Chapter 17-1

The Nature of International Operations

Management

Chapter 17-2
The Strategic Context of International
Operations Management

 Superior Value
 Business Strategy
 Production Processes
 Production Technologies

Chapter 17-3
Complexities of International
Operations Management

 Resources
 Location
 Logistics

Chapter 17-4
Production Management

Production •Creation of
Management Tangible Goods

Service •Creation of
Operations
Management Intangible Services

Chapter 17-5
Supply Chain Management and
Vertical Integration

 Supply Chain Management Impacts

Product Cost
Product Quality
Internal Demands for Capital
 Supply Chain Management Strategy
Vertical Integration
Make-or-Buy Decision

Chapter 17-6
Supply Chain Management and
Vertical Integration (Cont.)

Make-or-Buy Decision
Strategic Other
Considerations Factors
• Size • Control
• Scope of • Risk
Operations • Investments
• Technological • Flexibility
Expertise
• Nature of Product
• Cheaper Resources

Chapter 17-7
Location Decisions

Country-Related Issues

Product-Related Issues
Location
Decision
Government Policies

Organizational Issues

Chapter 17-8
Location Decisions: Country-Related
Issues

 Resource Availability and Cost

 Infrastructure
 Country-of-Origin Effects

Chapter 17-9
Location Decisions: Product-Related
Issues

 Product’s Value-to-Weight Ratio

 Production Technology

Chapter 17-10
Location Decisions: Government
Policies

 Stability of the Political Process

 National Trade Policies
 Economic Development Incentives
 Existence of Foreign Trade Zones

Chapter 17-11
Location Decisions: Organizational
Issues

Business Strategy

Organizational Structure

Inventory Management

Chapter 17-12
International Logistics and Materials
Management

Suppliers Materials Management

Materials,
Parts,
Supplies, and Firm
Other
Resources Customers
Finished
Products,
Services, and
Goods

Physical Distribution

Chapter 17-13
International Logistics and Materials
Management (Cont.)

 Domestic vs. International Materials

Management
Shipments
Transport Modes
Regulatory Context

Chapter 17-14
International Logistics and Materials
Management (Cont.)

 Logistical Considerations
Packaging
Factory Location
Information Technology

Chapter 17-15
International Service Operations

Intangible
Resources Utility
Output

Chapter 17-16
Characteristics of International
Services

 Intangible
 Non-Storable
 Customer Participation
 Associated Products
Product-Support Services

Chapter 17-17
The Role of Government in
International Services Trade

Government Regulations

Deregulation and
Reductions in Barriers
to Service Trade
• Strategic Alliances,
• Cross-Border Investments
• New Start-up Companies

Chapter 17-18
Managing Service Operations

 Capacity Planning
 Location Planning
 Facilities Design and Layout
 Operations Scheduling

Chapter 17-19
Managing Productivity in
International Business

 Importance of Productivity
Helps determine a firm’s overall success
Contributes to a firm’s long-term survival
Contributes directly to the overall standard
of living within a particular country

Chapter 17-20
Managing Productivity in
International Business (Cont.)

 Maintaining and Boosting Productivity

Increase Research and Development
Improve Operations and Productivity
Increase Employee Involvement

Chapter 17-21
Managing Quality in International
Business

 International Organization for

Standardization (ISO)
Product Testing
Employee Training
Record Keeping
Supplier Relations
Repair Policies
 Importance of Quality
Competition
Productivity
Customer Loyalty

Chapter 17-22
Managing Quality in International
Business (Cont.)

Chapter 17-23
Managing Quality in International
Business (Cont.)

 TQM Techniques
Statistical Process Control
Benchmarking

Chapter 17-24
Managing Information in
International Business

 Understanding, Interacting, And

Responding to the Environment
 Setting Strategic Goals
 Mapping Out and Implementing Strategic
Plans
 Meeting Goals and Executing Plans

Chapter 17-25
Managing Information in
International Business (Cont.)

 Related Diversification vs. Unrelated

Diversification
 Centralized vs. Decentralized

Chapter 17-26
Managing Information in
International Business (Cont.)

 Information System
Gather Data
Assemble Data
Provide Data

Chapter 17-27