INTERNATIONAL OPERATION MANAGEMENT

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INTERNATIONAL OPERATION MANAGEMENT

  1. 1. Graduate Business School Assignment Cover SheetStudent name: SUMEET DUHANStudent number: 2804324Course: PGDIP-IBM Stage/year: 2Subject: INTERNATIONAL OPERATIONS MANAGEMENTStudy Mode: Full time YES Part-timeLecturer Name: LIZ CARROLLAssignment Title:No. of pages: 23Disk included? Yes No XAdditional Information: (ie. number of pieces submitted, size of assignment, A2, A3 etc)Date due: 09/04/2012Date submitted: 09/04/2012Plagiarism disclaimer:I understand that plagiarism is a serious offence and have read and understood the college policy on plagiarism. I alsounderstand that I may receive a mark of zero if I have not identified and properly attributed sources which have beenused, referred to, or have in any way influenced the preparation of this assignment, or if I have knowingly allowedothers to plagiarise my work in this way.I hereby certify that this assignment is my own work, based on my personal study and/or research, and that I haveacknowledged all material and sources used in its preparation. I also certify that the assignment has not previouslybeen submitted for assessment and that I have not copied in part or whole or otherwise plagiarised the work of anyoneelse, including other students.Signed & dated: Sumeet Duhan (2804324) Page 1
  2. 2. TABLE OF CONTENTSS.No. Title Page No.1. Introduction………………………………………………………………...22. Dell Corporation……………………………………………………………43. DHL……………………………………………………………………….…54. Dell’s Operations strategy………………………………………………….75.Challenges and suggestions for Dell operation strategy…………………116. Challenges and suggestions for DHL operation strategy…………………127. References…………………………………………………………………….20Sumeet Duhan (2804324) Page 2
  3. 3. IntroductionIn today‘s competitive atmosphere, it‘s supply chains (SC) instead of firms thatcompete (Christopher and Towill 2001). Firms are inspired to develop closepartnerships with suppliers and customers. Naude and Buttle (2000) argue that SCrelationship quality should have the key dimensions of trust, adaptation,communication and cooperation. Trust has been outlined as ‗the firm‘s belief thatanother company can perform actions that may end in positive actions for the firm,moreover as not take surprising actions that will end in negative outcomes for thefirm‘ (Anderson and Narus 1990: 45). Adaptation happens when patrons andsuppliers invest in transaction-specific investments (Heide and John 1988).Communication is ‗the formal moreover as informal sharing of meaningful and timelyinfo between firms‘ (Anderson and Narus 1990: 44).We have chosen DHL as a Service Company and Dell as a manufacturing company.Dell is one among the most effective firms known for a highly efficient supply chain;its pioneered a singular model of selling PCs on to the customers, referred to as theDirect Model. The look and coordination of the provision and distribution isincredibly vital for Dell. The most options of Dell‘s provide chain are Postponement,Modularity and provide chain partners. High trust and economical communicationwith suppliers are the most dimensions for Dell.While DHL is one among the leading multinational supply chain firms within theworld. The supply chain of DHL is extremely optimized attributable to theirstreamlined operations. DHL was targeted on quality, speed and potency to present itsclients an improved and an acceptable service to each customer all round the world.Maintaining client relationship by providing them top quality service is that the mainpart of DHL strategy.Now, each of those already established and successful firms are coming up withlocating a replacement operation in one among Japan, Thailand and Singapore. Thusweve got used the issue rating methodology to list the relevant issue for everycompany and to understand that country are higher suited to winding up theiroperations.Sumeet Duhan (2804324) Page 3
  4. 4. DELL CORPORATIONDell Incorporated may be a US-based notebook computer producing company and isone among the leading laptop makers within the world; it pioneered a singular modelof selling PCs on to the customers, bypassing the resellers. The model is popularlyreferred to as the Direct Model. The case describes this model well and explains howit enabled Dell to manage its supply chain efficiently (Zuckerman, 2005).In order for Dell to compete in todays world markets for pc sales, the organizationshould try to deliver its product in each an economical and effective manner. Acrucial part during this effort is that the style and coordination of the provision anddistribution networks--supply chain management (SCM).This management techniquewas originally confined to ancient areas like getting, distribution and logistics(Strassner & Howells, 2005).In the producing trade, as an example the laptop producing sector, the scope ofprovide Chain Management is maybe best analyzed by Croom, Romano &Giannakis (2000), who establish eleven completely different areas of interest that areessential for the success of business like: contingency theory, institutional sociology,systems engineering, networks, best practices, getting and provide, logistics andtransportation, marketing, organizational behavior, strategic management andeconomic development.Dells main provide chain strategy and organizational goal achievement represent thefollowing:PostponementPostponement is that the observe of delaying the ultimate configuration of themerchandise for as long as attainable. This helps to decrease prices and increaseflexibility of product that are being delivered to revolvers. Dell engages during abuild-to-order strategy; it doesnt begin to assemble the merchandise till a client orderis received and therefore the customer‘s credit has cleared (Davis, 2004).ModularityModularity involves the organization of complicated product by decomposing it intosmaller parts which will be managed independently. Modularity of the pc styleimplies that the laborious drive will be managed separately from the memory that isbecome independent from the video card, as an example. This is often a typicaltechnique in supply chain management, lending itself higher to some product thanSumeet Duhan (2804324) Page 4
  5. 5. others. Modularity will increase the opportunities for postponement of the ultimateproduct (Davis, 2004).Vendor Managed Inventory (VMI)Dell doesnt manage its part inventory. From its early days, the corporate targeted oncultivating provider relationships so suppliers may target elements innovation andDell may target customers and therefore the provide chain. It‘s its suppliersindividually manage their inventory and deliver it to the Dell plants. They verify whatproportion inventory to order and when it ought to be ordered. To buffer againstfluctuations and lead times, suppliers hold inventory in little warehouses close to Dellplants referred to as revolvers (Clayson 2004).Supply chain partnersBecause Dell views it‘s provide chain as being in competition with its competitors‘provide chains, it will everything that it will to assist improve the worth and cut backthe prices of the complete supply chain. This involves a series of partnerships withsuppliers, service suppliers, shipping firms, and customers (Cottrill, 2004).The level of product customization is usually times thought-about a key considerdetermining the specified flexibility of a supply chain. Building long-termrelationships with supply chain partners usually leads to improved collaboration andenhanced administrative potency. This represents a chance for bigger coordination inbusiness selections resulting in profitability (Hahn, Pinto & Bragg, 1983).DHLDHL is one among the leading multinational provide chain firms within the world. Itemploys thousands of staff and is incredibly successful in its activities. Sensible styleis at the guts of DHL‘S effective providing chain answer. It develops innovativesolutions that streamline operations and improve management. The results anoptimized provide chain with reduced capital assets www.dhl.org. Ellram et al. (2004)highlight the rising importance of DHL within the services sector and therefore theservices provide chain. The service performance helps make sure the client receivesthe expected service with capability serving as a substitute for inventory. For a serviceorganization like DHL, the strategic use of capability facilitates aids operationalagility.Sumeet Duhan (2804324) Page 5
  6. 6. Stevens, (1989), argues that DHL engages in specific objectives to enhanceprofitability, competitive advantage, and client satisfaction of their supply chain. Asan example, a key objective of GHL‘S supply chain management is to lower theprices needed to produce the required level of client service to a particular phase. Theopposite key objective is to enhance client service via increased stock availability andreduced order cycle time (Cooper & Ellram 1993).Li et al. (2005) used delivery dependability and times to plug to judge the predictivevalidity of their six supply chain management constructs. The six constructs analyzedin their study involved strategic supplier partnership, client relationship, info sharing,info quality, internal lean practices and postponement.On the opposite hand, Chen & Paulraj (2004) used provider performance and buyerperformance to assess the relation between strategic provide management, clientresponsiveness and monetary performance of the shopping for firm.Li et al. (2005) suggests that the SNET issue focuses on the upstream portion of theprovision chain, the distribution network structure (DNET) issue focuses on themovement of materials as well as where to carry inventory and find facilitiesmoreover as ways of transportation. Tan, (2002) gift survey results to assess theimpact of quality management, provide base management and client relationspractices on company performance. Their results recommend that every one 3 parts ofthe provision chain manufacturer, suppliers and client should be effectively integratedto realize monetary and growth objectives. client service objectives are accomplishedthrough a customer-enriching provide system targeted on developing innovativesolutions and synchronizing the flow of product, services, and knowledge to formdistinctive, individualized sources of client service worth (Ross 1998).However, competitive advantage emanates essentially from the client worth a firmcreates, and aims to ascertain a profitable and sustainable position against the forcesthat determine trade competition. It so proposes that the implementation of effectiveprovide chain management enhances client worth and satisfaction that in flip ends upin enhanced competitive advantage for the firm‘s provide chain, moreover as everymember firm. This, ultimately, improves its profitability (Porter, 1985).Again, Lambert, Stock, and Ellram (1998), recommend the key processes usuallyembody client relationship management, client service management, demandSumeet Duhan (2804324) Page 6
  7. 7. management, order fulfillment, producing flow management, procurement, andproducts development and commercialization.To sum up, low value and differentiated service facilitate DHL build a competitiveadvantage for DHL‘S provide chain (Cavinato 1992). In essence, provide chainmanagement {is concerned|cares|thinks about|worries|is eachered} with improvingboth value reduction and effective client service thereby making client worth andsatisfaction through integrated provide chain management to achieve competitiveadvantage that ultimately brings profitability (Tyndall et al, 1998).Section 2:Operations strategy is outlined as ―the selections that form the long-term capabilitiesof the company‘s operations and their contribution to overall strategy through the on-going reconciliation of market necessities and operations resources‖. It consists of 4perspectives: Top-down, Bottom-up, market necessities and Operations resources(Slack N., et al, 2007). To my view, they appear to be four forces that drive operationstowards new direction. Integration of those four views is that the full imageillustrating what operations strategy is.Competitiveness is that the ability of an organization to supply product and servicesthat meet the {standard} standard of the market place at costs that the market can paywhich can offer adequate returns on the resources used. These specific capabilities ofthe operation are what the corporate depends on, as a result of they will offer thecorporate competitive advantage. They‘re additionally named as competitivepriorities, as well as quality, speed, dependability, flexibility, and cost.In this section, well assess the role of operations strategy in improving thecompetitiveness of 2 ‗Giant‘ companies: Dell and DHL.Half 1: Dell2.1 Dell’s Operations strategyTo make the business arrange a reality, the corporate got to develop an operationsstrategy to form its structure and infrastructure.Sumeet Duhan (2804324) Page 7
  8. 8. The focus of Dell was on client service, cost, and speed. It created a system withinwhich customers may order computers directly from the corporate. There‘s no wantfor purchasers probing an intermediary, like a retailer. An operations system wasdesigned so ordering of parts and assembly of computers failed to occur till an orderwas really placed. This kept prices low as a result of Dell failed to have computerssitting in inventory. Dell additionally designed a warehousing system so as to wantsuppliers deliver parts to the plant inside quarter-hour once they were needed; on thecontrary, its competitors like IBM and Compaq should wait hours or perhaps days toreceive parts in want. To more increase speed, Dell created a shipping arrangementwith United Parcel Service (UPS).With this structure and infrastructure, Dell was ableto implement its business strategy and then support this strategy.Operations can also drive strategy. Recently, Dells turnarounds have been targeted onintegrating it‘s producing, procurement and provide chain activities beneath areplacement world Operations business unit. The aim of this turnaround is toeliminate redundancies and redeploy resources to drive bigger worth for purchasersand drive best practices worldwide and make the most of natural synergiesThe integration of Dell‘s producing, procurement and provide chain activities hasformulated its unified operational strategy during a world approach. These 3 sectionsare all Dell‘s core competencies. So as to globalize them, Dell is building additionalplants round the world, like in Poland, Brazil, etc (Hoffman, W., 2007).2.2 Dell’s competitivenessDell has devised its logical operations methods to formulate its competitive prioritiesthat have enabled them to surpass alternative well-known laptop makers like Compaqand IBM.2.2.1 The Direct Model /Low valueThe Direct Model saves Dell three to four p.c in inventory prices that will are paid tointermediary, like retailers. The corporate simply maintains stocks virtually two daysand this facilitate Dell save many millions greenbacks in inventory holding prices.additionally, parts value additionally decrease steadily as a result of Dell usually getparts at their current market value while not keeping them in stock for an extendedamount of your time (Bhat, V.N., 2000).Sumeet Duhan (2804324) Page 8
  9. 9. 2.2.2 Higher serviceThrough the web and phone, customers will directly contact Dell and customize theirideal product. Additionally, Dell‘s Business method Services will establishinefficiencies of business method, and then do purposeful initiatives to streamline,improve productivity and guarantee compliance. Through its Cloud-Based Services,Dell boosts its IT capabilities while not adding hardware maintenance complexitiesand high upfront prices (Dell, 2010).2.2.3 High speedCustomer‘s product can be assembled earlier, as a result of solely quarter-hour for thesuppliers to deliver parts to assembling plants, etc. Once the merchandise iscompleted, Dell can deliver the merchandise during a faster approach, as a result of itsdesigned a shipping management with UPS.2.2.4 Robust complete worthTaking advantage of its robust complete worth within the marketplace, Dell hasenhanced its market penetration capability and provides itself cross sellingopportunities. as an example, its began to build strategic relationships with types ofmajor retailers like Wal-Mart and Best get within the US; Wal-Mart and Pontofrio inLatin America; Carphone Warehouse, Carrefour, Tesco and DSGi in EMEA region;and Gome, HiMart, Courts and Bic Camera in Asia Pacific region. This entry intoindirect sales will build its product additional visible for the individual customerswithin the retail store (Datamonitor, 2009). Half 2: DHLA good company a minimum of includes a competitive advantage however animproved company a minimum of keeps a sustainable competitive advantage, that‘swhy DHL became a pacesetter within the marketplace. Sustainable benefits facilitateit survive within the market and kill its competitors.DHL methods were continuously primarily based on straightforward ideas orstraightforward ideas and that they have developed their completely different servicesand branches around it. thus to deserve additional customers as attainable, DHL hasconquered several geographic markets with the higher value.Sumeet Duhan (2804324) Page 9
  10. 10. DHL was targeted on quality, speed and potency to present its clients an improvedand an acceptable service to each customer wherever hes.2.3 DHL’s competitiveness improved by its operations methodsTo gain market share and develop the business they adapt and update their methods,for every downside they encountered they elaborate a technique as an answer toresolve a tangle.2.3.1 DiversificationFirstly, the diversification of DHL was presented by its geographical reach in eachcontinent, not the sole. thus within the 70‘s DHL has expanded its network to Asia,Africa, South America and Australia.Secondly, DHL, a global transporter, had begun to deliver not solely servicesdocument however additionally package in 1979. And DHL began to transport mailwhen it had been purchase by Deutsche post.Next the corporate had developed World Wide Web in doing alliance and jointventure (alliance with People‘s Republic of china; joint venture with Lufthansa, Japanairlines and Nissho iwai).Last however not least, DHL had developed all transport services through shoppingfor airplanes since 10 year ago and that they even have developed a ―Solution &innovation Centre‖ to seek out or adapt new service.The goal of all that evolution is to form DHL ―the logistic company for the world‖ in2015.2.3.2 Quick deliveryRegularly DHL have had nice investment in new HUB, logistic platform, transportand knowledge technologies to form itself additional and additional economical. Toenhance it services DHL has invested over a billion $ every year since 2004. The goalis to form competitive advantage for their customers.In 2009 to ameliorate the service DHL invested during a new unit decision ―DHLSolutions & Innovation‖ to innovate in logistics services.2.3.3 Top qualityDHL care regarding top quality services as a result of they think about it as a vitalissue for its development. In alternative word, providing the very best level of serviceSumeet Duhan (2804324) Page 10
  11. 11. and worth to their customers may be a competitive advantage in that sector. In linewith the report of Yiu-Man WONG written in 1997, DHL was principally primarilybased on amount live however it most well-liked quality eventually as a result of itsdirector highlighted ―a leadership position within the air categorical trade will bemaintained through service productivity and quality excellence emphasis‖. This isoften the proof that shows how DHL has started caring regarding quality 13 yearsago.As we will see on the DHL net web site quality keep a priority in their services as aresult of it‘s what client watch for them.DHL have increased its competiveness in apply strategy however its currently obligeto decreasing it‘s investment as a result of shareholders need additional revenue andstock dividend and recent strategy value plenty of cash and shareholders doesn‘t trustthat. So, to spice up shareholders investment DHL want some changes in itsoperations strategy within the next 5 years.Challenges and suggestions for Dell operation strategyDells operational strategy has been primarily based upon its distinctivecustomization, delivery, and price proposition of pc product. Dell has created anoperation system of virtual integration that has alternative pc makers terribly envious.beginning for Dell‘s warehousing, supply-chain integration, and build-to-orderproducing with fast client satisfaction, has given Dell the competitive edge, that hasturned dell into a commodity business. It‘s designed web-based linkages withsuppliers, who are able to efficiently manage order flow, offer real time knowledgefrom their producing plants, and implement just-in-time delivery. Once the clientorders the merchandise, the web permits the corporate to use order entry and supporttools and accurately hands the merchandise to the client quickly. Dell measures ininventory in days, however theyre hoping to soon live them in hours (Field &Sroufe 2007). Lower inventories additionally permit the corporate to supply the mostrecent technologies by not having inventory that goes to waste with the emergence oflatest innovations (Brown et al. 2007).Challenges for Dell‘s operational strategy at the backend of provide chain isrelationship with their suppliers that plays a key role in their success story. Dellassembles one pc taking parts from its suppliers that takes time and price. to beat thisSumeet Duhan (2804324) Page 11
  12. 12. challenge dell may get most of its suppliers to stay parts warehoused near Dell‘sfactories in Austin, Penang, Malaysia, and Limerick, Eire (Field & Sroufe 2007).As a result the amount of suppliers would cut back and that they would resolve tocooperate quickly with their warehousing. Dell shares same provider with theircompetitors for the merchandise like STB Systems Inc., a manufacturer of videographics cards by locating the provider just about Dell‘s plants(Nair & Boulton2008), this may offer Dell advantage of receiving rush orders in minutes, when ittakes twelve to eighteen hours to achieve to Dell‘s competitors like Compaq, andIBM.Dell‘s operational strategy at front finish is exclusive and price effective. It will nothave any showrooms and outlet within the market, additionally theres no hub forclient to access, theres e-service, where computers automatically diagnose its issuesand notify a service rep over the online. this is often one among the challenge for dellas a result of it cannot entirely monitor client reaction to product innovations andavoid the mistakes that will increase prices of latest product introductions for brandspanking new successful business model. The approach additionally provides Dellwith time to develop additional economical processes and technologies or produceextra worth for customers. So as to form customers snug with creating investments innew technologies and start to equate dependable quality and sensible worth with theDell complete it must extend its access from internet to physical.Some market analysts have predicted slowing down laptop trade growth (Field &Sroufe 2007), Dell has got to have strategy to still replace their PCs each 3 years asnew technologies are introduced. Also, as high-speed broadband net access grows,customers are additional compelled to get their 1st pc. Dell will have broadbandaccess which can accelerate the flow of knowledge, giving Dell additionalopportunities to feature worth.Challenges and suggestions for DHL operation strategyDHL remains determined to become the amount one leader in overnight shippingsince late 1990‘s and early 2000(Van Regenmortel et al. 2009). Several steps aretaken to enhance performance in operational strategy focus in time, quality, and repairoffered. DHL has higher means that of tracking shipments, economical aircraft, seenfrom a fueling and volume standpoint, additionally hiring and coaching well-informedSumeet Duhan (2804324) Page 12
  13. 13. staff who understand the rear finish and front finish of the operations, are all keys in providing quality work. Challenges for DHL operation strategy at the front finish of it‘s provide chain are couriers and salespeople that acquire and maintain customers, they use key inputs that go into creating DHL the corporate aggressive, intelligent and friendly (Coltman et al. 2010). Though final tracking is finished by pc however the receiving and delivery method is be done manually. So Dell is often in want of determined employee who will leave and acquire new customers that helps add worth to that region moreover because the company as and entire. Despite of getting established world complete image DHL has got to face cut through competition find yourself huge promoting budget for promotion. However that specializes in segmented human sales force with personal service would be higher plan for DHL to reinforce its future venture. It might build the method absolutely automated and at last cut back promotional and promoting value and invest in HR. Similarly, challenges for DHL‘s back finish provide chains are speed, quality, and client service that have high sense of importance during this trade. DHL‘s facility at the foremost of the airport is ready up primarily based upon a flow operating method. This kind of method is clearly seen on the nightly operation of all inbound flights, primary and secondary sorting, moreover as letter sorting, reloading of fabric, and at last the outbound flights, this is often all done to keep up speed (Coltman et al. 2010). Below may be a flow chart of the method of a package being picked up, sorted, and delivered to the tip client. CUSTOMER DHL OUTBOUND ARRIVES AND IS FLIGHT TO PRIMARY COURIER UNLOADED AT CVG SORT CUSTOMER CVG RELOADED SECONDARYCUSTOMERR FINAL OUTBOUND AT SORT DESTINATION FLIGHT TERTIARYCUSTOMER COURIER Sumeet Duhan (2804324) Page 13
  14. 14. All inbound flights arrive between the hours of 11:00 pm and 3:00 am each morning.Throughout this short time, all containers from the aircraft are downloaded and sent tocompletely different unloads (Konlaan & Hanson 2008). Assortment anddistribution of the parcel and logistics are done by DHL.If DHL like better to out supply the distribution method to the little native and native}firms it will cut back its operation value and build sensible hold in local market. Thismay offer profit to compete with alternative courier firms.Finally problems with tracking a cargo the traditional nightly system wascontinuously going late. This downside will be over come back by changing the newmanagement crew and encourage teamwork and cross-trained ramp crews to assist outthroughout the type. Overall, the communication between the within and out of doorsoperation can greatly improve that permits economical operation.JAPANJapan is found in north-eastern a part of Asia. Japan has one.26 billion population ofthat sixty fourth are from the age cluster of 15-64 years and over twenty second areover sixty five years that is increasing continuously. Sixty six of its population lives inurban areas and includes a life expectancy rate of eighty two years. Japan is rankedfirst in terms of business sophistication and fourth in terms of innovation (CIA realitybook 2010).Japan is ranked seventh by World Economic Forum and twenty seventh by IMD inWorld competitiveness index (Weforum, online). IMD studies and compares fourmain factors to develop its rankings that are Economic performance, Governmentpotency, Business potency and Infrastructure which might more be divided into subfactors as shown below:Factors Sub-factorsEconomic Domestic economyperformance International trade International investment Employment PricesSumeet Duhan (2804324) Page 14
  15. 15. Government Public financeefficiency Fiscal policy Institutional framework Business legislation Societal frameworkBusiness efficiency Productivity Labor market Finance Management practices Attitudes and valuesInfrastructure Basic infrastructure Technological infrastructure Scientific infrastructure Health and environment Education(IMD, ONLINE)Japan is at 14th rank in Corruption Perception Index by World audit reports andseventeenth by transparency international reports. It concludes that Japanese are lesscorrupt than another Asian markets like China or India thus one will expect higherclear business activities (Worldaudit, online; transparency online).The infrastructure is basically sensible in Japan with 176 airports, railways coveringaround 26435 km, roadways unfold in one,203,777 km (5th in world), Japan has oneamong the most effective transport facilities in world, which might be important foran organization like DHL (CIA reality book 2010).On Hofstede‘s Cultural dimensions, Japan includes a Power Distance Index (PDI) offifty shows the facility and wealth distribution culture, Individualism (IDV) scoresforty two that shows that Japanese folks like operating in groups than individually.Team work will prove an enormous issue for an organization like Dell whose businessmodel is modular (Geert Hofstede).Sumeet Duhan (2804324) Page 15
  16. 16. SINGAPORESingapore is an island nation located in south-east Asia between Malaysia andIndonesia. It has 4.7 million population of that seven6.7% is between the age clusterof 15-64. All of Singapore‘s population lives within the cities and life expectancy iseighty two years.Singapore is ranked 2nd for its monetary market sophistication. its the foremosteconomical labor market and has world‘s fourth best infrastructure. It‘s highlyeducated and skilled workforce with makes it additional competitive and a reallyenticing marketplace for firms to line up there operations. It‘s technologicallyadvanced moreover (CIA reality book 2010).Singapore is ranked third by World Economic Forum and 1st by IMD in worldcompetitiveness index. It means that Singapore has the most effective atmosphere forbeginning a business within the whole world (Weforum, on-line; IMD online).Singapore is ranked third in CPI by each world audit and transparency international.Singapore is one among the smallest amount corrupted economies within the world. Itpermits for sleek operations for firms (Worldaudit, online; transparency online).PDI score of seventy indicates that wealth and power are unequally distributed inSingapore. The IDV score is twenty eight that show that Singapore may be acollectivist society and individualism isnt most well-liked. There IDV score is bestthan Japan or most of the Asian countries. Masculinity Index is at forty five that showthat Singapore is a smaller amount assertive and fewer self-centered. It provides equalSumeet Duhan (2804324) Page 16
  17. 17. status and opportunities for each men and girls. The UAI index score of eight showsthat Singapore is a smaller amount unsure towards risks (Geert Hofstede).THAILANDThailand is found in south Japanese Asia. Its sixty seven million population of thatseventieth are from the age cluster of 15-64. Thirty third of the population lives inurban areas and life expectancy is seventy three years. Thailand‘s performance hasdeteriorated on the world competitiveness report as a result of instability and thereforethe quality of public establishments has gone down. There‘s lack of property rightsand security that are a priority for the business community. (CIA reality book 2010)Thailand is ranked thirty eighth WEF and twenty sixth by IMD in worldcompetitiveness index that clearly indicates that conditions dont seem to be favorablefor doing business (Weforum, online; IMD online). Also, Thailand is ranked sixtyfourth in CPI by world audit and 84th by transparency international. To feature to theunhealthy government policies and infrastructure Thailand is one among the foremostcorrupted economies that makes it troublesome for variety of firms to work with ease(Worldaudit, online; transparency online).Score of sixty on PDI shows the high inequality in power relationships in Thailand.Thai culture is targeted on collectivism instead of individualism. Thailand scoresthirty on MAS that indicates that men and girls are presupposed to perform theirancient tasks. UAI score of sixty shows that uncertainty tolerance is a smaller amountand strict rules and rules are implemented that makes the society risk adverse (GeertHofstede).Sumeet Duhan (2804324) Page 17
  18. 18. The on top of discussion clearly indicates that Thailand isnt the country to decide onto try to business as a result of many reasons like high corruption, poor infrastructureetc. thus currently I‘ll use the issue rating methodology to come to a decision betweenJapan and Singapore for each DHL and Dell simultaneously.DHLAs mentioned in earlier section DHL‘s operational strategy focus is on time, quality,and repair offered. Additionally hiring and coaching well-informed staff whounderstands the rear finish and front finish of the operations, so as to produce qualitywork. Thus whereas picking country to decide on its vital to seem at the transportfacilities offered and therefore the demographics particularly the number of operatingpopulation. Additionally a correct coordination between staff is important so as toproduce top quality of services. Thus IDV score also will be thought-about. Theplanet competitiveness index and CPI are the foremost vital issue to seem for anycompany. Rating Rating Score ScoreFactor Weight Japan Singapore Japan SingaporeWorld Competitiveness Index 25 80 100 2000 2500Corruption Perception Index 15 85 95 1275 1425Competitors 15 75 65 1125 975Infrastructure/ Transport System 20 90 75 1800 1500Demographics 15 85 80 1275 1200Cultural factors 10 65 85 650 850 Totals 100 8125 8450So primarily based on the issue rating methodology DHL ought to find its newoperations in Singapore.Sumeet Duhan (2804324) Page 18
  19. 19. Dell Dells operational strategy has been primarily based upon its distinctive customization, delivery, and price proposition of pc product. Dell has created an operation system of virtual integration that has designed web-based linkages with suppliers, who are able to efficiently manage order flow, offer real time knowledge from their producing plants, and implement just-in-time delivery. Rating Rating Score ScoreFactor Weight Japan Singapore Japan SingaporeWorld Competitiveness Index 20 80 100 1600 2000Corruption Perception Index 20 85 95 1700 1900Educated and skilled workforce 15 75 90 1125 1350Technology 20 95 85 1900 1700Demographics 15 85 80 1275 1200Cultural factors 10 65 85 650 850 Totals 100 8250 9000 Demographics particularly the proximity to markets like India and China and therefore the relationship of the country with those nations are vital from dell‘s perspective. Informed and skilled workforces are needed to hold out their operations. Technological advancement within the country also will be viewed so as to become additional innovative and artistic and to create market share. So primarily based on the issue rating methodology Dell ought to find its new operations in Singapore. From there it will simply expand additional into major Asian markets. Sumeet Duhan (2804324) Page 19
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