ch 2. Flashcards
mission statement
a statment about the type of business products/services, customers, reasons for existence, etc. for customers, stakeholders, prospective employees, competition, other businesses, etc.
corporate goals: a set of goals in terms of;
- products/services
- market/customers
- growth/profitability
- expansion/contraction, etc.
strategy
a plan for achieving corporate/organizational goals (based on its competitive priority)
examples of organization goals?
- satisfy customers
- compete in the market place
- manage the organization
- develop capabilities
- sustain growth
- achieve financial objectives
tactics
the methods and actions taken to accomplish strategies
competitive priority (core competency, or competitive advantage)?
Each company uses an option to position itself in the market place
a distinctive competence, or competitive advantage, compared to its competitiors
Examples of competitive priority: Cost
low cost producer of goods and services
Examples of competitive priority: quality
performance, consistency, reliability, features, durability, aesthetics, appearance, conformance to specifications, etc. (generally an characterisitc of a product for which customers are willing to pay more for)
Examples of competitive priority: Time (responsiveness)
- product/service delivery time (speed)
- product/service development time (speed)
- after-sales service time, etc
Examples of competitive priority:differentiation
any distinctive product/service features, based on design, quality, flexibility customer service, location, etc
a company may choose to use a combination of competitive priorities for a product or service. Ture? false?
true
order qualifiers criteria
product or service characteristics necessary to survive in the marketplace
order winners criteria
product or service characteristics necessary to outperform the competition and become the market leader
strategy formulation requires?
Swot analysis and environmental scanning
Swot analysis
- strengths
- weaknesses
- opportunities
- threats
environmental scanning
economy, technology, markets, competition, customers, suppliers, governmental regulations
Elements of strategy: Strategic positioning
defines the position that a firm wants to occupy in its competitive product space using its competitive priorities, such as
- cost
- quality
- time
- differentiation
Operations strategy
configuring and developing operations process (transformation process: inputs resources, activities), specified by and consistent with business strategy, to produce products and/or create services in order to achieve corporate goals
ten Most Important Decisions RegardingOperations Strategy?
- Product and Service Design
- Quality of Products and 3.Services
- Process and Capacity design
- Location selection
- Process layout decision
- Human resources and job 8.design
- Supply Chain Management
- Inventory management
- Production scheduling
- Maintenance decision
Operations strategy: long range
Strategic Level 1 -Long-range ( 1 year or more) Product Decision Process Decision Technology Location Decision Plant Decision Sourcing Decision Capacity Planning Quality Direction, etc.
operations strategy: medium-range
Tactical Level 2 -Medium-range (3 to 12 months) Equipment, Machinery Decision Plant Layout Quality Control System Work Systems Design Worker Selection, Training Capacity Planning Plant Maintenance Inventory Policy
operations strategy: short-range
Operational Level 3
Short-Range (up to 3 months)
Daily/Weakly Production Plan
Inventory Control
Scheduling/Dispatching
Maintenance Control
Quality Control
Purchasing
1 2 3 these levels also differ with regard to the level of details and the frequency of decision making
