Chapter 2 Strategy Flashcards
the setting of broad policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy
operations and supply chain strategy
performing activities in a manner that best implements strategic priorities at minimum cost
operations effectiveness
this step involves looking out and forecasting how business conditions that impact the firms strategy are going to change in the future
strategic analysis
the major steps that need to be taken to drive success in the firm
initiatives
make the product or deliver the service inexpensively
- market that buys solely on the basis of low cost
- Typically commodity like, customers cant distinguish the product from one firm to another
- Competition is fierce
which competitive dimension is this ?
Cost or price
make a great product or deliver a great service
which competitive dimension is this ?
quality
make the product or deliver the service quickly
- Company that offers repair service in 1 0r 2 hours has more advantage than a competing firm that guarantees service within 24 hours
which competitive dimension is this ?
delivery speed
deliver it when promised
- Relates to the firms ability to supply the product or service on or before a promised delivery due date
which competitive dimension is this ?
delivery reliability
change its volume
- The ability to effectively deal with dynamic market demand over the long term is an essential element of operations strategy
which competitive dimension is this ?
coping with changes in demand
change it
- Refers to the ability of a company to offer a wide variety of products to its customers
which competitive dimension is this ?
Flexibility and new product introduction speed
support it
i. Technical liasion and support
ii. Meeting a launch date
iii. Supplier after sale suport
iv. Environemntal impact
v. Other dimesions
which competitive dimension is this ?
other prodcut specific criteria
activities are incompatible so that more of one thing necessitates less of another
trade offs
when a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. This often creates problems if trade offs need to be made
straddling
one or more specific marketing oriented dimensions that clearly differentiate a product from competing products
order winner
dimensions used to screen a product or service as a candidate for purchase
order qualifiers
diagrams that show how a company’s strategy is delivered through a set of supporting activities
activity system maps
the likelihood of a disruption that would impact the ability of a company to continuously supply products or services
supply chain risk
are unplanned and unanticipated events that disrupt the normal flow of goods and materials within a supply chain and that expose firms within the supply chain to operational and financial risks
supply chain disruptions
what are the 4 types of risk mitigating strategies
- avoidance
- accept
- transfer
- limit
risks should be avoided that have a high probability of both financial loss and damage
which type of risk mitigating strategy is this ?
avoidance
with some risks, the expenses involved in mitigating the risk is more than the cost of tolerating the risk
which type of risk mitigating strategy is this ?
accept
risks that have a low probability of taking place but would have large financial impact should be mitigated by being shared or transferred
which type of risk mitigating strategy is this ?
transfer
the most common mitigating strategy. Here businesses take some type of action to address the risk and manage the exposure
which type of risk mitigating strategy is this ?
limit
a measure of how well resources are used
productivity
= outputs / inputs
productivity
is what we call a relative measure - to be meaningful, it needs to be compared with something else
productivity
what are the 2 ways prodcutivity comparison can be made
- a company can compare itself to similar operations within its industry
- it can use industry data
concerned with the ratio of some output to a single input
partial productivity measure
want to look at the ratio of some output to a group of inputs (but not all inputs)
multifactor productivity measure
want to express the ratio of all outputs to all inputs
total factor measure of productivity
individuals or companies that legally own one or more shares of stock in the company
shareholders
individuals or organizations that influenced, either directly or indirectly, by the actions of the firm
stakeholders
pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business
social responsibility
the firm is obligated to compensate shareholders who provide capital through stock purchases and other financial instruments via a competitive return on investment
economic prosperity
the firms impact on the environment
environmental stewardship
drives design decisions within and across the firm involving human
resources, equipment, and methods that transform inputs into output.
producutivity strategy
