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2

Strategi operasi dalam


persaingan global

2006
Prentice
Hall, Inc. Hall, Inc.

2006
Prentice

21

Global Strategies
Boeing 787 penjualan dan produksi di
seluruh dunia

* GE & Roll Royce develop machine


more efiency (8% )
* 8.300 mil
* 20 supplier in the world

2006 Prentice Hall, Inc.

22

Boeing Suppliers (787)


Perusahaan
Dassault

Negara
France

Messier-Bugatti
Thales

France
France

Diehl
FR-HiTemp

Germany
UK

Smiths Aerospace

UK

2006 Prentice Hall, Inc.

Komponen
Design and
PLM software
Landing gear
Electrical power
conversion system
and integrated
standby flight display
Interior lighting
Fuel pumps
and valves
Central computer
system
23

Boeing Suppliers (787)


Firm
BAE SYSTEMS
Alenia Aeronautics

Country
UK
Italy

Toray Industries

Japan

Fuji Heavy
Industries
Kawasaki Heavy
Industries

Japan

2006 Prentice Hall, Inc.

Japan

Component
Electronics
Upper center
fuselage &
horizontal stabilizer
Carbon fiber for
wing and tail units
Center wing box
Forward fuselage,
fixed section of wing,
landing gear well
24

Boeing Suppliers (787)


Firm
Teijin Seiki
Mitsubishi Heavy
Industries
Chengdu Aircraft
Group
Hafei Aviation

2006 Prentice Hall, Inc.

Country
Japan
Japan

Component
Hydraulic actuators
Wing box

China

Rudder

China

Parts

25

Dengan perancangan yang canggih, interior


yang lebih luas, dan pemasok dari seluruh
dunia, Boeing telah mencetak rekor penjualan
di seluruh dunia
2006 Prentice Hall, Inc.

26

Teknologi kolaboratif dari ruangkerja maya dengan para


insinyur dari Australia, Jepang, Italia, Kanada dan
Amerika membuat rancangan, pengujian dan
pengembangan secara digital sebelum produksi untuk
mengurangi kesalahan dan memperbaiki efisiensi produk
2006 Prentice Hall, Inc.

27

Komponen rantai pasokan dari seluruh dunia


tiba bersamaan pada jalur perakitan di Everett
Washington
2006 Prentice Hall, Inc.

28

Bagian komposit boeing 787 yangcanggihseperti


bagian badan pesawat dibuat di seluruh dunia dan
dikirim ke boeing untuk perakitan akhir

2006 Prentice Hall, Inc.

29

Global Strategies
Benetton (Italy) moves inventory to
stores around the world faster than its
competition by building flexibility into
design, production, and distribution
Sony purchases components from
suppliers in Thailand, Malaysia, and
around the world

2006 Prentice Hall, Inc.

2 10

Global Strategies
Volvo considered a Swedish company
but it is controlled by an American
company, Ford. The current Volvo S40 is
built in Belgium and shares its platform
with the Mazda 3 built in Japan and the
Ford Focus built in Europe.
Haier A Chinese company, produces
compact refrigerators (it has one-third of
the US market) and wine cabinets (it has
half of the US market) in South Carolina
2006 Prentice Hall, Inc.

2 11

Some Multinational
Corporations
Home
Country

% Sales
Outside
Home
Country

% Assets
Outside
Home
Country

% Foreign
Workforce

Citicorp

USA

34

46

NA

ColgatePalmolive

USA

72

63

NA

Dow
Chemical

USA

60

50

NA

Gillette

USA

62

53

NA

Honda

Japan

63

36

NA

USA

57

47

51

Company

IBM
2006 Prentice Hall, Inc.

2 12

Some Multinational
Corporations
Home
Country

% Sales
Outside
Home
Country

% Assets
Outside
Home
Country

% Foreign
Workforce

Britain

78

50

NA

Switzerland

98

95

97

Philips
Netherlands
Electronics

94

85

82

Siemens

Germany

51

NA

38

Unilever

Britain &
Netherlands

95

70

64

Company
ICI
Nestle

2006 Prentice Hall, Inc.

2 13

Reasons to Globalize
Reasons to Globalize
Tangible Reduce costs (labor, taxes, tariffs, etc.)
Reasons Improve supply chain
Provide better goods and services
Understand markets
Intangible Learn to improve operations
Reasons Attract and retain global talent

Figure 2.1
2006 Prentice Hall, Inc.

2 14

Reduce Costs
Foreign locations with lower wage
rates can lower direct and indirect
costs
Maquiladoras (free trade area)
World Trade Organization (WTC)
North American Free Trade
Agreement (NAFTA)
APEC, SEATO, MERCOSUR
European Union (EU)
2006 Prentice Hall, Inc.

2 15

> 90% american cartoon was


produced in manila
Wage per film: manila $130.000,
Korea $160.000, AS $500.000

2006 Prentice Hall, Inc.

2 16

Improve the Supply Chain


Locating facilities closer to
unique resources
Auto design to California
Athletic shoe production to China
Perfume manufacturing in France

2006 Prentice Hall, Inc.

2 17

Provide Better Goods


and Services
Objective and subjective
characteristics of goods and
services
On-time deliveries
Cultural variables
Improved customer service

2006 Prentice Hall, Inc.

2 18

Understand Markets
Interacting with foreign customer
and suppliers can lead to new
opportunities
Cell phone design from Europe
Cell phone fads from Japan
Extend the product life cycle

2006 Prentice Hall, Inc.

2 19

Learn to Improve Operations


Remain open to the free flow of
ideas
General Motors partnered with a
Japanese auto manufacturer to
learn
Scandinavian design ideas have
been used to improve equipment
design and layout

2006 Prentice Hall, Inc.

2 20

Attract and Retain Global


Talent
Offer better employment
opportunities
Better growth opportunities and
insulation against unemployment
Relocate unneeded personnel to
more prosperous locations
Incentives for people who like to
travel
2006 Prentice Hall, Inc.

2 21

Lemari esWhirpool dijual di Bangkok dengan


berbagai warna karena penempatanya di ruang
tengah mereka
2006 Prentice Hall, Inc.

2 22

Cultural and Ethical Issues


Cultures can be quite different
Attitudes can be quite different
towards

2006 Prentice Hall, Inc.

Punctuality
Lunch breaks

Thievery
Bribery

Environment
Intellectual
property

Child labor

2 23

You May Wish To Consider


National literacy rate
Rate of innovation

Work ethic

Rate of technology
change
Number of skilled
workers
Political stability

Inflation

Product liability laws


Export restrictions

Number of miles of
highway
Phone system

Variations in language
2006 Prentice Hall, Inc.

Tax rates
Availability of raw
materials
Interest rates
Population

2 24

Match Product & Parent


Braun Household
Appliances
Firestone Tires

1. Volkswagen
2. Bridgestone

Godiva Chocolate
Haagen-Dazs Ice
Cream
Jaguar Autos

3. Campbell Soup

MGM Movies
Lamborghini Autos

7. Pillsbury

Alpo Petfoods
2006 Prentice Hall, Inc.

4. Ford Motor Company


5. Gillette
6. Nestl
8. Sony

2 25

Match Product & Parent


Braun Household
Appliances
Firestone Tires

1. Volkswagen
2. Bridgestone

Godiva Chocolate
Haagen-Dazs Ice
Cream
Jaguar Autos

3. Campbell Soup

MGM Movies
Lamborghini Autos

7. Pillsbury

Alpo Petfoods
2006 Prentice Hall, Inc.

4. Ford Motor Company


5. Gillette
6. Nestl
8. Sony

2 26

Match Product & Country


Braun Household
Appliances
Firestone Tires

1. Great Britain

Godiva Chocolate

2. Germany

Haagen-Dazs Ice
Cream
Jaguar Autos

3. Japan

MGM Movies

4. United States
5. Switzerland

Lamborghini Autos
Alpo Petfoods
2006 Prentice Hall, Inc.

2 27

Match Product & Country


Braun Household
Appliances
Firestone Tires

1. Great Britain

Godiva Chocolate

2. Germany

Haagen-Dazs Ice
Cream
Jaguar Autos

3. Japan

MGM Movies

4. United States
5. Switzerland

Lamborghini Autos
Alpo Petfoods
2006 Prentice Hall, Inc.

2 28

Developing Missions and


Strategies
Mission statements tell an
organization where it is going
The Strategy tells the
organization how to get there

2006 Prentice Hall, Inc.

2 29

Mission
Mission - where are
you going?
Organizations
purpose for being
Answers What do
we provide society?
Provides boundaries
and focus

2006 Prentice Hall, Inc.

2 30

FedEx
FedEx is committed to our People-Service-Profit
philosophy. We will produce outstanding financial
returns by providing total reliable, competitively
superior, global air-ground transportation of high
priority goods and documents that require rapid,
time-certain delivery. Equally important, positive
control of each package will be maintained using
real time electronic tracking and tracing systems. A
complete record of each shipment and delivery will
be presented with our request for payment. We will
be helpful, courteous, and professional to each other
and the public. We will strive to have a completely
satisfied customer at the end of each transaction.
Figure 2.2
2006 Prentice Hall, Inc.

2 31

Merck
The mission of Merck is to provide
society with superior products and
services - innovations and solutions
that improve the quality of life and
satisfy customer needs - to provide
employees with meaningful work and
advancement opportunities and
investors with a superior rate of return

Figure 2.2
2006 Prentice Hall, Inc.

2 32

Hard Rock Caf


Our Mission: To spread the spirit of Rock n
Roll by delivering an exceptional
entertainment and dining experience. We
are committed to being an important,
contributing member of our community and
offering the Hard Rock family a fun, healthy,
and nurturing work environment while
ensuring our long-term success.

Figure 2.2
2006 Prentice Hall, Inc.

2 33

Arnold Palmer Hospital


Arnold Palmer Hospital is a healing
environment providing family-centered
care with compassion, comfort and
respect when it matters the most.

Figure 2.2
2006 Prentice Hall, Inc.

2 34

Factors Affecting Mission


Philosophy
and Values
Profitability
and Growth

Environment
Mission
Customers

Public Image
Benefit to
Society

2006 Prentice Hall, Inc.

2 35

Strategic Process
Organizations
Mission

Functional
Area Missions

Marketing
2006 Prentice Hall, Inc.

Operations

Finance/
Accounting
2 36

Strategy
Action plan to
achieve mission
Functional areas
have strategies
Strategies exploit
opportunities and
strengths, neutralize
threats, and avoid
weaknesses
2006 Prentice Hall, Inc.

2 37

Strategies for Competitive


Advantage
Differentiation better, or at least
different
Cost leadership cheaper
Quick response more
responsive

2006 Prentice Hall, Inc.

2 38

Competing on
Differentiation
Uniqueness can go beyond both the
physical characteristics and service
attributes to encompass everything
that impacts customers perception of
value
Safeskin gloves leading edge products
Walt Disney Magic Kingdom
experience differentiation
Hard Rock Cafe theme experience
2006 Prentice Hall, Inc.

2 39

Competing on Cost
Provide the maximum value as
perceived by customer. Does not
imply low quality.
Southwest Airlines secondary
airports, no frills service, efficient
utilization of equipment
Wal-Mart small overheads, shrinkage,
distribution costs
Franz Colruyt no bags, low light, no
music, doors on freezers
2006 Prentice Hall, Inc.

2 40

Competing on Response
Flexibility is matching market changes in
design innovation and volumes
Institutionalization at Hewlett-Packard

Reliability is meeting schedules


German machine industry

Timeliness is quickness in design,


production, and delivery
Johnson Electric, Bennigans, Motorola

2006 Prentice Hall, Inc.

2 41

OMs Contribution to Strategy


Operations
Decisions
Product
Quality
Process

Examples

Specific
Strategy Used

Competitive
Advantage

FLEXIBILITY

Sonys constant innovation


of new products....Design
HPs ability to follow
the printer marketVolume

Southwest Airlines No-frills service....LOW COST


Location
Layout
Human
resource
Supply-chain
Inventory
Scheduling
Maintenance
2006 Prentice Hall, Inc.

DELIVERY
Pizza Huts five-minute
guarantee at lunchtime......Speed
Federal Expresss absolutely,
positively on time...Dependability

Differentiation
(Better)

Response
(Faster)

QUALITY

Motorolas automotive products


ignition systems......Conformance
Motorolas pagers...Performance

Cost
leadership
(Cheaper)

IBMs after-sale service


on mainframe computers....AFTER-SALE SERVICE
Fidelity Securitys broad
line of mutual funds.BROAD PRODUCT LINE

Figure 2.4
2 42

10 Strategic OM Decisions
Goods and service
design
Quality
Process and
capacity design
Location selection
Layout design

2006 Prentice Hall, Inc.

Human resource
and job design
Supply-chain
management
Inventory
Scheduling
Maintenance

2 43

Goods and Services and


the 10 OM Decisions
Operations
Decisions
Goods and
service
design

Goods
Services
Product is usually Product is not
tangible
tangible

Quality

Many objective
standards

Many subjective
standards

Process
and
capacity
design

Customers not
involved

Customer may be
directly involved
Capacity must
match demand
Table 2.1

2006 Prentice Hall, Inc.

2 44

Goods and Services and


the 10 OM Decisions
Operations
Decisions
Location
selection

Goods
Near raw
materials and
labor

Services
Near customers

Layout
design

Production
efficiency

Enhances product
and production

Human
resources
and job
design

Technical skills,
constant labor
standards, output
based wages

Interact with
customers, labor
standards vary
Table 2.1

2006 Prentice Hall, Inc.

2 45

Goods and Services and


the 10 OM Decisions
Operations
Decisions
Supplychain mgmt

Goods
Relationship
critical to final
product

Services
Important, but
may not be
critical

Inventory

Raw materials,
work-in-process,
and finished
goods may be
held

Cannot be stored

Scheduling

Level schedules
possible

Meet immediate
customer demand
Table 2.1

2006 Prentice Hall, Inc.

2 46

Goods and Services and


the 10 OM Decisions
Operations
Decisions
Goods
Services
Maintenance Often preventive Often repair and
and takes place
takes place at
at production site customers site

Table 2.1
2006 Prentice Hall, Inc.

2 47

Process Design

Variety of Products

High

Moderate

Process-focused
JOB SHOPS
(Print shop, emergency
room, machine shop,
fine dining
Repetitive (modular)
focus
ASSEMBLY LINE
(Cars, appliances,
TVs, fast-food
restaurants)

Mass Customization
Customization at high
Volume
(Dell Computers PC)

Product focused
CONTINUOUS
(steel, beer, paper,
bread, institutional
kitchen)

Low
Low
2006 Prentice Hall, Inc.

Moderate
Volume

High
2 48

Operations Strategies for


Two Drug Companies
Competitive
Advantage

Brand Name Drugs, Inc.

Generic Drug Corp.

Product Differentiation

Low Cost

Product
Heavy R&D; labs; focus
Selection and on development in a
Design
broad range of drug
categories
Quality

Low R&D; focus on


development of generic
drugs

Major priority, exceed


Meets regulatory
regulatory requirements requirements on a
country by country
basis
Table 2.2

2006 Prentice Hall, Inc.

2 49

Operations Strategies for


Two Drug Companies
Competitive
Advantage

Brand Name Drugs, Inc.

Generic Drug Corp.

Product Differentiation

Low Cost

Process

Product and modular


process; long
production runs in
specialized facilities;
build capacity ahead of
demand

Process focused;
general processes; job
shop approach, short
production runs; focus
on high utilization

Location

Still located in the city


where it was founded

Recently moved to lowtax, low-labor-cost


environment
Table 2.2

2006 Prentice Hall, Inc.

2 50

Operations Strategies for


Two Drug Companies
Competitive
Advantage

Brand Name Drugs, Inc.

Generic Drug Corp.

Product Differentiation

Low Cost

Scheduling

Centralized production
planning

Many short-run
products complicate
scheduling

Layout

Layout supports
automated productfocused production

Layout supports
process-focused job
shop practices

Table 2.2
2006 Prentice Hall, Inc.

2 51

Operations Strategies for


Two Drug Companies
Competitive
Advantage
Human
Resources

Brand Name Drugs, Inc.

Generic Drug Corp.

Product Differentiation

Low Cost

Hire the best;


nationwide searches

Supply Chain Long-term supplier


relationships

Very experienced top


executives; other
personnel paid below
industry average
Tends to purchase
competitively to find
bargains

Table 2.2
2006 Prentice Hall, Inc.

2 52

Operations Strategies for


Two Drug Companies
Competitive
Advantage

Brand Name Drugs, Inc.

Generic Drug Corp.

Product Differentiation

Low Cost

Inventory

High finished goods


inventory to ensure all
demands are met

Process focus drives up


work-in-process
inventory; finished
goods inventory tends
to be low

Maintenance

Highly trained staff;


extensive parts
inventory

Highly trained staff to


meet changing demand

Table 2.2
2006 Prentice Hall, Inc.

2 53

Managing Global Service


Operations
Probably requires a different
perspective on:
Capacity planning
Location planning
Facilities design and layout
Scheduling
2006 Prentice Hall, Inc.

2 54

Characteristics of
High ROI Firms
High quality product
High capacity utilization
High operating effectiveness
Low investment intensity
Low direct cost per unit
From the PIMS program of the Strategic Planning Institute

2006 Prentice Hall, Inc.

2 55

Strategic Options to Gain a


Competitive Advantage
28% - Operations Management
18% - Marketing/distribution
17% - Momentum/name recognition
16% - Quality/service
14% - Good management
4% - Financial resources
3% - Other
2006 Prentice Hall, Inc.

2 56

Elements of Operations
Management Strategy
Low-cost product
Product-line breadth
Technical superiority
Product characteristics/differentiation
Continuing product innovation
Low-price/high-value offerings
Efficient, flexible operations adaptable to
consumers
Engineering research development
Location
Scheduling

2006 Prentice Hall, Inc.

2 57

Preconditions
One must understand:
Strengths and weaknesses of competitors and
possible new entrants into the market
Current and prospective environmental,
technological, legal, and economic issues
The product life cycle
Resources available within the firm and within
the OM function
Integration of OM strategy with companys
strategy and with other functional areas
2006 Prentice Hall, Inc.

2 58

Dynamics of
Strategic Change
Changes within the organization

Personnel
Finance
Technology
Product life

Changes in the environment

2006 Prentice Hall, Inc.

2 59

Product Life Cycle


Company Strategy/Issues

Introduction

Growth

Maturity

Best period to
increase market
share

Practical to change
price or quality
image

Poor time to
change image,
price, or quality

R&D engineering is
critical

Strengthen niche

Competitive costs
become critical
Defend market
position

CD-ROM
Internet
Sales

Decline
Cost control
critical

Fax machines

Drive-through
restaurants

Color printers

Flat-screen
monitors

DVD

3 1/2
Floppy
disks
Figure 2.5

2006 Prentice Hall, Inc.

2 60

OM Strategy/Issues

Product Life Cycle


Introduction

Growth

Maturity

Decline

Product design
and
development
critical
Frequent
product and
process design
changes
Short production
runs
High production
costs
Limited models

Forecasting
critical
Product and
process
reliability
Competitive
product
improvements
and options
Increase capacity

Standardization
Less rapid
product changes
more minor
changes
Optimum
capacity
Increasing
stability of
process
Long production
runs
Product
improvement and
cost cutting

Little product
differentiation
Cost
minimization
Overcapacity
in the
industry
Prune line to
eliminate
items not
returning
good margin
Reduce
capacity

Attention to
quality

Shift toward
product focus
Enhance
distribution

Figure 2.5
2006 Prentice Hall, Inc.

2 61

Strategy Development and


Implementation
Identify critical success factors
Build and staff the organization
Integrate OM with other activities
The operations managers job is to implement
an OM strategy, provide competitive
advantage, and increase productivity
2006 Prentice Hall, Inc.

2 62

Strategy Development Process


Environmental Analysis
Identify the strengths, weaknesses, opportunities, and threats.
Understand the environment, customers, industry, and competitors.

Determine Corporate Mission


State the reason for the firms existence and identify the
value it wishes to create.

Form a Strategy
Build a competitive advantage, such as low price, design, or
volume flexibility, quality, quick delivery, dependability, aftersale service, broad product lines.
2006 Prentice Hall, Inc.

Figure 2.6

2 63

SWOT Analysis
Mission
Internal
Strengths

External
Opportunities
Analysis

Internal
Weaknesses

External
Threats
Strategy

2006 Prentice Hall, Inc.

2 64

Critical Success Factors


Marketing
Service
Distribution
Promotion
Channels of distribution
Product positioning
(image, functions)

Finance/Accounting

Production/Operations

Leverage
Cost of capital
Working capital
Receivables
Payables
Financial control
Lines of credit

Decisions

Sample Options

Chapter

Product
Quality
Process
Location
Layout
Human resource
Supply chain
Inventory
Schedule
Maintenance

Customized, or standardized
Define customer expectations and how to achieve them
Facility size, technology, capacity
Near supplier or near customer
Work cells or assembly line
Specialized or enriched jobs
Single or multiple suppliers
When to reorder, how much to keep on hand
Stable or fluctuating production rate
Repair as required or preventive maintenance

5
6, S6
7, S7
8
9
10, S10
11, S11
12, 14, 16
13, 15
17

2006 Prentice Hall, Inc.

Figure 2.7

2 65

Activity Mapping
Courteous, but
Limited Passenger
Service
Lean,
Productive
Employees

Short Haul, Point-toPoint Routes, Often to


Secondary Airports

Competitive Advantage:
Low Cost
High
Aircraft
Utilization

2006 Prentice Hall, Inc.

Standardized
Fleet of Boeing
737 Aircraft

Frequent,
Reliable
Schedules
Figure 2.8
2 66

Activity Mapping
Courteous, but
Limited Passenger
Service
Lean,
Productive
Employees

Short Haul, Point-toPoint Routes, Often to


Secondary Airports

Automated ticketing machines


Competitive
Advantage:
No seat assignments
Low Cost
No baggage transfers

High
Aircraft
Utilization

2006 Prentice Hall, Inc.

No meals (peanuts)
Standardized
Fleet of Boeing
737 Aircraft

Frequent,
Reliable
Schedules
Figure 2.8
2 67

Activity Mapping
Courteous, but
Limited Passenger
Service

No meals (peanuts)

Lean,
Lower gate costs at
Productive
secondary airports
Employees

Short Haul, Point-toPoint Routes, Often to


Secondary Airports

High number of flights


Competitive Advantage:
reduces employee
idleCost
time
Low
between flights
High
Aircraft
Utilization

2006 Prentice Hall, Inc.

Standardized
Fleet of Boeing
737 Aircraft

Frequent,
Reliable
Schedules
Figure 2.8
2 68

Activity Mapping
Courteous,
but
High number
of flights
Limited Passenger
reduces employee
idle time
Service
between flights
Lean,
Saturate a city with flights,
Productive
lowering administrative
Employees

Short Haul, Point-toPoint Routes, Often to


Secondary Airports

costs (advertising, HR, etc.)


Competitive
Advantage:
per passenger
for that
city
Low Cost
Pilot training required on
Highonly one type of aircraft

Aircraft
Reduced
Utilization

maintenance
Standardized
inventory required
because
Fleet of
Boeing
of only one type
ofAircraft
aircraft
737

2006 Prentice Hall, Inc.

Frequent,
Reliable
Schedules
Figure 2.8
2 69

Activity Mapping
Pilot training required on
Courteous,
butaircraft
onlyLimited
one
type
of
Passenger

Service
Reduced
maintenance
inventory required because
Lean,
Short Haul, Point-toProductive of only one type of aircraft
Point Routes, Often to
Employees
Secondary Airports
Excellent supplier relations
with Boeing
has aided
Competitive
Advantage:
financing
Low
Cost
High
Aircraft
Utilization

2006 Prentice Hall, Inc.

Standardized
Fleet of Boeing
737 Aircraft

Frequent,
Reliable
Schedules
Figure 2.8
2 70

Activity Mapping
Courteous, but
Limited
Passenger
Reduced
maintenance
Service
Lean,
Productive
Flexible
union
Employees

inventory required because


of only one type of aircraft
Short Haul, Point-to-

Point Routes, Often to

Flexible employeesSecondary
and
Airports
standard planes aid
contracts
Competitive Advantage:
scheduling
Low Cost
Maintenance personnel
trained only one type of
Frequent,
High
Aircraft
Reliable
aircraft

Utilization

2006 Prentice Hall, Inc.

Standardized
20-minute
gate
Fleet of Boeing
737 Aircraft

Schedules

turnarounds

Figure 2.8
2 71

Activity Mapping
Automated ticketing
Courteous,
but
machines

Limited Passenger
Service
Empowered
employees
Lean,
Productive
Employees

High
Aircraft
Utilization

High employee
Short Haul, Point-toPoint Routes, Often to
compensation
Secondary Airports

Hire for attitude, then train


Competitive Advantage:
High
level of stock
Low
Cost
ownership

High number of flightsFrequent,


Reliable
reduces
employee idle time
Schedules
Standardized
Fleetbetween
of Boeing flights
737 Aircraft

2006 Prentice Hall, Inc.

Figure 2.8
2 72

Strategy

Cost Reduction Considerations

High

Four International
Operations
Strategies
International
Import/export or
license existing
product
Examples
U.S. Steel
Harley Davidson

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 73

Four International
Operations Strategies
Cost Reduction Considerations

High

International Strategy
Import/export or
license existing
product
Examples
U.S. Steel
Harley Davidson

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 74

Four International
Global
Operations
Strategies
Strategy

High
Cost Reduction Considerations

Standardized
product
Economies of scale
Cross-cultural
learning
International Strategy

Examples
Texas Instruments
Examples Caterpillar
U.S. Steel
Harley Davidson
Otis Elevator
Import/export or
license existing
product

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 75

Four International
Operations Strategies
High
Cost Reduction Considerations

Global Strategy
Standardized product
Economies of scale
Cross-cultural learning
Examples
Texas Instruments
Caterpillar
Otis Elevator

International Strategy
Import/export or
license existing
product
Examples
U.S. Steel
Harley Davidson

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 76

High

FourMultidomestic
International
Operations
Strategies
Strategy
Use existing
Standardized product
domestic
model
Economies of
scale
Cross-cultural learning
globally
Examples
Texas
Instruments
Franchise, joint
Caterpillar
Otis Elevator
ventures,
subsidiaries

Cost Reduction Considerations

Global Strategy

International Strategy

Examples
Heinz
Examples
U.S. SteelMcDonalds
Harley Davidson
The Body Shop
Hard Rock Cafe
Import/export or
license existing
product

Low
Low

High

Local Responsiveness Considerations


2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 77

Komatsu mencarikeunggulan bersaing


dengan produk alat berat bergerak ke inggris,
sementara Cartepillar ke china

2006 Prentice Hall, Inc.

2 78

Four International
Operations Strategies
High
Cost Reduction Considerations

Global Strategy
Standardized product
Economies of scale
Cross-cultural learning
Examples
Texas Instruments
Caterpillar
Otis Elevator

International Strategy
Import/export or
license existing
product

Multidomestic Strategy
Use existing
domestic model globally
Franchise, joint ventures,
subsidiaries

Examples
U.S. Steel
Harley Davidson

Examples
Heinz
The Body Shop
McDonalds Hard Rock Cafe

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 79

Four International
Transnational
Operations
Strategies
Strategy

High
Global Strategy

Cost Reduction Considerations

Move material,
people, ideas
Examples
across national
Texas Instruments
Caterpillar
boundaries
Otis Elevator
Economies of scale
Cross-cultural
International
Strategy
Multidomestic Strategy
Use existing
Import/export
learning
or
domestic model globally
license existing
Standardized product
Economies of scale
Cross-cultural learning

product

Examples
Coca-Cola
Nestl

Examples
U.S. Steel
Harley Davidson

Low

Franchise, joint ventures,


subsidiaries
Examples
Heinz
The Body Shop
McDonalds Hard Rock Cafe

Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 80

Four International
Operations Strategies
Cost Reduction Considerations

High
Global Strategy

Transnational Strategy

Standardized product
Economies of scale
Cross-cultural learning

Move material, people, ideas


across national boundaries
Economies of scale
Cross-cultural learning

Examples
Texas Instruments
Caterpillar
Otis Elevator

International Strategy

Examples
Coca-Cola
Nestl

Import/export or
license existing
product

Multidomestic Strategy
Use existing
domestic model globally
Franchise, joint ventures,
subsidiaries

Examples
U.S. Steel
Harley Davidson

Examples
Heinz
The Body Shop
McDonalds Hard Rock Cafe

Low
Low

High
Local Responsiveness Considerations

2006 Prentice Hall, Inc.

(Quick Response and/or Differentiation)

2 81

Ranking Corruption
Rank
1
2
5
7
9
11
12
15
16
17
17
24
35
64
71
2006 Prentice Hall, Inc.

Country
Finland
New Zealand
Singapore
Switzerland
Australia
United Kingdom
Canada
Germany
Hong Kong
Ireland
USA
Japan
Taiwan
Mexico
China

2004 CPI Score (out of 10)


9.7
Good
9.6
9.3
9.1
8.8
8.6
8.5
8.2
8.0
7.5
7.5
6.9
5.6
3.6
Not So
3.4
Good
2 82