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Global View of Operation
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þForeign location with lower wages can help both
direct and indirect costs

þOpportunities to cut the cost of taxes and tariffs also

encourage foreign operations
°easons to Globalize

þ°educe the cost (labour,taxes tariffs etc)

þImprove the supply chain
þProvide Better goods and services
þUnderstand market
þLearn to improve operationes
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he supply chain can often be improved by locating facilities
in countries where unique resourses are available .
hese resourses may be experties , labor , or raw material.
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he characteristics of services and goods can be
objective and measurable.
Another reason for international operation is to
reduce response time to meet customers
changing product and services requirments.
 Understand Markets

Because of international operations require

interaction with foreign customers, suppliers ,
and other competitve businesses ,
international firms , learn opprtunities for
new product and services.
 Learn o Improve Operations

Learning does not take place in isolation.

Firms serve themselves and their
customers well, when they remain open to
the free flow of ideas.
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Global organizations can attract and retain
better employees by offering more employee
opportunities. he need people in all
functional areas and areas of experties
worldwide
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 2trategy
2trategy is the action plan to achieve its
missions and goals
Ten Strategic OM
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The set of values relate to rapi flexible an reliable

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 PIM2
(Profit Impact of Market 2trategy)

A programme established in cooperation

with GE to identify characteristecs of
high-return-on-investment
firms.
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he factor influence strategy development and

execution.
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2trategy is dynamic because of changes with in

organization and change in the environment
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Those activities or factors that are key to

achieving to competitive a vantage

There are primarily 10 ecisions within the

operations management function that often
are critical success factors (SFs)
 ðritical 2uccess Factors
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 @nternational Business
m firm that engages in cross-bor er
transactios
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A firm that has extensive involvement in
international business, owning or
controling facilities in more than one
country
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Operating decisions are decentralizes to

each country to enhance local
responsiveness

 
 

Operating decisions are centerlized and

headquarters coordinates the
standardization and learning between
facilities
 
 
 

ðombines the benefits of global-scale

effciencies with the benefits of local
responsiveness