In 1990s, we are experiencing change in economic order in a global scale. The whole world is now a single economic structure without border. Due to this change of economic environment, a company can establish competitive advantages from global network capabilities. In this paper, we discuss some core issues and present a framework for development and operations of global manufacturing network(GMN).
The framework is organized in two phases -- development and operations. In developing GMN, corporate strategy, competitive strategy and customer values, resources and competence, site location and harmony of functions in a company become major issues. In operations phase of GMN, integration and coordination, localization, transferability of competence, and performance measurement are the key issues for the success.
We analyze a Korean company in electronic part industry as a case for the framework. We could delineate the problems with the globalization efforts of the company. Applying the arguments of our suggested framework, we present strategic directions for the company to build and to manage an effect GMN.