A critical element of a company’s operations management strategy is the efficient management and location of the company’s facilities. To take advantage of lower labor rates or easy access to raw materials and resources, several companies in the U.S. and Europe have looked to offshore operations including manufacturing, design, and customer service in low cost regions of the world such as China, India, Eastern Europe, or Southeast Asia. In recent years, there are indications that some companies are looking to reverse the offshoring trend. For example, from the end of 2102 and through 2013, GE moved manufacturing of appliances from China to Kentucky, and Lenovo opened a design center in North Carolina.
Using the module readings, the Argosy University online library resources, and the Internet, research a company with global operations. Based on your research, respond to the following:
- Briefly describe the company’s strategy with respect to regional location of its facilities for manufacturing, design, research and development, marketing, and customer service.
- How has the company’s strategy evolved with respect to global location of facilities?
- What challenges is the company facing in the current environment?
- How can the company be more efficient in how it manages the global location of facilities in response to these challenges?
