ABM 107 - Module 2

Republic of the Philippines
Commission on Higher Education

Municipality of Santo Tomas
SANTO TOMAS COLLEGE OF AGRICULTURE, SCIENCES AND
TECHNOLOGY
Feeder Road 4, Barangay Tibal-og, Santo Tomas, Davao del Norte, 8112, Philippines
INTRODUCTION TO PRODUCTION
AND OPERATIONS MANAGEMENT
Module 2 (Week 3 to 4)
OPERATIONS STRATEGY IN THE GLOBAL ARENA
a. Reasons to Globalize
b. Developing Missions and Strategies
c. Strategy Making, Strategy-Executing Process
d. Options in Crafting Strategy
e. Achieving Competitive Advantage
f. Issues in Operations Strategy
g. Global Operations Strategy Options
EGIE BOY T. CAUBA, LPT, MBA

MODULE 1
INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT
INTENDED LEARNING OUTCOMES

Hello students! Good job for
finishing your 1st module.
Here is your 2nd module. In this
module, we will tackle the reasons why At the end of Module 1, you should be
businesses need to globalize. Also, we able to:
will know the ways of developing
• Summarize the two major aspects of
missions and strategies. More so, this process management in the global
module will explain to you the process of arena;
strategy making, and how to execute • Explain the key aspects of
these strategies. The options in crafting a operations management decision-
strategy will also be discussed with you. making;
Most importantly, the ways of achieving
competitive advantage and the issues in
operations strategy together with its
options will be provided in this module.
These topics will help you strengthen
your knowledge of the importance of
being able to operate globally.
I hope that you will spend more

time reading and internalizing all the
contents of this module for you to be able
to grasp the essence of the topics.
ARE YOU READY?

LET’S GO!
LESSON 2:
Operations Strategy in Global Arena:
Reasons to Globalize; Developing Missions and Strategies;
Strategy Making; Strategy-Executing Process; Options in Crafting
Strategy; Achieving Competitive Advantage; Issues in Operations
Strategy; Global Operations Strategy Options
In this lesson, you will learn

the operations strategy in the global As we start, challenge yourself to:
arena. Let us explore all these
things as we go on with the lesson.
a. Familiarize yourself with the
concepts discussed in this module.
b. Comply and answer the tasks or

activities written in this module.
ACTIVITY:
Direction: On a whole sheet of paper, write six (6) companies that are known
globally, write also what specific product made them famous.
Question: Among the six famous company, which do you think ranks number 1? Why?
(Minimum of 1 paragraph)
ANALYSIS
Hello students! For you to better understand the previous activity, please
answer these questions comprehensively and put it in the space provided.
1. What are the factors you have considered in selecting these companies?
__________________________________________________________________________________
__________________________________________________________________________________
____________________________
2. What do you think are the strategies the company used in order to be known globally?
__________________________________________________________________________________
__________________________________________________________________________________
____________________________
3. Why do you think it’s important to aim for a global market?
__________________________________________________________________________________
__________________________________________________________________________________
____________________________
LET’S LEARN
MORE!
ABSTRACTION
APPLICATION 1
Direction: TRUE or FALSE. Write T if the statement is True and F if the
statement is False.
_________1. Locating facilities in countries where unique resources are available.

These resources may be expertise, labor, or raw material.
_________2. Another reason for international operations is to reduce response time
to meet customers’ changing product and service requirements.
_________3. Global organizations can attract and retain better employees by
offering more employment opportunities. They need people in all functional areas
and areas of expertise worldwide.
_________4. A strategic vision describes the route a company intends to take in
developing and strengthening its business. It paints a picture of a company’s
destination and provides a rationale for going there.
_________5. A strategic vision is different from a mission statement.
_________6. Efficiency means doing things right. It entails balancing the amount of
resources used to achieve an objective against what was actually accomplished.
Managers must not waste scarce and costly resources.
_________7. Global markets are penetrated using exports and licenses. It is the
least advantageous, with little local responsiveness and little cost advantage.
_________8. Transitional describes a condition in which a material, people, and
ideas cross or transgress national boundaries. These firms have the potential to
pursue all three operations strategies (i.e., differentiation, low cost, and response).
_________9. Global operations provide an increase in both the challenges and
opportunities for operations managers. Although the task is challenging, operations
managers can improve productivity in a competitive, dynamic global economy.
________10. Effective use of resources, whether domestic or international, it is the
responsibility of the professional manager, and professional managers are among
the few in our society who can achieve this performance. The challenge is great, and
the rewards to the manager and to society substantial.
APPLICATION 2. Identification
Direction: Write the correct answer in the space provided.
_______1. This strategy has decentralized authority with substantial autonomy at each
business.
_______2. This manifests in meaningful schedules communicated to customers such that
the customer can, in turn, rely on them.
.
_______3. The ability to match changes in meaningful schedules communicated to
customers such that the customer can, in turn, rely on them.
_______4. This refers to the set of values related to rapid, flexible, and reliable
performance.
_______5. A strategic vision describes the route a company intends to take in developing
and strengthening its business. It paints a picture of a company’s destination and
provides a rationale for going there.
APPLICATION 3
Direction: Read the case below entitled, “Two very Different Hotels” and answer the
questions that follow:
Two very Different Hotels

Formule 1
Hotels are high-contract operations – they are staff-intensive and have to cope with a range
of customers, each with a variety of needs and expectations. So, how can a highly successful chain
on affordable hotels avoid the crippling costs of high customer contact? Formule 1, a subsidiary of
the French Accor group, manages to offer outstanding value by adopting two principles not always
associated with hotel operations – standardization and innovative use of technology. Formule 1 hotels
are usually located close to roads, junctions, and cities which makes them visible and accessible to
prospective customers. The hotels themselves are made from state-of-the-art volumetric
prefabrications. The prefabricated units are arranged in various configurations to suit the
characteristics of each individual site. All rooms are nine square metres in area, and are designed to
be attractive, functional, comfortable, and soundproof. Most important, they are designed to be easy
to clean and maintained. All have the same fittings, including a double bed, an additional bunk-type
bed, a wash basin, a storage area, a working table with a seat, a wardrobe and a television set. The
reception of a Formule 1 hotel is staffed only from 6:30 am to 10:00 am and from 5:00 pm to
10:00 pm, outside these times an automatic machine sells rooms to credit card users, provides access
to the hotel, dispenses a security code for the room and even prints a receipt. Technology is also
evident in the washrooms. Showers and toilets are automatically cleaned after each use by using
nozzles and heating elements to spray the room with disinfectant solution and dry it before it is used
again. To keep things even simpler, Formule 1 hotels do not include a restaurant as they are usually
located near existing restaurants. However, a continental breakfast is available, usually between 6:30
am and 10:00 am, and of course on a ‘self-service’ basis.
Mwagusi Safari Lodge
The Mwagusi Safari Lodge lies within Tanzania’s Ruaha National Park, a huge undeveloped
wilderness, whose beautiful open landscape is especially good for seeing elephant, buffalo and lion.
Nestled into a bank of the Mwagusi Sand river, this small exclusive tented camp overlooks a watering
hole in the riverbed. Its ten tents are within thatched bandas (accommodation), each furnished
comfortably in the traditional style of the camp. Each banda has an en-suite bathroom with a flush
toilet and a hot shower. Game viewing can be experienced even from the seclusion of the veranda.
The sight of thousands of buffalo flooding the riverbed below the tents and dining room banda is not
uncommon, and elephants, giraffes, and wild dogs are frequent uninvited guests to the site. There
are two staff for each customer, allowing individual needs and preferences to be met quickly at all
times. Guest numbers vary throughout the year, occupancy being low in the rainy season from
January to April, and full in the best game viewing period from September to November. There are
game drivers and walks throughout the area, each selected for individual customers’ preferences.
Drivers are taken in specially adapted open-sided four-wheel-drive vehicles, equipped with reference
books, photography equipment, medical kits, and all the necessities for a day in the bush. Walking
safaris, accompanied by an experienced guide can be customized for every visitor’s requirements
and abilities. Lunch can be taken communally, so that visitors can discuss their interests with other
guides and managers. Dinner is often served under the stars in a secluded corner of the dry riverbed.
Questions for Discussion:
1. Global operations provide an increase in both the challenges and opportunities for operations
managers. Discuss and explain thoroughly.
2. What are the different issues in strategy operations that need to be addressed.
3. Ideally, managers ought to use the objective-setting exercise as a tool for stretching an organization
to reach its full potential. Explain and discuss by using the internet or other books to support your
answer.
Splendid! You have successfully completed the
activities and tasks for this module.
Now, you are already prepared to move to the next one.
See you!

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Republic of the Philippines

Commission on Higher Education

EGIE BOY T. CAUBA, LPT, MBA

INTENDED LEARNING OUTCOMES

I hope that you will spend more

ARE YOU READY?

In this lesson, you will learn

b. Comply and answer the tasks or

_________1. Locating facilities in countries where unique resources are available.

Two very Different Hotels

Mwagusi Safari Lodge

Questions for Discussion:

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