LESSON 2 Flashcards
relates to the effectiveness of
an organization in the market place relatively to
other organizations that offer similar products or
services.
Competitiveness
- relates to the plans that determine
how an organization pursues its goals.
Strategy
relates to the effective use of
resources and it has a direct impact on competitiveness.
Productivity
are three separate but
related topics that
are vitally important to
business organizations.
Competitiveness,
Strategy, and
Productivity
⤷ Long term
⤷ Short Term
STRATEGY CAN BE
⇝ Identifying consumer wants and needs
⇝Pricing
⇝ Advertising and promotion
C O M P E T I T I V E N E S S
- THREE M A I N FACTORS
The reason for
existence of an
organization.
MISSION
Provide detail and
scope of the
mission.
GOALS
States the purpose
of an organization.
MISSION
STATEMENT
Plans for achieving
organizational
goals.
STRATEGIES
The methods and
actions taken to
accomplish strategies
TACTICS
outsource operations to the third world countries that have low labor
costs.
LOW COST
use the capital intensive methods to achieve high output volume and
low unit cost.
SCALE BASED
STRATEGIES
focus on narrow product lines or limited services to achieve higher
quality.
SPECIALIZATION
focus on quick response.
FLEXIBLE
OPERATIONS
focus on achieving higher quality than competitors
HIGH QUALITY
focus on various aspects of service (e.g., helpful, courteous, reliable,
etc.).
SERVICE
The general health, direction of the economy, ination, deation,
interest rates, tax laws and tariffs.
ECONOMIC
CONDITIONS
- PRICE
- QUALITY
- TIME
- FLEXIBILITY
- SERVICE
- LOCATION
STRATEGIC FACTORS
Favorable or Unfavorable attitudes towards business, political stability
or instability and wars.
POLITICAL
CONDITIONS
Government regulations, trade, restriction, minimum wage law, labor law and patent.
LEGAL
ENVIRONMENT
Product innovations and new design.
TECHNOLOGY
Price, Quality, Special Features and the ease of Market Entry.
COMPETITION
Size, location, brand loyalties, potential for growth, long-term
stability, and demographics.
MARKETS
Capacities, location, age, cost and replace.
FACILITIES AND
EQUIPMENT
The skills abilities of managers and workers, special talent, loyalty,
dedication and experience.
HUMAN
RESOURCES
Funding, debt burden, cost of capital and cash ow.
FINANCIAL
RESOURCES
Loyalty and understanding of wants and needs.
CUSTOMERS
The ability to integrate new technologies
TECHNOLOGY
Quality, exibility, reliable and trustworthy in service.
SUPPLIERS
Quality, design and potential for new products and services.
PRODUCT AND
SERVICES
the special attributes or abilities that give an organization a competitive edge.
Distinctive competencies
the considering of events and trends that presents threats or opportunities for a
company
Environmental scanning
links between organizational and operations strategies.
⤷ this is an approach shows strengths and weaknesses have an internal focus and
evaluated by operation people. The threats and opportunities have external focus and
evaluated by marketing people.
SWOT-
Characteristicsthat customers perceive as
minimum standards of acceptability to be considered
as a potential purchase.
Order qualifiers
Characteristics of an organization’s goods or services
that cause it to be perceived as better than its
competitors.
Order winners
The approach, consistent with organization strategy, that is used to
guide the operations function.
OPERATIONS
STRATEGY
Focuses on maintaining or improving the quality of an organization’s
products or services.
QUALITY- BASED
STRATEGIES
Focuses on reduction of time needed to accomplish tasks
TIME-BASED
STRATEGIES
- It refers to the ratio of outputs and input. This means that economic
efciency is getting the most output from the least amount of inputs.
Economic Efficiency
It is ratio of product or service outputs to land, capital or labor inputs.
Organizational Efficiency
is an index that measures output (goods and services)
relative to the input (labor, materials, energy, and other
resources) used to produce
Productivity
is the increase in productivity from one period to the
next relative to the productive in the preceding period.
❖ Productivity growth
can be based on a single input (partial productivity),
on more than one input (multifactor productivity), or
on all inputs (total productivity).
Productivity measures
