Chapter 3

Question 1

What are strategic decisions?

Answer 1

They broadly impact the organization, define it’s position relative to the environment, and guide it toward long-term goals.

Question 2

What are examples of operations strategy decisions?

Answer 2

Facilities: location, size, specialization.
Capacity requirements: quantities, times, types.
Technology: equipment, automation, connections.
Vertical integration: degree of use of suppliers/distributors
Labor: level of specialization, wage policies, employment security.
Quality: defect prevention, monitoring, intervention.
Production planning: basic policies, centralization, decision rules

Question 3

What are the 4 perspectives of operations strategy?

Answer 3

1) Top Down: Higher Level Strategy

2) Bottom Up: Day to day Operations

3) Operations Resources: Capacity, Supply Chain, Tech and Development, Organisation

4) Market Requirements: Quality, Speed, Flexibility, Cost