3: OPERATION STRATEGY: Operations strategy Flashcards
What is strategy and what is operations strategy?
Strategy: total pattern of strategic decisions and actions that position the organization in its
environment and that are intended to achieve its long-term goals.
Operations strategy: concerns the patterns of strategic decisions and actions which set the role,
objectives and activities of the operation.
1, Content – specific decisions that are taken to achieve specific objectives.
2, Process – procedure that is used within a business to formulate its strategy
What is the difference between a top-down and a bottom-up view of operations strategy?
Bottom-up strategies see overall strategy as emerging from day-to-day operational experience.Top-down strategies view strategic decisions at a number of levels: corporate, business, functional
What is corporate, business and functional strategy?
Corporate: sets long time direction & scope for the whole organization
Business: how a business could compete with its industry
Functional: how each function contributes to the business strategy
What is the Hayes and Wheelwright 4-stage model?
1 Internal neutrality: To be ignored, avoiding making mistakes
2 External neutrality: Comparing itself with similar companies
3 Internally supportive: Being best in their market
4 Externally supportive: innovative, productive, proactive. . One step ahead competitors
4 perspectives in operations strategy?
top-down perspective, bottom-up (emergent strategy), market requirements, operation resources
What are the market requirements?
What you want (from operations to help you compete) & What you need (to compete in the market) Order winning (winning business, key reasons for customer to buy), qualifying (if its not there, customer gets disappointed), less important (dont influence customers, might be important for other parts of organisation), resource based view
What are the operations resources?
What you have (operations capabilities) & What you do (to maintain you capabilities and satisfy markets)
What are the stages of product service lifecycle?
1 Introduction: offer something new to competitors, customers needs are unclear, need to give quality to maintain performance
2 Growth: volume grows, competitors might enter the market. Rapid and dependable response in order to compete towards competition
3 Maturity: early competitors might have left the market already. cost need to go down to maintain profit.
4 Decline: sales will go down when more competitors are dropping out of market
What is resource-based view?
Infrastructural (influences workforce organization and planning, control and improvement activities), intangible (relationship with suppliers, customers, how staff work with new product), structural (influence design activities)
