om Flashcards
denotes a firm’s ability to achieve market and financial superiority over its competitors.
Competitive Advantage
basic customer expectations are generally considered the minimum performance level required to stay in business
Order Qualifiers
are goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer’s business.
Order Winners
those that a customer can determine prior to purchasing the goods and/ or services
Search attributes
those that can be discerned only after purchase or during consumption or use
Experience attributes
any aspects of a good and service that the customer must believe in but cannot personally evaluate even after purchase and consumption
Credence Attributes
represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain
Competitive Priorities
Low cost can result from high productivity and high-capacity utilization
A strategy of continuous improvement is essential to achieve a low-cost competitive advantage
Cost
Business offering premium quality of goods
b. Quality is positively and significantly related to a higher return investment
c. Lead to increased market share, but a cost in terms of reduced short-run profitability
Quality
Speeding up processes in supply chains improves customer response.
Time
manifest in mass-customization strategies that are becoming increasingly prevalent today
Flexibility
being able to make whatever goods and services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world.
Mass customization
is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms.
Innovation
is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole
Strategy
which are the strengths that are unique to that organization
i. Provide a focus for the entire organization and exploit an organization
Core Competencies
necessary to define the businesses in which the corporation will participate and develop plans for the acquisition and allocation of resources among those businesses.
CORPORATE STRATEGY
focus for SBUS. Major decisions involve which markets to pursue and how best to compete in those markets- that is, which competitive priorities the firm should pursue
BUSINESS STRATEGY
the means by which business strategies are accomplished. A set of decisions that each functional area (marketing, finance, research and development, engineering, etc.) develops to support its particular business strategy
FUNCTIONAL STRATEGY-
how an organization’s processes are designed and organized to produce the type of goods and services to support the corporate and business strategies
OPERATIONS STRATEGY
is the set of decisions across the value chain that supports the implementation of higher-level business strategies.
Operations Strategy
using three dimensions – environmental, social, and economic sustainability.
Sustainability
community, green advocacy groups, and the government drive
Environmental Sustainability
driven by ethics and human ideals of protecting the planet and its people for the well-being of future and generations
SOCIAL SUSTAINABILITY
driven by shareholders such as pension funds and insurance companies.
ECONOMIC SUSTAINABILITY
defines the essential elements of an effective operations strategy in the last two columns-operations design choices and building the right infrastructure
FRAMEWORK FOR OPERATIONS AND STRATEGY
originally designed for goods-producing organizations; however, it can also be applied to service-providing firms
FRAMEWORK FOR OPERATIONS AND STRATEGY
the decisions management must make as to what type of process structure is best suited to produce goods or create services
OPERATIONS DESIGN CHOICES-
focuses on the nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation system, learning and innovation systems, and support services.
INFRASTRUCTURE
