Föreläsning 5 Flashcards
Why is it important to define a strategy and what elements should it include?
Important to ask about the strategy. Most companies can’t clearly define all elements of a strategy. Creates confusion in the company. A strategy statement should contain about 35 words or less and include three elements; objective, scope, advantage.
What is the strategy sweet spot?
Where we meet customer needs in a way that our rivals can’t.
What hierarchy’s of strategy are there?
- Firm strategy
- Purchasing functional strategy
- Category strategies
- Purchasing levers
- Supplier strategies
The strategies within the hierarchy must be well known toall members of the department and well-coordinated across the hierarchy.
What defines a firm strategy?
Coordination and integration of individual departments(functions) leading to the fulfilment of company goals.
Firm strategy is the groundwork for all the other strategies
What defines a purchasing functional strategy?
Goals, scope and advantage of purchasing are derivedfrom firm strategy. It defines the content of individualcategory strategies
Purchasing strategy (one of the functional strategies) is the key for setting up the category strategies
What defines category strategies?
The division of purchased portfolio into categories based on chosen criteria. The choice of suitable purchasing methods for each category
Category strategies have their sourcing levers
What defines sourcing levers?
Tactical and operative activities (tools, methods) of strategy execution. Very often we use more than one lever within one category
Supplier strategies are based on the category strategies and sourcing levers
What defines supplier strategy?
The selection and management of a specific supplier. The type of supplier-buyer relationship. Stance of a supplier within the category
What are functional strategies?
Functions within the companies have their own strategies that are based on the firm strategy.
The firm strategy needs to be flexible and be made-to-order. It helps when you need to make changes in your products.
purchasing strategy also needs to be flexible and high-tempo
the objective could be to improve the lead-time by 20 % in 2 years
What impact does a supplier have on a company when it comes to size?
A supplier that is a similar size to the company is easier to network with and create relationships with. If the suppliers are much larger than the company then it is harder to have that networking element.
what are the key elements and extensions of the functional strategy?
Purchasing levers and supplier strategies are the key elements and extensions of the functional strategy
What identifies and eliminates self-interested bias?
How to identify:
Is the person or team making there commendations motivated by personal interests? Could this interest be the reason for errors and overlooking important information?
How to eliminate:
Pay more attention if the team or person making the recommendation could gain significant financial outcomes,organizational power or benefits?
what identifies and eliminates Affect Heuristics?
Identify:
(emotions overtake rational thinking) Is the team “in love” with their recommendation?
Eliminate:
Examine all the other biases. If they made this one, they’re more likely to make more.
what identifies and eliminates group think?
Identify:
Beware of the herd behavior! Was there any disagreement and was their opinion heard?
Eliminate:
Ask those who disagree (discreetly)
what identifies and eliminates Saliency Effect (referring to unrelated past successstory)?
The analogy to other projects could be irrelevant.We should never use just one analogy.
Explore more alternative diagnoses. Ask for more analogies and carefully examine how comparable they are
