INTERNATIONAL OPERATION MANAGEMENT Introduction Different perception of Globalization

INTERNATIONAL OPERATION MANAGEMENT - Introduction - • Different perception of Globalization : investment in the other countries, innovations in computer & telecommunication tech. , interchangeable products, serving customers worldwide • Increased international operations and changed internal management process • The emergence of new products and services through knowledge and tech. , integrated international supply network, lower barriers to trade, growing market • Issues : customers, suppliers, competitors, partners, models

• Operation : better products and deliver them at lower cost than the competitors • Operation foundation of global business strategies and its relation to innovations in operations

- History - • Before late 1800 s • Early multinational activity (1875 -1938) : mass production, tech. advances in transportation • DFI : to obtain resources from less developed countries, market/proximity seeking • Problems : tariffs, world war • Dominance by USA (1945 -1970 ) : establishing local manufacturing in the foreign market through wholly owned subsidiaries • Adoption of American’s management innovations

• Globalization (1970 -… ) • Rapid economic growth of Japan, increased international transaction, continued DFI to developing countries, Bretton Woods agreement • Strategy : strategic and technological alliances with competitors

- Operation Foundations of Globalization - • Innovations in information and communication tech. • Innovations in the management of manufacturing and tech. • Difficulties and challenges : more tight competition, quality, management of changes, global strategies