Operations Management

What is a global strategy?

• a plan of action designed by a company to manage a local business

• a plan of action designed by a company to compete successfully in the international marketplace

Global strategy is focused on achieving economies of scale by leveraging the company's strengths across multiple markets, while adapting to local conditions and cultures in order to be competitive in each individual market.

• True

• False

It is important for companies to carefully consider the unique characteristics of each market they operate in, as well as the potential risks and opportunities that come with doing business in different parts of the world.

• True

• False

▶Benetton – moves factory to stores around the world faster than its competition by building flexibility into design, production, and distribution

• True

• False

▶Sony – purchases components from suppliers in Thailand, Malaysia, and around the world

• True

• False

World trade growth is increasing every year except during the pandemic when all businesses are affected

• True

• False

Reasons to Globalize EXCEPT

• 1.Improve the supply chain

• 2.Reduce costs (labor, taxes, tariffs, etc.)

• 3.Improve operations

• 4.Understand competitors

Mission statements tell an organization where it is going

• True

• False

The Strategy tells the organization how to get there

• True

• False

The factors affecting missions EXCEPT

• Environment

• Philosophy and Values

• Customers

• Market