GLOBAL OPERATIONS STRATEGY

Singapore 5-6 September, 2009

Welcome
Please read this course descriptor carefully. It contains the course outline and the assessments
required. Also please visit the course intranet page and download the files necessary for the course.

The page is:

http://www.intranet.sbs.strath.ac.uk/ppm\GOS Elective (Downloads)\GOS Downloads.htm

In general, the course will run over 2-5 days depending on location and may require group work
preparation in the evenings. The course will consist of some lecturing from me, individual pre-reading
followed by group discussions. I have included case studies of which some are for class discussion
only. This means that there is quite a lot of reading to do followed by team discussion.

If you have any questions please make a point of having your questions answered at the first session
of the class.

Have a good course. I look forward to see you.

Tom Mullen BSc, PhD

Tom is a senior lecturer in Operations and Project Management in
the University of Strathclyde Business School. He has taught on
MBA, MSc and executive development programmes for 27 years.
Tom originally came to the University from a twelve year career in
industry where he served a technical apprenticeship. He was
engaged in Research and Development for his company with
special responsibility for IT systems development before joining the
University in 1980 as a research fellow. Tom has extensive
experience of Operations Management - technically, managerially
and specifically in the development of software systems to manage
internationally based projects. He is currently the Academic Director
of International MBA programmes.
Contact Tom:
T: 0044 141 553 6142 F: 0044 141 552 2501 E:
tom@gsb.strath.ac.uk

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 Master of Business Administration

Course Outline, Timetable and Assessment

details for the course in:

Global Operations Strategy

Sections: Page

1 Aims of the Course 3

2 Required Reading 4

3 Case Studies 4

4 Timetable 5

5 Course Assessments 6

6 Supporting References 7

7 Further Reading 7

8 Useful Web Resources 8

9 Notes 9

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 1 Course Aims and Format:

Course participants will gain an understanding of the strategic issues/problems faced by organisations
from an operations perspective in various industry sectors in the global economy. Consideration will
be given to emerging understanding of operations strategy and the dimensions of service quality.

The course, by analysing case material focuses on the development and implementation of
operations strategy and the integration of this strategy in a global context with the corporate, business
unit, and other functional strategies of the organisation across a number of industry sectors including
telecommunications, travel industry, hotels, electronics, entertainment and pharmaceuticals.

Course Mission:

To provide course participants with a perspective of operations strategy that is underpinned by

an attitude of enquiry. Operations should be a „discovery process‟ as opposed to an „idea-
imposed process‟. Operational implementation is essentially about testing the „if-then‟
proposition, often referred to by strategists as an „emergent strategy‟. One can never know in
advance that a plan is foolproof. We learn by putting the plan to the test in the understanding
that „things get achieved by doing‟ and „learn by doing.‟ This is the core contention of this
course: a discovery process seeking „operationally validated theories‟ which in turn drive
successful operational strategies. Our study bench is equipped with both contents and
context. The contents are the cases we study in the course, the context is the global business
market place. Our investigations are carried out by groups of practicing managers using
apparatus consisting of investigative lenses, critical thinking and the drive to learn and
understand.

A company‟s global strategy is based on a number of choices. These choices are subject to
the differences across national boundaries which can be significant. Geographical and
national boundaries may bring different trading conditions due to varying trade rules,
different legal frameworks, presence of new competitors, volatile exchange rates, labour
costs and labour law.

Organisations can do overseas what they do well in their home country or they can diversify
their activities across international boundaries. Companies can formulate varying operations
strategies based on cost; diversification or quality. They can also achieve advantages based
on their international presence for instance Ghemawat‟s triple „A‟ strategy: Adaptation.
Aggregation and Arbitrage. Adaptation implies altering the product or process to
accommodate local preferences; Aggregation suggests taking advantage of economies of
scale and Arbitrage implies taking advantage of local conditions such as low lost labour.
Some organisations may attempt to take advantage of some combination of these
strategies. The aim of this course is to study today‟s global markets and by studying real
companies investigate what are the emerging strategies and how do operations managers
put them into practice?

Learning Outcomes:

Study current firms and organisational case studies - discuss the growth strategies of these
organisations and the role played by the operations function and the emerging operational
strategies that are observed

Identify and differentiate Operations Strategy decisions from decisions in operations management;
consider emerging approaches to establish operational strategies using cases studies of
organisational as they develop an international presence.

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 Engage in presentation and discussion using case study examples, the managerial implications of
various operational strategies of organisations with current or emerging international/ global
operations; consider the operational alternatives and assume a managerial decision perspective

Understand the causal relationships between the basic performance criteria; leveraging order
winners; resource based strategies and competing on operational capability with consideration of
the productivity frontier and the role of management in establishing successful operational
strategies.

For a given case study example(s) differentiate between alternate methods of securing a
competitive advantage through operations. Relate the compatibility between operations strategy,
business unit strategy, and corporate strategy to firm performance. (And consider the operational
role/impact of ICT such as ERP (for informational, transactional, and operational purposes) in the
strategic management of global operations.

Skills Outcome:

Case Analysis and evaluation of operations strategies of various industries and organisation(s)

Detecting/, describing, evaluating alternative operations strategies and comparing them to business
strategies

Course Format:

The course is highly interactive and will be taught through case studies/presentations, class
discussion, problem identification with alternative approaches considered. You must read the articles
supplied and cases thoroughly so that you are able to contribute to team and class discussion. It may
be considered beneficial by some teams that case material be supplemented by some current
research. Teams are expected to carry out independent research on the case company if it is
necessary. (This really applies only to case 2) It is suggested that intranet/BIS is an excellent source
of information. Teams should also prepare their analysis ready for class discussion.

To pass this course, you must:

 actively take part in class discussions (Class attendance is required)

 take an active part in Case-1 presentation (or handle the Q and A‟s)

 hand-in (2) written pieces of work. The PowerPoint slides from case-1 are acceptable as the
first piece of work (including group learning points summary). Case-2 must be different from
the first case and be a group written report 2,500 words (max). Each case represents 50% of
the assessment.

2 Essential Reading:

See: course articles - downloaded from:

http://www.intranet.sbs.strath.ac.uk/ppm\GOS Elective (Downloads)\GOS Downloads.htm

3 Case Studies:

See: (some cases will be issued in class others should be downloaded from:

http://www.intranet.sbs.strath.ac.uk/ppm\GOS Elective (Downloads)\GOS Downloads.htm

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4 Timetable: 2 day programme 9am – 5pm each day
Room: TBA

Timetable

Day 1 (am):

The Nature of Global Business and Global Operations (lecture)

Globalisation: The Framework of Global Operations Strategy – is it operations strategy? Is it global?

Operations Strategy - the two perspectives; Trade-offs and the nature of the service package
Getting the Operations Strategy Wrong?

Day 1 (pm): Operations Strategy, „fit‟, „sustainability‟ and risk (Group Work - cases)

+ Sunny Side Up*

+ Air-Tech*
+ Wal-Mart in Germany

Class Discussion – teams select cases

Day 2 (am) : Groups Present Article Summaries

Class discussion of articles: Operations Strategy: Quality, Technology and Service; Operations
Development and Improvement Supply ;Culture and Global strategy

Group Preparation time

Day 2 (pm) : Group Presentations

Group Preparation time

+ Starbucks
+ Toyota – Future Operations Strategy
+ Jollibee (Asia)
+ IKEA
+ Exel PLC

* Group and Class discussions:

You must read the cases thoroughly so that you are able to contribute to group and class discussion.
Questions are listed at the end of each case. Case material can be supplemented by some current
research (web/BIS sources). Groups are expected to carry out independent research on the case
company (if available). If necessary, I suggest that BIS is an excellent source of information. Groups
should also prepare their analysis ready for class discussion. You should be ready to answer the set
questions as a minimum. The inclusion of questions at the end of each case is intended to help the
group start their discussion. Remember cases contain learning. Its up to us the „extract‟ this learning
from the cases studied.

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 5 Assessments:

You are expected to complete 2 case analysis. One presented (including slides) and 1 written

Case 1 Presentation: (50%) one group presentation The presentation should include PowerPoint
slides and a summary of group learning. Each presentation will be allocated 20 minutes and 5 minutes
for questions. See note 1 and 2.

Case 2 Write-up: (50%) Case 2 – will not require a presentation. The second case write-up should be
2,500 words and also include a group learning point summary. Case 2 must contain a summary of the
case, the case analysis and group learning points summary.

Deadlines: Case 1 will be completed by the end of the class. Case 2 must be handed in to the centre
no later than TBA.

6 Case preparation, write up and presentation:

ssessments:

Think about the following topics and use the first write – up (Hagen Style) case to guide you. Firstly
prepare the case on your own and when ready discuss the case as a team. You should see the
exercise primarily as a team exercise with each case as a vehicle to introduce aspects of operations
strategy and global business for team class discussion firstly and then class discussion. One team will
be selected to lead the class discussion.

Teams may select any case for their Friday presentation and everyone will attend the presentations.
Presentation should be formal engaging the whole team using PowerPoint, be accompanied by the
(draft) write up and invite questions at the end of the presentation.

Suggested approach for team discussion/ presentation: (based on the Garonne Daz – completed
in class)

Most cases have questions at the end to guide. These questions should be considered first and are a
very useful starting point.

(Beginning)

1. Situational Analysis: describe the organisation as it is today and where possible classify the
operations of the case considered; identify relevant issues extracted from group discussions, a)
external factors b) internal factors and issues, and lead to a clear c) statement of the problem(s)
described in terms of Operational models (if possible).

(Middle)

2. Conceptual Analysis: a) current strategy and theory supporting it, clarify as necessary b)
assumptions identified c) impact of these concepts on the problem. What are the major competencies
of this organisation? Is there a trade-off situation? Is the Operations Strategy obvious – can you
describe it in your own words? Does this organisation behave differently in its overseas markets from
its home market? Can you detect Ghemawat‟s triple „A‟ strategy assertion?

(End)

3. Alternatives, Sensitivity Analysis and Possible future(s): a) consider at least two available
options and suggest the b) rationale for current operations c) consider the future operations strategy –
again described in some kind of diagram or operational model. d) suggest operational options e)
cautions or possible problems and f) identify future options.

4. Learning Points Summary with group reflection – what has this case taught us? What issues
has it surfaced? What theories has it informed?

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 7 Supporting References for the course: *** recommended reading

- Rugman, A (2004), “A perspective on regional and global strategies of multinational

enterprises, European Management Journal, Vol 19 No4, pp 333-343.

- Rugman, A and Moore, Karl (2004), “The Myth of Globalization Ivey Business Journal,
Vol. 66 Issue 1, p64, 5p, 1c.

- Ghemawat, P (2005) Regional Strategies for Global Leadership. Harvard Business

Review, Dec 2005, Vol. 83 Issue 12, p98-108, 11p.

- Siegel, J. (2006), “Introduction to Global Strategy”, Harvard Business Review,

January 2.

- Ghemawat P (2007) Managing Differences, Harvard Business Review Mar2007,

Vol. 85 Issue 3, p58-68, 11p
-
- Ghemawat. P (2008) Why the World Isn’t Flat Harvard Business Review. Foreign Policy;
Mar/Apr2007 Issue 159, p54-60.

- Rugman, A (2008), “Friedman's Follies: Insights on the Globalization/Regionalization

Debate” Business & Politics; 2008, Vol. 10 Issue 2, preceding p1-14,I, p64, 5p, 1c.

- Halal, W. E. (2009) “Emerging Technologies and the Global Crisis of Maturity."

Futurist, Mar/Apr , Vol. 43 Issue 2, p39-46

- Kar, S.; S, S.; Saran, D. (2009) “Managing Global R&D Operations lessons from the
trenches, Research Technology Management, Mar/Apr, Vol. 53 Issue 2, p14-21.

8 Further Reading: (optional)

Brown, Steve; Lamming Richard; Bessant, John; Jones, Peter (2005) “ Strategic Operations
Management” . Elsevier Butterworth-Heinemann.

Davis T.R.V (2004) “Different service firms, different international strategies”, Business Horizons 47/6
Nov-Dec 2004 (pp 51-59)

Fitzsimmons J.A., Fitzsimmons J.F. (2004), Service Management: Operations, Strategy, and
Information Technology McGraw-Hill, Inc.

Flaherty, Therese (1996), “Global Operations Management “,McGraw-Hill.

Giddens, Anthony. Runaway World: How Globalisation Is Reshaping Our Lives. London: Profile
Books, 1999.

Hayes R, Pisano, G. Upton, D. and Wheelwright, S. (2004), “Operations, Strategy, and Technology:
Pursuing the Competitive Edge”, Wiley.

Johnston, R and Clark, G (2005) Service Operations Management, Prentice Hall

Michelli, Joseph (Nov 2006) “Starbucks Experience: 5 Principles for Turning Ordinary into
Extraordinary” McGraw-Hill Education

Ricardo E , Fendar M, Kouvelis P. (1998), ” Global Operations and Logistics: Text and Cases “ , John
Wiley and Sons.

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Rugman. A; Verbeke.A (2004),” A perspective on regional and global strategies of
multinational enterprises” Journal of International Business Studies, Jan 2004 v35 i1 p3(16)

Rugman A (2003), “Regional Strategies for Service sector multinationals”, European Business Journal.

Rugman, Alan, and Joseph D‟Cruz. Multinationals as Flagship Firms: Regional Business Networks.
Oxford: Oxford University Press, 2000.

Stonehouse, George (2005) “Global and Transnational Business: Strategy and Management”
John Wiley and Sons Ltd

Taylor, D. (Editor) (1996), “Global Cases in Logistics and Supply Chain Management” Thomson
Educational.

William R. Feist, James A. Heely, Min H. Lu, Roy L. Nersesian (1999), “Managing a Global Enterprise:
A Concise Guide to International Operations”. Greenwood Press

Yip, George S. Total Global Strategy: Updated for the Internet and Service Era. 2nd ed. Harlow:
Prentice Hall, 2002.

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9 Useful Web Resources:

Source URL Comment

Business Week Online http://www.businessweek.com/gl
** Recommended
Global Business obalbiz/
News, Developments, articles and case
Supply Chain Brain http://www.glscs.com/
studies
http://www.lq.ca/issues/winter20
ASCET Case Study
03/articles/article04.html
http://www.logistics-
Global Logistics Management Interesting articles
edu.com/course_glob.html
FT http://news.ft.com/home/uk Global context
U of Strathclyde - Dept of http://www.managementscience.
Interesting Research Papers
Management Science Web Site org/papers.asp
http://ifmp.msfc.nasa.gov/docum
NASA ents/IFMPOperationsStrategy.d Interesting note on Operations Strategy
oc
http://junitec.ist.utl.pt/~mavo/writi
Compaq ngs/operationsstrategycompaq.h Ops Strategy at Compaq: Case Analysis
tm
http://news.bbc.co.uk/1/hi/busine
ss/1346473.stm BBC News article on Zara (Inditex)
BBC News
http://www.zara.com Web Home URL
Zara International, Inc
http://www.3isite.com/articles/Im Case: Zara
agesFashion_Zara_Part_II.pdf
BIS database with lots of excellent
http://www.bestofbiz.com/home4 articles and info on international
Best of Business Gold
.asp business

Global Edge http://globaledge.msu.edu/ Useful Worldwide statistics

http://www.businessmonitor.com Publisher of specialist business
Business Monitor International
/ information on global emerging markets
Nestle Globe Project
The GLOBE project comprises not
Nestle Forum: I Discussion Forum -
only system SAP implementation
Forum is a case study competition where
but also defines best practices in
students from different countries can
each area of management. Nestlé http://www.forum.nestle.com/
share their views on different subjects.
right now is undergoing many
The next edition of the Nestlé Discussion
changes, which aim to help them
Forum is scheduled for Autumn 2005.
to make use of Nestlé‟s potential
across a global marketplace.
Jollibee is a fast-food restaurant chain
based in the Philippines. It has locations
in 6 countries around the world, namely
Jollibee has 988 stores in the Philippines, United States, Hong Kong,
Philippines and 24 restaurants in 7 Vietnam, Indonesia and Brunei. Jollibee
http://www.jollibee.com.ph/
other countries. is also the name of Jollibee's mascot, a
big bee in a blazer, shirt and chef's hat. It
primarily caters to Filipino taste, and has
a Filipino as the CEO. It specializes in
chicken, burgers, and spaghetti.
IKEA http://www.ikea.com/ms/en_GB/ Frequently asked questions
customer_service/faq/faq.html
Exel http://www.deutschepost.de/dpa See also Deutsche Post – parent
g?lang=de_EN&xmlFile=828 company
Call Centers in India http://www.callcentermovie.com/ Amusing

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 10 Notes

Note 1: Some suggestions to help with course assessments:

(a) Group Presentation:

Your group presentation should try to incorporate the efforts of all
team members. Remember a group or a team should show that
everyone has contributed. Your presentation should probably
have 3 sections. The first is an overview of the case being
studied. This should take the form of a one slide introduction to the
organization. The second part should highlight the issues/analysis
and when appropriate answer the set questions included with each
case study.

You should also use theoretical models or constructs to provide insights for your audience. The team
could also show that they have carried out some independent research into this case study and
supplement the information provided in the written case. Lastly the last 1 / 2 slides should summaries
the team learning. Your learning should provide an insight into what you have learned booth from
theory and the case study.

Note 2: Marking Group Presentations - The following broad MBA guidelines for allocation of marks
have been adopted. The table below indicates the allocation of marks for your Presentation and Write-
up:
75% or more - excellent
65% - 74% - very good
55% - 64% - good
50% - 54% - just acceptable
46% - 49% - poor
45% or less - very poor

A B C D
% above 75% (55-74%) (50-54%) 49% or less

Excellent Questions Questions not Inadequate

insights; answered fully covered – coverage of
Presentation 25 excellent links competently with some issues the issues
between theory some insights into omitted
and practice the issues

Adept handling Handled the Answers did Significant

of questions questions well and not fully satisfy gaps in
Q and A 25 showing gave clear the questioner knowledge
excellent grasp knowledgeable exposed
of the issues answers

Well structured Well structured Some contents Poor contents;

with strong with some clearly poor structure;
es (Contents) evidence of evidence of appropriate but inadequate
40
independent independent Poor structure insights
research research and logical flow achieved

Strong Some evidence of Acceptable list Inadequate

evidence of group synergy of learning evidence of
Group
group synergy and reflective points but thinking and
Learning 10
and reflective learning descriptive reflection
Points
learning rather than
reflective

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T Mullen June 2009

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