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OM-TQM-Module-3 (1)

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10 views15 pages

OM-TQM-Module-3 (1)

Uploaded by

jasminegalleta26
Copyright
© © All Rights Reserved
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Operations Strategy in a

Global Environment –
Module 3
PREPARED BY: ENGR. D. LABRO
Operations Strategy
➢ The set of decision that are warranted in the operational processes to support the competitive
of the business.

To develop organizational strategies at three level of operation:


CORPORATE STRATEGY LEVEL BUSINESS STRATEGY LEVEL FUNCTIONAL STRATEGY LEVEL
It involves decisions that affects the entire It addresses how to achieve competitive (PRODUCT OR SERVICES)
organization including the overall scope advantage, whether through cost These strategies are concerned with how to
and direction of the company. leadership, differentiation, or focusing on a implement the business-level strategies
niche market. effectively through the optimization of
Example: resources and processes within each
function

Electronics Industries
Financial Services
Chemicals Industries
Machinery and Heavy Industries
Operations Strategy in a Global Environment
Globalizing operations management is a strategic decision made by organizations to
enhance their competitiveness, efficiency, and overall performance on an international scale

Here are some key reasons why companies choose to globalize their operations management:

➢ Improve the Supply Chain


➢ Cost Reduction
➢ Improve operations
➢ Understand markets
➢ Improve products
➢ Global Brand Presence
➢ Diversification of Risk
Example of Global Strategies
1. Global Standardization Strategy: 2. Localization Strategy:

Approach: McDonald’s follows a global Approach: Nestlé adapts its products and marketing
standardization strategy by offering a consistent strategies to suit local preferences and cultural tastes. For
menu and experience across its restaurants example, it offers unique flavors and products tailored to
worldwide. While it adapts some menu items to regional markets, such as “Masala Maggi” noodles in India.
local tastes, the core offerings and brand
experience remain uniform.
Example of Global Strategies
3. Transnational Strategy: 4. International Strategy:

Approach: Unilever combines global efficiency with Approach: Apple employs an international strategy by leveraging its
local responsiveness. It standardizes certain aspects strong global brand and standardized product offerings while also
of its operations for efficiency while also adapting adapting certain aspects of its marketing and distribution to different
products and marketing strategies to meet local regions. For instance, Apple’s products are consistent worldwide, but
needs. For instance, it offers different variants of its the company adapts its promotional strategies to fit regional
personal care products tailored to local consumer markets.
preferences.
Example of Global Strategies
5. Global Diversification Strategy: 6. Global Alliances and Partnerships:

Approach: GE uses a global diversification strategy by Approach: Starbucks formed a global alliance with PepsiCo to
expanding into various industries and markets around distribute its ready-to-drink coffee beverages in international
the world, including aviation, healthcare, and markets. This partnership leverages PepsiCo’s distribution network
renewable energy. This approach helps GE spread risk and expertise in the beverage industry.
and leverage opportunities in different sectors.
Example of Global Strategies
7. Emerging Market Focus Strategy: 8. Global Niche Strategy:

Approach: Huawei focuses heavily on emerging Approach: Tesla focuses on a global niche strategy by positioning
markets, particularly in Africa and Asia, where it itself as a leader in high-end electric vehicles (EVs) and sustainable
provides telecommunications infrastructure and energy solutions. Its products and innovations cater to a specific
consumer electronics. The company tailors its segment of environmentally conscious consumers worldwide.
products and services to meet the specific needs of
these markets.
Cultural and Ethical Issues

▪ Cultures can be quite different


▪ Attitudes can be quiets different towards

1. Compliance with Local Laws and Regulations


2. Fair Labor Practices
3. Environmental Responsibility
4. Corruption and Bribery
5. Consumer Privacy and Data Protection
Developing Mission and Strategy
Thank you!!!

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