Chapter 2 Operations Strategy in a Global Environment

Reasons for global operations
1. Improve the supply chain
  Annotations:
  - Locate in countries with: -Low cost labor -Raw material.
2. Reduce costs
  Annotations:
  - -Less stringent goverment regulations. -Cut taxes and tariffs. Thanks of Free Trade agreements.
3. Improve operations
  Annotations:
  - Learn from better understanding of differences in the business is handle in different countries. Reduce response time to meet customers changing product and service requirements.
4. Undestarnd markets
  Annotations:
  - .-Diversity of their customer base. -Expand the life cycle
5. Improve products
6. Attract and retain global talent
Competing on differentitation
1. Distinguishing as adding value.
  1. Broad product line
2. Experience economy
3. Providing uniqueness beyond
  1. Physical
    1. Innovative design
  2. Service
    1. After sales service
Competing on cost
1. Use of financial sources effective
2. Cost advantages
  1. Low overhead
  2. Effective capacity use
    1. Southwest airlines
  3. Inventory managment
    1. Walmart distribution
3. Low cost leadership
  Annotations:
  - Achieving maximum value as perceived by the customer
Competing on response
1. Flexible
  1. match changes in markertplace
    1. HP
2. Reliable
  1. scheduling
    1. FedEx
3. Quick
  1. Pizza Hut 5 minutes
Product life cycle
Key Succes factors
1. of 1 Activities that are necessary for a firm to achieve its goals.
Core competencies
1. Skills
2. Talents
  1. World class standard
3. Capabilities
Factor-rating analysis (outsourcing)
1. Increased techological expertise
2. More reliable and cheaper transportation
3. Rapid development and deployment of advancements in TELECOM

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Chapter 2 Operations Strategy in a Global Environment

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