International firms search out opportunities for

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International firms search out opportunities for profits relatively unencumbered by national boundaries. Operations managers must coordinate geopraphically dispersed operations.
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International Companies International Companies World s Largest Corporations 1. Wal-Mart Stores 1. Wal-Mart Stores US US 2. General Motors 2. General Motors US US 3. Exxon Mobil 3. Exxon Mobil US US 4. Ford Motor 4. Ford Motor US US 5. DaimlerChrysler 5. DaimlerChrysler Germany Germany 6. Mitsui 6. Mitsui Japan Japan 7. Mitsubishi 7. Mitsubishi Japan Japan 8. Toyota 8. Toyota Japan Japan 9. General Electric 9. General Electric US US 10. Itochu 10. Itochu Japan Japan
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Global operations strategy Between two extremes: Domestic operations with exporting orientation (e.g. Diamond cutting) Localized operations by licensing & joint ventures: (e.g. fast food industry) ………………………
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Global operations strategy Multi-national operations through subsidiary structure. (e.g. Professional service. Public accounting, etc.) Global operations with cross-nation integrated manufacturing (e.g. Auto and electronics industries)
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Global operations strategy Two important strategy determinants: 1. capacity rationalization: required by the scale and efficiency of operations, productivity oriented. 2. Localization of operations: required by different local technical standards, demand specifications and local governmental regulations.
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Strategic alliance Strategic alliances are joint ventures among international companies to exploit global business opportunities Alliances are often motivated by 1.Product or production technology 2.Market access 3.Production capability 4.pooling of capital
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Cont.
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Competitive Strategies: North America, Japan, and Europe Note: 1 is the highest ranking and 8 is the lowest Competitive Weapon North America Japan Europe Consistent quality 1 3 1 High product performance 2 6 2 On-time deliveries 3 4 3 Low price 4 1 5 Fast delivery 5 7 4 Rapid design changes 6 2 6 After-sales service 7 8 7 Rapid volume changes 8 5 8
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Strategic Alliances General Motors (US) & General Motors (US) & Kia Motor Corp. (S.K.) Kia Motor Corp. (S.K.) Kia might help sell Kia might help sell and market GM cars and market GM cars in South Korea in South Korea Renault (France) & Renault (France) & City of Moscow City of Moscow Manufacture 100,000 Manufacture 100,000 vehicles annually vehicles annually near Moscow near Moscow Sino Aerospace Invest- Sino Aerospace Invest- ment Corp. (Taiwan) & ment Corp. (Taiwan) & Swearingen Aircraft (US) Swearingen Aircraft (US) Forming Texas-based Forming Texas-based Sino Swearingen Sino Swearingen Aircraft Co. Aircraft Co.
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E-Shoe Retailer - E-Shoe Retailer - Zappos Zappos E-Shoe Retailer - E-Shoe Retailer - Zappos Zappos Amazon”of Shoe Amazon”of Shoe Retail Retail
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Welcome to Zappos http://www.youtube.com/watch?
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