Operational approach strategies give management the ability to respond to an increasingly globalized business environment. Operational strategies refer to the strategies used in the transformation process from raw materials to products (from inputs to outputs). These strategies may include; supply chain management, inventory management, outsourcing, quality management, technology and global factors. In which to refer to or contribute to globalization. Globalization refers to the removal of trade barriers between nations. Greater integration of capital, labor, financial resources and technology. This essay will focus on the effect that outsourcing, technology, and global factors have on businesses' adaptation to globalization with reference to Tesla, inc. and Apple Inc. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Outsourcing is an operational strategy that management can use to respond to an increasingly globalized business environment. Outsourcing refers to and involves the use of external specialists to perform one or more key business functions. This creates advantages and disadvantages for companies such as reduced costs, expertise and increased efficiency, however this can lead to reduced quality, unreliable timescales and hidden costs. While this international outsourcing increases globalization, this is because it contributes to the economies of other nations through trade, which trade includes the transfer of labor. An example of outsourcing that integrates with globalization is the use of foreign manufacturing and labor as a result of the other nation having lower labor costs. This allows companies to remain competitive by providing goods at a lower retail price. This is seen within Apple. The majority of Apple's range is produced in China, as most of the components made for Apple products come from China, this reduces transportation logistics costs for manufacturing, this is the main reason why Apple relies on Foxconn for its Chinese operations. Another reason is the fact that China has fewer workers' rights combined with lower wages, this therefore reduces production costs, this improves Apple's profit margins by potentially reducing prices for the consumer. Similarities can be seen within Tesla, not in the case of labor but due to the lack of capital. To solve this problem they sought partnerships with international companies. Outsourced the design, body panels and associated assembly line for their first vehicle, the 'Roadster', for which they relied on English car manufacturer Lotus Engineering's and their Hethel (UK) factory. This reduced the costs of designing, staffing and acquiring a factory and assembly line for the newly formed start-up. This in turn provided customers with what could be considered the world's first electric sports car at a competitive price and with a quality finish. In the case of business operations outsourcing, it increases globalization by exchanging labor, technology and finance internationally. This is evident in Apple and Tesla's decision to produce internationally to reduce costs while maintaining supply and quality. Technology is another operational strategy that management can use to respond to globalization. Technology refers to the design, construction and/or application of devices,.
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