3. IMPORTANCE
(a) Proper use of Resources: Globalization leads to
expansion of markets and this enable organization to
make proper use of available resources.
(b) Multiple choices: No country is self sufficient and
every country depends upon other country.
Globalization has solved this problem and people can
have better choice to satisfy their need.
(c) Foreign Exchange: Globalization encourage
exports and discourage imports. This help to earn
foreign exchange.
(d) Creates Employment: Globalization helps to
provide employment to a large number of people.
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4. (e) Government incentives: Government also
provides various incentives in taxes, custom duties,
pre-shipment finance, post shipment finance and
many more. This is done to encourage
globalization.
(f) Technology: Technology is the latest and
fruitful outcome of globalization. It is the best even
gift. Technologies not only increase efficiently but
the organization and everyone having a little
knowledge can update one and can stand by world.
Globalization not only enables competition but
also very much helpful for profit of maximization.
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5. TYPES
• Financial globalization.
• Economic Globalization.
• Technological Globalization.
• Political Globalization.
• Cultural Globalization.
• Ecological Globalization.
• Sociological Globalization
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6. BENEFITS
• Improved living standards
• Increased creativity and innovation
• Easy access to foreign culture
• Lower costs for goods and services
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7. OPERATION
MANAGEMENT
Operations management is an area
of management concerned with designing
and controlling the process
of production and redesigning business
operations in the production of goods
or services
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8. FUNCTIONS
1. Finance
Finance plays a chief role in operations management. It is essential to
ensure that the organization’s finance has been utilized properly to
carry out major functions such as the creation of goods or services so
that the customer’s needs could be satisfied.
2. Operation
This function in operation management is mainly concerned with
planning, organizing, directing and controlling all the activities of an
organization which helps in converting the raw materials and human
efforts into valuable goods and services for satisfying customer
needs.
3. Strategy
Strategy in operation management refers to planning tactics that
could help them to optimize the resources and have a competitive
edge over others. Business strategies Simply to supply chain
configuration, sales, capacity to hold money, optimum utilization of
human resources and many more.
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9. 4. Design of the product
Incorporating innovative technologies play a crucial role in the
selling of a product. Thus it is the duty of operations
manager to ensure that the product is designed catering to the market
trends and needs of the customers.
5. Supply Chain Configuration
The main motive of Supply Chain Configuration is to ensure
effective management, monitoring and controlling of all the
main activities that are held in a firm. The supply chain
configuration starts from the supply of the raw materials and
continues till the production of the final product and then
their selling to the customers which will satisfy their needs and
wants.
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10. IMPACT OF
GLOBALIZATION IN
OM
Globalization impacts operations
strategies in both negative and positive
ways. Global factors that can be used as
an operations strategy include global
sourcing, economies of scale, scanning
and learning and research and
development.
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11. Global sourcing
Global Sourcing can create a bigger skill base for a business as they
have access to skills that they may not be able to availability to in
local areas. Although when global sourcing is used the business may
be at a higher risk of losing data that they would not lose when using
domestic suppliers.
Economies of scale
Economies of scale is specialization, when the company decides to
become bigger it becomes more practical to sub-divide the processes
of the business, which can increase the overall productivity of the
workers and products made. Whereas if the business over expands
the levels of management will increase resulting in communication
becoming complicated and impacting negatively on the productivity
of the business.
Scanning and learning
Scanning and learning can help a business to have insight and be
flexible when an issue arises, experience of others who worked in
similar situations help the business to know how to react to
situations that they may not have thought about previously. If a
business chooses to learn from companies that had faults in their
strategies they may repeat these and continue with loss of profit.
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