Operations Management Sustainability and Supply Chain Management Solution Manual
Copyright ©2017 Pearson Education, Inc. 9
2
CHAPTER
Operations Strategy in a Global Environment
DISCUSSION QUESTIONS
1. Global seems the better label for Boeing because authority
and responsibility reside in the U.S.—the home country.
LO 2.5: Identify and explain four global operations strategy
options
AACSB: Application of knowledge
2. Six reasons to internationalize: Reduce costs, improve supply
chain, provide better goods and services, attract new markets, learn
to improve operations, attract and retain global talent.
LO 2.5: Identify and explain four global operations strategy options
AACSB: Analytical thinking
3. No. Sweetness at Coca-Cola is adjusted for the tastes of indi-
vidual countries.
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
4. A mission is an organization's purpose—what good or service
it will contribute to society.
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
5. Strategy is an organization's action plan—how it is going to
achieve its purpose.
LO 2.1: Define Mission and strategy.
AACSB: Application of knowledge
6. A mission specifies where the organization is going and a
strategy specifies how it is going to get there.
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
7. The answer to this question will depend on the establishment
studied, but should probably include some of the following con-
siderations:
The mission: diagnose automobile problems and make the
necessary repair at a fair price for the local customer.
Points to consider, or options, within the 10 decision areas are
Decision: Option:
Product Repair work of American and/or foreign
vehicles; specialized (t une-ups, lubrication,
wheel alignment, etc.) versus general repair;
frame and body repair versus engine and
power train repair; repair and maintenance
only versus repair, maintenance, and sales of
fuel; professional staffing versus rental of
tools and space for do-it-yourself repair work
Quality Appropriate level of quality; warranty; method
of measuring and maintaining quality (cus-
tomer complaints, inspection by supervising
mechanic, etc.)
Process Use of general versus special-purpose diag-
nostic and repair equipment (in particular,
the degree to which computer controlled
diagnostic equipment is employed)
Location In-town, shopping mall, highway
Layout Single bay/multibay; general-purpose bay
versus special-purpose bay (lubrication/tire
repairs and installation/wheel alignment/
engine and power train repair, etc.)
Human resources Employment of certified versus noncertified
repairpersons; employment of specialists
versus general mechanics
Supply Chain Choice of supplier(s) for both general and
original manufacturer parts and supplies
Scheduling Hours of operation (8:00 A.M.–5:00 P.M.;
24-hour towing; weekends/holidays), repairs
versus motor vehicle safety inspections, etc.;
service by appointment versus walk-in
(or drive-up) service
Inventory Quantity and variety of repair parts (fan belts,
filters, mufflers, headlights, etc.) to stock;
whether to stock generic or original manu-
facturer parts
Maintenance Bays with hydraulic lifts versus easier-to-
maintain "basement" work areas; preventive
maintenance of equipment versus breakdown
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
8. Library or Internet assignment: Student is to identify a mission
and strategy for a firm. BusinessWeek, Fortune, The Wall Street
Journal, and Forbes all have appropriate articles.
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
9. OM strategy changes during a product's life cycle: During the
introduction stage, issues such as product design and development
are critical, then during the growth stage the emphasis changes to
product and process reliability; from there we move to concern for
increasing the stability of the manufacturing process and cost
cutting; and finally, in the decline stage pruning the line to
eliminate items not returning good margin becomes important.
Figure 2.5 provides a more expansive list.
LO 2.1: Define mission and strategy
AACSB: Application of knowledge
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