• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

International operations management strategy of ArcelorMittal

Extracts from this document...

Introduction

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.

Middle

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.

Conclusion

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Donner Company is a Service oriented Manufacturing Company that makes printed circuit boards as ...

    They have very light load in the first half of the month and a heavy load in the 2nd half of the month. This seems to be an effect of poor job scheduling. * Procurement o The standard raw material they use appears to be the double sided copper clad glass epoxy sheet.

  2. Critical Evaluation of the International Strategy of IKEA and its Re-Entry Into ...

    Finne & Sivonen (2009) state how the majority of other international competition may come from exporting companies. Poggenpohl is a German company that manufacture high-end kitchen and furnishings. Poggenpohl has a 75% export ratio (JETRO, 2007) and has been exporting to Japan for 25 years, and has a strong established base.

  1. In this assignment, my focus will be on Malaysian low-cost airline company - AirAsia ...

    in customer preference, changes in what people want to do at work, changes in how people want to work, where they want to work, and etc. Finally, operations management is challenging, promoting the creativity which will allow organizations to respond to so many changes is becoming the prime task of operations managers.

  2. Strategic Management - CARREFOUR CASE ANALYSIS

    C 76) o Carrefour also sought to participate in public welfare projects and to contribute to local communities, while cooperating closely with local authorities. (p. C 81) o As in Taiwan, Carrefour had to deal with a different negotiation culture and at first used Taiwanese negotiators for its suppliers in China.

  1. ITC - diversification strategy

    Recently it entered the agri input business also. So overall they followed a related diversification strategy & this helped them in other business like FMCG as well. Financial performance wise this segment is below the group average but it is believed to be holding future potential.

  2. Operations Management - in this paper I will use the Hayes and wheelwright model ...

    that an organization's function can play within the operations management, it provide a base for understanding the strategic performance and take it to the next level to achieve improvements, the four-stage model evolve from passive which is largely reactive approach to a proactive approach, the stages can be described as

  1. Reverse Logistics in the Chinese Auto Manufacturing Industry

    For the final customers, the reverse logistics can make sure that if the customers receive some bad products, they can send them back and get back their money immediately, which enhance their confidence in the corporations. Besides, for the corporation customers of the supply and demand chain, it can enhance their cooperation and enhance their competitive powers as suppliers.

  2. Business Strategy and Economical analysis of Danone

    For example Benecol® yogurt drink is such a product and has managed to increase its sales and market share in the past few years; this puts Benecol® yogurt drinks as the major competitor and threat to Actimel’s sales value and market position.‎(5)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work