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INTERNATIONAL OPERATIONS MANAGEMENT
Country Manager (Branch Plants, Joint Ventures, Partnerships) >>
Project Director (World Capital Projects)
International Management Consultants >>

Companies that export US made goods without setting up operations in World markets don’t have to worry about international operations management. Many companies enter World markets on this basis, and any local agents or distributors they have are managed as part of the sales function.

As their market grows, however, they may develop a World presence by setting up a branch office, establishing some form of partnership with a local company or individual, or by making direct investments in the local market. These operations often involve assembly or even manufacture of products in the local market. Larger companies often enter World markets by acquiring World subsidiaries to do the same thing. And some export their goods and services, including technology and expertise, by undertaking World capital projects. Examples include government-sponsored infrastructure projects such as those involved in energy, transportation, communications and environmental control.

Regardless of the reason for setting up local operations in a World market, companies require operations management staff to oversee their investments. Operations managers include a broad variety of people who add value to the local operation. It is common for American companies engaged in World partnerships to contribute technology and expertise in exchange for market access provided by the partner. The functions provided by American operations managers abroad are therefore relatively sophisticated.

The extent to which US companies moving into the World markets use expatriate managers in their local operations depends on a variety of factors, including the role of the US company in the partnership or Greenfield investment, the nature of the market and the duration of the commitment. Very large companies are more likely than smaller ones to set up company-managed branch operations in the target market.

Whether or not there is a local joint venture partner, a typical title for this function would be Country Manager. This is especially true if the company is the senior partner and is working with a junior partner in the local market. But operations personnel may be hired at various levels of responsibility and with varying reporting relationships with the American head office.

Trends

While US companies have been operating in World markets for many years, the expansion of world trade in recent years has increased the need for World operations personnel, and shifted the skill mix that is in demand. While many US companies have traditionally limited themselves to distribution arrangements, more and more are establishing World production operations. Rapid changes in information and communications technology have also influenced the international operations of US companies. On one hand, this has made it easier to provide some services such as financial services, billing and ordering and inventory control to World operations with only minimal local presence. On the other hand, it has also made it less risky to set up World operations, since they are easier to monitor on a day-to-day basis. ^ Top


Country Manager (Branch Plants, Joint Ventures, Partnerships)

The title Country Manager is often used to describe the senior operational manager in a World market. There are, however, a variety of positions that contribute to this function. Job advertisements in this field often use job titles like Operations Director, Plant Manager, Mill Operations Director, Global Vice President Manufacturing, Production Supervisor, Production Manager, Production Planner, Production Operations Manager, Operations Superintendent, and Facility Manager.

Country Managers provide the same general functions as operations managers in the States, but they are also have many duties that are uniquely international. They are expected to operate in the local legal and regulatory environment, using production processes, supply and distribution channels and local intermediaries that can be very different from their counterparts in the United States.

One of the fastest growing areas in international operations management is pollution abatement and waste treatment technology. Such operations involve the transfer of technology supported by considerable onsite management or supervision. In many cases, these functions are carried on through contract relationships rather than through employment.

Typically, the duties of Country Managers or operations personnel reporting to them, include hiring and managing local staff, setting up management and reporting systems and overseeing local production. Managing the product design process, supply channels and logistics functions may also be required.

Qualifications

International operations management covers a wide range of functions and the educational requirements vary with the function involved. Advertisements for this type of position generally specify degrees in mechanical engineering or process engineering, supplemented with formal business administration training, such as an MBA.

Virtually all personnel hired for these jobs would be expected to have several years of progressively responsible domestic experience, as well as experience with managing and directing a field organization. For most operations personnel, this experience should be specific to the industry involved.

Skills

In addition to knowledge of the language and culture of the World market, operations personnel are expected to have highly specific knowledge of product regulations, distribution and supply systems and labour law in the country or countries involved. The breadth of this knowledge increases with the level of responsibility. A Plant Manager is expected to know about production processes, technology, health and safety regulations and labour management relations. A Country Manager is also expected to know about consumer legislation and marketing issues and be capable of developing and maintaining contacts in business and consumer markets.

For manufacturing companies supplying intermediate parts and components for re-export to the United States or other developed countries, knowledge of how to apply ISO 9001/QS9000 is increasingly important. Operations personnel would normally be expected to have some knowledge in this area.

Aptitudes

International operations personnel should be able to work for extended periods without direct supervision. They should also be comfortable working in diverse cultural environments and be prepared to adapt production processes, labour-management relations and a range of other functions to local conditions, as the situation requires. ^ Top


International Management Consultants

International Management Consultants carry on a variety of functions in support of international operations. Strictly speaking, this title describes the manner in which those functions are carried out rather than the specific tasks involved. The consultant may be an individual, but is just as likely to be a firm with a variety of capabilities.

Many International Management Consultants specialize in providing clients with advice and information concerning management of the enterprise and do not get involved in day-to-day operations. In a World operation this may include advice on the local business culture, labour laws, human resource practices or local distribution channels. All of these factors may affect the way in which the business is organized and may involved business practices that are much different from those at home.

Increasingly, consultants are providing broader international strategic planning services, based on their knowledge of specific markets and operating conditions in particular regions. They may also provide advice on human resources planning for World operations. There is a growing list of consultants that include executive recruitment, and international relocation services as part of this function.

Persons who carry out these operational functions in an international setting may also be called Management Analysts, Global Analysts, Business Analysts, or Operations Consultants. All of these terms have been used in recent job advertisements for this function.

Qualifications

Because they carry out a wide range of functions, International Management Consultants have a variety of formal educational backgrounds. A graduate degree in Business Administration, sometimes combined with an engineering degree, is a typical qualification. This is not an entry-level position, and employers typically call for a minimum of six to ten years of domestic consulting or industry related experience.

Skills and Aptitudes

Beyond the obvious language and cultural knowledge required for these functions, international management consultants need solid computer proficiency and highly developed presentations skills. They should be ready to work irregular hours and meet tight deadlines. Since they are expected to work in World countries, they should be comfortable operating in a World culture and with local personnel who may have diverse work styles, formal skills and personal values.


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