Global Operationsby: Beverley Dunn

Why go global?• Reduce costs • Improve supply chain• Provide better goods and services • Attract new markets• Learn to improve operations • Attract and retain global talent

Savitskie, Katrina, PH.D. (2007). Custom Business Resources. Boston: Pearson Custom Publishing.

Different Global Concerns • Language and Cultural Blunders• Time Differences• International Laws and Regulations • Ethical and Environmental Concerns

Language and Cultural Blunders• “We take your bags and send them

in all directions.” – a sign in a Copenhagen airline ticket office

• “Specialist in women and other diseases.”- A sign outside of a Roman doctor’s office

• “You are welcome to visit the cemetery where famous Russian and Soviet composers, artists, and writers are buried daily except Thursday.” – A sign in a Moscow hotel across the street from a Russian Orthodox monasteryThe Language Barrier. Retrieved February 13, 2008, from Things

People Said Web site: http://www.rinkworks.com/said/language.shtml

Language and Cultural Blunders• “Adults: 1 tablet 3 times a day until

passing away.” – Instructions on a Japanese medicine bottle

• “You will know radio on by enchanting green light.” – Hitachi radio instructions

• “Eat your fingers off.” – “Finger lickin’ good,” as originally translated into Chinese

• “Are you lactating?” – “Got Milk?” as originally translated into Spanish

The Language Barrier. Retrieved February 13, 2008, from Things People Said Web site: http://www.rinkworks.com/said/language.shtml

Time Differences• Scheduling meetings• Making sure someone is always on-

call

International Laws and Regulations• World Trade Organization (WTO)• Contact the Chamber of Commerce

of the country, city, and/or region of where you would like to conduct business

• Hire an attorney or law firm of that country who specializes in business law

Ethical Issues• Environmental

Air pollutionNoise pollutionWater pollutionHazardous materials

• CulturalChild laborTraining/EducationPay

Environmental

Cultural

Globalize to Compete• Trade agreements and international laws

reduce costs• Becoming more efficient and responsive

makes a company better at producing goods and services

• Reaching out to other countries will “expand the life cycle of an existing product”

• Collaboration among internationally diverse management increases the operations of a company

• Help reduce the unemployment rate by hiring diverse employees and relocating anyone who would like to in order to maintain the personnel a company has

Savitskie, Katrina, PH.D. (2007). Custom Business Resources. Boston: Pearson Custom Publishing.

The BRIC ThesisOne of the largest global investment banks, Goldman Sachs predicts that Brazil, Russia, India, and China have the potential of becoming four of the most dominant economies in 2050

Wikipedia.com

Brazil• Soy• Iron Ore

Russia• Oil• Natural Gas

India• Growing Population

China• Growing Population

Globalization is the Future and Now