MODULE

SECOND PRELIM
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 ( BME-1 )
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Global Environment & Operations Strategy

Topic 2
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
Learning Objectives
01 Define mission and strategy.

02 Explain the three strategic approaches to

competitive advantage.

03 Define the 10 decisions of operations

management.

Understand the issues in operations

04 strategy.

Explain the four global operations strategy

05 options.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 INTRODUCTION

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Globalization means that the domestic production and
exporting may no longer be a viable business model; local
production and exporting no longer guarantee success or
even survival. There are new standards of global
competitiveness that impact quality, variety, customization,
convenience, timeliness and cost.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 The globalization strategy contributes efficiency and adds
value to products and services, but it also complicates the
operations manager’s job. Complexity, risks and competition
are intensified thus companies must carefully account for
them.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 DISCUSSION

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Disclaimer

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Marriot International

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY 11
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 A Global View of Operations

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Today’s operations manager must have a global view of
operations strategy. Since the early 1990’s, nearly 3 billion
people in developing countries gave overcome the cultural,
religious, ethic and political barriers that constrain
productivity and are now players on the global economic
stage. As these barriers disappears, simultaneous
advances are being made in technology, reliable shipping
and cheap communication.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 The surprising result is the growth of world trade, global
capital markets, and the international movement of people.
This means increasing economic integration and
interdependence of countries-globalization. In response,
organization are hastily extending their operations globally
with innovative strategies.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
1. Reduce Costs
 Many international
operations seek to
take advantage of the
tangible opportunities
to reduce their cost.
Foreign locations with
lower wages can help
lower both direct and
indirect costs.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
1. Reduce Costs
 Trade agreements have
also helped reduce
tariffs and thereby
reducing the cost of
operating facilities in
foreign countries.
 Examples include
WTO, NAFTA, EU and
ASEAN.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
2. Improve the Supply Chain
 The supply chain can
often be improved by
locating facilities in
countries where unique
resources are available.
These resources may be
expertise, labor or raw
materials.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
3. Provide better Goods & Services
 Although the characteristics of goods and services can
be objective and measurable(number on time
deliveries) they can also subjective and less
measurable(sensitivity to culture).

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
3. Provide better Goods & Services
 There is a need to have a
better understanding of
diffidence of culture and of the
way business is handled in
different countries. Through
this, it allows the firms to
customize products and
services to meet unique cultural
needs in foreign markets.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
4. Understand Markets
 Because international
operations require
interaction with foreign
customers, suppliers and
other competitive
businesses, international
firms inevitably learn about
opportunities for new
products and services.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
4. Understand Markets
 Another reason to go in
foreign markets is the
opportunity to expand the life
cycle and existing product.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
5. Learn to Improve Operations
 Learning does not take
place in isolation.
Firms serve themselves
and their customers
well when they remain
open to the free flow of
ideas.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
6. Attract & Retain Global Talent
 Global organizations can
attract and retain better
employees buy offering
more employment
opportunities. They need
people in all functional
areas and aeras of
expertise worldwide.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Developing Missions &
Strategies

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 An effective operations management must have a
mission so it knows where it is going and a strategy
so it knows how to get there. This is the case for a
small domestic organization as well as a large
international organization.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
Mission
 The purpose or rationale for an
organization’s existence.
 Mission statements provide
boundaries and focus for
organizations and the concept
around which the firm can rally.
 Developing a good strategy is
difficult, but it is easier if the
mission has been well defined.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
Strategy
 The organization's action plan
to achieve the mission.
 Each functional area has a
strategy for achieving its
mission and for helping the
org. reach the overall mission.
 These strategies exploit
opportunities & strength,
neutralizes threats and avoid
weaknesses.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Three Approaches to Cost Leadership
Deliver goods and

Competitive services that are

cheaper.

Advantage

Response
Differentiation Deliver goods and
Deliver goods and services that are more
services that are better responsive.
or at least different.

Operations manager translate these strategic concepts into tangible tasks. Any one or
combination of these can generate a system that has a unique advantage over competitors.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Achieving Competitive
Advantage through
Operations

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Each of the three strategies provides an opportunity for
operations to achieve competitive advantage—the creation
of a system that has a unique advantage over competitor.
The idea is to create customer value in an efficient and
sustainable way.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 1. Competing on Differentiation
It should be thought of
as going beyond both
In service industry, one
physical characteristics
option in extending
and service attributes to
differentiation is
encompass everything
through experience.
about the product or
service that influences
the value that the
customers derive from it.
The idea of experience
differentiation is to engage
the customer-to use the
Differentiation is peoples five senses so they
concerned with become immerse/active
uniqueness. participant in the product.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 2. Competing on Cost
One of driver of Los-cost leadership
low cost strategy entails achieving value as A low cost
is facility that is defined by your customer. strategy does
effectively It requires examining not imply low
utilized. each of the 10 OM value or quality.
Identifying the decisions to bring down
optimum size cost while meeting
allows firms to customer expectations of
spread overhead value.
costs, providing
a cost
advantage.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 3. Competing on 2. Reliability of Scheduling.
Meaningful schedules are
Response communicated to the
customer .
Response – the entire
range of values related
to timely product
development & delivery,
as well as reliable
scheduling and flexible 3. Quickness
performance. Competes on speed-
1. Flexible response speed in design,
The ability to match production and delivery.
changes in a marketplace
where design innovations
and volumes fluctuates
substantially.
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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 10 Strategic OM Decisions
2. Quality
The customer’s quality
expectations must be
determined & polices
and procedures are
established to identify
and achieve that quality.
1. Goods & Service Design
Designing goods and services
defines much of the
transformation process. Cost,
quality & HR decisions are
some of the factors.
MEDEL JUN Y. UNIDO
FACULTY
3. Process & Capacity
Design
Process options are available
for products & services.
Process decisions commit
mgmt. to specific technology,
quality, human resources
used & maintenance.
4. Location Selection
Facility location decisions for both
manufacturing and service organizations may
determine the firm’s ultimate success. Errors
made at this juncture may overwhelm other
efficiencies.
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 10 Strategic OM Decisions
6. HR & Job Design
People are an integral &
expensive part of the total
system design. Therefore,
the quality of work life
provide, the talent & skills
required and their costs
must be determined.
5. Lay-out Design
Material flows, capacity needs,
personnel levels, technology
decisions & inventory
requirements influence lay-
out.
MEDEL JUN Y. UNIDO
FACULTY
7. Supply-chain
Management
These decisions determine
what is to be made & what is
to be purchased.
Considerations is also given
to quality, delivery,
innovation at all satisfactory
price. Mutual trust is needed.
8. Inventory
Inventory decisions can be optimized only when
customer satisfaction, suppliers, production
schedules & human resources are considered
OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
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 10 Strategic OM Decisions

10. Maintenance
Decisions must be made
regarding desired levels of
reliability & stability, and
systems must be established to
maintain that reliability &
stability.

9. Scheduling
Feasible & efficient schedules of
production must be developed;
demands on human resources &
facilities must be determined &
controlled.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Issues in Operations Strategy

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200

Issues in Operations
Strategy
Prior to establishing &
attempting to implement a
strategy, some alternative
perspectives may be
helpful
1. Resources View
A view in which managers
evaluate the resources at
their disposal & manage or
alter them to achieve
competitive advantage.
MEDEL JUN Y. UNIDO
FACULTY
2. Value-chain Analysis
A way to identify activities
that represent strengths &
may be opportunities for
developing competitive
advantage. These areas where
firm adds its unique value
through product research,
design, etc.
Five-forces Model
A way to analyze the five
forces in the competitive
environment. These are
immediate rivals, potential
entrants, customers,
suppliers and substitute
products..
OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
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MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Global Strategy Options

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
International Business
 A firm that engages
in cross-border
transactions.
A very broad
category and is the
opposite of a
domestic or local
firm.

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
Multinational Corporation (MNC)
 A firm that has extensive
involvement in
international business,
owning or controlling
facilities in more than one
country.
 Applies to most of the
world’s large, well-
known businesses.
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 EXERCISE

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Essay
Assignment # 2
Instructions:

1. Log- in to your account in schoology and go to

applied business tools & technologies.
2. Answer the questions provided in the dash board.
3. Be conscious with the time as it is a time-bounded
homework.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Essay
Assignment # 2
Guide questions:

1. Define mission & strategy.

2. Describe how these mission & strategy have different
purposes.
3. List down six reasons to internationalize operations.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 ASSESSMENT
(PERFORMANCE TASK)

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Goal Develop an observation log for your recommendation to the
Hotel Manager.
Role Operations Manager

Audience General Manager

Situation Siam Hotel will expand operations in Ozamiz City. The Hotel
General Manager ask you to attend the Consumer Electronics
Show (CES) 2020 in Singapore to recommend him the latest
equipment to be used in the restaurant. You are task to provide
insights based on 10 OM decisions whether it is viable to expand
in Ozamiz City.
Product Observation Log

Standards Your work will be judge according to the appropriateness of your

recommendations based on OM decisions.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Goal Develop an observation log for your recommendation to the
Travel and Tour Manager.
Role Operations Manager

Audience Travel & Tour Manager

Situation ZAHRA Travel and Tour will expand operations in Ozamiz City.
The Travel & Tour Manager ask you to attend the Consumer
Electronics Show (CES) 2020 in Singapore to recommend him
the latest equipment to be used in the travel agency. You are
task to provide insights based on 10 OM decisions whether it is
viable to expand in Ozamiz City.
Product Observation Log

Standards Your work will be judge according to the appropriateness of your

recommendations based on OM decisions.

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 REFLECTION

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 In this time of pandemic, how do OM
managers navigate this situation
considering the 10 OM decisions?

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 RESOURCES &
ADDITIONAL
READINGS

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Impact Assessment of The Covid-19
Outbreak on International Tourism

https://www.unwto.org/impact-assessment-of-the-
covid-19-outbreak-on-international-tourism

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 GRADING
SYSTEM/RUBRICS

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FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Do you have any
clarifications?

MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY

FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
MEDEL JUN Y. UNIDO OUR LADY OF TRIUMPH INSTITUTE OF TECHNOLOGY
FACULTY BAÑADERO HIGHWAY, OZAMIZ CITY MISAMIS OCCIDENTAL, 7200
 Thank you
and
God bless!

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