyStrategy2–3OutlineOutline––ContinuedContinuedAchievingCompetitiveAdvantageAchievingCompetitiveAdvantageThroughOperationsThroughOperationsCompetingOnDifferentiationCompetingOnDifferentiationCompetingOnCostCompetingOnCostCompetingOnResponseCompetingOnResponseTenStrategicOMDecisionsTenStrategicOMDecisions2–4OutlineOutline––ContinuedContinuedIssuesInOperationsStrategyIssuesInOperationsStrategyResearchResearchPreconditionsPreconditionsDynamicsDynamicsStrategyDevelopmentAndStrategyDevelopmentAndImplementationImplementationIdentifyCriticalSuccessFactorsIdentifyCriticalSuccessFactorsBuildandStafftheOrganizationBuildandStafftheOrganizationIntegrateOMwithOtherActivitiesIntegrateOMwithOtherActivities2–5OutlineOutline––ContinuedContinuedGlobalOperationsStrategyGlobalOperationsStrategyOptionsOptionsInternationalStrategyInternationalStrategyMultidomesticStrategyMultidomesticStrategyGlobalStrategyGlobalStrategyTransnationalStrategyTransnationalStrategy2–6LearningObjectivesLearningObjectivesMissionMissionStrategyStrategyTendecisionsofOMTendecisionsofOMMultinationalcorporationMultinationalcorporationWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:IdentifyorDefine:IdentifyorDefine:2–7LearningObjectivesLearningObjectivesSpecificapproachesusedbyOMSpecificapproachesusedbyOMtoachievestrategiestoachievestrategiesDifferentiationDifferentiationLowcostLowcostResponseResponseWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:DescribeorExplain:DescribeorExplain:2–8LearningObjectivesLearningObjectivesFourglobaloperationsstrategiesFourglobaloperationsstrategiesWhyglobalissuesareimportantWhyglobalissuesareimportantWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:DescribeorExplain:DescribeorExplain:2–9GlobalStrategiesGlobalStrategiesBoeingBoeing––salesandproductionaresalesandproductionareworldwideworldwideBenettonBenetton––movesinventorytostoresmovesinventorytostoresaroundtheworldfasterthanitsaroundtheworldfasterthanitscompetitionbybuildingflexibilityintocompetitionbybuildingflexibilityintodesign,production,anddistributiondesign,production,anddistributionSonySony––purchasescomponentsfrompurchasescomponentsfromsuppliersinThailand,Malaysia,andsuppliersinThailand,Malaysia,andaroundtheworldaroundtheworld2–10GlobalStrategiesGlobalStrategiesVolvoVolvo––consideredaSwedishcompanyconsideredaSwedishcompanybutitiscontrolledbyanAmericanbutitiscontrolledbyanAmericancompany,Ford.ThecurrentVolvoS40iscompany,Ford.ThecurrentVolvoS40isbuiltinBelgiumandsharesitsplatformbuiltinBelgiumandsharesitsplatformwiththeMazda3builtinJapanandthewiththeMazda3builtinJapanandtheFordFocusbuiltinEurope.FordFocusbuiltinEurope.HaierHaier––AChinesecompany,producesAChinesecompany,producescompactrefrigerators(ithasonecompactrefrigerators(ithasone--thirdofthirdoftheUSmarket)andwinecabinets(ithastheUSmarket)andwinecabinets(ithashalfoftheUSmarket)inSouthCarolinahalfoftheUSmarket)inSouthCarolina2–11SomeMultinationalSomeMultinationalCorporationsCorporations%Sales%Sales%Assets%AssetsOutsideOutsideOutsideOutsideHomeHomeHomeHomeHomeHome%Foreign%ForeignCompanyCompanyCountryCountryCountryCountryCountryCountryWorkforceWorkforceCiticorpCiticorpUSAUSA34344646NANAColgateColgate--USAUSA72726363NANAPalmolivePalmoliveDowDowUSAUSA60605050NANAChemicalChemicalGilletteGilletteUSAUSA62625353NANAHondaHondaJapanJapan63633636NANAIBMIBMUSAUSA5757474751512–12SomeMultinationalSomeMultinationalCorporationsCorporations%Sales%Sales%Assets%AssetsOutsideOutsideOutsideOutsideHomeHomeHomeHomeHomeHome%Foreign%ForeignCompanyCompanyCountryCountryCountryCountryCountryCountryWorkforceWorkforceICIICIBritainBritain78785050NANANestleNestleSwitzerlandSwitzerland989895959797PhilipsPhilipsNetherlandsNetherlands949485858282ElectronicsElectronicsSiemensSiemensGermanyGermany5151NANA3838UnileverUnileverBritain&Britain&959570706464NetherlandsNetherlands2–13BoeingSuppliers(787)BoeingSuppliers(787)FirmFirmCountryCountryComponentComponentDassaultDassaultFranceFranceDesignandDesignandPLMsoftwarePLMsoftwareMessierMessier--BugattiBugattiFranceFranceLandinggearLandinggearThalesThalesFranceFranceElectricalpowerElectricalpowerconversionsystemconversionsystemandintegratedandintegratedstandbyflightdisplaystandbyflightdisplayDiehlDiehlGermanyGermanyInteriorlight