session 2 Flashcards
Strategy
Means by which individuals or organizations acheive their objectives, Providing direction + decision making guidelines + competitive advantage
Different levels of corporate strategy
- Corp strat (entire org)
- Business strat (Biz unit)
- -Functional strat (Biz functional lvl)
- -Operational strat (implementation lvl)
Operations strat
Provides direction and coordinates people with operational goals with those of the larger org.
- Setting broad policies and plans
- Must be integrated with corp and biz strat
-Diff operational activities need to link to each other
Goal of operational strat
Achieve both operations effectiveness and efficiency which implements strategic priorities at a minimum cost.
Companies must compete on what factors?
- Price : offer at lower cost, or cheaper service
- Quality : provide superior products or services
- Delivery speed
- Delivery reliability
- Flexibility : offering customization or variety
- Innovation, sustainability and customisation - differentiating based on unqiue customer needs.
Trade offs?
Companies cannot excel in all areas at once, Focusing too broadly leads to inefficiencies.
Strategic alignment
Ensuring that operational priorities match the overall strategy
Straddling
When a company tries to imitate a competitors strategy while maintaining its existing position.
Risks of straddling
- Risky
- Dilute focus
- Create inefficiency
Order Qualifiers
Features of a product or service must have to be considered for purchase. (NECESSARY)
Order winners
Features that differentiate a product and influence the customers final choices from competitors. (DIFFERENTIATE)
Productivity + formula
Productivity: A measure of how well resources are used.
Formula: inputs / outputs
Partial productivity
Compares output to a single input.
(Eg = labor productivity = output oer worker)
Multifactor productivity
Compares output to multiple inputs (Eg. output per unit of labor materials)
Total productivity
Considers all inputs
