Globl operations mngement - Essay Example

Global operations management Pepsi Company is a United s based company that uses the global management approach to their management operations. In practice, Pepsi Company has displayed specific actions that depict a global operations management approach. For instance the company has independent headquarters in various countries but there is a centralized operations culture and strategy that are adhered to by all the various headquarters. This approach helps in coordinating the generalized strategic plan of the company (PepsiCo, 2011).

Clearly, companies of today practice global management approach to their own competitive advantage in the global business environment. Kim (2001) for instance talks of the issue of globalization, which makes it extremely important for companies to practice global management approach. With a global management approach, companies are at an advantage of experiencing cross-boarding learning exposure (McCarthy, 2011). This is a situation whereby the experiences tapped in one area of the companies operations that have proven to be workable and useful are transferred to other parts of the companies operations.

Again, there can be cushioning in terms of financial gains whereby areas that have better financial fortunes can be used to supplement management duties in other areas of the company’s operations where financial turn-up is low. These merits have however been affected by certain advancement in operations management as exists in other countries; thereby inhibiting certain companies from accruing the entire benefits as discussed. For instance there are different economic and trade clients from one country to another.

For this reason, if a centralized global management system is practiced, chances are that such management approaches would not work perfectly from country to country. Finally, in the United States, most companies have had their global management approaches being affected the rate of economic development in other countries. For this reason, even when revenues and sources of expenditure are carried over to some of these countries, the branches of the companies there still find it very difficult to align their levels of output thought the entire operations management may be intact.

REFERENCE LISTKim B. (2001). A Dynamic Research Framework for Global Operations Management. Accessed April 25, 2012 from http://www.ifm.eng.cam.ac.uk/cim/imnet/papers2003/BowonKim.pdfMcCarthy H. A (2011). Leadership for Contemporary Business Practice. Datalink Press Limited New York PepsiCo (2011). Management Approach. Accessed April 26, 2012 from http://www.pepsico.com/Purpose/Overview/Management-Approach.html