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International operations management strategy of ArcelorMittal

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International operations management strategy of ArcelorMittal Introduction 'Globalization' causes an inevitable international competition between the companies all over the world. Establishing a competitive international business strategy as well as international operations management strategy is a company's foremost priority. Mayer and Moore (1983) define manufacturing strategy as "a plan that describes the way to produce and distribute the product", and "the choice of process technology, degree of vertical integration, the number and location of facilities, factory focus and the manufacturing infrastructure". When the operational strategy comes to a global level, it means "global manufacturing", which is a coordinated resources management, production and logistics system, providing the best mix of inputs from worldwide locations along the value-added chain (Fawcett 1992). This assignment will first examine the current international operations management strategy of ArcelorMittal, and then discussed whether its international operations management strategy remains appropriate over the next years. Current international operations management strategy of ArcelorMittal International operations management strategy is a phenomenon of combining the concept of international operation strategy and business strategy. Toni, Filippini and Forza (1992) discussed the relationship between globalization and operation. They point out that 'Market globalization requires achievement of high standards of performance in quality, timeliness, total costs and customer service. To reach these levels of performance simultaneously it is necessary to change and improve all the phases in the value chain continuously'. Strategy refers to a direction for an organization designed to give competitive advantage. ...read more.


It believes that demand in the developed world is weighted towards flat products and a higher value-added mix, while demand in the developing world is higher for long products and commodity grades. The company also predicted that as these economies develop, their need for higher value products will increase. It shows that the company's business strategy as well as international operations management strategy will follow the changes that are caused by these external factors. Future international operations management strategy of ArcelorMittal From a serial acquisition in different countries and the merger between Mittal Steel & Arcelor for complementing each other in terms of geographical coverage and product mix to the strategy of owning its own mines. ArcelorMittal applies a proactive operation management strategy to deal with the changing of economy and external market. Ward et al. (1995) points out that 'the business environment appeared to have a tangible impact on operations strategic choices in operations'. Virtually, the innovative pace of the company has never been stopped. According to the annual report of ArcelorMittal in 2011, the company 'have now transformed from being the world's leading steel company with a strategy of vertical integration, into the world's leading steel and mining company with a portfolio of high-quality growth mining assets that sell to both internal and external customers'. ArcelorMittal's operation strategy has stepped into the stage 4 which is proposed by Wheelwright and Hayes (1985). They suggest four stages for manufacturing strategy: (1) internally neutral, (2) externally neutral, (3) ...read more.


Fawcett, S (1992), "Strategic logistics in coordinated global manufacturing success", International Journal of Production Research, Vol. 30 No.5, pp.1081-99. Geoff Buxey (2000), "Strategies in an era of global competition", International Journal of Operations & Production Management, Vol. 20 (9), 997 - 1016. Hayes, Robert H., and Roger W. Schmenner (1978) "How Should You Organize Manufacturing?" Harvard Business Review, 105-119. John C. Anderson, Gary Cleveland, Roger G. Schroeder (1989), "Operations Strategy: A Literature Review", Journal of Operations Management, Vol. 8, No. 2, 133-158. Kenneth K. Boyer, Christopher McDermott (1999), "Strategic consensus in operations strategy", Journal of Operations Management, Vol. 17, 289-305. Lockamy, A, Cox, J (1995), "An empirical study of division and plant performance measurement systems in selected world class manufacturing firms: linkages for competitive advantage", International Journal of Production Research, Vol. 33 No.1, pp.221-36. Marquardt, M (1999), The Global Advantage: How World-class Organizations Improve Performance Through Globalization, Gulf Publishing Company, Houston, TX, Mayer, R.J., and J. Moore. "Applying Manufacturing Strategy Concepts to Practice." Operations Management Review, Fall 1983, 45-50. M. Schniederjans and Q. Cao (2009), "Alignment of operations strategy, information strategic orientation, and performance: an empirical study". International Journal of Production Research, Vol. 47, No.10, 2535-2563. Romano, J .D. (1983), "Operations Strategy." Strategic Management Handbook. Ch. 13. New York: McGraw-Hill, Inc. Slack, N., Chambers, S. and Johnston R. (2004) Operations Management (4th Edition), Harlow: Pearson Education. Ward, P.T., Leong, G. and Boyer, K. (1995), "Manufacturing pro-activeness and performance", Decision Sciences, 25, 435-456. ?? ?? ?? ?? 1 ...read more.

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