Skip to main content

Basic Concepts of Global Operations Strategy

  • Chapter
  • First Online:
  • 4119 Accesses

Part of the book series: Springer Texts in Business and Economics ((STBE))

Abstract

Chapter 1 mainly addresses the question “what is global operation strategy?” This chapter starts by introducing the evolving process of global operations strategy. We define key concepts in global operations strategy and discuss the difference between international operations management and global operations strategy. Then we present principles and discuss basic decisions in global operations strategy. Finally, this chapter presents a content framework of global operations strategy and a book structure of “triple triangles”. We explain concepts, principles and decisions of global operations strategy with case examples including Global Operations of IKEA, HSBC, INSEAD, Global Manufacturing of Volkswagen, and a case Public Storage/Shurgard.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   49.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   89.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Anderson, J. C., Cleveland, G., & Schroeder, R. G. (1989). Operations strategy: A literature review. Journal of Operations Management, 8(2), 133–158.

    Article  Google Scholar 

  • Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press.

    Google Scholar 

  • Birkinshaw, J., Morrison, A., & Hulland, J. (1995). Structural and competitive determinants of a global integration strategy. Strategic Management Journal, 16(8), 637–655.

    Article  Google Scholar 

  • Buckley, P. J., & Ghauri, P. N. (2004). Globalization, economic geography and the strategy of multinational enterprises. Journal of International Business Studies, 35(2), 81–98.

    Article  Google Scholar 

  • Chandler, A. D. (1962). Strategy and structures: Chapters in the history of the industrial enterprise. Cambridge: MIT Press.

    Google Scholar 

  • Chase, R. B. (1978). Where does the customer fit in a service operation? Harvard Business Review, 56(6), 137–142.

    Google Scholar 

  • Chase, R. B., & Uday, M. A. (2007). A history of research in service operations: What’s the big idea? Journal of Operations Management, 25, 375–386.

    Article  Google Scholar 

  • Cohen, M. A., & Lee, H. L. (1989). Resource deployment analysis of global manufacturing and distribution networks. Journal of Manufacturing and Operations Management, 2, 81–104.

    Google Scholar 

  • Doz, Y., & Kosonen, M. (2008). Fast strategy: How strategic agility will help you stay ahead of the game. Harlow: Pearson Education.

    Google Scholar 

  • Dunning, J. H. (1977). Trade, location of economic activity and the MNE: A search for an eclectic approach. In Bertil Ohlin, Per-Ove Hesselborn, & Per Magnus Wijkman (Eds.), The international allocation of economic activity. London: Macmillan.

    Google Scholar 

  • Ettlie, J. E. (1998). R&D and global manufacturing performance. Management Science, 44(1), 1–11.

    Article  Google Scholar 

  • Ferdows, K., & De Meyer, A. (1990). Lasting improvements in manufacturing performance: In search of a new theory. Journal of Operations Management, 9(2), 168–184.

    Article  Google Scholar 

  • Fitzsimmons, J. A., & Fitzsimmons, M. J. (1994). Service management for competitive advantage. New York: McGraw-Hill.

    Google Scholar 

  • Fitzsimmons, J. A., & Fitzsimmons, M. J. (2008). Service management: Operations, strategy, information technology. New York: McGraw-Hill.

    Google Scholar 

  • Ghoshal, S. (1987). Global strategy: An organizing framework. Strategic Management Journal, 8(5), 425–440.

    Article  Google Scholar 

  • Hamel, G., & Prahalad, C. K. (1985). Do you really have a global strategy? Harvard Business Review, 63(4), July–August, 139–148.

    Google Scholar 

  • Hayes, R. H., & Abernathy, W. I. (1980). Managing our way to economic decline. Harvard Business Review, July–August, 67–77.

    Google Scholar 

  • Hayes, R. H., & Chase, R. B. (1992). Applying operations strategy to service firms. In T. A. Swartz, D. E. Bowen, & S. W. Brown (Eds.), Advances in services marketing and management (Vol. 1). Greenwich: JAI Press.

    Google Scholar 

  • Hayes, R. H., & Schmenner, R. W. (1978). How should you organize manufacturing? Harvard Business Review, 56(1), 105–118.

    Google Scholar 

  • Hayes, R. H., & Upton, D. M. (1998). Operations-based strategy. California Management Review, 40(4), 8–25.

    Article  Google Scholar 

  • Hayes, R. H., & Wheelwright, S. C. (1979a). Link manufacturing process and product life cycles. Harvard Business Review, January–February, 133–140.

    Google Scholar 

  • Hayes, R. H., & Wheelwright, S. C. (1979b). The dynamics of process: Product life cycles. Harvard Business Review, March–April, 127–136.

    Google Scholar 

  • Hayes, R. H., & Wheelwright, S. C. (1984). Restoring our competitive edge: Competing through manufacturing. New York: Wiley.

    Google Scholar 

  • Hayes, R. H., Wheelwright, S., & Clark, K. (1980). Dynamic manufacturing. New York: The Free Press.

    Google Scholar 

  • Hayes, R. H., Pisano, G. P., & Upton, D. M. (1996). Strategic operations: Competing through capabilities. New York: Free Press.

    Google Scholar 

  • Hayes, R. H., Pisano, G. P., Upton, D. M., & Wheelwright, S. C. (2004). Operations, strategy, and technology: Pursuing the competitive edge. Indianapolis: Wiley.

    Google Scholar 

  • Henderson, J., & Cool, K. (2003). Learning to time capacity expansions: An empirical analysis of the worldwide petrochemical industry, 1975–1995. Strategic Management Journal, 24(5), 393–413.

    Article  Google Scholar 

  • Herbert, T. T. (1984). Strategy and multinational organization structure: An inter organizational relationships perspective. Academy of Management Review, 9(2), 259–270.

    Google Scholar 

  • Heskett, J. L. (1986). Managing in the service economy. Cambridge: Harvard Business School Press.

    Google Scholar 

  • Hill, T. (2000). Manufacturing strategy. New York: Irwin/McGraw-Hill.

    Google Scholar 

  • Hodder, J., & Jucker, J. (1985). International plant location under price and exchange rate uncertainty. Engineering Costs and Production Economics, 9, 225–229.

    Article  Google Scholar 

  • Hofer, C. W., & Schendel, D. (1978). Strategy formulation: Analytical concepts. St. Paul: West Publishing.

    Google Scholar 

  • Hout, T., Porter, M. E., & Rudden, E. (1982). How global companies win out. Harvard Business Review, 60(5), September–October, 98–108.

    Google Scholar 

  • Huchzermeier, A. (1991). Global manufacturing strategy planning under exchange rate uncertainty. Ph.D. thesis and working paper 91-02-01. Decision Sciences Department, the Wharton School, University of Pennsylvania, Philadelphia.

    Google Scholar 

  • Huchzermeier, A., & Cohen, M. A. (1996). Valuing operational flexibility under exchange rate risk. Operations Research, 44(1), 100–113.

    Article  Google Scholar 

  • Jonsson, A., & Foss, N. J. (2011). International expansion through flexible replication: Learning from the internationalization experience of IKEA. Journal of International Business Studies, 42, 1079–1102.

    Article  Google Scholar 

  • Karabuk, S., & Wu, S. D. (2003). Coordinating strategic capacity planning in the semiconductor industry. Operations Research, 51(6), 839–849.

    Article  Google Scholar 

  • Karmarkar, U. S., & Pitbladdo, R. (1995). Service markets and competition. Journal of Operations Management, 12(3–4), 397–411.

    Article  Google Scholar 

  • Kazaz, B., Dada, M., & Moskowitz, H. (2005). Global production planning under exchange-rate uncertainty. Management Science, 51(7), 1101–1119.

    Article  Google Scholar 

  • Kellogg, D. L., & Nie, W. (1995). A framework for strategic service management. Journal of Operations Management, 13(4), 323–337.

    Article  Google Scholar 

  • Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.

    Article  Google Scholar 

  • Kogut, B. (1985a). Designing global strategies: Comparative and competitive value-added chains. Sloan Management Review, 26(4), 15–28.

    Google Scholar 

  • Kogut, B. (1985b). Designing global strategies: Profiting from operational flexibility. Sloan Management Review, 27(1), 27–38.

    Google Scholar 

  • Kogut, B., & Kulatilaka, N. (1994). Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science, 40(1), 123–139.

    Article  Google Scholar 

  • Kouvelis, P. (1999). Global sourcing strategies under exchange rate uncertainty. In S. Tayur, R. Ganeshan, & M. Magazine (Eds.), Quantitative models for supply chain management (pp. 625–667). Norwell: Kluwer Academic.

    Chapter  Google Scholar 

  • Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61(3), May–June, 92–102.

    Google Scholar 

  • Lovelock, C. H., & Yip, G. S. (1996). Developing global strategies for service business. California Management Review, 38(2), 64–86.

    Article  Google Scholar 

  • Lowe, T., Wendell, R., & Hu, G. (2002). Screening location strategies to reduce exchange rate risk. European Journal of Operational Research, 136, 573–590.

    Article  Google Scholar 

  • Martinez, J. I., & Jarillo, J. C. (1989). The evolution of research on coordination mechanisms in multinational corporations. Journal of International Business Studies, 20(3), 489–514.

    Article  Google Scholar 

  • McLaughlin, C. P., & Fitzsimmons, J. A. (1996). Strategies for globalizing service operations. International Journal of Service Industry Management, 7(4), 43–57.

    Article  Google Scholar 

  • Miller, J. G., & Roth, A. V. (1994). A taxonomy of manufacturing strategies. Management Science, 40(3), 285–304.

    Article  Google Scholar 

  • Porter, M. E. (1980). Competitive strategy. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1985). Competitive advantage. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1986). Competition in global industries. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1987). From competitive advantage to corporate strategy. Harvard Business Review, 65(3), May–June, 43–59.

    Google Scholar 

  • Porter, M. E. (1990/1998). The competitive advantage of nations. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12(Winter Special Issue), 95–117.

    Google Scholar 

  • Porter, M. E. (1996). What is strategy. Harvard Business Review, 74(6), November–December, 61–78.

    Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62–77.

    Google Scholar 

  • Prasad, S., & Babbar, S. (2000). International operations management research. Journal of Operations Management, 18, 209–247.

    Article  Google Scholar 

  • Prokesch, S. (1995). Competing on customer service. Harvard Business Review, 73(6), 100–112.

    Google Scholar 

  • Roth, A. V., & van der Velde, M. (1991). Operations as marketing: A competitive, service strategy. Journal of Operations Management, 10(3), 303–328.

    Article  Google Scholar 

  • Siferd, S. P., Benton, W. C., & Ritzman, L. P. (1992). Strategies for service systems. European Journal of Operational Research, 56, 291–303.

    Article  Google Scholar 

  • Skinner, W. (1969). Manufacturing – Missing link in corporate strategy. Harvard Business Review, 47(3), 136–145. May-Jun.

    Google Scholar 

  • Skinner, W. (1974). The focused factory. Harvard Business Review, 52(3), 113–121. May-Jun.

    Google Scholar 

  • Skinner, W. (1978). Manufacturing in the corporate strategy. New York: Wiley.

    Google Scholar 

  • Skinner, W. (1985). Manufacturing – The formidable competitive weapon. New York: Wiley.

    Google Scholar 

  • Slack, N., & Lewis, M. (2011). Operations strategy (3rd ed.). Harlow: FT Prentice Hall.

    Google Scholar 

  • Thomas, D. R. E. (1978). Strategy is different in service businesses. Harvard Business Review, 56(4), July–August, 158–165.

    Google Scholar 

  • Van Mieghem, J. A. (2008). Operations strategy – Principles and practice. Belmont: Dynamic Ideas.

    Google Scholar 

  • Wheelwright, S. C. (1978). Reflecting corporate strategy in manufacturing decisions. Business Horizons, 21(1), 57–66.

    Article  Google Scholar 

  • Yip, G. S. (1992). Total global strategy: Managing for worldwide competitive advantage. New Jersey: Prentice Hall.

    Google Scholar 

  • Yip, G. S. (2003). Total global strategy II: Updated for the internet and service era. New Jersey: Prentice Hall.

    Google Scholar 

  • Young, S. T., & John, C. (1996). Coordination. Westport: Quorum Books.

    Google Scholar 

  • Young, S. T., & Nie, W. (1996). Managing global operations: Cultural and technical success factors. Westport: Quorum Books.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Gong, Y. (2013). Basic Concepts of Global Operations Strategy. In: Global Operations Strategy. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36708-3_1

Download citation

Publish with us

Policies and ethics