Operation Management

••• 2.4 Identify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy:

a) Maturing of a product.

b) Technology innovation in the manufacturing process.

c) Changes in laptop computer design that builds in wireless technology.

••• 2.5 Identify how changes in the external environment affect the OM strategy for a company. For instance, discuss what impact the following external factors might have on OM strategy:

a) Major increases in oil prices.

b) Water- and air-quality legislation.

c) Fewer young prospective employees entering the labor market.

d) Inflation versus stable prices.

e) Legislation moving health insurance from a pretax benefit to taxable income.

•• 2.6 Develop a ranking for corruption in the following countries: Mexico, Turkey, Denmark, the U.S., Taiwan, Brazil, and another country of your choice. (Hint: See sources such as Transparency International, Asia Pacific Management News, and The Economist.)

•• 2.7 Develop a ranking for competitiveness and/or business environment for Britain, Singapore, the U.S., Hong Kong, and Italy. (Hint: See the Global Competitive Report, World Economic Forum, and The Economist.)

•• 2.8 Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table on the next page, where 1 is a lower risk and 3 is a higher risk.

SELECTION CRITERION

ENGLAND

CANADA

Price of service from outsourcer

2

3

Nearness of facilities to client

3

1

Level of technology

1

3

History of successful outsourcing

1

2

The executives have determined four criteria...