...insight about what global operations management is, give examples of companies that are approaching global operations management, explain why it has become important for companies to become competitive in the global business environment, and what investments and operations management and other countries will affect the way companies in the United States operate. Global operations management is about how multinational companies expand their business on a global scale, how they operate in those countries and what operation strategies are used in order to be successful. There are a few issues that need to be considered when going global which are: Global Sourcing, Global Manufacturing and Global Distribution. An example of a company that is taking the global approach is Netflix. Back in September of 2009, Reed Hastings launched his company in Canada and made hints about continuing and international expansion for 2011. Although he has the means to do so, they will not be as easy as many may think. But it is not all big companies that are taking the global approach. Mary Domenico and Philip Chigos are taking the global approach to building a children's pajama business and having their garments made in China. Technology has made it very easy for these two individuals to make the dream possible. 1. Why has it become so important for companies to become competitive in the global business environment? It is very important for businesses to compete in the global environment because...
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...Running head: UNIT 1 Global Operations Management Unit 1 Global Operations Management Discussion Board MGMT 415-1103B-04 Instructor: Alfred Siu Christi Kerr AIU Online Unit 1 Global Operations Management Managing global operations have never been easy. However; managing global operations correctly shows in the bottom line in the company. There are many things that have changed global operations such as communications, transportation and cutting cost (Heizer 2012). The first example of a global operation that demonstrates a global management approach is the most familiar of all is Wal-Mart. They went international when they opened Sam’s Club near Mexico in 1991 and two years later Wal-Mart International was created. Wal-Mart has created stores with different formats and styles to fit their customers for each store in each country. Wherever Wal-Mart is located each store shares a common goal which is to save people money so they can live better. Today there are 5,236 stores and more than 730,000 associates in 14 countries outside the US (walmartinternationa.com). The second one is Hershey’s Chocolate Company and they are located in Canada, Mexico, Brazil, China, Korea and Japan. Hershey’s is committed to dealing fairly and ethically with all parties and at all points of the value chain and work hard to ensure the responsible and sustainability sourcing of raw materials and the safest possible processing of those materials and they do this for each and every plant...
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...Global Operations Management Globalization strategies haves changed the face of international business. The Internet and technological advances have opened doors for smaller organization to participate in the global market. Today with all the advances in technology more companies have become more global in their commercial activities. Ease of access to new markets for supply and demand, faster and more reliable global transportation, greater levels of technical capability in developing countries has contributed to this event. However, competition has become a great challenge to the success of global business management but many companies are rising to these opportunities (Approaches to Global Business Managements, 2008). One of the reason companies have become more competitive in the global business environment today is because they want to expand their markets and maximize their profits. These companies know there are great opportunities in other countries for them to expand and serve these markets. One of the companies that have shown a strong presence in other countries is Colgate-Palmolive (CL). Colgate’s brand strength in foreign countries has allowed the company to command impressive market share and high profit margins. Colgate-Palmolive was founded in 1806, and since then it has managed to become one of the world’s largest consumer products companies by market share with commercial presence on six continents. Colgate has grown into a multinational corporation known...
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...A Roice Unit 1 Db Global Operations Management MGMT415-02 Heizer & Render, Chapters 1-2 • Why has it become so important for companies to become competitive in the global business environment? One reason it became important for companies to become more competitive in the global business environment is because of their market and to maximize their profits. While maximizing their profits they have to think globally. Also, for companies to be successful in a global market they have to have excellent global managerial skills. The global managerial skills will help the company understand all other countries cultures and customers. By understanding more of the other countries it will help with creating effective advertisements for the company. (Heizer, Jay & Render, Barry, 2012) • What advancements in operations management in other countries have affected the way companies in the United States operate? One company that started off in the United States and was so successful and decided to expand is Disneyland’s theme park. Disneyland has expanded to France, Tokyo and Hong Kong this was done to create a magical place for every one of all ages in those countries as well as ours so families can have fun at their theme parks and resorts without having to travel across the world just to have some family fun. (Disney, 2012) Before Disney could expand their parks and operations to other countries Disney had to first learn about the countries food, prices, park hours and even cultures...
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...Unit 1 IP Bryanna Kroll Global Operations Management June 8, 2012 Unit 1 IP PPQ Auto Parts is striving to expand their company globally over the next few years. In order to properly and successfully expand the business, the managers of PPQ must be trained in multiculturalism and diversity management; which have large playing factors in whether or not the company will be successful abroad. The executives of PPQ Auto Parts must fully understand and be aware of any political and economic distress that could potentially affect the company’s expansion as well. When considering expanding a business abroad, especially for PPQ, individuals should look into the possible issues the host foreign country could face as a result of the expansion. There are many issues that must be addressed such as: the strategy to enter and expand, the trends within the foreign land, the different marketing approaches to reach the niche consumers, political and social climate, taxes, legal system, location, differences in culture, host country’s available workforce. As many individual know, all countries are different, slight or considerable, there are many issues that a company can face, especially within the cultural barriers and diversity issues. Cultural barriers and diversity issues are commonly encountered by international, multinational and global organizations. Culture is immensely important and should be treated as such by the PPQ representatives. Culture is the beliefs and certain...
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...Global Operations Management Unit 1 IP [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Khalila Merriman 8/21/2012 During a company’s expansion process across international waters, decision makers must employ tact and advice concerning the actual business dealing within the host country. The company must consider the political, social and economic situation of the host country. Usually companies employ the help of local peoples to guide them though the integration process because cultural adaptation is key to creating a long lasting business service partnership, purchasing properties and supply chain management. (MUSE, 2012). As politics plays a large role in a company relocating, countries can also apply tariffs which allow local workers to have an advantage fearing the newer foreign company starting a monopoly. When companies are reviewing countries for expansion the issues which first must be concurred are the internal and external issues surrounding the move. Internal factors involve the country’s infrastructure, its growth rate and state of development. The external issues involve the readiness of local merchants to conduct business and the availability of and amount of global aid or the accessibility of the transfer of said necessities. (lainmore1, 2010). As...
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...Global Operations Management Individual Project 3 Kathy Farris AMERICAN INTERCONTINENTAL UNIVERSITY ABSTRACT Six software packages will be reviewed. Two each for materials requirement planning (MRP), capacity requirements planning (CRP) and enterprise resource planning (ERP). Each were evaluated for cost, functionality and end user support to name a few. This paper will show which software packages will best fit the needs for PPQ manufacturing after areas of consideration have been reviewed and compared. In order to stay competitive with in their manufacturing area, it is vital for a company to have a quality systemization in place to help track and control operations. It today’s technology driven world there are many options available to help company’s be more effective without having to hire a completely new department. PPQ manufacturing has decided to invest in the latest software technology to help in their materials requirement planning (MRP), capacity requirement planning (CRP), and with their enterprise resource planning (ERP). Following is an analysis of six software packages, two for each of the respective areas. Each software package has been reviewed for both advantages and disadvantages, as well as, cost, current system compatibility, work flow processes, functionality, ease of use and end user support. Each of these elements has been taken into consideration in order to determine which software package would be most suitable for PPQ’s needs...
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...Global Operations Management Abstract The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers. Global Operations Management In today’s global economy many companies have been feeling the necessity or the pressure to compete overseas with other companies not only to expand their market share but to obtain higher profits. While there are substantial opportunities in expanding globally, privately owned companies also face significant challenges in selling, purchasing, and setting up operations in foreign countries. PPQ Parts is one of the companies that have decided to expand globally over the next several years, but in order to do it managers must be properly trained in multiculturalism and diversity management. The company executives need to be aware of the many challenges and obstacles that going globally represents for the organization to be prepared when a situation arises. Global marketplace...
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...Abstract In the following paper discussed are issues foreign host could be exposed to, cultural barriers and the importance of diversity and its issues. Political and economic factors play significant roles during global expansions therefore, those issues will be brought to light as well as how Germany and Japan are similar to the United States in the business arena. Global Operations Management Introduction Manufacturing companies are very familiar with the path to globalization. Years ago, the surfacing of companies who offer low-cost items, such as Wal-Mart, and swift economic expansion had a huge impact on their competition. In order to compete with such low product pricing, many companies relocated their operations to other low-cost countries to try and enter new markets. Today, companies do not debate if they should relocate their business to another host country but with the cost of doing so with concerns such as managing international employees and successfully marketing to diverse consumers. International Expansion Issues When companies expand their operations to another country try can have a positive, negative, or both results upon the host country. Foreign automobile manufacturers, such as Volkswagen has strategically decided to expand to the U.S. to compete with domestic automobile manufacturers. Last year Volkswagen opened a Passat plant in Tennessee, a lower-cost area to manufacture in the U.S., and created around 11,000 jobs; they were also...
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...GLOBAL BUSINSESS OPERATION ADEGBENRO ELEWADE MIB 34- 130226 INDIVIDUAL ASSIGNMENT QUESTION- You have been employed as a business consultant to advise a company manufacturing smart phones who wishes to explore the potential of doing business in one Latin American emerging market. You must produce a report that identifies the key issues that the company will face in your chosen market and secondly offer expert advice to attain business success in that market. CONTENTS- 1. Introduction. 2. View of Brazil’s economy. 3. Brazil as a BRICS Economy. 4. Market for smart phones in Brazil. 5. Using the porter’s five forces to analyse the market for smart phones in Brazil. 6. Competitors existing in the market. 7. How to enter the market. 8. Constraints to success for the company (using PESTLE model). 9. How to achieve a sustainable competitive advantage. 1. INTRODUCTION The Cost (this involves the legal cost, corruption, lack of infrastructure), Benefits (size of the economy or economy growth),Risk (political-social unrest, economic mis-management) analysis has been used to analyse the favourable emerging market in Latin America which is Brazil. The main reasons for choosing this market will discussed in details. 2. OVERVIEW OF BRAZIL’S ECONOMY The chosen market is BRAZIL which is an emerging market and also the largest of the Latin American nations and the second largest in the western hemisphere with...
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...abroad, especially for PPQ, individuals should look into the possible issues the host foreign country could face as a result of the expansion. There are many issues that must be addressed such as: the strategy to enter and expand, the trends within the foreign land, the different marketing approaches to reach the niche consumers, political and social climate, taxes, legal system, location, differences in culture, host country’s available workforce. As many individual know, all countries are different, slight or considerable, there are many issues that a company can face, especially within the cultural barriers and diversity issues. Cultural barriers and diversity issues are commonly encountered by international, multinational and global organizations. Culture is immensely important and should be treated as such by the PPQ representatives. Culture is the beliefs and certain behaviors of a specific group. Cultural barriers that are mishandled can easily deteriorate any successful company. “Managing the differences of languages, cultures, religions and traditions under one umbrella are some of the main obstacles faced by ... international businesses” (Khan, 2009). More issues include value systems, etiquette within business practices, establishing trust, various customs and different social habits. Other large cultural and diversity...
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...1) What are UPS “Smart Labels”? What role do they play in UPS operations? The UPS Smart Label is a computer-generated shipping label that you can create using your personal computer. The barcode contains information that can give the customers with an increased reliability, as the barcode contains data imported that is directly from the customer system. Continuously at every station the package is scanned updating the main database providing the customer with up to date tracking information about the package and also making sure the package is delivered on time by enabling the end part of the delivery to be scheduled to the best route for ensure. 2) Write out the steps a package takes from pick-up by a UPS driver to delivery including the role of DIAD, the UPS Data Center, and the UPS package center. The process starts with the customer inputs all the information about the package and the destination of it, then all this information is sent to a main warehouse that have a database, automatically the system generates a “smart label” which will be attached to the package for shipment. When the driver is ready to head out, he picks up a DIAD IV, which he updates in the morning showing the driver his route for the day, and connecting to different cell phone signal antennas to download information about re-routings and new pick-ups they might need to do. Once the package is picked-up or delivered by the driver, the package is scanned and all this information sent up to the...
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...The goal of every business is simple, increase customer satisfaction, generate more revenue and maximize profits and every organization tries to get a competitive advantage. Competitive advantage is an advantage that an organization has over its competitors, allowing it to generate more sales or margin’s and retain more customers than its competition. Companies invest their profits in: * Research and development (R & d) to get competitive edge. Research and development plays a very important role in innovation process. In order to introduce a new product or service or to make changes to existing product, investing in R & D is crucial. Needs and expectations of customers change from time to time. For example, we are not using the same Honda car which our parents used 20 years back. We say simply it is old fashioned, we always look for a change and new ones. Proper research is required to introduce changes, if they do not spend on R & D, they lose their market share. * In more productive issues, for expansion, that is expanding product lines, new products, services and new businesses to gain profits. * And in technology, to be more competitive and also as technology makes work easier and faster, and through this companies can increase their sales and make more money. * Reducing costs is also critical for a business to gain competitive advantage: Material cost, which includes Direct labor and direct material have to be reduced to gain competitive...
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...People Elements in Global Operation EMBA 36 EPEC 1. Summary of the Paper Global economic development, especially the growth in emerging market, brings tremendous business opportunities and significant challenges to oilfield service companies (OFSCs). The challenges are mainly coming from the following aspects: * Global projects and global presents require global operation in recruiting, talent management and retention; * Inadequate supply from qualified talent and high turnover ratio; * Local content requirements from National Oil Companies (NOCs) increase the complexity in organization, resource and supplier chain; * Political and maritime risk impact from emerging market with instability exists in their political and economics environments. In order to solve those problems and challenge, the paper, “Unleashing people performance for higher global profits and productivity “, developed 5 strategies to improve business profits, employee productivity and talent retention: * Operate in global base: develop a global perspective on talent management. * Innovation in talent management: it is a process and objective orientated innovation to improve the quality of the talent management. * Emphasize career and leadership development: Enhance effectiveness in recruiting, developing, evaluation process by utilizing new approaches. * Alignment: Focus on alignment between individual career path and organization objectives, and reward performers...
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...Global Operations Management Unit 2 DB 1.) If this firm is a high-tech manufacturing firm, what resource and operational factors should be considered in this decision? As new firms, lots of wise but difficult decision has to be made. In Bit Technology’s case deciding where to locate its facilities internationally requires indebt research. Things that this company should consider are the location, systemic, operational, managerial as well as organizational aspects. As far as location and operational factors are concerned, target market and production area might become significant factors in relation to the proximity either to the potential or current customers (target market within the USA) or to production market located in China. With this being said, operation managers should compare which market becomes more cost-effective and time-efficient to be chosen as location. To continue, the external and internal dynamics of the selected market or location should be scrutinized thoroughly in relation to the attractiveness of the climate and culture, for instance; the stability of political conditions and economic indicators as well as social structure and technological capacities. The factors that affect the technical feasibility of a high-tech manufacturing firm include building function, equipment, energy costs, maintenance cost, the cost of management and design of the system, human resources costs etc. As a result, the main factors include costs, of transportation, target market...
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