Global Operations Management

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STEP 1

A. Why is effective operations management vital for a global organization?

? For a global organization, effective operations management is important because the organization is competing globally, so its costs of production must be competitive globally. This means more efficient operation. In addition, the product quality, including the core product must compete globally otherwise the brand of the company will suffer irreparable damage in the global market. This means tight quality control. Further, the augmented product including the packaging, finishing, adaptability and even after sales service must be world class. This means better and improved operations management. This means having operations management that is world class.

STEP 2

B. How does an organization's corporate strategy affect its operations management?

? The corporate strategy gives the choice of markets and business, and this is intrinsically connected to the operations management. For example, if the corporate strategy is to target the premium segment of the market, this would mean that operations management should ensure that the company produces products suitable for the premium segment. Say it must use premium raw materials, use difficult designs and focus on finishing. Also if the corporate strategy is to change a business then operations management must also change the production process.
? Corporate strategy is also relevant at the time of reorganization, diversification, reorganization, restructuring, or re-engineering. In each of these cases the role of operations management is vital for implementation. For example, there can be no ...