...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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...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 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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...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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...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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...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 behaviors of a specific group. Cultural barriers that are mishandled can easily...
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...AT&T Global Operations Management AIU Unit 5 Assignment Abstract Addressing the significance of quality management and quantity with the global context of an organization that transports goods and/or services globally is what this paper will discuss. Also would this help update operations and attain efficiencies between operating departments and are there any main concerns? AT&T There are many organizations that transport goods and/or services globally, one specific organization is AT&T. The background of AT&T and the components of its supply chain are an important part of the company. The components of the supply chain can have potential problems but there are ways to solve these problems. Quality management within a global context is important. Some companies have employed an enterprise resource planning system to help reorganize their operations and attain efficiencies between operating departments but certain concerns have to be addresses before it can be implemented. An organization that delivers goods and services globally is AT&T. AT&T has an organization that is in charge of exchanging and constricting goods and services nationally and internationally which are the AT&T Supply Chain and Fleet Operations. This organization is also in charge of ensuring quality and value for the customers (Suppliers, 2012). Formally known as American Telephone and Telegraph Corporation, or AT&T Corp. is as old as the telephone itself and in 1875 the inventor Alexander...
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...Introduction The Automobile Industry registered a 30% increase over the past ten years. This industry plays a significant role in every major market around the globe. In 2012 63,069,541 cars were produced globally, close to 9 million workers were involved nonstop in the manufacturing process of these vehicles and their respective parts; 25% of these cars were built in China alone, in other words 1 in 4 vehicles are manufactured there. This is equivalent to 5% of the globe’s manufacturing sector. For every direct job in this industry at least 4 indirect jobs in the vicinity are created; this is equivalent to more than 40 million jobs worldwide. Jobs in industries such as steel, iron, aluminum, glass, plastics, glass, carpeting, textiles, computer chips, and rubber are some examples of jobs created indirectly by the Automobile Industry. Environmental Scanning of Current Conditions China assembled 25% of the world’s cars in 2012, keep in mind that this is 7 million more cars than Japan (second largest car manufacturer in the world). Its industry growth has been mainly motivated by business friendly policies created by the government, increase in domestic demand, and an emerging middle class. Although this industry has grown lately, it continues to remain dreadfully divided. Furthermore, government officials believe that surplus volume must come to a halt and worry about local government departments impairing the economy due to unrestrained expansions. Therefore, they are aiming...
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...DEBI ADAMS AMERICAN INTERCONTINENTAL UNIVERSITY MGMT 415- GLOBAL OPERATIONS MANAGEMENT UNIT 1 INDIVIDUAL PROJECT PROFESSOR- DAVID TIBBETTS AUGUST 26, 2012 ABSTRACT Conducting business in a foreign country is not a simple two-step process. There are many avenues to consider and to plan. Situations that may arise that must be addressed and worked out for the best of both parties. Trust in a company whether it is organic or borrowed is the foundation stone of the process. Moreover, the ending process or point to make might be the customer satisfaction of the product or service that is performed. A happy customer whether large or small will be a repeat customer and that is the basis of all companies. To move on to another sale. Moving into a global market can be stressful for the company making the move but other factors that should weigh in on the equation. The country that your company is moving into must be considered, what are the customs and regulations that must be followed. Consumption supply is the supply of the service needed to run your business in their country. Moreover, the repair of any equipment used in that country for your business, would you use a local repair company or will you supply your own maintenance to all equipment? If you are going to use a local company, a service contract needs to be composed and agreed upon by both PPQ and the service company. The second to consider is commercial presence,...
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...USING TEAMS IN PRODUCTION AND OPERATIONS MANAGEMENT CONTEMPORARY BUSINESS MAY 13, 2012 Facts In this case study, I have been asked to research a leading manufacturer or a major retail or restaurant business. Analyze the company’s production and operations management system and evaluate the use of teams in its production and operations management. 1. Describe a major global corporation: (1) a leading manufacturer or (2) a major retail or restaurant business. Describe the type of business, market share, financials, size, and global presence; 2. Describe the company’s production or operations management; 3. Describe and evaluate the company’s use of teams in production and operations management; 4. Analyze and evaluate the company’s ability to adjust to a major economic, environmental, or natural crisis (such as the real estate crash, financial crisis, nuclear meltdown, hurricane, flood, oil spill, etc.) and communicate effectively with their employees and customers about issues caused by the crisis. Analysis Describe a major global corporation: (1) a leading manufacturer or (2) a major retail or restaurant business. Describe the type of business, market share, financials, size, and global presence. In this scenario, I am going to address the above mentioned topic, regarding describing a major global restaurant business. The restaurant business that I am going to discuss is the McDonalds Corporation. McDonalds for the past decade has lead the fast food industry...
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...Welcome to OPERATIONS MANAGEMENT Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. ● Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. ● Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your course...
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...Operations Management… By D.B.S. Saurabh Marwah(201401017), Dingnan Ouyang(201400084), Boyang Yu(201400104) Students – Asia Pacific International College Literature review 1 Literature review of Operations management Saurabh Marwah, Dingnang, Boyang Asia Pacific International College Research Topic: The impact of total supply chain management on organization performance? Literature review 2 Introduction Operations management is an important part for all the organizations to run themselves successfully or in a professional manner. It refers to decisions and responsibilities of managing the resources dedicated to the production and service delivery. Managers are the people who are responsible managing the resources that make up the operations function. There are other functions also which are not core to the organizations which are for the smooth running of the organizations such as accounting, IT, human resources. Being an operations manager contains a lot of responsibilities and activates in the organization, which contribute to give good service. * Strategic objective: Operations managers must clearly understand the goals of the organization and develop vision in order to achieve them, which also involve translating the goals into implications. * Operations strategy: There are numerous decision-making involved with operations, it is important that operations manager should have a set of guidelines that are connected with organization’s...
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...Executive Summary ISCOM/471 December 9, 2013 Jose Aguaylo Executive Summary Introduction Capacity Management. This is a strategically important aspect of operations management for any organization, particularly those engaged in the fabrication and distribution of a product such as Starbucks. Capacity management refers to the design and control of an organization’s processes such that it can meet demand in a timely manner. Capacity management includes proper sizing and allocation of resources including workers, raw materials, inventory, equipment, space, and technology. Inefficient capacity management can have substantial impact on a business, either because it will not be able to meet demand, or because there would be too much idle inventory, raw materials and other resources. Effective capacity management requires good demand forecasting for proper planning on the aggregate (Chase, Jacobs, & Aquilano, 2006). In the case of the new Starbucks yogurt and ice cream products, the company needs good forecasting on daily, weekly and seasonal demand for these products. Each store needs to be supplied with the required equipment and receive sufficient raw materials to meet daily demand. Just-In-Time. Just-in-time (JIT) is a production model to meet demand without incurring in unnecessary surplus or inventory build-up. The purpose of JIT is to reduce the expense associated with excess inventories and overproduction. JIT requires a predictable forecast of product...
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