Operations Strategy

2486 Words Aug 30th, 2008 10 Pages
Executive Summary
Globalisation can be viewed at the country, industry, or firm level, according to Anthony Giddens, a sociologist, globalisation is defined as “the worldwide interconnection at the cultural, political and economic level resulting from the elimination of communication and trade barriers”
Every organisation dreams to be multinational enterprises (MNEs), and if it’s not the global environment is forcing companies regardless of their location or primary market base, to consider the rest of the world in their competitive strategic formulation. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations, or technology innovation in other countries if some of
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These modes are discussed below in detail.
Organic Growth
When firms have expertise in operations and want to go global to exploit environmental opportunities such as macroeconomic factors or resources in destination geography, it can go for organic growth in new location. The firm can build its own operation with in-house knowledge and expertise. Hindalco is a good example of such a globalisation where in it has built several carbon black and textile plants in several Asian nations to get advantage of political and macroeconomic benefits.
Mergers and Acquisitions
A firm looking for access to existing assets and expertise in destination country can go for acquisition of an operation facility of another firm. This will give it ease of fast scaling up of operation using already available capacities and even supply chain in some cases. Hindalco’s acquisition of Novelis is an example in this regard wherein Hindalco got access to plants and supply chain of Novelis in several geographies in the world by acquiring it. After acquisition Hindalco has become world’s leading manufacturer of aluminium products with presence in all major markets.
When a firm wants to enter in to new country, it can do that by collaborating with an existing player in the

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