LECTURE 1 - part 2

Question 1

Business strategy (definition)

Answer 1

The strategy that identifies a firm’s targeted customers and sets time frames and performance objectives for the business

Question 2

Core competency (definition)

Answer 2

An organizational strenght or ability, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy

Question 3

Functional strategy (definition)

Answer 3

A strategy that translates a business strategy into specific actions for functional areas such as marketing, human resources, and finance

Question 4

Structural decision categories (3)

Answer 4

• capacity
• facilities
• technology

Question 5

Infrastructural decision categories (3)

Answer 5

• organization
• sourcing
• planning and control

Question 6

Three primary objectives

Answer 6

• Help management choose the right mix of structural and infrastructural elements based on performance dimensions valued by customers
• Ensure that firm’s structural and infrastructural choices are stratically aligned with the firm’s business strategy
• Support development of core competencies in the firm’s operations and supply chain

Question 7

Four performance dimensions

Answer 7

• Quality
• Time
• Flexibility
• Costs

Question 8

Quality (3)

Answer 8

• Performance quality (basic operating characteristics)
• Conformance quality (product performed to specifications?)
• Reliability quality (work for long time)

Question 9

Time (3)

Answer 9

• Delivery speed
• Delivery reliability (when promised?)
• Delivery window (acceptable time range)

Question 10

Flexibility (3)

Answer 10

• Mix
• Changeover
• Volume

Question 11

Costs (4)

Answer 11

• Labor costs
• Material costs
• Engineering costs
• Quality-related costs