Operations Management
Why are international issues now important in operations management? Give an example.
The changing ways in which efficient manufacturing processes can take place in a global marketplace are critically affected by international and regional concerns. When deciding to embark upon a new venture in a foreign country, the relative geography and political stability of the nation must be taken into consideration. Foreign expansion holds the potential for great profitability. For example, in India, the existence of a technically skilled yet less expensive marketplace is one key way in which a company can become more profitable, by making use of such a natural, national labor resource. Outsourcing of labor has become a fundamental trend in research and developing. Even aspects of research and development traditionally considered a manufacturer's core competences are now outsourced. (Terestko, 2005)
However, before a company can fully consider outsourcing, local labor issues, national government policy, and possible economic sector and national level actions and outcomes in the country must be considered to assess, the potential risks and benefits for outsourcing critical operational functions. (Harland, et. al, 2005)
What are the ways you would determine the demand of your firm's new convertible roadster? In your own words
A forward thinking approach to research strategies and product innovation is key, but even the best product innovation is useless unless a market segment desiring the product is identified. In the case of a convertible roadster, it would likely young men with disposable income. (Terestko, 2005) Male, moderate to wealthy consumers who were car-fixated despite rising gas prices could be surveyed as to their product wants, needs, and desires.
The best target region of America would be warmer weather climates, where the roadster would be more useful for a longer period of the year. The target consumer segments would be surveyed, put into focus groups, and then their responses would be analyzed -- along with general industry trends. After generating the prototype, it would be test marketed in a small region of the country, with the product's major consumer base, before being sold to the public at large.
Works Cited
Harland, Christine, Knight, Louise, Lamming, Richard, & Walker, Helen. (Sept 2005) "Outsourcing: assessing the risks and benefits for organisations, sectors and nations." International Journal of Operations & Production Management. Vol. 25. No. 9, pp. 831-850
Terestko, John. (2005) "Pipeline=Lifeline." Industry Week. Retrived 7 Oct 2005 at http://www.industryweek.com/ReadArticle.aspx?ArticleID=10178
