GLOBAL OPERATIONS MANAGEMENT

Global Operations Management

Global Operations Management

Introduction

The operation management by a company it refers to the management of business operations and managing the business recourses efficiently in order to minimize the cost and maximizing the profit of the company. Therefore the operational management system of the company helps the company in managing their business operations. It is essential for an every organization to manage its functions properly at the global level. Because the operation management is important as other functions, the operation management refers to the management of all the operations related to the organization. No organization will be successful if they were not managing their operational functions properly (Anderson, 2000)

The operation management of all the organizations is important because the operations of the organization are directly related to its cost. To start the business globally it is important for the companies to do a proper market research and to review the business plan properly. And use that business plan to judge the suitable areas for the expansion of the business. The companies need to evaluate their financial stability that the company has a sufficient financial fund to develop its operations into the new market that they are going to enter, and also it is important for the company to check that if they had enough funds to expand their business in the long run. Expanding your business locally is not so difficult but the expansion of a business globally is a difficult task which requires enough capital, to expand its operation in the international markets (Friedman, 2007)

Issues host foreign country could face as a result of expansion

The host foreign companies face many different kinds of issues for expansion of their business into foreign markets. For example the companies when establish their business into foreign markets, there is no information available to them, about the market trends or growth in foreign country. They face high cost of capital, in the labor market they lack well trained people, and if the company hires people with no experience they face problems in manufacturing operations. Thus it is crucial for the business to hire well trained and experienced labor force in order to expand its business operations into the foreign market (Phillips, 2008). Because if the company lacks in infrastructure and facing other communication problems it will become very difficult for the company to build its brand image in the other countries because the good brands are highly valued and this is because the other alterative companies offer lower quality products (Held, 2004)

Importance of diversity in international arena

Every organization needs to think globally however management of diversity is a major concern for the global firm for the effective strategic decision making and for managing the other cross national activities. It is the major concern for the global companies to recognize that policies need to be managed with keeping in mind the cultural differences in order to make any kind of business ...