MG 211 Lecture Notes - Lecture 2: Sneakers, Product Design, North American Free Trade Agreement
Document Summary
Chapter 2 (cn): operations strategy in a global environment. Improve supply chain: locate facilities closer to unique resources. Reduce costs (labor, taxes, tariffs, etc): foreign locations with lower wage rates can lower direct/indirect costs, trade agreements can lower tariffs: wto, eu, nafta. Improve operations: understand differences between how business is handled in other countries, international operations can improve response time and customer service. Understand markets: interacting with foreign customers, suppliers, competition can lead to new opportunities. Cell phone design moved from europe to japan. Improve products: remain open to free flow of ideas, toyota and bmw manage joint research and development. Reduced risk, updated design, lower costs: samsung and bosch jointly produce batteries. Attract and retain global talent: cultures can be different, attitudes can be different towards punctuality, environment, intellectual property, thievery, child labor, etc. Product design: to design and produce products and services with outstanding quality and inherent customer value.
