CHAP 2 OM: OPERATIONS STRATEGY Flashcards
denotes a firm’s ability to achieve market and financial superiority over its competitors
competitive advantage
understood by segmenting customers on their unique wants and needs
customer’s expectation
basic customer expectations are generally considered the minimum performance level required to stay in business
order qualifiers
goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer’s business
order winners
3 types of attributes in evaluating the quality of goods and services
-search attributes
-experience attributes
-credence attributes
those that can be discerned only after purchase or during consumption or use
experience attributes
those that a customer can determine prior to purchasing the goods & services
search attributes
any aspect of a good/services that the customer must believe in but cannot personally evaluate even after purchase and consumption
credence attributes
represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain
competitive priorities
5 key competitive priorities
-cost
-quality
-time
-flexibility
-innovation
goods & service help firm gain competitive advantage
low cost goods & services
is positively and significantly related to a higher return on investment for almost all kinds of market situations
quality
customers demand quick response, short waiting lines, and consistency in performance
time
requires both design & demand flexibility. enabling them o switch output as demand shifts, will be able to sell profitability at lower volumes
flexibility
is being able to make whatever goods & services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world
mass customization
is the discovery and practical application or commercialization of a device, method or idea that differs from existing norms
innovation
is a pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole
strategy
which are the strengths that are unique to that organization
core competencies
process of determining long term goals, policies, and plans for an organization
strategic planning
3 levels of strategy
-corporate
-business
-functional
necessary to define the business in which the corporation will participate and develop plans for the acquisition and allocation of resources
corporate strategy
the business in which the firm will participate
strategic business units (SBUs)
define the focus of SBU, major decisions involve which markets to pursue and how best to compete in those markets
business strategy
by which strategies are accomplished. Set of decisions that each functional area develops to support its particular business strategy
functional strategy
is the set of decisions across the value chain that supports the implementation of higher-level business strategies
operations strategy
are the decisions mngmt must make as to what type of process structure is best suited to produce goods & create services
operations design choices
focuses on the nonprocess features and capabilities of the organization
infrastructure
