2-Operations strategy Flashcards
Why is operations strategy important?
To obtain competitive advantage from other firms.
definition of strategy
set of actions and decisions that take into account important stakeholders and that are made to achieve long term goals
Wheelwright 4 stage model
Used to classify operations contribution.
stage 1-Internally neutral: focus on solving major problems.
stage 2-Externally neutral: focus on positioning a firm at same level of its competitors
stage 3-Internally supportive: focus on being leader in the industry
stage 4-Externally supportive: focus on redefining the industry expectations.
Analyze strategies from different perspectives
-Top down: what the business wants to do. 3 strategies: corporate strategy (where the firm wants to position wrt other competitors), business strategy (what the business wants to achieve as individual mission), functional strategy (what functions contribute to strategy). All should be coherent and correspondent.
-Outside in: fulfill market requirements depending on performance objectives. Order winners (attributes that make the customer want to buy) and Qualifiers (expected by customer)
-Bottom up: lean from previous experience to gain strategic knowledge advantage
-Inside out: develop future capabilities to ensure future competitiveness advantage. Protect your resources (RBV) , which should be VRIO with barriers (difficult to obtain, to imitate and to move)
all 4 perspectives should be reconciled.
how can you see perspectives reconciled?
All regarding cohesion of inside-out and outside-in.
-strategy matrix
-line of fit model: transition is never smooth.
GRAPHICS!
What happens when you want to change performance objectives?
-There exist tradeoff between volume and variety.
-efficient frontier: all firms choose different strategies.
-In the long term you can overcome efficient frontier by improving capabilities.
what is the plant-within-a-plant strategy?
a same company offers various types of products following different strategies to max revenues.
