International business 5th griffin chapter 17

• Analyze the meaning of productivity and discuss how international firms work to improve it... Chapter Objectives 2 • Explain how firms control quality and discuss total quality managem

• Analyze the meaning of productivity and discuss how international firms work to improve it

Chapter Objectives 2

• Explain how firms control quality and discuss total quality management in international business

• Analyze how international firms control the information their managers need to make effective decisions

Operations Management

Operations management is the set of

activities an organization uses to transform different kinds of inputs (materials, labor, and so on) into final goods and services

International operations management

refers to the transformation-related activities of an international firm

Complexities of International Operations Management

Resources

LogisticsLocation

Forms of Operations Management

Productionmanagement

Service operations management

Supply Chain Management

Supply chain management

is the set of processes and steps a

firm uses to acquire the various resources

it needs to create its products

Figure 17.2 Basic Make-or-Buy Options

Figure 17.3 Competitive Advantage versus

Strategic Vulnerability

Cost Flexibility

Country-Related Issues

Resource availability

InfrastructureCountry-of-origin effects

Cost

Country-Related Issues

Such issues play

key roles in location

decisions for

manufacturers

Government Policies

• Stability of political process

• National trade policies

• Economic development incentives

• Existence of foreign trade zones (FTZ)

International Logistics

International logistics is the management

of the flow of materials, parts, supplies, and other resources from suppliers

to the firm; the flow of materials, parts, supplies, and other resources within and between units of the firm itself; and the flow

of finished products, services, and goods from the firm to customers

Factors Distinguishing International and

Domestic Logistics

Transport distance

Complexity of regulatory content Number of

transport modes

Characteristics of International Services

• Services are intangible

• Services are not storable

• Services may require customer

participation

• Services may be tied to the purchase of

other products

of the inputs used

to create the outputs

Strategies for Enhancing Productivity

• Spend more on R&D

• Improve operations

• Increase employee involvement

International Organization for

Standardization

Figure 17.4 Essential Components of

Total Quality Management

Up-to-Date Technology

Effective Methods

Key Components of Total Quality Management

Statisticalprocesscontrol

Benchmarking