lecture 3 - operations strategy

Question 1

thinking strategy involves taking…

Answer 1

• Long term view of business (depends on context of industry)
• Seeing the big picture (generally what is going to happen over that long term period) (abstract not concrete can be very different deepening on what is happening)
• Looking at fit between organisation and environment. (guess ahead)
  Can made the different between success and failure for both profit-making organisations.

Question 2

Strategic management

Answer 2

The set of decisions and actions used to formulate and implement strategies that give an organisation its competitive advantage,

Question 3

A strategy is a plan of action describing resource allocation and activities for:

Answer 3

• Dealing with the environment
• Achieving a competitive advantage
• Attaining a goal.

(Air New Zealand with JetStar. Making a flight to New York)
Creates competitive advantage, changes over time.

Question 4

what elements should strategic management incorporate?

Answer 4

• Target customers (expecting different thing, needing different strategies)
• Focus on core competencies. (Key things a business needs to be good at it)
• Provide synergy. (Similarities that fit together and work. Use of capacity with air nz)
• Create value. (Value in different perspectives e.g. customers and stakeholders) workers want earlier flight whereas we want later flights midday.

Question 5

first level of strategy

Answer 5

1. Corporate level strategy
   (Relates to the organisation as a whole and to the combination of business units and product lines that make up the corporate entity. May mean a company will divest unwated business units, or acquire or develop new business)
   - What business are we in?
   - Whole organisations

Question 6

second level of strategy?

Answer 6

2. Business level strategy
   - How do we compete
   - Potentially different for each business unit or product line

Question 7

third level of strategy?

Answer 7

3. Functional level strategy
   (How each department (marketing, accounting) will support the business and satisfying the customer)
   - How do we support the business level strategy
   - Pertains to major functional departments within the business unit.

Question 8

Operations management.

Answer 8

“Function or field of expertise primarily responsible for managing production and delivery of an organisation products and services.”
Function or field – the activity of managing the resources which are devoted to production

Question 9

Porters five forces model. Image

Answer 9

By studying these forces, we can predict how easy it is for a business operating in a certain market to make a profit.
The threat of new entry, buyer power, the threat of substitution, competitive rivalry and supplier power.

Question 10

Operation Management cycle.
INPUT RESOURCES

Answer 10

Capital, raw materials, machinery, and workers
The lecturer being here. The slides being made.

Question 11

Operation Management cycle.
PROCESSERS

Answer 11

Inventory, supply chain, quality control and process
The actual lecture, questions
- Low-cost process, quick design.
- Planning and control.
- Improvement.

Question 12

Operation Management cycle. OUTPUT PRODUCTS AND SERVICES

Answer 12

Finished goods, packaging, services.
That we will walk out with information.

Making strategy’s that is about supporting the business. For their needs.

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.