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Introduction to International Operations Management

Introduction to International Operations Management. Dr. Cem Canel Office: CIS Building, 2016 Phone (office): 962-3816 Email: canelc@uncw.edu. Population of Mini World.

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Introduction to International Operations Management

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  1. Introduction to International Operations Management

  2. Dr. CemCanel • Office: CIS Building, 2016 • Phone (office): 962-3816 • Email: canelc@uncw.edu

  3. Population of Mini World If we could shrink the world’s population to a village of 100, with people and nations remaining the same, below is how we would look … There would be: • 57 from Asia • 21 from Europe • 14 from Western Hemisphere (North & South America) • 8 from Africa • 95 would live outside the U.S. • 70 would be Non-White; 30 would be White • 70 would be Non-Christian • 50% of world’s wealth in hands of 6 people – all from the U.S. • 70 unable to read • 50 suffer from malnutrition • 80 live in substandard conditions • 1 of 100 has a university education

  4. Business Environment • Improvement of organizational activities to ensure quality, customer satisfaction , and loyalty • Org. Behavior • Policy • Strategy • The application of people, technologies, and procedures to solve business problems • Sales • Promotion • Research Behavior • The study of how the forces of supply and demand allocate scarce resources • Bookkeeping • Pensions • Audits • Nceufhkurreffg • Investments • Capital • Stock Market

  5. Why go global? • Reduce costs • Improve supply chain • Provide better goods and services • Attract new markets • Learn to improve operations • Attract and retain global talent

  6. Specific Drivers of Globalization

  7. International Environment • Environment • All the forces influencing the life and development of the firm • Forces • External Forces (Uncontrollable) – Forces over which management has no direct control • Internal Forces (Controllable) – Forces that management can use to adapt to external forces

  8. The International Environment Political: Governments Ideology Stability Civil Strife Economic: Trade Agreements Trading Blocs GNP/Wages Inflation Cultural: Customs Values Language Religion The International Company Legal: International Law Host Country Laws Home Laws International Piracy Infrastructure: Communications Internet Transportation Technology

  9. External Forces

  10. Internal Forces

  11. Multi-national Companies… US Factory US DC Americas Demand USSuppliers Singapore Factory European DC European Demand Off Shore Suppliers Asia/Pacific DC Asia/Pacific Demand Kit Suppliers

  12. Types of International OM Decisions • Strategic • long term, often involving acquiring new resources • - e.g., power station construction (at electric utility) • Tactical • - medium term, utilization of existing resources • - e.g., workforce commitments • Operational • - short term, execution of schedules or control activities • - e.g., shift scheduling (in a hospital)

  13. Forecasting demands in different cities around the world

  14. Responsibility for Quality Customer Marketing Service Quality Product Or Service Packaging and Storage Design Engineering Inspection and Test Procurement Production Process Design

  15. Where would you locate… An amusement park? A new pharmacy? Amazon’s new distribution center?

  16. Factors to consider… Distances to surrounding community? Patient traffic? An amusement park in ALASKA? A new pharmacy? Length of summer season? Sufficient population? Quantity of labor? Labor costs? Local laws? Distances from online customers? Transportation costs? Unions? Taxes? Dabur’snew distribution center?

  17. IOM Decisions Where to locate franchises?

  18. Airports in different cities around the world

  19. Global Supply Chain Management • Involves total systems approach to managing flow of • Materials • Information • Finances • Services

  20. Global Supply-Chains

  21. Global Sourcing • Considerations • Costs • Control • Expertise • Distance • Languages • Laws and regulations

  22. Global Sourcing • The Lure of Global Sourcing • Suppliers with improved competitiveness • Cost • Quality • Timeliness • Suppliers in less developed countries (LDC) with low-cost labor • Attractive for labor-intensive products with low skill requirements

  23. Ford’s Global Network to Support the Manufacturing of the Escort

  24. Logistics • Movement of materials • Must interface with sourcing , manufacturing, design, engineering and marketing • Packaging and transportation requirements can greatly increase logistics costs • Many companies outsource logistics

  25. Container Ships Are Getting Larger

  26. Why Is International Operations Different?

  27. Globalization is the Future and cannot happen without international operations

  28. http://www.michaelhartzell.com/videos-that-rock/did-you-know--video-by-karl-fisch-scott-mcleod-and-jeff-bronman/http://www.michaelhartzell.com/videos-that-rock/did-you-know--video-by-karl-fisch-scott-mcleod-and-jeff-bronman/

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