Chapter 2 Flashcards
Operations Strategy
a set of competitive priorities intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers
External Factors of the business environment (4)
- Economic Conditions
- Competitor Actions
- Market Opportunities
- Regulatory Changes
Corporate Strategy
determines the overall mission of the firm and the types of business that the firm wants to be in; typically long-term
Business Unit Strategy
determines how an SBU will compete
Business Model
the combination of the choices determining the customers an SBU will target, the value props it will offer, and the supply chain capabilities it will employ
Functional Strategy
determines how the function will support the overall business unit strategy
Critical Customer
customer segment receiving priority because it is critical to the firm’s current or future success
Value Proposition
all of the tangible or intangible “benefits” that customers can expect to obtain by using the products offered by the firm
Capabilities
operational activities that the firm can perform well; these define the types of problems and solutions that operations address proficiently
Order Winners
product traits that cause a customer to select one product over its competitors
Order Qualifiers
product traits that must be met at a certain level for the product to be considered by the customer
Order Losers
product traits that, if not satisfied, cause the loss of either the current order or future orders
Four components of a Value Proposition
- Offers a combination of product features that customers find attractive and are willing to pay for
- Differentiate from competitors, difficult to imitate
- Satisfies financial and strategic objectives
- Reliable delivery
Quality
a product’s fitness for consumption by the customer who bought it
Timeliness
the degree to which a product is delivered or available when the customer wants it
