Operations Management

Lecture No. 5
Operations Strategy Global Strategy

BITS Pilani
Pilani Campus

PB Venkataraman
Mechanical Engineering

Learning Outcomes
1.

Interpret global strategic options and analyze their respective business models

2.

Explain strategy development steps.

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Module Outline

Introduction

Mission

Strategy

Global
strategy

Dissection

Video Cases

Video case

Strategy
Development
Process

Case study

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BITS Pilani
Pilani Campus

Global Strategy

BITS Pilani, Pilani Campus

Global Strategy
Watch for local responsiveness and pressure on cost reduction

McDonalds - https://www.youtube.com/watch?v=OCG7ScRP1ws
Coca-Cola - https://www.youtube.com/watch?v=QAyJVtEIAtM
JCB - https://www.youtube.com/watch?v=uHKAknmCc8E
McLaren - https://www.youtube.com/watch?v=qziJ0O3Da40

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Global Operations- Strategy Options

Pressure for Cost Reduction

High

Low

High

Local Responsiveness

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Global Operations- Strategy Options

Pressure on Cost Reduction

High
Global

Transnational

- Operating decisions centralized

- HQ coordinates standardization
and learning between facilities

-Combines global scale

efficiencies and local
responsiveness

E.g., Caterpillar

E.g., Coca-Cola

International

Multi Domestic

-Global markets are penetrated

through exports and licenses

-Operating decisions are

decentralized
-HQ coordinates standardization
and learning between facilities

E.g., Harley Davidson

E.g., Dominos

Low

High

Local Responsiveness

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Strategy Development Steps

Understand the organization mission

Identify the organizations core competence technology, brand building,

finance, supply chain, innovation, people, network

Study the success and failure stories in the organization history

Research the market dynamics how does it receive a product, what barriers it
offers, what can be the qualifier and what can be the winner

Watch your competitors their actions, inactions, responses, financial and

technological strengths

Select one of the overriding strategies proceed to detail considering the

above points
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Amazon Story

https://www.youtube.com/watch?v=fRMNkNsPciQ
https://www.youtube.com/watch?v=m2sMsyUN7FY

Watch for:

The mission purpose

The differentiator USP

The tool

The means

The end
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Module Outline

Introduction

Mission

Strategy

Global
strategy

Dissection

Video Cases

Video cases

Strategy
tools

List

Case study

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BITS Pilani
Pilani Campus

End of Lecture

BITS Pilani, Pilani Campus