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Issues Faced by Operations Managers - Essay Example

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Summary to essay on topic "Issues Faced by Operations Managers"
Customers are very important for any organization because organizations exist to meet the need of the customers. Managers have to deal with the customers according to their needs because they represent potential uncertainty, their taste can be changed and they can be dissatisfied with the organizations performance that can lead towards switching to other products…
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Download file "Issues Faced by Operations Managers" to see previous pages... Shortage of funds in financial market can create a problem for managers because supply of money in company leads to different financial activities. Continuous supply is very important for any company to operate.
Managers also need to know that what their competitors are doing in the industry. They can't ignore competition around them in this dynamic world.
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Managers need to be informed that what they are doing in terms of Product development, Pricing, Marketing strategies and many more things. Any type of activity that the competitors do can create lots of problem for the managers.
Every organization has an aim to be Global. Managers need to face many difficult situations when they are in foreign countries. They need to tackle certain factors for success when they are abroad. That includes Legal/Political Environment, Economic Environment and Cultural Environment.
While going Global managers need to understand the Political and Legal uncertainties in the country they are doing their business. They should be aware of the Specific Legal laws of that country because if they don't know the Legal procedures of that country it can create many problems for them. Many countries have a history of unstable governments therefore managers face dramatically greater uncertainty as a result of political instability. For example the goal of one government is to nationalize the important sectors of the country where as the goal of the other government is to have free enterprises to promote free market economy.
Economic environment can also affect manager's decision. The three most important factors in affecting manager decision are Fluctuating currency exchange rates, Inflation Rate and Tax policies. If the country has a high inflation rate in which they are operating can result in high productivity cost which can ultimately decrease their profits. Tax policies are the most concerning for managers. If tax policies are restrictive managers can face challenging situations. Managers need exact information of tax rules so that they can overcome with all the tax obligations.
Managers also need to understand the culture of the country in which they are operating. Different countries have different cultures and managers must know they difference of each culture. This is very important factor for managers to take care of, because if they fail to understand the cultural values of that country they can't serve their products and services to the people of that country. For example if a company who is manufacturing Alcohol and is operating in USA and then they open a branch of their company in Saudia Arabia, But as Saudia Arabia is an Islamic State they can't sell the Alcohol in that country because they cultural and religious values doesn't allow them to drink, that can create huge problem for the managers of that company.

Today's organizations are moving towards social responsibility. Managers have to be careful while going for socially responsible because being socially responsi ...Download file "Issues Faced by Operations Managers" to see next pagesRead More
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