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Global Competition: 203-Operation Management

This document discusses the impact of global competition on businesses. It notes that global changes in politics, economics, technology and communications have increased competition and forced businesses to look beyond their domestic markets. It identifies several factors driving globalization, including the liberalization of trade, development of new markets, efforts to reduce costs through economies of scale, and the need to gain a competitive advantage over rivals in international markets. The document also examines how environmental issues have become important considerations for operations and supply chain management.

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Niraj Chaudhari
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190 views18 pages

Global Competition: 203-Operation Management

This document discusses the impact of global competition on businesses. It notes that global changes in politics, economics, technology and communications have increased competition and forced businesses to look beyond their domestic markets. It identifies several factors driving globalization, including the liberalization of trade, development of new markets, efforts to reduce costs through economies of scale, and the need to gain a competitive advantage over rivals in international markets. The document also examines how environmental issues have become important considerations for operations and supply chain management.

Uploaded by

Niraj Chaudhari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sanjivani College of Engineering, Kopargaon

Department of MBA

203- Operation Management

Global Competition
Presented By

Dr. Niraj Chaudahri


Assistant Professor,
Sanjivani College of Engineering ,
Dept.of MBA,
Kopargaon

www.sanjivanimba.org.in
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Impact of Global Competition

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Impact of Global Competition
The global changes in the world, changes in political,
economic and business activities as well as the
development of technology, transport and
communications, impose the need for enterprises in its
struggle for survival, to change their strategies and go out
from the borders of their own country. Limited market,
competitive pressure, demand for cheaper resources and
the dynamics of the postmodern era, forcing business
leaders to change their focus from traditional targets to
alternative measures for successful business and the
entrance on global markets, with the purpose of making
competitive advantage.
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Impact of Global Competition
Political changes. The globalization trend of unifying and
socializing the global community, as well as, forming
preferential trade agreements and groupings such as NAFTA
and the European Union, which united more nations in a
single market, allow the companies significant market
opportunities. Two aspects of this trend, which contribute to
the globalization of business operations are: progressive
reduction of barriers for trade and foreign investment by most
governments, which leads to intense opening new markets by
international companies, which also exported them and build
production facilities in them, and the privatization of most of
the industry in the former communist countries, as well as
opening up their economies to global competition.
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Impact of Global Competition

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Impact of Global Competition
Development of technology. The development of
computing and communication technologies has
enabled increased flow of ideas and information across
the borders of the countries, providing introduction of
the consumers with the goods worldwide. Internet and
networking have enabled smaller companies to compete
globally, as a result of the rapid flow of information,
regardless of the physical location of the seller or buyer.
Also, allows international companies to hold corporate
meetings among managers from headquarters and
branches, without wasting unnecessary time for travel.

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Development of technology

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Impact of Global Competition
International business climate. The development of
communication and information technologies have
contributed to the process of globalization, but also
provided instruments that facilitated the processes of
globalization. Newly emerging markets also recognize
the economic benefits, technological development and
growth opportunities that globalization provides them.

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Impact of Global Competition
• Development of markets. Information and
communication technologies, the rapid development of
international tourism, widespread cultural exchange and
improved the living standards, in many developing
countries have contributed to the emergence of a group of
consumers in different countries and regions of the world
with similar educational profiles, lifestyle, purchasing power
and for good products, as well as, aspirations for high
quality. This scenario, in combination with the liberalization
of international trade and the availability of global
distribution channels, opens great opportunities for
companies that want to offer their products to global
markets.
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Development of Markets

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Impact of Global Competition
Expenses. The liberalization of trade and investment flows,
which emerged in the 80s of the last century, which is a
stimulus for globalization of the businesses. Trade
liberalization, global consumer habits, rising development
costs and the need for economies of scale, pressure from
foreign competitors in the domestic market as well as the
development of information and communication
technologies, are considered drivers of the globalization.
Because of the need to introduce new products and
investment in research, development and innovation,
achieving economies of scale, reduce costs and access to
cheaper raw materials; companies are forced to plan
activities, taking into consideration the global market
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Expenses

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Impact of Global Competition

Competition. One of the reasons that the companies join


global strategies is the need of maintaining or gaining a
competitive advantage in foreign markets and avoiding
competition in the domestic market. Competition in
international markets is huge and growing, with more
multinational competitors who win markets worldwide.
The companies improve their competitive position by
opposing competitors in international markets or
premature intrusion into the domestic market of the
competitor in order to destabilize or to suppress its
development.

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Competition

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Environmental Issues on Operations and Supply Chain functions

OSCM is the firm’s direct interface with the natural


environment. As a mechanism for controlling the physical flow
and transformation of materials within and through
organizations, corporations directly impact the environment
through their supply chains. Some decisions made by
corporations bear indirect environmental impacts.

 As supply chain management becomes more important to


business and the environment becomes a greater concern to
business, the more likely the corporations will turn to supply
chain management processes to address environmental
issues.
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Environmental Issues on Operations and Supply Chain functions

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Environmental Issues on Operations and Supply Chain functions

• The management of the natural environment is becoming


increasingly important within operations as customers,
suppliers and the public demand that manufacturers minimize
any negative environmental effects of their products and
operations. Managers play a critical role in determining the
environmental impact of manufacturing operations through
choices of raw materials used, energy consumed, pollutants
emitted and wastes generated.

• Pressures to apply the concept of sustainable development to


manufacturing underscore the need to think strategically about
environmental issues.

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