1 / 26

Chapter 17: International Operations Management

Chapter 17: International Operations Management. International Business, 4 th Edition Griffin & Pustay. Chapter Objectives_1. Describe the nature of international operations management

Albert_Lan
Download Presentation

Chapter 17: International Operations Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 17:InternationalOperations Management International Business, 4th Edition Griffin & Pustay ©2004 Prentice Hall

  2. Chapter Objectives_1 • Describe the nature of international operations management • Analyze the supply chain management and vertical integration decisions facing international production managers • Analyze the meaning of productivity and discuss how international firms work to improve it ©2004 Prentice Hall

  3. Chapter Objectives_2 • Explain how firms control quality and discuss total quality management in international business • Analyze how international firms control the information their managers need to make effective decisions ©2004 Prentice Hall

  4. International Operations Management • Operations Management: the set of activities an organization uses to transform different kinds of inputs into final goods and services • International Operations Management: the transformation-related activities of an international firm ©2004 Prentice Hall

  5. Figure 17.1 The International Operations Management Process • Strategic Context • Differentiation • Cost leadership • Focus Standardized vs. Customized Production • Acquisition of • Resources • Supply Chain • Management • Vertical Integration • Make-or-buy decision • Location Decisions • Country-related issues • Product-related issues • Government policies • Organizational issues • Logistics and • Materials • Management • Flow of materials • Transportation options • Inventory levels • Packaging ©2004 Prentice Hall

  6. Complexities of International Operations Management • Resources • Location • Logistics ©2004 Prentice Hall

  7. Production Management • Supply chain management: set of processes and steps a firm uses to acquire the various resources it needs to create its products • Vertical integration: extent to which a firm either provides its own resources or obtains them from other sources ©2004 Prentice Hall

  8. Figure 17.2 Basic Make-or-Buy Options ©2004 Prentice Hall

  9. Influence Factors for the Make-or-Buy Decision • Size • Scope of operations • Technological expertise • Nature of product ©2004 Prentice Hall

  10. Strategic Control Moderate Control Low Control Figure 17.3 Competitive Advantage versus Strategic Vulnerability in the Make-or-Buy Decisions Potential for Competitive Advantage Low High High Low Degree of Strategic Vulnerability ©2004 Prentice Hall

  11. Necessary Trade-offs in Make-or-Buy Decision • Cost • Control • Risk • Investment • Flexibility ©2004 Prentice Hall

  12. Factors affecting Location Decisions • Country-Related Issues • Product-Related Issues • Government Policies • Organizational Issues ©2004 Prentice Hall

  13. Country-Related Issues • Resource availability • Cost • Infrastructure • Country-of-origin effects ©2004 Prentice Hall

  14. Country-related issues play key roles in location decisions for manufacturers ©2004 Prentice Hall

  15. Product-Related Issues • Value-to-weight ratio • Technology • Importance of customer feedback ©2004 Prentice Hall

  16. Government Policies • Stability of political process • National trade policies • Economic development incentives • Existence of foreign trade zones (FTZ) ©2004 Prentice Hall

  17. Organizational Issues • Business strategy • Cost leadership • Differentiation • Organizational structure • Inventory management policies • Just-in-time (JIT) inventory management system ©2004 Prentice Hall

  18. International Logistics and Materials Management • International logistics: management of the • flow of materials, parts, supplies, and other resource from suppliers to the firm • flow of materials, parts, supplies, and other resources within and between units of the firm itself • flow of finished products, services, goods from the firm to customers ©2004 Prentice Hall

  19. Differences in Domestic and International Materials Management • Distance involved in shipping • Number of transport modes • Complexity of regulatory context ©2004 Prentice Hall

  20. International Service Operations • International Service Business: firm that transforms resources into an intangible output that creates utility for its customers • Characteristics: • Intangible • Not storable • Require customer participation • Tied to the purchase of other products ©2004 Prentice Hall

  21. This BP Connect store allows customers to buy BP petroleum products, coffees from South America, and to access the Internet from the pump ©2004 Prentice Hall

  22. Productivity • Economic measure of efficiency that summarizes the value of outputs relative to the value of inputs used to create the outputs • Helps to determine firm’s overall success • Contributes to long-term survival • Contributes to overall standard of living ©2004 Prentice Hall

  23. Strategies for Enhancing Productivity • Spend more on research and development • Improve operations • Increase employee involvement ©2004 Prentice Hall

  24. Managing Quality in International Business • Quality: totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs • American Society for Quality Control • ISO 9000: 2000 • International set of quality guidelines • Basis for quality certification • International Organization for Standardization ©2004 Prentice Hall

  25. Figure 17.4 The Essential Components of Total Quality Management Strategic Commitment To Quality Employee Involvement High Quality Materials Up-to-Date Technology Effective Methods ©2004 Prentice Hall

  26. Total Quality Management • TQM: Integrated effort to systematically and continuously improve the quality of an organization’s products and/or services • Statistical process control: family of mathematically based tools for monitoring and controlling quality • Benchmarking: process of legally and ethically studying how other firms do something in a high-quality way and then either imitating or improving on their methods ©2004 Prentice Hall

More Related