1.Briefly, and in your own words, describe the differences between international
ID: 359997 • Letter: 1
Question
1.Briefly, and in your own words, describe the differences between international, transnational, and multidomestic strategies with regards to globalization.
2. IN OM, what is meant by differentiation? Describe and include at least one example of a way a firm may employ differentiation in both goods and services (make sure you include at least one example for a good and one for a service)
3. We discussed 4 operations strategy focuses, one of which is Mass Customization. Name and describe the other 3. Be sure to include information about the volume and variety of products offered by each strategy approach.
Explanation / Answer
1. The differences between international, transnational and multi-domestic strategies with regard to globalization are in international strategies, companies only do their transactions through imports and exports from clients or to clients without opening new branches or without investments like Harley Davidson. In transnational strategies, the company invest in foreign companies, buy shares, open new branches or subsidiaries and provide the subsidiaries with power and autonomy in decision-making like Infosys. In multi-domestic strategies, the company focuses on local responsiveness to capture local market. In this strategy, global products are sold everywhere but some products are very specific to locations like Nestle.
2. In order to have a competitive advantage, there are several strategies like differentiation strategy in operations management which aims at placing the product/services at a particular price, innovation, leadership, preferences, quality, customer service, location targetting a particular group. Examples of companies applying product differentiation are Apple with Apple iPhone SE in India and China i.e. focus is on low-end iPhones and service differentiation is McDonald which is providing Burger with Aloo Tikki in India with a focus to meet local needs.
3. Apart from Mass Customization, there are the Batch Production strategy, Make-to-Order strategy, and Mass Production strategy. Mass customization is the production of a high volume of customized goods/services so a variety of products are limited like Asian Paints producing Royal paints. Make-to-Order goods are produced based on customer requirements. The volume depends on customer specification like Pantaloons buying clothes of the same brand with limited stock. Make-to-stock strategy produces high volume and inventory are also high and variety is more, so stocking of products for upcoming demands like Amul Dairy producing milk products to pile up for next 1 year. Batch production strategy is a low inventory strategy with standard products produced in a batch or slot and variety is limited. For example, at a time in a dairy industry, maximum 500 units of sweet curd can be produced. In the next batch, 500 more units can be produced. Here, in one batch the steps are repeated from beginning till end. In mass production, the volume is high and variety of products is also high. Together many steps can be simultaneously completed. For example, Nalco producing a variety of products in mass as demand is also high and many customers.
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