Global Business Conditions

Global Business Conditions

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CTV SALES 2005 • 10 LAKHS •

PLASMA& FLAT PANELS(0.5 LAKHS)

2006 • 11.5 LAKHS PLASMA& FLAT PANELS (2LAKHS)

ESTIMATES FOR 2007: (3.5 TO 4.0 LAKHS)

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Reality of Global Competition • All of the international trade has resulted in a global economy that inter connects the economies of all nations into what has been termed as GLOBAL VILLAGE. • A RECESSION IN ONE COUNTRY AFFECTS ALL OTHER COUNTRIES, One country’s recession can become a global recession. 30/12/2006

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Slow down in US economy- Impact on Indian economy

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• NET TRAFFIC HERE FEELS TAIWAN QUAKE IMPACT. • UNDER SEA CABLE DAMAGE DISRUPTS SERVICES • ISP SERVICE AFFECTED • VSNL BLAMED ISP FOR NOT PUTTING IN PLACE RESTORATION MECHANISIM WHILE SIGNING THE DEAL WITH PROVIDERS ( BL –PAGE NO4- 27/12/2006) 29/12/2006

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Market dynamics create the need for international companies , those whose operations span the globe as they buy, produce and sell in world markets. International companies from across the world search out opportunities for profits relatively unencumbered by national boundaries. The global expansion has a great impact on operations Manager who must coordinate geographically dispersed nations 30/12/2006

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Prices are coming down Operations strategy? Costs to be driven down

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HLL Super value stores

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Strategic Alliance and Production Sharing Production sharing a term coined by Peter Drucker A product may be designed and financed in one country. RM can be produced in many countries and sent for further processing. Parts may be shipped to yet another country for assembly. Product may be sold throughout the world markets.

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Fluctuation in International financial conditions

Yen appreciation vs US dollar Euro appreciation vs US dollar Common euro currency- view of France Chinese currency- free float not allowed.

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Quality, Customer Service & Cost Challenge

•Perfect product & Service Quality •Advanced Technologies and Automation

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Scarcity of Operations resource •Skilled Manpower- IT & ITES •Iron Ore Export •Heavy dependence on Fossil Fuels in India •Uranium availability- Nuclear power •Quality of coal in India

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Acquire Product capabilities to tolerate Product Proliferation • Low volume- High Variety • High Volume- Low Variety Operations Management to address complexities arising out of above requirement

12/01/2007

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Social- Responsibility issues •Consumer attitudes •Government regulation •Self interest

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Impact on Environment, Employees & Safety

ISO 14000 Standards Product Safety- warnings Employee Health Hazards Night Shift in BPO operations 365 days operations in Retail sectors

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