Operations Management and Decision Making Models

Question: Discuss about the Operations Management and Decision Making Models. Answer: Introduction: The service sector has experienced a surge in popularity in the past years, and more economies are putting more focus on these areas because they see a lot of benefit in doing so. For this reason, companies have had to come up with strategies to change the way they operate to accommodate these recent changes and growth. This essay will show the reasons why the service economy is growing and also what can be done to help it along. One reason is that the manufacturing sector, which was providing employment to a large number of the worlds population, experienced a plummet in numbers with the recession. This lead to closing down of many of the factories and a lot of people lost their source of income; thisleads to a need for employment. The service sector had openings, and thus this gave an answer to the many unemployed individuals hence this service area increased in popularity (Spohrer and Maglio, 2012) Also, individuals can get employment in these industries with little or no experience needed. It is quite attractive to the worlds population as it ensures everyone can get employed without so much fuss and also the poor can get applied as quickly. Regarding training and schools, they take a short period to get certified in this industry hence most people prefer this to the other option which cost more to train than they kind of pay they offer. (Noe, Hollenbeck, Gerhart, and Wright, 2014) More people are starting to need the services that the service industry provides. With the growing number of people getting money, they require these services to live a particular lifestyle. It is where this industry comes in, people specialize in these services, and they can competitively give it to paying customers. Hence this will lead to increasing the need for it to serve the clients who request it. It is because where there is a need, a solution should be given to answer the said need. (Lovelock, 2011) Some of the ways that businesses can respond to this surge include the following. First, they can increase the amount of money given to developing the service industry within their organization. It will ensure that whatever need is there to make sure that the service side succeeds is accessible financially without any problems. When this is done, it will make sure that this endeavor is successful. (Noe, Hollenbeck, Gerhart, and Wright, 2014) Business should partner with local governments to come up with policies that help out when one is setting up firms that are in the service sector. It will make sure that the process is smooth hence more companieswill be established ensuring economic growth. Also, these local authorities can come up with financial strategies; thesewill make sure that the financial sector can give sustainable services without any constraints especially the money side of it. (Chandler, Hikino and Chandler, 2013) Finally, they can encourage the partnership between the private and public sector. It will ensure that these ventures are successful always because both industries have advantages they bring to the table. (Chandler, Hikino and Chandler, 2013) Conclusively, the service sector is profitable to the economies of the countries which encourage it; this will lead to more countries adapting them to improve their economies. When the changes are tailored to the operation management, it will make the service industry to thrive more. Globalization is the incorporation of the planet's people, corporations, and government. In the contemporary meaning, it is usuallybecause of tighter ties due to universal trade, referred to as bilateral business deals. It can also be explained as the changing of an organization from a company linked to one country to one that does business. Operation management concentrates on managing the procedures to manufacture and supply merchandises and services carefully. Chief General Undertakings mostly consist of creating of products, development, production and distribution. (Scott, 2013) This essay will tackle how operation management is affected when businesses are globalized. These impacts are both negative and positive. Global sourcing is where companies have the ability to get workers from different parts of the world with ease. It can generate a vasttalent pool for companies they have access to skillsthat they may not be able to get from their locality. Though the global sourcing is puts into use, the company will be at a greater risk of facing data loss which would not happen when they use local supplies (Lasserre, 2012.) Specialization is the chief benefit of Economies of scale when the business makes a decision to grow; It is more realistic to sub-divide the procedures of the trade, which leads to an upsurge of the general productivity of the employees and the organization. If the trade overgrows the functions of administration will grow leading to complexities in the communication process hence affecting the productivity of the company adversely. (Scott, 2013) Scanning and learning help a trade to have an understanding and be adaptable when a matter arises. Others who operate in comparable circumstances have knowledge which will help the company to know how to respond to situations that they may not have considered previously. If a company makes a choice to learn from businesseswhich suffered similar fateswith their strategies which they might repeat and endure more losses (Hill,Cronk, and Wickramasekera, 2013) Research and development benefit businesses by offering the consumer what they have not previously seen if they manufacture a good which they desire highly it can lead to an in a surge in sales. Although a corporation can have a growth in profits when they make use of research and development; the price tag of the investigation and development is quite high. If a business makes a choiceto carry out research either with another company or with current workers can each be expensive undertakings (Crane and Matten, 2016.) Also, it leads to technological advancements in the business field. With globalization, it ensures that businesses are up to date with recent technical improvements that have been made. Thus the businesses will be able to keep up with competition. It will affect operations in that it will make it more efficient and faster hence in the long run leading to profits. After considering all facts, I have concluded that globalization affects operation management in so many ways but in the long-term, it is more beneficial to companies for it to exist. It is a known fact which will lead to increased globalization and international trade. Right now most manufacturing operations are being carried out in low labor cost nations. It is due to several reasons which are beneficial to the companies. These reasons are why it is more probable that this trend of moving the production of goods to these countries with affordable wages for the paying workers. The following are reasons are why this is an inevitable happening. First is most companies prefer outsourcing because it reduces operational and works expenses. When correctly done it has a significant influence on a business income acknowledgment and can give impactful profits. When there is a possibility to increase profits while at the same time reducing expenses companies will always go for this option because it is economically wise. Another reason is the companies will get an opportunity to focus on the important going on of companies while handing out the tasks like manufacturing goods to these other places. This point will lead to an increase in efficient work done by companies because they have less work and everyone will specialize in the area they have been given. All in all, this ensures there are smooth operations (Bartsch,Riefler,and Diamantopoulos, 2016) When companies offshore some of their business processes, they enable the management to make more internal resources free to be put to use in other areas which require more of it. It will ensure that these services are improved. Thus it attracts companies to outsource as it ensures profitability and also that there are no problems with resource availability (Hax,2012) It also helps the companies to have access to a typical size of knowledge about the business. With the knowledge gained from these countries, they will be able to keep up with the competition. It will lead to this trend because the more the companies outsource, the more knowledge the companies will gain on the different market trends hence leading to a wealth of information. It will ensure profitability (Georgiadis and Mehl, 2015) Another factor is that there will be an increase in productivity. It is because, with outsourcing and specialization, it ensures that goods for manufacturing are done in bulk and well enough. With speed in the production of these products, most companies will prefer to hand out the manufacturing operations to these low-costlabor nations. It is because it is a safe and wise economic option (Buckley and Casson, 2016) Outsourcing also enables companies to expand to new markets that they might not have been able to access in the past due to various reasons. When countries see the profit from these big companies setting up in their countries, they are open to trading with them hence increasing earnings for them. It is a beneficialstate for all parties involved (Buckley and Casson, 2016) In conclusion, eventually most if not all organizations will move their manufacturing operations to these countries with littlelabor cost because it will ensure profitability. It is a fact as most companies operate on what will bring more earnings to them. When Britain left the European Union, it had several effects on the administration of the world of its operations some of them include the following. The rush to get to a safe place away from the center of this British-EU separation will take away capital from the zone and direct it to the secure primary markets counting the U.S. mainly Treasuries also to Japan. It will additionally reduce market income tariffs and increase corresponding money values (Gumbrell-McCormick, and Hyman, 2017) The more value that U.S. dollar and Japanese yen have the more adverse effects it will have to both countries export divisions. For the instance of Japan, this is exceptionally not helpful to its attempts to reinflate and revive the economy after the extended period of it deflating. When the value of the US dollar is high, it also causes more coercement to China to offer the Yuanat a lower value, as they wedgein the deviation between its two biggest trade markets that is the U.S. and the E.U (Dhingra, Ottaviano, Sampson, and Van Reenen, 2016). The U.S. get negative impacts in the exports sector which are comparatively small paralleled with the developments in local need, but the deflationary strain on goods that they trade and with will broaden the separation between rationally great increases in the services area versus the realistically steady decrease in the products sector. (Oliver and Williams, 2016) It will compel the European Central Bank to elevate its level of involvement while also, as hazard premiums through the area expense increase. Amongst the significant Euro zone participants, Italy is in a particularly sensitive spotwhich has now been made more exposed. (Oliver and Williams, 2016) The US isolationist policies will also impact the global management of operations in so many ways both negative and positive. Some of the ways include the following. First, it is not good for the businesses because it will lead to a loss of talent in the US and also no jobs for the talent from the countries who they ban from immigrating to the US. Most of the companies there employ people from the countries facing the prohibition and thus with the cut off of the people coming from these countries it will lead to a decrease in productivity hence leading to losses. (Posen, and Ross 2012) Another way is with these policies other countries will step up and fill the gap left by the US. Countries like China will make atrade with other countries leading to improvement in the economy of China. Thus this will reduce the number of industries in the US since there is no market for their goods. The reason for this is countries will not want to trade with a country not favorable for their economy (Posen, and Ross 2012) In conclusion, both events have impacted the global operations management significantly in so many ways, and this essay has shown some of the consequences in detail. I believe that the adverse effects outweigh the benefits to the Britain and USA while it has more benefits to the rest of the world. References Bartsch, F., Riefler, P. and Diamantopoulos, A., 2016. A taxonomy and review of positive consumer dispositions toward foreign countries and globalization. Journal of International Marketing, 24(1), pp.82-110. Buckley, P.J.,and Casson, M., 2016. The future of the multinational enterprise. Springer. Chandler, A.D., Hikino, T.,and Chandler, A.D., 2013. Scale and scope: The dynamics of industrial capitalism. Harvard University Press. Crane, A. and Matten, D., 2016. Business Ethics: Managing corporate citizenship and sustainability in the age of globalization. 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