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The integration of OM with marketing and accounting is pervasive. You might want to cite examples such as developing new products. Marketing must help with the design, the forecast and tar- get costs; accounting must ensure adequate cash for development and the necessary capital equipment. Similarly, new technology or new processes emanating from operations must meet the approval of marketing and the capital constraints imposed by the accounting department.
To summarize outsourcing trends: IT will be a major expansion area, according to Gartner, Inc. More laws may be passed to protect U. Foreign firms will increase their outsourcing to the U.
Outsourcing will continue to grow. Current practices will be improved. Cost savings in recent years from outsourcing has been significant. Internal issue include: Employment—morale may drop, and employees may lose their jobs.
Facilities—may need to be changed if components arrive in different stages of assembly. Logistics—now includes customs, timing and insurance.
The company should identify its own core competencies and then consider a list of candidate activities and firms for outsourcing. The factor-rating method can be used to compare various companies on a set of factors that management considers important. Bad outsourcing decisions may result in: Higher transportation cost Loss of control Future competition from the provider Negative impact on employees Quick gains at the expense of long-term objectives This is the concept of exporting the management talent and pro- cess allowing flexibility in the product itself.
All it has to do is locate manufacturing in China, which is not a democracy, where sustainability is not an issue, and where some employees are exploited.
Students may be prepared to discuss this current and sensitive subject. Cost leadership can be illustrated by Walmart, with low overhead and huge downloading power to pressure its suppliers into concessions. Differentiation can be illustrated by almost any restaurant or restaurant chain, such as Red Lobster, which offers a distinct menu and style of service than others.
Response can be illustrated by a courier service such as FedEx, that guarantees specific delivery schedules; or by a custom tailor, who will hand make a suit specifically for the customer. Such firms often get their contracts by being low bidder to provide service.
This is particularly true of fine dining restaurants, but also true of fast food restaurants. Haagen-Dazs Ice Cream; great globalization discussion example: Prod- uct design, layout, maintenance procedures, downloading, inventory, quality standards, and procedures may all need to be revised. Some general thoughts follow: Trustworthiness 0. Price 0. Delivery 0. Conversely, when oil prices drop it is a bonanza for heavy fuel users such as 2. Overnight Worldwide United b More restrictive quality of water and air legislation in-creases the cost of production and may, in some cas- es, prohibit the use of specific technologies.
The high cost of process modification to meet more rigid standards has resulted in the closing of numerous plants including paper mills and steel mills. High unemployment rates can have the opposite effect. The weighted totals will double. So Overnight is now the preferred logistics provider. This could have a significant effect on the income of employees in the lower pay classifications, putting substantial pressure on operations Criteria Weight for Manila for Delhi for Moscow 1.
Flexibility 0. This does not mean that it is not a good idea for socie- ty—i. Also see Chapter 8, Table 8. A lively class discussion can also take place regarding who pays bribes, as shown on the same Web site. Other perspectives of culture are shown on the Asia Pacific Management Forum page www.
Also see Table 8. S, 5 are some rankings. Now Canada is selected. Its level of integration goes beyond multinational. The collection of parts and subassemblies coming from other countries is carefully orchestrated.
What constitutes the mission of Minit-Lube? To provide economical preventative maintenance and in- terior auto cleaning, primarily to vehicles owned by indi- viduals as opposed to businesses , in the U. How does the Minit-Lube strategy provide competitive advantage? This case is a good way to get the student thinking about the 10 decisions around which the text is organized.
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