Setting manufacturing strategy for a company's international manufacturing network

Abstract

Manufacturing strategy is a plan for moving a company from where it is to where it wants to be. Determining the best manufacturing strategy is not easy because of the wide range of choices and constraints a company faces. Manufacturing strategy frameworks or models are helpful because they identify the objects that comprise manufacturing strategy and organise these objects into a structure that enables a company to understand and use the objects to develop strategy. This paper examines a company's international manufacturing network. It identifies and examines six manufacturing strategy objects (generic international strategies, manufacturing networks, network manufacturing outputs, network levers, network capability, and factory types), linkages between objects, and the manufacturing strategy framework that follows from these objects and linkages. Then the paper applies the framework to the manufacturing networks of three companies in the global steel industry: Arcelor (Luxembourg), Mittal (India), and Dofasco (Canada).