Chapter 4 Flashcards
What is a functional level strategies?
Actions that managers take to improve efficiency and effectiveness of one or more value creation activities
What is diseconomies of scale?
Unit costs increase as total output become larger
What is learning effects?
Cost savings that comes from learning by doing
What is experience curve?
Systematic lowering of cost structure and unit cost that occur over the lifetime of product
What is a flexible production technology?
Range of technologies designed to reduce setup times, increase machinery use through better scheduling, and improve quality control
What is mass customization?
The use of flexible manufacturing tech to reconcile two goals that were once thought to be incompatible: low cost and differentiation
What is customer defection?
Percentage of a company’s customers who defect every year to competitors
What is just in time inventory system?
System of economizing on inventory holding cost by scheduling components to arrive just in time to enter the production process OR when the stock is depleted
What is supply chain management?
Managing the flow of inputs and components from suppliers to production process to minimize inventory holding and maximize inventory turnover
What is a self managing teams?
Teams where member coordinate their own activities and make their own decision
What is total quality management?
Increasing product reliability so that it consistently performs as designed and rarely break down
What is positioning strategy?
Specific set of options a company adopts in the marketing mix
5 Step to reduce innovation failures
Driven by customer’s needs, easy to manufacture, controlled development cost, minimize time needed to develop, close integration between R&D and marketing
