Unit 1 - Global Operations Management Db

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Unit 1 DB
March 21, 2012
First of all, what is “Global Management”? Well according to Heizer & Render (2012) the term refers to the process of scheming and operating a system that is diversified enough to work around the world and it is used to maintain a competitive advantage (Heizer & Render, 2012).

Some companies that I believe to practice this approach is UPS, Wal-Mart, McDonalds, and Starbucks. Each of these companies demonstrate a global management approach because they operate internationally, each company is able to adapt to whatever city/state/country in which they operate. For example Wal-Mart provides millions of jobs around the world (Wal-Mart, n.d). Wal-Mart as well as the other companies I will discuss manage to comply with all laws/rules and regulations. UPS has used these techniques as well as many more such as practicing integrity and maintaining some of the highest ethical principals in their field (UPS, n.d). McDonalds operates in 119 different countries and also practices high ethics and diversification (McDonalds, n.d). Finally, Starbucks is known for operating in regions where they can purchase their coffee beans and other supplies from local farmers. This means that the company is not only providing jobs in the regions in which they operate but they also buy from local farmers which gives even more back to the local economy. In addition, because Starbucks buys from local farmers the beverages they provide are custom to the customers they have in that particular region. Why has it become important for companies to become competitive in the global business environment? Global operations can be very beneficial for businesses. Some of the benefits are that not only does operating globally offer a competitive advantage but it can also mean lower operating costs. For example, whether it be AT&T outsourcing customer service calls to India to save or it be Wal-Mart purchasing products that are made outside of the...
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