Lecture 3: Operations Strategy Flashcards
Operations management uses…
Resources to appropriately create outputs that fulfil defined market requirements
What does thinking strategically involve?
- long-term view of business
- seeking the big picture
- looking at fit between organisation and environment
Strategic management is
the set of decisions and actions used to formulate and implement strategies that give an organisation its competitive advantage
Elements of competitive advantage
- target customers
- achieve synergy (combined action or operation)
- Create value
- Exploit ability to effectively succeed
Levels of strategy
- Corporate level strategy (what business are we in?)
- Business level strategy (How do we compete?)
- Functional level strategy (How do we support the business level strategy)
Porters 5 forces
- buyers
- suppliers
- substitute products from other businesses (threat)
- Potential new entrants (threats)
Porters 5 force offer 3 strategies
- differentiation
- Cost leadership
- Focus
Operation management (define)
“Function or field of expertise primarily responsible for managing production and delivery of an organisations products and services”
Operations Management Cycle
Input resources
- Operations strategy
- design
- planning and control
- improvement
output product or services
customers purchase
Operations strategy (define)
“The total pattern of decisions which shape long-term capabilities of any type of operation and their contribution to overall strategy through the reconciliation of market requirements with operations resources”
Market Requirements VS Competitive priorities
MR : low prices, high quality, fast delivery, innovation, range of products and services
CP: cost, quality, speed, flexibility
Operations Design choice
- facilities
- capacity
- processes
- technology
- supply
Infrastructural decisions
- planning and control
- quality control
- innovation system
- job designs
