chapter 2 flashcards
what’s a mission?
- where are you going?
- the organization’s purpose for being
- it provides boundaries and focus
- it answers “what we provide to society?”
what type of factors affect mission?
- philosophy and values
- profitability and growth
- public image
- customers
- environment
what’s the difference between Mission, Goals/Objectives, and Strategy?
mission: where you are going
goals/objectives: where you are going in specific terms
strategy: how you are going to get there; an action plan
what’s Strategy?
- it’s an action plan to achieve mission
- shows how mission will be achieved
what’s the Strategy Process?
company mission/goals—>
business strategy—>
functional area strategies—>
- marketing decisions
- operating decisions
- fin/acct. decisions
what are the main strategies for Competitive Advantage?
- differentiation (quality, uniqueness, special experience)
- cost leadership
- quick response (flexibility, reliable, fast)
what are the 10 operations management
- decision
- quality
- process/capacity
- location
- layout
- HR
- supply chain
- inventory
- short term scheduling
- maintenance
what do we need to know when competing on Differentiation?
uniqueness can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer’s perception of value
does low value imply low quality?
no
what 3 attributes does Competing on Response have?
- flexibility
- reliability
- timeliness
explain the Product Life Cycle and its phases
- Introduction: best period to increase market. R and D engineering is critical
- Growth: practical to change price or quality image. to strengthen the niche
- Maturity: poor time to change image, price, or quality. competitive costs become critical. Defend market position
- Decline: Cost control is critical/
what’s the Operations Manager’s strategy in 3 steps?
- develop a strategy for the operations that fits and support the strategy of the whole company
- establish the organizational structure, systems, methods, procedures
- recruit the right people and implement the operations Strategy
what are the Management Issues in Global Operations
- supply chain management
- location decisions
- logistics management
what are some reasons to Globalize Operations?
Tangible —> Intangible
- reduce costs (labor, taxes, tariffs, etc.)
- sell globally
- improve the supply chain
- provide better goods and services
- attract new markets
- learn to improve operations
- attract and retain global talent
list some things to consider with Globalization?
- culture, work ethic
- national literacy rate
- rate of innovation
- rate of technology change
- number of skilled workers
- stability of government
- product liability laws
- tax rates, export restrictions
- inflation
- interest rates
- raw materials
- population
- infrastructure (roads, airports)
