This document discusses global operations strategy and key considerations for international expansion. It outlines 6 reasons for becoming an international operation, including improving supply chain, reducing costs, improving operations, understanding markets, improving products, and attracting global talent. It also discusses cultural and ethical issues companies may face and achieving competitive advantage through differentiation, cost leadership, and response flexibility. The document provides an overview of strategic factors such as resources, value chain analysis, and Porter's five forces model to evaluate opportunities for global operations.

1. THE GLOBAL
ENVIRONMENT AND
OPERATIONS
STRATEGY
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2. GLOBALIZATION
- means customers, talent,
and suppliers are worldwide
-contributes efficiency and
adds value to the products
and services.
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3. 6 REASONS FOR TURNING
INTO INTERNATIONAL
OPERATIONS
1. Improve the supply chain
2. Reduce costs
3. Improve operations
4. Understand market
5. Improve products
6. Attract and retain global market
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4. IMPROVE THE SUPPLY CHAIN
- Locate facilities
- Unique resources
- Human resource expertise
- Low cost labor
- Low cost material
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5. REDUCE COSTS
- Lower both direct and indirect costs
- Low taxes and tariffs
- Free trade zones
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6. IMPROVE OPERATIONS
- Differences in business handling in
other countries
UNDERSTAND MARKETS
- Diversify customer
- Add production flexibility
- Smooth the business cycle
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7. IMPROVE PRODUCTS
-Free flow of ideas
ATTRACT AND RETAIN GLOBAL
TALENT
- Employment opportunities
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8. CULTURAL AND ETHICAL ISSUES
- Uniformity of protection of both
government and the industries from
foreign firms.
-what one country’s culture deems
acceptable may be considered
unacceptable to others.
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9. DEVELOPING MISSION AND
STRATEGIES
MISSION
- The purpose or rationale for an
organization’s existence
STRATEGY
- How an organization expects to
achieve its missions and goals
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10. ACHIEVING COMPETITIVE
ADVANTAGE THROUGH
OPERATIONS
- Competing on differentiation
- Competing on cost
- Competing on response
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11. Competing on Differentiation
- Uniqueness
- Experience differentiation
COMPETING ON COST
- Optimum size of investment
- low cost leadership
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12. COMPETING ON RESPONSE
- Flexible response
- Reliability of scheduling
- Quickness
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13. ISSUES IN OPERATIONS
STRATEGY
RESOURCES VIEW
-a method managers use to evaluate the
resources at their disposal and manage or
alter them to achieve competitive
advantage
VALUE CHAIN ANALYSIS
- A way to identify those elements in
the product/service chain that uniquely
add value
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14. FIVE FORCES MODEL
1. Immediate rivals
2. Potential entrants
3. Customers
4. Suppliers
5. Substitute products
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