Problem 1. You point out the expected answer of planning and strategy is the most important practice for integration. However, what I appreciate most from your response is the comment regarding flexibility and adaptability. What do you believe are some key aspects of these points regarding the practice of integration within a transnational organization? I haven't answered the discussion question formally, however when I do later this week I would consider incorporating the ideals of flexibility as a core. What are your thoughts on this?
Problem 2. An advantage of a global view for products and services in support of your business is the ability of the company to react to a natural disaster or crisis in any area. There are a number of companies that were impacted by the earthquake and tsunami in Japan. One of my key vendors had a major production facility in the flood zone and the loss of this vendor would have shut down one of our key product lines. Fortunately this business had a global view and distributed/redundant manufacturing. While it took a bit of time for them to get the production volume up in Vietnam, the volume was recovered within a reasonable period of time. Without this global view and implementation not only would the company had major losses but so would their customers.
With such distribution of production there are often major issues to make certain quality and product consistency is maintained. We do have vendors that are allowed to ship us products from one manufacturing facility but we won't accept them from another. Anyone else have examples of the advantages and disadvantages of redundant sites for manufacturing?
Problem 3. Maintaining a competitive advantage is a significant part of the purpose of a company. A global view for a transnational company fits well with a company who considers themselves a price leader. That move around the globe for lower and lower costs can definitely help a company. On the other hand I believe a company with a first mover strategy which is usually accomplished through a technology advantage will not necessarily find a global focus will help them maintain their competitive edge.
If your competitive advantage is the quality and responsiveness of your service organization how can a global strategy help you maintain your competitive advantage?
Problem 4. Many companies have millions of dollars invested in their production facilities that are most often used for 1 shift a day of about 8 hours. 16 hours a day this investment is not productive as the facility is sitting idle. If you wanted to go to 2 or 3 shift operations what do you think may be some of the social and cultural issues you may have to consider with such a choice?
Problem 5. What are some Global Business discussion questions for future students?