Operations Management Today

In today's globalised economy, every business is subject to factors that affect the firm’s function as a whole. These factors are the ones attributed for the success or even the failure of a business. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. In this manner, the management of a certain organization should be guided by strategic management principle to be able to attain its business goal. However, even if the management of such business has been trying its best to make things perfect for the company, there are still some problems that the company may encounter.

Operations management can be defined as the efficient and effective implementation of the policies and tasks necessary to satisfy a firm's customers, employees, and management. Operations management focuses on the careful management of the processes involved in the production and distribution of products and services (Chase 1998, p. 72). According to Lowson (2002), in discussing the definition of operations management, it is important to note that it emphasizes the term, “product and service combinations” because this aspect has implications for operation management especially operations strategy. The type of service and/or product and their different behaviours influence the activities and strategies of a company. cIn today's globalised economy, the greatest challenges in operations management faced by organisations that operate internationally are competition and market domination, diverse consumer preference/behaviour and culture, and globalization.

Competition

Adverse competition in every business environment is the most if not the first problem encountered. Companies have always taken a competitive product and dismantled it to examine each part to compare with their own. If a part made by a competitor has some advantage, then the advantage is copied or adapted. Benchmarking extends this concept to every business process. Competitive benchmarking is comparing performance between competitors, whereas process benchmarking is comparing performance of a business or production process, not necessarily among competitors. If another company has a better operation or process, then a benchmarking company either copies or adapts it to its own needs.

Benchmarking is a process of continuously comparing and measuring an organization with business leaders anywhere in the world to gain information which will help the organization take action to improve its performance (Bodek 1994). For example, Dell has complemented its rapid response to customer orders with rapid replenishment of small quantities of components from suppliers. The only inventory at Dell is limited numbers of components for assembly of computers that have already been sold. The competitive advantage to Dell of eliminating finished goods inventory, minimizing component inventories, and marketing directly to consumers is affecting inventory and materials management not only in personal computers, but other products as well.

Consumer Preference/Behavior and Culture

The diversity of consumer preference/behavior is among the greatest barrier in penetrating international trade markets. Researches on sensation and perception, attention, categorization, inference making, information search, memory, attitude and behavior, attitude formation and formation, conditioning and satisfaction have been undertaken to understand consumer behavior (Jacobs, Latham and Lee 1998). This decision process in global marketing is influenced by the information available to the consumer and the way in which the consumer processes that information. It is also influenced by the consumer's beliefs, attitudes, and intentions as well as many other individual characteristics. Every business venture must take in consideration the market segmentation of the product being offered (Moschis 1994). One of the dominant areas of consumer theory rests on the notion of the consumer as `chooser' (Gabriel and Lang 1995). Those objects with which one chooses to surround oneself in the home setting are more often than not products of careful choice and selection and may also be freely discarded (Csikszentmihalyi and Rochberg-Halton 1981). The people who will patronize the product/service being offered should be the main concern of the management since they are the targeted market. Along with the importance of product excellence, customer satisfaction and loyalty will follow.

The impact of culture on a mundane operational function is important more so, in a global business. Culture, along with personal preferences of consumers is a great factor to consider. For example, Mc Donald in India is not preferable as to compare with KFC. Cultural considerations must be viewed by the management in order to yield market control and competitive advantage.

Globalization

Some nations or organizations are becoming integrated into the global economy faster than the others. Nations or organizations that have been able to integrate are seeing advance growth and reduced poverty. With the undying influence of globalization to the world, there are many organizations that are striving to adjust with these influences. Expanding globalization brings stiff competition for international markets. Increased competition has resulted from: the new market-based economies of developing and former communist countries; the introduction of new products and processes; more efficient use of old materials; and innovations in information technology (Intriligator 2004). These forces have transformed markets that were once regarded as a reliable source of earnings.

Globalization and its effects pose threats and dangers in the marketing of internationally operated business. The various considerations to be taken at hand such as technology, culture, international policies, etc. are essential aspects that must be properly addressed by the organization. For instance, half dozen firms dominate the computer, chemical, steel, and a host of other industries nowadays. Corporate concentration continues with the globalization of commerce such as Dell and the Daimler-Chrysler merger.

Conclusion

In this dynamic industry, the greatest barriers of international business come in different segments. It may be from the products/services offered, production, human resources and its management, operations, and the like. The most important thing to consider is to update the organization in the current trends affecting and perpetuating the global market. By doing so, the success of the organization is not far at hand, hence, every goal is achieved in the best and most favorable ways possible.

References

Bodek, N 1994, the Benchmarking Management Guide, Productivity Press,

Portland, OR.

Chase, R 1998, Production and Operations Management; Manufacturing and

Services, Richard D. Irwin, Inc., USA.

Csikszentmihalyi, M & Rochberg-Halton, E 1981, the Meaning of Things: Domestic Symbols and the Self, Cambridge University Press, Cambridge,

MA.

Gabriel, Y & Lang T 1995, the Unmanageable Consumer: Contemporary

Consumption and its Fragmentations, Sage, London.

Intriligator, MD 2004, Globalization of the World Economy: Potential Benefits

And Costs and a Net Assessment, University of California, Los Angeles

Jacobs, FA, Latham, C, and Lee, C 1998, ‘the relationship of customer satisfaction to strategic decisions’, Journal of Managerial Issues, vol. 10, no. 2, 165+.

Lowson, RH 2002, Strategic operations management: the new competitive

advantage, Routledge, New York.

Moschis, G 1994, Marketing Strategies for the Mature Market, Quorum Books, Westport, CT.