COMMERCE 2OC3 Chapter 2: Chapter 2 - Operations Strategy in a Global Environment
16 Apr 2018
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Document Summary
Chapter 2 - operations strategy in a global. A global view of operations and supply chains. Globalizations means that domestic production and exporting may no longer be a viable business model; local production and exporting no longer guarantee success or even survival. There are new standards of global competitiveness that impact quality, variety, customization, convenience, timeliness and cost. The globalization of strategy contributes efficiency and adds value to products and services, but it also complicates the operations manager"s job. Six reasons why domestic business operations decide to change to some form of international operation. Foreign locations with lower wages can help lower both direct and indirect costs. Less stringent government regulations on a wide variety of operations practices reduce costs. Opportunities to cut the cot of taxes and tariffs also encourage foreign operations. In mexico, the creation of maquiladoras (free trade zones) allows manufacturers to cut their costs of taxation by paying only on the value added by mexican workers.
