Problems: Chapter 2 Problem 1 Claudia Program Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries, Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 3 is a higher risk. England Canada Selection Criterion Price of service from outsourcer Nearness of facilities to client Level of technology History of successful outsourcing The executives have determined four criteria weightings: Price, with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1. a) Using the factor-rating method, which country would you select? b) Double each of the weights used in part (a) (to 0.2, 1.2, 0.4, and 0.2, respectively). What effect does this have on your answer? Why? Problem 2 Match operational strategies with the proper companies or services that have successfully employed these strategies in the table below: Operations Strategy After sales service Customization Fast and reliable delivery High quality Innovation Location Low cost Product feature Rapid innovation Responsiveness (short processing time) Service Company or Service 3M Domino Pizza Easy Jet, Ryanair Eurodisney Fast Food Restaurant, Couriers Lexus, Five-Star Hotels PCs Rolex Supermarkets, Banks, ATMs Tailor Toyota Problem 3 Walker Accounting Software is marketed to small accounting firms throughout the US and Canada. Owner George Walker has decided to outsource the company's help desk and is considering three providers: Manila Call Center (Philippines). Delhi Services (India, and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) Criterion Importance Manil Provider Ratings Delhi Moscow Weight 0.5 Flexibility Trustworthiness Price Delivery Sna N1 02 Discussion Questions 1 Would Boeing be better described as a global firm or a transnational firm? Discuss 2. What global operations strategy is most descriptive of McDonald's? 3. What are the implications for operations management with respect to the following organizational strategies: (a) low price, (b) good quality. (c) response, and (d) variety