Global Operations Management

Global Operations Management

Introduction

A record growth and pace has been witnessed in the international operations. It is the effect of globalization which enhances the business operations throughout the world. According to the US Department of Commerce & Economics, the investment from overseas grew by 12% (i.e. from $80 billion to $181 billion from 1970 to 1997. This increase in investment enhances the business operations and companies become multinational. They invested in different countries in order to expand their business scope and to maximize and diversify their profits. For example: major consumer goods companies like: Unilever, P n G etc. started their global operations in order to maximize their business profile and consumer market. Currently these two companies have operations in all parts of the world which reduces their cost and diversify their revenues (Melnick & Zeichner, 1998).

Answer 1.

When PPQ expand its operations in other market there are a number of certain issues which the company had to face when they are in the expansion phase. For example: the environmental, political and cultural situation of the country is totally different from the host country. There would also be a number of law and legal regulations i.e. permits and licenses. On the other hand, countries and cultures have their own rituals and beliefs. It would also be a problem for the But most of the time the country would have to adjust and lean down the barriers because when international companies came to any country for the purpose of doing business they bring two main things, a) Employment for the locals and b) Investment which generates business. One of the most important things is, working environment and the behavior of employee in the country. The management needs to have all these factors in mind so that they can mitigate the element of employee performance risk. An employee needs a piece of motivation and proper facilities from the management. If the facilities and environment is provided to them, they would achieve any goal in any environment.

Answer: 2

The Multinational organizations (MNC's) who started their operations in different countries encounter a number of problems. Due to globalization of economies, these firms that dominate the world economy, however, must operate in different spaces culturally different. Internationalization is the process by which evolution or multinational companies passed before reaching its current international position. From culture to business and from law to legal issues, the company had to face them in order to survive in the environment. Multinational companies face a different set of cultural problems as they expand in the global market. The cultural challenges involve learning how doing business in other countries and manage remote locations and subsidiaries questioning the organizational culture to absorb the demands of the company that become multinational (Melnick & Zeichner, 1998).

Research in the field of human resource has clearly identifies that internationally the corporations had to face the issues of diversity. It is a major cultural as well as behavioral challenge which a multinational company is facing ...