Globalization of operations management - Essay Example

Module: Globalization of Operations Management For the last 3 decades the world has increasingly becomea global market with more countries lifting their trade barriers. In this case firms expanded their operations to foreign markets in order to gain a wider market and competitive advantage. This expansion in operations complicates a firm’s management practices leading to many strategic changes. This paper will look into globalization of operations management highlighting aspects in manufacturing and service sectors.

Manufacturing companies have for decades taken advantage of globalization by shifting to regions with many comparative advantages e.g. raw materials, skilled and low-cost labor force among others (Mahadevan 121). Economies of scale also arise after a company expands it production capacity due to lower cost of operation. The service sector on the other hand has capitalized on the skilled labor force available overseas at low cost e.g. outsourcing firms relocating to India (Mahadevan 138). This expansion or shifting centers of operation also affect operations management adversely.

There is the need for the firm to operate within the laws and standards of the new markets which are not necessarily similar to those of original market. Client’s special needs and preferences should also be considered in production which can increase on costs. Global market place is also quite competitive raising the need to have sound operational management strategies. CONCLUSION Globalization has taken many organizations to greater heights in the competitive global market. This scenario has enabled them to gain competitive advantage and increase on production which results to higher margins.

A firm going global should therefore appreciate that it will have to initiate changes in its operations to suit the new market dynamics. Works cited Mahadevan, B. Operations Management: Theory and Practice. Pearson Education India, 2010.