Operations Strategy
Executive Summary
Globalisation can be viewed at the country, industry, or firm level, according to Anthony Giddens, a sociologist, globalisation is defined as “the worldwide interconnection at the cultural, political and economic level resulting from the elimination of communication and trade barriers”
Introduction
Every organisation dreams to be multinational enterprises (MNEs), and if it’s not the global environment is forcing companies regardless of their location or primary market base, to consider the rest of the world in their competitive strategic formulation. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations, or technology innovation in other countries if some of their competitors are competing or are located in other countries.
With the world becoming a global village firms are faced with competition from foreign companies who have operations across geographies, in their local markets. At the same time, firms are no longer catering only to the customers in their local markets. They are increasingly catering to customers from various markets and geographies. These changes in business environment made globalisation of operations a must for firms to sustain their competitive advantage. Today firms need to have diverse operations to be fast and flexible to demands of customers from different geographies. They also need to become multinational to exploit all possible advantages in terms of cost and technology available to foreign firms to sustain in their business and continue the growth.
The classic example of multinational operations can be seen in the automobile industry. The major competitors (Diamler Chysler, Ford, GM, Toyota, Honda, Nissan and Volkswagen) all compete in the major world markets and manage their value chains from a global perspective. The globalisation at the original equipment manufacturer (OEM) has forced the large component manufacturers such as Bosch, Delphi and
Globalisation can be viewed at the country, industry, or firm level, according to Anthony Giddens, a sociologist, globalisation is defined as “the worldwide interconnection at the cultural, political and economic level resulting from the elimination of communication and trade barriers”
Introduction
Every organisation dreams to be multinational enterprises (MNEs), and if it’s not the global environment is forcing companies regardless of their location or primary market base, to consider the rest of the world in their competitive strategic formulation. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations, or technology innovation in other countries if some of their competitors are competing or are located in other countries.
With the world becoming a global village firms are faced with competition from foreign companies who have operations across geographies, in their local markets. At the same time, firms are no longer catering only to the customers in their local markets. They are increasingly catering to customers from various markets and geographies. These changes in business environment made globalisation of operations a must for firms to sustain their competitive advantage. Today firms need to have diverse operations to be fast and flexible to demands of customers from different geographies. They also need to become multinational to exploit all possible advantages in terms of cost and technology available to foreign firms to sustain in their business and continue the growth.
The classic example of multinational operations can be seen in the automobile industry. The major competitors (Diamler Chysler, Ford, GM, Toyota, Honda, Nissan and Volkswagen) all compete in the major world markets and manage their value chains from a global perspective. The globalisation at the original equipment manufacturer (OEM) has forced the large component manufacturers such as Bosch, Delphi and