Changes in manufacturing facility-, network-, and strategy-types at the Michelin North America Company from 1950 to 2014

Abstract

Large manufacturing firms operate networks of facilities which they design to achieve particular manufacturing strategies. Facilities, networks and strategies are of several distinct types. The facility-, network- and strategy-types used by a firm depend on the competitive environment in which a firm operates. This paper examines the facility-, network- and strategy-types used by the Michelin North America Company during the period from 1950 to 2014. The examination shows how three changes in the competitive environment (changes in tariffs and government industrial policy, the 1964 Canada – United States Automotive Trade Agreement, and the 1996 North American Free Trade Agreement) triggered significant changes in these types. The examination produces insights into categorisations of facility-, network- and strategy-types that are useful for understanding how large firms operate, how we can predict what changes large firms will make to their facilities, network and strategy and how stakeholders such as employees, suppliers and governments can manage the risks of working with large firms.

Keywords:

• manufacturing strategy
• manufacturing networks
• manufacturing facility-types
• global manufacturing

Acknowledgments

Thank you to the editor and the anonymous reviewers for their excellent comments, in particular, the observation that this work can be fit into and enhanced in the global production network framework.