Increased Global Competition
The world is rapidly transforming itself into a single global economy which also referred to as a global village or global land cape. Clarke once dominated by local or national companies are now vulnerable to competition from literally all corner If he world For example in the 1960 only 7 percent of the firm world For example in the 1960 only 7 percent of the firm in the United Stones War exposed to foreign competition b the late 1980 this tigure exceded 70 percent and that
Source: From Joseph Stieglitz Principles of Micro-economics 2nd New York W W Norton and
Company 1997 Reprinted with permission.
percentage has continued to grow consequently as companies expand their businesses to foreign markets so too must the perations management function take a broader global perspective in order for companies to remain competitive. To survive and in such a global marketplace companies must excel in more than one competitive which previously was the norm. With the rise of the global economy comps are no longer limited as to where they can make or buy their products and components in Exhibit Ford’s Escort in Europe is assembled in two locations England and using components that are produced in no less than 15 countries from all over the The trend toward globalization has placed increased emphasis on the logistics of locate facilities and the issues associated with moving material long distances which are addressed.
