Operations Strategy 10 - International Operations Strategy

!!operations in a global market

• • Capacity - which geographical location, where to siyuiate exapnad or relaocte, what about ecomicoes of scales what factors affectr it

• • Supply networks - supply from where? Close to the customers or materials or labor, X-boarder movements, cultures

• • PT - same technoloigy thruout org . Is there a support base, is it scarce, what improvemenst can be made

• • Development and organization - Different org structures across the world, what about cultures, what about performance measures - the same of diffeent

!!Why International operations

• • Access to new markets or supplies
  • Political pressure - Toyota chose France over UK becuase of cliseness to customers rather than technical skils of the labor force
  • To minimize transport costs
    • Value/weight matrix. If the vlaue is high relative to its weight then transportation is no problem. Therefore Satellite is expensive and light. peanuts are chap real;tive to their weight so location is much more important

!!Choosing to configure the operations

• • What are the CSF for the ops
  • Assess options for regional ops, customer deamnd characteristics, exposure to currency excahnge rate fluctuations
  • Assessment of the OP methodology - JOT TQM and Hard infrastructiral issues and sofy factots like education
  • rank the factors according to CSF

!!Four international operations pattersns

1 Home country pattern - sdo all ops inthe home country and export 2. Regional pattern - views the world as having similar regions of charactersistics in which to deploy operations etc 3. Coordinated global pattern - sparate ops in different regions then assembled 4. Combined regioanl and global pattern

Also - Ghoshal and Porter's Diamond of National Advantage

Whre does the money go when goods are made aborad

e.g. made in China. But only fraction of the money goes to China - some goes to workets but also retailer, distributor, supplier, marketing etc

!!Services

• • Factors that influence interantional or not
  • Alternative strategies when going international

• • • Cloning the op in different companies - eg Eurodisney
    • Importing customers - Eurodisnay
    • service unbundling - movingh party of the servie abroad to save costs
    • Beat the costs - locating abraod to take advantge of diffeent time zones