Globalisation impacts operations
strategies in both negative and positive ways. Global factors that can be used
as an operations strategy include global sourcing, economies of scale, scanning
and learning and research and development.
Global sourcing can create a bigger skill base for a business as they have access to skills that they may not be able to availability to in local areas. Although when global sourcing is used the business may be at a higher risk of losing data that they would not lose when using domestic suppliers.
The main advantage of Economies of scale is specialization, when the company decides to become bigger it becomes more practical to sub-divide the processes of the business, which can increase the overall productivity of the workers and products made. Whereas if the business over expands the levels of management will increase resulting in communication becoming complicated and impacting negatively on the productivity of the business.
Scanning and learning can help a business to have insight and be flexible when an issue arises, experience of others who worked in similar situations help the business to know how to react to situations that they may not have thought about previously. If a business chooses to learn from companies that had faults in their strategies they may repeat these and continue with loss of profit. Research and development can give an advantage to a business they can offer the customer something they have never seen before, if they create a product that has high desire it can result in increased sales. Even though a business can have increased sales when they use research and development the cost of the research and development can be quite expensive. If a business chooses to conduct research either with a different company or with existing employees can both be costly ventures. A business that is affected by globalization is Coca-Cola, at the beginning of world war 11 Coca-Cola was bottled in 44 countries. Coca-Cola is now the largest beverage company in the world. The Coca-Cola enterprise distributes to extensive amounts of Coca-Cola bottlers around the world. They manage a network of over 84,000 suppliers of goods and services that range in size. Coca-Cola expanded from a small business to a large cooperate company and distributor through some of the aspects above.
Global sourcing can create a bigger skill base for a business as they have access to skills that they may not be able to availability to in local areas. Although when global sourcing is used the business may be at a higher risk of losing data that they would not lose when using domestic suppliers.
The main advantage of Economies of scale is specialization, when the company decides to become bigger it becomes more practical to sub-divide the processes of the business, which can increase the overall productivity of the workers and products made. Whereas if the business over expands the levels of management will increase resulting in communication becoming complicated and impacting negatively on the productivity of the business.
Scanning and learning can help a business to have insight and be flexible when an issue arises, experience of others who worked in similar situations help the business to know how to react to situations that they may not have thought about previously. If a business chooses to learn from companies that had faults in their strategies they may repeat these and continue with loss of profit. Research and development can give an advantage to a business they can offer the customer something they have never seen before, if they create a product that has high desire it can result in increased sales. Even though a business can have increased sales when they use research and development the cost of the research and development can be quite expensive. If a business chooses to conduct research either with a different company or with existing employees can both be costly ventures. A business that is affected by globalization is Coca-Cola, at the beginning of world war 11 Coca-Cola was bottled in 44 countries. Coca-Cola is now the largest beverage company in the world. The Coca-Cola enterprise distributes to extensive amounts of Coca-Cola bottlers around the world. They manage a network of over 84,000 suppliers of goods and services that range in size. Coca-Cola expanded from a small business to a large cooperate company and distributor through some of the aspects above.