Global Operations Strategy: Fundamentals and Practice PDF
Preview Global Operations Strategy: Fundamentals and Practice
Springer Texts in Business and Economics Yeming Gong Global Operations Strategy Fundamentals and Practice Springer Texts in Business and Economics For furthervolumes: http://www.springer.com/series/10099 . Yeming Gong Global Operations Strategy Fundamentals and Practice YemingGong EMLYONBusinessSchool Ecully France ISSN2192-4333 ISSN2192-4341(electronic) ISBN978-3-642-36707-6 ISBN978-3-642-36708-3(eBook) DOI10.1007/978-3-642-36708-3 SpringerHeidelbergNewYorkDordrechtLondon LibraryofCongressControlNumber:2013938038 #Springer-VerlagBerlinHeidelberg2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe Publisher’s location, in its current version, and permission for use must always be obtained from Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter. ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerisapartofSpringerScienceþBusinessMedia(www.springer.com) Preface This book has grown from courses in operations strategy and operations manage- ment, taught to graduate students and executive managers in different countries. The objective of this book is for students and managers to understand the fundamentals and practice of global operations strategy. I have two primary audiencesinmindforthebook. The first audience comprises various students. The core readers are graduate- level students. Executive programs can use part of this book for executives who want to focus on specific topics of global operations strategy, for instance, global supply chain, and cross-value global operations strategy, or to combine globaloperationsstrategywithaspecificindustryorcompany,forinstance,global operations strategy of a telecommunication company. The book can be used by undergraduates who wish to enhance their understanding of global operations strategyandPh.D.studentswhowishtoreadaliteraturereviewofglobaloperations strategyandlayafoundationforfurtherresearchinthisfield.Thestudentaudiences are: • MasterofSciencestudents • MasterofBusinessAdministrationstudents • MasterofPhilosophystudents • Studentsinexecutive(openandcustom)programs • Undergraduates • Ph.D.students For experienced practitioners, this book serves as a suitable reference for the fundamentals and practice of global operations strategy. The manager and practi- tioneraudiencesare: • Managersinoperationsmanagementoroperationsstrategy • Managersininternationalbusiness • Consultants • Managers in marketing, finance, accounting, human resources, retailing, and logisticswhoareconsideringinterfaceproblemswithglobaloperations v vi Preface Focus of the Book I do not intend to cover all topics in operations strategy. “Global” operational problemsaremyfocus.Ifocusontheglobalelementsofglobaloperationsstrategy, including global competency, global resource-based operations, global process- basedoperations,andglobaloperationalpractice. I also do not try to present all global decisions; hence, the book focuses on decisionsatthe“operationsstrategy”level.Inaglobalenvironment,itisdifficultto identifydecisionsatthislevelsinceagreatnumberofdecisionsonglobalproblems are at the “corporate strategy” level or the “business strategy” level. Separating decisions at the “operations strategy” level and at the “operations management” levelisalsodifficultsincetheirdecisiontimehorizonsareclose. With a “focus strategy,” I may have overlooked some topics in operations strategy or global strategy. Given the constraints, I welcome any suggestion for improvement. Features of the Book Thebookreviewsthenewesttheoriesinglobaloperationsstrategy.Forthecovered topics,Iconductedaliteraturereviewupto2012. Allcaseinformationisupdatedto2012.Exceptforafewclassicalcases,suchas Coca-ColaforglobalizationandToyotaforoperationsstrategyhistory,thenewest cases are selected from recent years, including the Samsung versus Apple war in 2012, the shipbuilding crisis in 2012, the Bosch EFQM award 2012, Huawei globalizationin2012,theFoxconn–Applesupplychaincrisisin2011,theJapanese earthquake of 2011, and global supply chain 2011. The locations of cases are global: about one-third of cases and case examples are from Europe, one-third fromNorthAmerica,one-thirdfromAsiaPacific,withmanyembeddedexamples fromtherestoftheworld.Thefeaturesofthebookare: • Underpinningbyupdatedtheory • Illustrationsusingnewmanagementpractice • Inclusionofpartobjectives • Inclusionofchapterobjectives • Caseexamplesfromrecentyears • Thenewestcasestestedbystudents • Referencesandfurtherreading • Supportive teaching materials including slides and teaching notes for all cases andcaseexamples,teachingvideos,syllabuses,exercisesets,andexampapers Preface vii Organization of the Book The current literature in global operations strategy is fragmented and varied. To facilitate its understanding, I have organized the book with a “triple triangles” structure(seeFig.1.9). PartIintroducesglobaloperationsstrategywithastructureof“3I”triangles(see Fig. I). Chapter 1 introduces the concept of global operations strategy, mainly addressingthequestion“whatisglobaloperationsstrategy?”Chapter2introduces themethodsofoperationalglobalization,mainlyansweringthequestion“howare operations globalized?” Chapter 3 introduces the rationale behind operational globalization,mainlyaddressingthequestion“whyareoperationsglobalized?” Part II addresses the fundamentals of global operations strategy with a “3V” structurefromthreeviews(seeFig.II).Thefundamentalsinthecompetency-based viewareaddressedinChap.4,fundamentalsintheresource-basedviewinChap.5, andfundamentalsintheprocess-basedviewinChap.6. PartIII discussesthepractice ofglobal operations strategy bya “3C” structure (seeFig.III).Cross-borderpracticeisaddressedinChap.7,cross-functionpractice inChap.8,andcross-valuepracticeinChap.9. EMLYONBusinessSchool YemingGONG April2013 . Acknowledgments Several years ago, I wrote many lecture notes on global operational problems to answerquestionsfrommyglobalstudents.Thesestudentsarehighlyglobalizedand their interesting questions cannot be easily found in classical textbooks without focusingonglobaloperationalproblems.Itwastheirstrongdemandsthatdroveme to integrate my lecture notes into a book. About 400 graduate students have used case materials in more than ten rounds of teaching in operations strategy or operationsmanagementcoursesandhaveprovidedvaluablefeedback. Iamgratefultomorethan20professorsofoperationsmanagement,operations strategy, and global strategy for many theoretical suggestions and several professors of finance, marketing, human resources, and information management forsharingtheirknowledgeofthecross-functionalproblemspresentedinChap.8. Several Ph.D. students have carefully read the whole book and provided detailed feedback. ThisworkissupportedbyNSFC(No.70901028).Ihavegreatlybenefitedfrom valuablecomments,encouragement,andguidancefromChristianRauscher,editor of Business and Economics at Springer, and the support from Springer’s profes- sional team. I would like to express my gratitude to the support and stimulating environmentofEMLYON. Finally,Iwouldliketothankmyfamily,Rona,Ruiqi,andAlex,forallowingme todedicateasignificantamountoftimetothework. YemingGONG ix
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