Operations Management An International Perspective.

Question: Discuss about theOperations Management An International Perspective. Answer: Operations Management In an ideal business world, both localized and centralized facilities are necessary but owing to the scarcity of the resources, a company has to make a choice. While having a single large, centrally located amenity may contribute to longer lead times on orders, it leads to several benefits accruing to the firm as opposed to decentralized facilities. Centralizing business operations in one locality usually lowers operation expenditures. This means that the company is incurring less utility expenses such as rent and it is not in need of many employees and equipment. Along with this drastic reduction in operation costs, a large centralized amenity contributes to decreased distribution and inbounds expenditures. Such cost advantages help the company to either augment its profit margins or lower prices or win more customers on board. Barnes, (2008) argues that decisions, whether to centralize or decentralize operations, are more efficient when almost all stakeholder affected by the strategy are involved. Such parties who should be incorporated into this decision-making procedure include employees, suppliers, client representatives, relevant local government agencies and pertinent experts. Moreover, it is worth recognizing the importance of technology in facilitating optimal decisions in this present circumstance. Informational technology, for instance, can provide the company with an Artificial Intelligence System (AIS) and a Decision support system (DSS)which upon their amalgamation can assist in crafting data via an online systematic process, thus making activities that could need substantial exertion and analysis easy. The Kraft Heinz Company, an American international corporation, is an example of an organization which in 2015 decided to consolidate its Northern America operations. Kraft Heinz Co. planned to shut down seven manufacturing facilities and in the process lay off 2500 workers alongside removing 700 positions at the corporation. According to the vice-president, Michael Mullen, the centralization strategy is a crucial step to eradicate excessive production and cut off operational costs for the new consolidated corporation and hence augment the firm competitiveness and development (Keith, 2015). References Barnes, D. (2008).Operations Management: An International Perspective. London: Thomson. Keith, N. (2015). Kraft Heinz consolidating North American operations. Foodbusinessnews.net. Retrieved 10 March 2017, from https://www.foodbusinessnews.net/articles/news_home/Business_News/2015/11/Kraft_Heinz_consolidating_Nort.aspx?ID=%7B6E77A1A4-5BD8-4137-91C9-AAC986AEED60%7Dcck=1