Global Considerations In Operations

Question 1

global strategies

Answer 1

• global sourcing of inputs
• overseas manufacturing
• global outsourcing

Question 2

global sourcing of inputs

Answer 2

where the business purchases inputs from suppliers in other countries

often based on factors such as cost, quality, speed and reliability

need to consider factors such as exchange rates, logistics, communication barrier, ethical considerations, political issues, delivery times and quality.

Question 3

overseas manufacturing

Answer 3

business produces goods in foreign country

allows business to take advantage of lower labor costs, tax incentives, strategic location for distribution or specialised skills

challenges include: cultural differences, potential quality control, longer leading times

consider: labour laws, ethical treatment of foreign workers

Question 4

global outsourcing

Answer 4

Global outsourcing refers to the practice of hiring external companies or individuals to perform business functions in a different country.

can apply to customer support, software development, accounting and human resources

benefits: cost savings, access to specialised expertise and ability to focus on core business activities

issues: service quality, data security, cultural differences, loss of control and legal compliance