Operations Management

The company should be able to take advantage of economies of scale and use collective resources in order to maximize usefulness. This will also keep the strategic and mission objectives from being pulled in too many directions. This would not be the best plan if there is an unexpected supply issue leading to essential resources being unavailable, inadaptable and unobtainable.

The structure of a company globally needs to be influenced by the identity of the organization. The company has to ensure that they are going to be able to grow and establish new market share without neglecting their current market share. If a company spreads themselves too thinly end up learning an expensive lesson that they were not fit to compete internationally (AIU, n.d.).

Formalization keeps established strategies and operations in place. This is important for accurately forecasting future performance of the company. Specialization allows for the creation of a niche market. This gives businesses a competitive advantage over the competition, regardless of their size. Centralization has the ability to both strengthen and isolate companies. Which impact is seen depends on the location strategy chosen. A central location proves to be most beneficial for strategic positioning.

The first big decision that a company needs to make based on their organizational identity and structure when going global is the location of their headquarters. The decision needs to be made whether or not the headquarters will be centralized in one main location or subdivided into various locations that would help to meet the goals and objectives of the organization better than one location. Organizational characteristics need to be adjusted for the culture of the new society.

            Organizations must be sensitive to international laws, labor laws, and regulatory concerns when they endeavor on an international expansion (Kogut, 1998). There should also be a focus on cultural translations of the service or product a company is providing. Ensuring that all aspects of the business translate well into each specific country is most beneficial for managing the risk of offending the consumer. The cost of doing business should also be considered, as things such as regulations and taxes can be pricey if not forecasted.

References

AIU. (n.d.). Course MGMT415- Global Operations Management. Retrieved from Managing Resources & Operations: https://mycampus.aiu-online.com/Classroom/Pages/multimediacoursetext.aspx?classid=316435&tid=204&uid=284898&HeaderText=Course Materials: MGMT415-1202A-02 : Global Operations Management

 Kogut, B. (1998). International business: The new bottom line. Foreign Policy, 152–162.