Unit 1 - Global Operations Management
Global Operations Management
MGMT415-1202A
March 21, 2011
Abstract
The following paper will address many issues such as issues that are associated to expanding globally i.e. cultural barriers, diversity and what happens when these issues are ignored. In addition, there will be two examples of political conflicts and two examples of economic conflicts.
Introduction
PPQ Parts is planning to expand globally over the next several years. To ensure that this is a smooth transition I have prepared this extensive report to aid in any issues that may arise and how to handle them. Throughout the following document you will find a plethora of useful information ranging from how cultural barriers and diversity can affect our company to a few political and economic issues that commonly arise. In addition, you will find a comprehensive analysis of what happens when these issues are ignored. Global expansion will increase PPQ Parts profits as well as give the company a competitive advantage over the competition.
What are some of the issues the host foreign country could face as a result of the expansion?
When it comes to global expansions the host country is responsible for providing a wide array of things ranging from skilled individuals to the availability of raw material as well as transportation and a valid market to sell the products being produced. By introducing an expansion into a new foreign country there are other issues that can arise such as the host countries ability to integrate the new company into the marketplace and grow as it does as well as the country’s rate of utilization and absorption. Secondly, the country’s infrastructure may also be affected when it integrates the new firm. In addition, when things such as machinery is hard to obtain, electricity is either non-existent or unreliable and technologies such as telephones and other communicational tools are unavailable the host country would have to integrate these tools before the firm
MGMT415-1202A
March 21, 2011
Abstract
The following paper will address many issues such as issues that are associated to expanding globally i.e. cultural barriers, diversity and what happens when these issues are ignored. In addition, there will be two examples of political conflicts and two examples of economic conflicts.
Introduction
PPQ Parts is planning to expand globally over the next several years. To ensure that this is a smooth transition I have prepared this extensive report to aid in any issues that may arise and how to handle them. Throughout the following document you will find a plethora of useful information ranging from how cultural barriers and diversity can affect our company to a few political and economic issues that commonly arise. In addition, you will find a comprehensive analysis of what happens when these issues are ignored. Global expansion will increase PPQ Parts profits as well as give the company a competitive advantage over the competition.
What are some of the issues the host foreign country could face as a result of the expansion?
When it comes to global expansions the host country is responsible for providing a wide array of things ranging from skilled individuals to the availability of raw material as well as transportation and a valid market to sell the products being produced. By introducing an expansion into a new foreign country there are other issues that can arise such as the host countries ability to integrate the new company into the marketplace and grow as it does as well as the country’s rate of utilization and absorption. Secondly, the country’s infrastructure may also be affected when it integrates the new firm. In addition, when things such as machinery is hard to obtain, electricity is either non-existent or unreliable and technologies such as telephones and other communicational tools are unavailable the host country would have to integrate these tools before the firm
References: Dictionary.com. (n.d). Culture. Retrieved March 21, 2012, from http://dictionary.reference.com/browse/culture Heizer, J., & Render, B. (2012). Operations Management. Upper Saddle River: Prentice Hall. Klawitter, N. (2006, March 6). Germany 's Local Currencies. Retrieved March 23, 2012, from http://www.spiegel.de/international/spiegel/0,1518,469875,00.html