chapter 2 competitiveness, strategic planning and productivity Flashcards
what does competitiveness mean
how does an organization meets the needs and wants of a consumer compared to other companys
what does competitiveness depend on
capabilities and performance
what is apart of the key purchasing criteria
price
quality
variety
timeliness
what is price in key purchasing criteria
amount consumer pays for a good or serice if all other factors are equal customers will choose good or service with lowest price
what is quality in key purchasing criteria
material, design, customer service and innovation of the good or service
what is variety in key purchasing criteria
choice of options to customers, the more variety the more range of customers well have
what is timeliness apart of key purchasing criteria
availibility of goods and services to customer when needed
ex an order being delivered on time
what are the 2 categories of purchasing criteria for customers
order qualifiers
order winniers
what are order qualifiers
minimum standards of acceptibility for purchase, consider purchasing it
what are order winners
create perception of being better then competition
allow product to be purchased
what are competitive priorities
when an organizations emphasizes on of the key purchasing criterias in their operations
what is strategic planning
looks at how organizations comepete and their stengths and weaknesses to take advanatge of their core competencies
what are core comeptencies in strategic planning
special aspects to an organization that gives them a competitive edge over other companies
how can using the SWOT analysis in scanning the environment
helps us link organizational and operational strategy
how do we formulate a strategic plan
senior managers will have to do a environmental scan of the environmnet using a SWOT analysis
are strengths and weaknesses internally or externally operated and who evalutes them
they have an internal focus and are evaluted by operations people
are threats and oppurtunities externally or internally focused who evaluates them
externally focused and are evaluted by marketing people
what is a supply chain strategy
strategy so company can achieve supply chain goals and be competitive
who is apart of supply chain
suppliers, distributors and customers
what typs of supply chain strategies are there
responsive/ agile
lean supply chain
near sourcing
what is a responsive/ agile supply chain
flexible supply chain that can respond to changes quickly in volume or demand
what is lean supply chain
focused on eliminating any steps that arent required to improve efficicency
what is near sourcing
using nearby suppliers shortens supply chain reducing trasnportation time and costs, reducing supply chain inventory and reduce disruptions
what are the 2 parts to global strategy
where parts and products are made or where services such as customer support is done and where products or services are sold
when contemplating a global strategy what do they look at
- what works in one country will not necessarily work in another
- threat of political or social upheaval
- cordinating and managing global operations is difficult
what is a sustainability strategy
making a company more ecofrinedly, involves setting goals for products services and supply chains tracking progress and continuously improving to reduce environmental impact
what is an operations strategy
policies, objectives and actions plans that want to achieve long term sustainable advanatges
what are types of generic operations strategies
low labour cost strategy
- focuses on reducing labour and wages exspenses
scale based strategy
- producing large quantities to reuduce cost per unit
what are quality based strategies
maintain or improve quality
can use intiiatives such as 6 sigma (reduces errors)
what are time based stategies
focuses on reducing time to complete tasks
for time based straegies focus is on reducing time it takes to do task, what are ways we can do that
planning
deisgn
processing
delivery
what is productivity
meausures the ouput (goods and services) per unit( inputs) used to produce it
why is measuring productivity in services not efficient
their intangible
involve intellectual activities
have output with higher degree of variability
what are things that affect productivity
methods
capital
quality
technology
what is a misleading thing of producivity and people
that they are the main part of productivity but its actually technology
what are main aspects of competitve priorities
cost
quality
flexibility
delivery
how do we develop an effective strategy for an organization
determine key purchasing criteria for customers and identify which are order qualifiers and order winners
organizations usually have overall strategies for the ____________ and ____________ strategies for each functional area
organization functional
what does the balance scorescard do
transforms strategies into actions and undertsanding implications of organization strategy for operations management
whats the most common producvity measure
labour productivity number of units produced per hour by a worker
why do organizations want a higher productivity
creates higher profits and they can be more competitive
