INTERNATIONAL OPERATION MANAGEMENT

Graduate Business School

Assignment Cover Sheet

Student name: SUMEET DUHAN
Student number: 2804324
Course: PGDIP-IBM Stage/year: 2
Subject: INTERNATIONAL OPERATIONS MANAGEMENT
Study Mode: Full time YES Part-time

Lecturer Name: LIZ CARROLL
Assignment Title:
No. of pages: 23
Disk included? Yes No X

Additional Information: (ie. number of pieces submitted, size of assignment, A2, A3 etc)

Date due: 09/04/2012

Date submitted: 09/04/2012

Plagiarism disclaimer:
I understand that plagiarism is a serious offence and have read and understood the college policy on plagiarism. I also
understand that I may receive a mark of zero if I have not identified and properly attributed sources which have been
used, referred to, or have in any way influenced the preparation of this assignment, or if I have knowingly allowed
others to plagiarise my work in this way.

I hereby certify that this assignment is my own work, based on my personal study and/or research, and that I have
acknowledged all material and sources used in its preparation. I also certify that the assignment has not previously
been submitted for assessment and that I have not copied in part or whole or otherwise plagiarised the work of anyone
else, including other students.
Signed & dated:

Sumeet Duhan (2804324) Page 1

TABLE OF CONTENTS

S.No. Title Page No.

1. Introduction………………………………………………………………...2

2. Dell Corporation……………………………………………………………4

3. DHL……………………………………………………………………….…5

4. Dell’s Operations strategy………………………………………………….7

5.Challenges and suggestions for Dell operation strategy…………………11

6. Challenges and suggestions for DHL operation strategy…………………12

7. References…………………………………………………………………….20


Introduction
In today‘s competitive atmosphere, it‘s supply chains (SC) instead of firms that
compete (Christopher and Towill 2001). Firms are inspired to develop close
partnerships with suppliers and customers. Naude and Buttle (2000) argue that SC
relationship quality should have the key dimensions of trust, adaptation,
communication and cooperation. Trust has been outlined as ‗the firm‘s belief that
another company can perform actions that may end in positive actions for the firm,
moreover as not take surprising actions that will end in negative outcomes for the
firm‘ (Anderson and Narus 1990: 45). Adaptation happens when patrons and
suppliers invest in transaction-specific investments (Heide and John 1988).
Communication is ‗the formal moreover as informal sharing of meaningful and timely
info between firms‘ (Anderson and Narus 1990: 44).
We have chosen DHL as a Service Company and Dell as a manufacturing company.
Dell is one among the most effective firms known for a highly efficient supply chain;
it's pioneered a singular model of selling PCs on to the customers, referred to as the
Direct Model. The look and coordination of the provision and distribution is
incredibly vital for Dell. The most options of Dell‘s provide chain are Postponement,
Modularity and provide chain partners. High trust and economical communication
with suppliers are the most dimensions for Dell.
While DHL is one among the leading multinational supply chain firms within the
world. The supply chain of DHL is extremely optimized attributable to their
streamlined operations. DHL was targeted on quality, speed and potency to present its
clients an improved and an acceptable service to each customer all round the world.
Maintaining client relationship by providing them top quality service is that the main
part of DHL strategy.
Now, each of those already established and successful firms are coming up with
locating a replacement operation in one among Japan, Thailand and Singapore. Thus
we've got used the issue rating methodology to list the relevant issue for every
company and to understand that country are higher suited to winding up their
operations.


DELL CORPORATION
Dell Incorporated may be a US-based notebook computer producing company and is
one among the leading laptop makers within the world; it pioneered a singular model
of selling PCs on to the customers, bypassing the resellers. The model is popularly
referred to as the Direct Model. The case describes this model well and explains how
it enabled Dell to manage its supply chain efficiently (Zuckerman, 2005).
In order for Dell to compete in today's world markets for pc sales, the organization
should try to deliver its product in each an economical and effective manner. A
crucial part during this effort is that the style and coordination of the provision and
distribution networks--supply chain management (SCM).This management technique
was originally confined to ancient areas like getting, distribution and logistics
(Strassner & Howells, 2005).
In the producing trade, as an example the laptop producing sector, the scope of
provide Chain Management is maybe best analyzed by Croom, Romano &
Giannakis (2000), who establish eleven completely different areas of interest that are
essential for the success of business like: contingency theory, institutional sociology,
systems engineering, networks, best practices, getting and provide, logistics and
transportation, marketing, organizational behavior, strategic management and
economic development.
Dell's main provide chain strategy and organizational goal achievement represent the
following:
Postponement
Postponement is that the observe of delaying the ultimate configuration of the
merchandise for as long as attainable. This helps to decrease prices and increase
flexibility of product that are being delivered to revolvers. Dell engages during a
build-to-order strategy; it doesn't begin to assemble the merchandise till a client order
is received and therefore the customer‘s credit has cleared (Davis, 2004).
Modularity
Modularity involves the organization of complicated product by decomposing it into
smaller parts which will be managed independently. Modularity of the pc style
implies that the laborious drive will be managed separately from the memory that is
become independent from the video card, as an example. This is often a typical
technique in supply chain management, lending itself higher to some product than


others. Modularity will increase the opportunities for postponement of the ultimate
product (Davis, 2004).
Vendor Managed Inventory (VMI)
Dell doesn't manage its part inventory. From its early days, the corporate targeted on
cultivating provider relationships so suppliers may target elements innovation and
Dell may target customers and therefore the provide chain. It‘s its suppliers
individually manage their inventory and deliver it to the Dell plants. They verify what
proportion inventory to order and when it ought to be ordered. To buffer against
fluctuations and lead times, suppliers hold inventory in little warehouses close to Dell
plants referred to as revolvers (Clayson 2004).
Supply chain partners
Because Dell views it‘s provide chain as being in competition with its competitors‘
provide chains, it will everything that it will to assist improve the worth and cut back
the prices of the complete supply chain. This involves a series of partnerships with
suppliers, service suppliers, shipping firms, and customers (Cottrill, 2004).
The level of product customization is usually times thought-about a key consider
determining the specified flexibility of a supply chain. Building long-term
relationships with supply chain partners usually leads to improved collaboration and
enhanced administrative potency. This represents a chance for bigger coordination in
business selections resulting in profitability (Hahn, Pinto & Bragg, 1983).

DHL
DHL is one among the leading multinational provide chain firms within the world. It
employs thousands of staff and is incredibly successful in its activities. Sensible style
is at the guts of DHL‘S effective providing chain answer. It develops innovative
solutions that streamline operations and improve management. The result's an
optimized provide chain with reduced capital assets www.dhl.org. Ellram et al. (2004)
highlight the rising importance of DHL within the services sector and therefore the
services provide chain. The service performance helps make sure the client receives
the expected service with capability serving as a substitute for inventory. For a service
organization like DHL, the strategic use of capability facilitates aids operational
agility.


Stevens, (1989), argues that DHL engages in specific objectives to enhance
profitability, competitive advantage, and client satisfaction of their supply chain. As
an example, a key objective of GHL‘S supply chain management is to lower the
prices needed to produce the required level of client service to a particular phase. The
opposite key objective is to enhance client service via increased stock availability and
reduced order cycle time (Cooper & Ellram 1993).
Li et al. (2005) used delivery dependability and times to plug to judge the predictive
validity of their six supply chain management constructs. The six constructs analyzed
in their study involved strategic supplier partnership, client relationship, info sharing,
info quality, internal lean practices and postponement.
On the opposite hand, Chen & Paulraj (2004) used provider performance and buyer
performance to assess the relation between strategic provide management, client
responsiveness and monetary performance of the shopping for firm.
Li et al. (2005) suggests that the SNET issue focuses on the upstream portion of the
provision chain, the distribution network structure (DNET) issue focuses on the
movement of materials as well as where to carry inventory and find facilities
moreover as ways of transportation. Tan, (2002) gift survey results to assess the
impact of quality management, provide base management and client relations
practices on company performance. Their results recommend that every one 3 parts of
the provision chain manufacturer, suppliers and client should be effectively integrated
to realize monetary and growth objectives. client service objectives are accomplished
through a customer-enriching provide system targeted on developing innovative
solutions and synchronizing the flow of product, services, and knowledge to form
distinctive, individualized sources of client service worth (Ross 1998).
However, competitive advantage emanates essentially from the client worth a firm
creates, and aims to ascertain a profitable and sustainable position against the forces
that determine trade competition. It so proposes that the implementation of effective
provide chain management enhances client worth and satisfaction that in flip ends up
in enhanced competitive advantage for the firm‘s provide chain, moreover as every
member firm. This, ultimately, improves its profitability (Porter, 1985).
Again, Lambert, Stock, and Ellram (1998), recommend the key processes usually
embody client relationship management, client service management, demand


management, order fulfillment, producing flow management, procurement, and
products development and commercialization.
To sum up, low value and differentiated service facilitate DHL build a competitive
advantage for DHL‘S provide chain (Cavinato 1992). In essence, provide chain
management {is concerned|cares|thinks about|worries|is eachered} with improving
both value reduction and effective client service thereby making client worth and
satisfaction through integrated provide chain management to achieve competitive
advantage that ultimately brings profitability (Tyndall et al, 1998).

Section 2:
Operations strategy is outlined as ―the selections that form the long-term capabilities
of the company‘s operations and their contribution to overall strategy through the on-
going reconciliation of market necessities and operations resources‖. It consists of 4
perspectives: Top-down, Bottom-up, market necessities and Operations resources
(Slack N., et al, 2007). To my view, they appear to be four forces that drive operations
towards new direction. Integration of those four views is that the full image
illustrating what operations strategy is.
Competitiveness is that the ability of an organization to supply product and services
that meet the {standard} standard of the market place at costs that the market can pay
which can offer adequate returns on the resources used. These specific capabilities of
the operation are what the corporate depends on, as a result of they will offer the
corporate competitive advantage. They‘re additionally named as competitive
priorities, as well as quality, speed, dependability, flexibility, and cost.
In this section, we'll assess the role of operations strategy in improving the
competitiveness of 2 ‗Giant‘ companies: Dell and DHL.

Half 1: Dell

2.1 Dell’s Operations strategy
To make the business arrange a reality, the corporate got to develop an operations
strategy to form its structure and infrastructure.


The focus of Dell was on client service, cost, and speed. It created a system within
which customers may order computers directly from the corporate. There‘s no want
for purchasers probing an intermediary, like a retailer. An operations system was
designed so ordering of parts and assembly of computers failed to occur till an order
was really placed. This kept prices low as a result of Dell failed to have computers
sitting in inventory. Dell additionally designed a warehousing system so as to want
suppliers deliver parts to the plant inside quarter-hour once they were needed; on the
contrary, its competitors like IBM and Compaq should wait hours or perhaps days to
receive parts in want. To more increase speed, Dell created a shipping arrangement
with United Parcel Service (UPS).With this structure and infrastructure, Dell was able
to implement its business strategy and then support this strategy.
Operations can also drive strategy. Recently, Dell's turnarounds have been targeted on
integrating it‘s producing, procurement and provide chain activities beneath a
replacement world Operations business unit. The aim of this turnaround is to
eliminate redundancies and redeploy resources to drive bigger worth for purchasers
and drive best practices worldwide and make the most of natural synergies
The integration of Dell‘s producing, procurement and provide chain activities has
formulated its unified operational strategy during a world approach. These 3 sections
are all Dell‘s core competencies. So as to globalize them, Dell is building additional
plants round the world, like in Poland, Brazil, etc (Hoffman, W., 2007).

2.2 Dell’s competitiveness
Dell has devised its logical operations methods to formulate its competitive priorities
that have enabled them to surpass alternative well-known laptop makers like Compaq
and IBM.
2.2.1 The Direct Model /Low value
The Direct Model saves Dell three to four p.c in inventory prices that will are paid to
intermediary, like retailers. The corporate simply maintains stocks virtually two days
and this facilitate Dell save many millions greenbacks in inventory holding prices.
additionally, parts value additionally decrease steadily as a result of Dell usually get
parts at their current market value while not keeping them in stock for an extended
amount of your time (Bhat, V.N., 2000).


2.2.2 Higher service
Through the web and phone, customers will directly contact Dell and customize their
ideal product. Additionally, Dell‘s Business method Services will establish
inefficiencies of business method, and then do purposeful initiatives to streamline,
improve productivity and guarantee compliance. Through its Cloud-Based Services,
Dell boosts its IT capabilities while not adding hardware maintenance complexities
and high upfront prices (Dell, 2010).
2.2.3 High speed
Customer‘s product can be assembled earlier, as a result of solely quarter-hour for the
suppliers to deliver parts to assembling plants, etc. Once the merchandise is
completed, Dell can deliver the merchandise during a faster approach, as a result of its
designed a shipping management with UPS.

2.2.4 Robust complete worth
Taking advantage of its robust complete worth within the marketplace, Dell has
enhanced its market penetration capability and provides itself cross selling
opportunities. as an example, it's began to build strategic relationships with types of
major retailers like Wal-Mart and Best get within the US; Wal-Mart and Pontofrio in
Latin America; Carphone Warehouse, Carrefour, Tesco and DSGi in EMEA region;
and Gome, HiMart, Courts and Bic Camera in Asia Pacific region. This entry into
indirect sales will build its product additional visible for the individual customers
within the retail store (Datamonitor, 2009).

Half 2: DHL
A good company a minimum of includes a competitive advantage however an
improved company a minimum of keeps a sustainable competitive advantage, that‘s
why DHL became a pacesetter within the marketplace. Sustainable benefits facilitate
it survive within the market and kill its competitors.
DHL methods were continuously primarily based on straightforward ideas or
straightforward ideas and that they have developed their completely different services
and branches around it. thus to deserve additional customers as attainable, DHL has
conquered several geographic markets with the higher value.


DHL was targeted on quality, speed and potency to present its clients an improved
and an acceptable service to each customer wherever he's.

2.3 DHL’s competitiveness improved by its operations methods
To gain market share and develop the business they adapt and update their methods,
for every downside they encountered they elaborate a technique as an answer to
resolve a tangle.

2.3.1 Diversification
Firstly, the diversification of DHL was presented by its geographical reach in each
continent, not the sole. thus within the 70‘s DHL has expanded its network to Asia,
Africa, South America and Australia.
Secondly, DHL, a global transporter, had begun to deliver not solely services
document however additionally package in 1979. And DHL began to transport mail
when it had been purchase by Deutsche post.
Next the corporate had developed World Wide Web in doing alliance and joint
venture (alliance with People‘s Republic of china; joint venture with Lufthansa, Japan
airlines and Nissho iwai).
Last however not least, DHL had developed all transport services through shopping
for airplanes since 10 year ago and that they even have developed a ―Solution &
innovation Centre‖ to seek out or adapt new service.
The goal of all that evolution is to form DHL ―the logistic company for the world‖ in
2015.
2.3.2 Quick delivery
Regularly DHL have had nice investment in new HUB, logistic platform, transport
and knowledge technologies to form itself additional and additional economical. To
enhance it services DHL has invested over a billion $ every year since 2004. The goal
is to form competitive advantage for their customers.
In 2009 to ameliorate the service DHL invested during a new unit decision ―DHL
Solutions & Innovation‖ to innovate in logistics services.
2.3.3 Top quality
DHL care regarding top quality services as a result of they think about it as a vital
issue for its development. In alternative word, providing the very best level of service


and worth to their customers may be a competitive advantage in that sector. In line
with the report of Yiu-Man WONG written in 1997, DHL was principally primarily
based on amount live however it most well-liked quality eventually as a result of its
director highlighted ―a leadership position within the air categorical trade will be
maintained through service productivity and quality excellence emphasis‖. This is
often the proof that shows how DHL has started caring regarding quality 13 years
ago.
As we will see on the DHL net web site quality keep a priority in their services as a
result of it‘s what client watch for them.
DHL have increased its competiveness in apply strategy however it's currently oblige
to decreasing it‘s investment as a result of shareholders need additional revenue and
stock dividend and recent strategy value plenty of cash and shareholders doesn‘t trust
that. So, to spice up shareholders investment DHL want some changes in its
operations strategy within the next 5 years.

Challenges and suggestions for Dell operation strategy
Dell's operational strategy has been primarily based upon its distinctive
customization, delivery, and price proposition of pc product. Dell has created an
operation system of virtual integration that has alternative pc makers terribly envious.
beginning for Dell‘s warehousing, supply-chain integration, and build-to-order
producing with fast client satisfaction, has given Dell the competitive edge, that has
turned dell into a commodity business. It‘s designed web-based linkages with
suppliers, who are able to efficiently manage order flow, offer real time knowledge
from their producing plants, and implement just-in-time delivery. Once the client
orders the merchandise, the web permits the corporate to use order entry and support
tools and accurately hands the merchandise to the client quickly. Dell measures in
inventory in days, however they're hoping to soon live them in hours (Field &
Sroufe 2007). Lower inventories additionally permit the corporate to supply the most
recent technologies by not having inventory that goes to waste with the emergence of
latest innovations (Brown et al. 2007).
Challenges for Dell‘s operational strategy at the backend of provide chain is
relationship with their suppliers that plays a key role in their success story. Dell
assembles one pc taking parts from its suppliers that takes time and price. to beat this


challenge dell may get most of its suppliers to stay parts warehoused near Dell‘s
factories in Austin, Penang, Malaysia, and Limerick, Eire (Field & Sroufe 2007).
As a result the amount of suppliers would cut back and that they would resolve to
cooperate quickly with their warehousing. Dell shares same provider with their
competitors for the merchandise like STB Systems Inc., a manufacturer of video
graphics cards by locating the provider just about Dell‘s plants(Nair & Boulton
2008), this may offer Dell advantage of receiving rush orders in minutes, when it
takes twelve to eighteen hours to achieve to Dell‘s competitors like Compaq, and
IBM.
Dell‘s operational strategy at front finish is exclusive and price effective. It will not
have any showrooms and outlet within the market, additionally there's no hub for
client to access, there's e-service, where computers automatically diagnose its issues
and notify a service rep over the online. this is often one among the challenge for dell
as a result of it cannot entirely monitor client reaction to product innovations and
avoid the mistakes that will increase prices of latest product introductions for brand
spanking new successful business model. The approach additionally provides Dell
with time to develop additional economical processes and technologies or produce
extra worth for customers. So as to form customers snug with creating investments in
new technologies and start to equate dependable quality and sensible worth with the
Dell complete it must extend its access from internet to physical.
Some market analysts have predicted slowing down laptop trade growth (Field &
Sroufe 2007), Dell has got to have strategy to still replace their PCs each 3 years as
new technologies are introduced. Also, as high-speed broadband net access grows,
customers are additional compelled to get their 1st pc. Dell will have broadband
access which can accelerate the flow of knowledge, giving Dell additional
opportunities to feature worth.

Challenges and suggestions for DHL operation strategy
DHL remains determined to become the amount one leader in overnight shipping
since late 1990‘s and early 2000(Van Regenmortel et al. 2009). Several steps are
taken to enhance performance in operational strategy focus in time, quality, and repair
offered. DHL has higher means that of tracking shipments, economical aircraft, seen
from a fueling and volume standpoint, additionally hiring and coaching well-informed


staff who understand the rear finish and front finish of the operations, are all keys in
providing quality work.
Challenges for DHL operation strategy at the front finish of it‘s provide chain are
couriers and salespeople that acquire and maintain customers, they use key inputs that
go into creating DHL the corporate aggressive, intelligent and friendly (Coltman et al.
2010). Though final tracking is finished by pc however the receiving and delivery
method is be done manually. So Dell is often in want of determined employee who
will leave and acquire new customers that helps add worth to that region moreover
because the company as and entire. Despite of getting established world complete
image DHL has got to face cut through competition find yourself huge promoting
budget for promotion. However that specializes in segmented human sales force with
personal service would be higher plan for DHL to reinforce its future venture. It might
build the method absolutely automated and at last cut back promotional and
promoting value and invest in HR.
Similarly, challenges for DHL‘s back finish provide chains are speed, quality, and
client service that have high sense of importance during this trade. DHL‘s facility at
the foremost of the airport is ready up primarily based upon a flow operating method.
This kind of method is clearly seen on the nightly operation of all inbound flights,
primary and secondary sorting, moreover as letter sorting, reloading of fabric, and at
last the outbound flights, this is often all done to keep up speed (Coltman et al. 2010).
Below may be a flow chart of the method of a package being picked up, sorted, and
delivered to the tip client.

CUSTOMER
DHL OUTBOUND ARRIVES AND IS
FLIGHT TO PRIMARY
COURIER UNLOADED AT CVG SORT
CUSTOMER CVG

RELOADED SECONDARY
CUSTOMERR FINAL OUTBOUND AT SORT
DESTINATION FLIGHT TERTIARY
CUSTOMER COURIER


All inbound flights arrive between the hours of 11:00 pm and 3:00 am each morning.
Throughout this short time, all containers from the aircraft are downloaded and sent to
completely different unloads (Konlaan & Hanson 2008). Assortment and
distribution of the parcel and logistics are done by DHL.
If DHL like better to out supply the distribution method to the little native and native}
firms it will cut back its operation value and build sensible hold in local market. This
may offer profit to compete with alternative courier firms.
Finally problems with tracking a cargo the traditional nightly system was
continuously going late. This downside will be over come back by changing the new
management crew and encourage teamwork and cross-trained ramp crews to assist out
throughout the type. Overall, the communication between the within and out of doors
operation can greatly improve that permits economical operation.

JAPAN
Japan is found in north-eastern a part of Asia. Japan has one.26 billion population of
that sixty fourth are from the age cluster of 15-64 years and over twenty second are
over sixty five years that is increasing continuously. Sixty six of its population lives in
urban areas and includes a life expectancy rate of eighty two years. Japan is ranked
first in terms of business sophistication and fourth in terms of innovation (CIA reality
book 2010).
Japan is ranked seventh by World Economic Forum and twenty seventh by IMD in
World competitiveness index (Weforum, online). IMD studies and compares four
main factors to develop its rankings that are Economic performance, Government
potency, Business potency and Infrastructure which might more be divided into sub
factors as shown below:

Factors Sub-factors

Economic Domestic economy
performance International trade
International investment
Employment
Prices


Government Public finance
efficiency Fiscal policy
Institutional framework
Business legislation
Societal framework

Business efficiency Productivity
Labor market
Finance
Management practices
Attitudes and values

Infrastructure Basic infrastructure
Technological infrastructure
Scientific infrastructure
Health and environment
Education

(IMD, ONLINE)

Japan is at 14th rank in Corruption Perception Index by World audit reports and
seventeenth by transparency international reports. It concludes that Japanese are less
corrupt than another Asian markets like China or India thus one will expect higher
clear business activities (Worldaudit, online; transparency online).
The infrastructure is basically sensible in Japan with 176 airports, railways covering
around 26435 km, roadways unfold in one,203,777 km (5th in world), Japan has one
among the most effective transport facilities in world, which might be important for
an organization like DHL (CIA reality book 2010).
On Hofstede‘s Cultural dimensions, Japan includes a Power Distance Index (PDI) of
fifty shows the facility and wealth distribution culture, Individualism (IDV) scores
forty two that shows that Japanese folks like operating in groups than individually.
Team work will prove an enormous issue for an organization like Dell whose business
model is modular (Geert Hofstede).


SINGAPORE
Singapore is an island nation located in south-east Asia between Malaysia and
Indonesia. It has 4.7 million population of that seven6.7% is between the age cluster
of 15-64. All of Singapore‘s population lives within the cities and life expectancy is
eighty two years.
Singapore is ranked 2nd for its monetary market sophistication. it's the foremost
economical labor market and has world‘s fourth best infrastructure. It‘s highly
educated and skilled workforce with makes it additional competitive and a really
enticing marketplace for firms to line up there operations. It‘s technologically
advanced moreover (CIA reality book 2010).
Singapore is ranked third by World Economic Forum and 1st by IMD in world
competitiveness index. It means that Singapore has the most effective atmosphere for
beginning a business within the whole world (Weforum, on-line; IMD online).
Singapore is ranked third in CPI by each world audit and transparency international.
Singapore is one among the smallest amount corrupted economies within the world. It
permits for sleek operations for firms (Worldaudit, online; transparency online).

PDI score of seventy indicates that wealth and power are unequally distributed in
Singapore. The IDV score is twenty eight that show that Singapore may be a
collectivist society and individualism isn't most well-liked. There IDV score is best
than Japan or most of the Asian countries. Masculinity Index is at forty five that show
that Singapore is a smaller amount assertive and fewer self-centered. It provides equal


status and opportunities for each men and girls. The UAI index score of eight shows
that Singapore is a smaller amount unsure towards risks (Geert Hofstede).

THAILAND
Thailand is found in south Japanese Asia. Its sixty seven million population of that
seventieth are from the age cluster of 15-64. Thirty third of the population lives in
urban areas and life expectancy is seventy three years. Thailand‘s performance has
deteriorated on the world competitiveness report as a result of instability and therefore
the quality of public establishments has gone down. There‘s lack of property rights
and security that are a priority for the business community. (CIA reality book 2010)
Thailand is ranked thirty eighth WEF and twenty sixth by IMD in world
competitiveness index that clearly indicates that conditions don't seem to be favorable
for doing business (Weforum, online; IMD online). Also, Thailand is ranked sixty
fourth in CPI by world audit and 84th by transparency international. To feature to the
unhealthy government policies and infrastructure Thailand is one among the foremost
corrupted economies that makes it troublesome for variety of firms to work with ease
(Worldaudit, online; transparency online).
Score of sixty on PDI shows the high inequality in power relationships in Thailand.
Thai culture is targeted on collectivism instead of individualism. Thailand scores
thirty on MAS that indicates that men and girls are presupposed to perform their
ancient tasks. UAI score of sixty shows that uncertainty tolerance is a smaller amount
and strict rules and rules are implemented that makes the society risk adverse (Geert
Hofstede).


The on top of discussion clearly indicates that Thailand isn't the country to decide on
to try to business as a result of many reasons like high corruption, poor infrastructure
etc. thus currently I‘ll use the issue rating methodology to come to a decision between
Japan and Singapore for each DHL and Dell simultaneously.

DHL
As mentioned in earlier section DHL‘s operational strategy focus is on time, quality,
and repair offered. Additionally hiring and coaching well-informed staff who
understands the rear finish and front finish of the operations, so as to produce quality
work. Thus whereas picking country to decide on its vital to seem at the transport
facilities offered and therefore the demographics particularly the number of operating
population. Additionally a correct coordination between staff is important so as to
produce top quality of services. Thus IDV score also will be thought-about. The
planet competitiveness index and CPI are the foremost vital issue to seem for any
company.

Rating Rating Score Score
Factor Weight Japan Singapore Japan Singapore

World Competitiveness Index 25 80 100 2000 2500
Corruption Perception Index 15 85 95 1275 1425

Competitors 15 75 65 1125 975

Infrastructure/ Transport System 20 90 75 1800 1500
Demographics 15 85 80 1275 1200

Cultural factors 10 65 85 650 850

Totals 100 8125 8450

So primarily based on the issue rating methodology DHL ought to find its new
operations in Singapore.


Dell
Dell's operational strategy has been primarily based upon its distinctive
customization, delivery, and price proposition of pc product. Dell has created an
operation system of virtual integration that has designed web-based linkages with
suppliers, who are able to efficiently manage order flow, offer real time knowledge
from their producing plants, and implement just-in-time delivery.
Rating Rating Score Score
Factor Weight Japan Singapore Japan Singapore

World Competitiveness Index 20 80 100 1600 2000

Corruption Perception Index 20 85 95 1700 1900

Educated and skilled workforce 15 75 90 1125 1350

Technology 20 95 85 1900 1700

Demographics 15 85 80 1275 1200

Cultural factors 10 65 85 650 850

Totals 100 8250 9000

Demographics particularly the proximity to markets like India and China and
therefore the relationship of the country with those nations are vital from dell‘s
perspective. Informed and skilled workforces are needed to hold out their operations.
Technological advancement within the country also will be viewed so as to become
additional innovative and artistic and to create market share.
So primarily based on the issue rating methodology Dell ought to find its new
operations in Singapore. From there it will simply expand additional into major Asian
markets.


REFERENCES

Bhat, V.N., 2000. What makes Dell's business model superior? Westchester
County Business Journal, 39(35), p.10.
Brown, S., Squire, B. & Blackmon, K., 2007. The contribution of
manufacturing strategy involvement and alignment to world-class
manufacturing performance. International Journal of Operations &
Production Management, 27(3), pp.282–302.
Coltman, T., Gattorna, J. & Whiting, S., 2010. Realigning Service Operations
Strategy at DHL Express. Interfaces, 40(3), p.175.

CPI 2009 Table/2009/cpi/surveys_indices/policy_research. Available at:
http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_20
09_table [Accessed April 5, 2012].
Cavinato, Joseph L. (1992), "A Total Cost/Value Model for Supply Chain
Competitiveness," Journal of Business Logistics, Vol. 13, No. 2, pp. 285-301.
Cooper, Martha C. and Lisa M. Ellram (1993), "Characteristics of Supply
Chain Management and the Implication for Purchasing and Logistics
Strategy," The International Journal of Logistics Management, Vol. 4, No. 2,
pp. 13-24.
Chen, I.J. and A. Paulraj, (2004),"Towards a Theory of Supply Chain
Management: The Constructs and Measurements," Journal of Operations
Management, (22:2), pp. 119-150.
C. Davies, (2004), Inside Dell‘s manufacturing facility, Supply Chain Europe,
14 (4).
C. Davis, 13(4) (2004), 42. The Dell model, Supply Chain Europe
Croom, S., P. Romano & M. Giannakis, (2000), "Supply Chain Management:
An Analytical Framework for Critical Literature Review," European Journal
of Purchasing and Supply Management, (6), PP.67-83

DHL/ Excellence in Action/English. Available at:
http://www.dhl.com/en/operational excellence/excellence in
action.html[Accessed April 5, 2012].


Datamonitor, 2009. DATAMONITOR: Dell Inc. Dell, Inc. SWOT Analysis,
pp.1-10.

Dell, Solutions and Services — by Service Type | Dell. Available at:
http://content.dell.com/us/en/enterprise/by-service-type.aspx?s=biz&~ck=mn
[Accessed April 5, 2012].
Datamonitor, 2010. DATAMONITOR: Deutsche Post DHL. Deutsche Post
AG SWOT Analysis, pp.110.
E-magazine: xomba article: business strategies of world‘s successful
companies DHL.
Factors and Criteria. Available at:
http://www.imd.org/research/publications/wcy/Factors_and_criteria.cfm
Field, J.M. & Sroufe, R.P., 2007. The use of recycled materials in
manufacturing: implicationsfor supply chain management and operations
strategy. International Journal of ProductionResearch, 45(18), pp.4439–4463.

Gale, S.F., 2009. A CLOSER LOOK. PM Network, 23(9), pp.38-41.
Hahn, C.K., P.A. Pinto & D.J. Bragg,(1983), "Just-in-Time Production and
Purchasing," Journal of Purchasing & Materials Management. (19:3, PP2-10
Ellram, L.M., W.L. Tate and C. Billington,(2004), "Understanding and
Managing the Services Supply Chain," Journal of Supply Chain Management,
(40:4), pp. 17-32.

Hoffman, W., 2007. Dell's Direct-to-Logistics Strategy. (cover story). Traffic
World, 271(9), pp.12-14.

International Comparisons of Hourly Compensation Costs in Manufacturing
News Release. Available at: http://www.bls.gov/news.release/ichcc.htm

Japan - Japanese Geert Hofstede Cultural Dimensions Explained. Available at:
http://www.geert-hofstede.com/hofstede_japan.shtml [Accessed April 5,
2012].


Scoreboard.pdf. Available at:
http://www.imd.org/research/publications/wcy/upload/scoreboard.pdf[Accesse
d April 7, 2012].
Mark Haynes Daniell – “A Step-by-Step Approach to Development and
Presentation of World Class Business Strategy”. 2005.

Karp, A., 2004. Networking America. Air Cargo World, 94(10), pp.10-12.
K. Cottrill, (2003), 1. Dell and the Reverse Computer Boom, Traffic World
Konlaan, B.Y. & Hanson, P.K., 2008. The Impact of Corporate Social
Responsibility on an Organization‘s Stakeholders, Case Study: DHL, Sweden.
Lambert, Douglas M., James R. Stock, and Lisa M. Ellram (1998),
Fundamentals of Logistics Management, Boston, MA: Irwin/McGraw-Hill,
Chapter 14.
Li, S., S.S. Rao, T.S. Ragu-Nathan and B. Ragu-Nathan, (2005),"Development
and Validation of a Measurement Instrument for Studying Supply Chain
Management, (23:6), pp. 618-641.
Nair, A. & Boulton, W.R., 2008. Innovation-oriented operations strategy
typology and stage-based model. International Journal of Operations &
Production Management, 28(8), pp.748–771.

Porter, Michael E. (1985), Competitive Strategy: Techniques for Analyzing
Industries and Competitors, New York, NY: The Free Press.
Report: Service Productivity & Quality Excellence in the Air Express
Industry-1997
Ross, David Frederick (1998), Competing Through Supply Chain
Management, New York, NY: Chapman & Hall.
Robert M. GRANT -―Contemporary strategy analysis‖-fifth edition-2005-page
225 the emergence of competitive advantage

Singapore - Singaporean Geert Hofstede Cultural Dimensions Explained.
Available at: http://www.geert-hofstede.com/hofstede_singapore.shtml


Strassner, E.H. & T.F. Howells, (2005),"Annual Industry Accounts: Advance
Estimates for 2004." Survey of Current Business, U.S. Department of
Commerce, Bureau of Economic Analysis.
Stevens, Graham C. (1989), "Integrating the Supply Chains," International
Journal of Physical Distribution and Materials Management, Vol. 8, No. 8, pp.
3-8.

Slack N., et al, 2007. Operations management 5th ed., Edinburgh Gate:
Prentice Hall.
Tyndall, Gene, Christopher Gopal, Wolfgang Partsch, and John Kamauff
(1998), Supercharging Supply Chains: New Ways to Increase Value Through
Global Operational Excellence, New York, NY: John Wiley & Sons.
T. Clayson, (2004), Supply chain awareness means profit, Materials
Management and Distribution. 49(3), 69.
Tan, K.C. (2002) Supply Chain Management: Practices, Concerns and
Performance Issues," The Journal of Supply Chain Management, (38:1), pp.
42-53.

Thailand Geert Hofstede Cultural Dimensions Explained. Available at:
http://www.geert-hofstede.com/hofstede_thailand.shtml [Accessed April 8,
2012].
Van Regenmortel, M.H.V. et al., 2009. Virus Classification by Pairwise
Sequence Comparison (PASC). Desk Encyclopedia of General Virology, p.95.

WCY 2010: WCY 2010 Rankings. Available at:
http://www.imd.org/research/publications/wcy/World-Competitiveness-
Yearbook-Results/#/wcy-2010-rankings/ [Accessed April 6, 2012].

World Audit Corruption. Available at:
http://www.worldaudit.org/corruption.htm [Accessed April 6, 2012].

World Competitiveness Yearbook (WCY). Available at:
http://www.imd.org/research/publications/wcy/index.cfm [Accessed April 7,
2012].


World Economic Forum - Global Competitiveness Report. Available at:
http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20R
eport/index.htm [Accessed April 7, 2012].
Yiu-Man WONG - Director, Service Operations DHL International (Hong
Kong) Ltd
Zuckerman, A. (2005) "What's Working (and What Isn't) in Integrated Supply
Chain Technology," World Trade, (18:6), pp. 50-55.


INTERNATIONAL OPERATION MANAGEMENT

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a INTERNATIONAL OPERATION MANAGEMENT

Similar a INTERNATIONAL OPERATION MANAGEMENT (20)

Más de gcd, dublin, ireland

Más de gcd, dublin, ireland (12)

Último

Último (20)

INTERNATIONAL OPERATION MANAGEMENT