Topic 2 Flashcards
Competitiveness
The ability and performance of an organization in the marketplace compared to other organizations that offer similar goods and services.
Strategic planning
A process in which an organizations leaders defines their vision for the future and identify or has goals
Key purchasing criteria
- cost
- quality
- delivery
- flexibility
Why aren’t Costco and dollar store not competitive
- different segment, market, target makret, mission and vision
Competitive priorities
Organizations compete by emphasizing one or more of the key purchasing criteria in their operations. From an organizations point of view
Mission
Where the organization is going now, products and markets
Visions
Where the organization desires to be in the future
Values
Shared beliefs of the organization’s stakeholders
Goals and objectives
Provide detail and scope of mission
Strategies
Plans that determine direction for achieving organizational goals
Tactics
The specific methods and actions taken to accomplish strategies
Strategic planning process
- Determine a Mission (where it is going now) and a Vision (where the organization desired to be in the future)
- Use frameworks (e.g. SWOT, Balance Scorecard) to develop one or more goals and a strategy (direction) to achieve each goal
- Break each Goal into Objectives (a target for what can be accomplished in a year) and Implement the goal through Action Plans (projects)
Key external factors
Economic conditions
Political conditions
Competition
Legal environment
Technology
Customers
Suppliers
Markets
Key internal factors
Human Resources
Facilities and equipment
Balances scorecard framework
- financial: it succeed financially how should we appear to our shareholders
- internal business processes: to satisfy our shareholders and customers what business processes must we excel at
- learning and growth: to acieve our vision, how will we sustain our ability to change and improve
- customer: to achieve our vision how should we appear to our customers
Hierarchy strategy
Mission
Goal
Strategy
Tactics
Operations
Operations strategy
set of coordinated policies, objectives, and action plans, directly affecting the operations function
– Consistent with organization strategy
– Support competitive priorities
– Aimed at securing a long-term sustainable advantage over the competition
Categories of strategic decisions categories
facility
Capacity
Vertical integration
Supplier relations/partnership
Human Resources
Product mix and new products
Quality
Production process types and technology
Operations infrastructure and systems
Generic operations strategies
- low labour costs
- focuses factories strategies
- scale based strategy
- continuous inprovement
- flexible factories
Productivity
• A measure of the effective use of resources, usually expressed as the ratio of output to input
• Productivity ratios can be computed for:
– A worker
– A department
– An organization
– A country
– O/P: goods and services
– I/P: machine, labour, material and energy
Formula for calculating productivity
Productivity = outputs/inputs
Measures of productivity
Partial
Multi-factor
Total
Productivity growth formula
(Cp-Pp)/Pp
Cp = current period productivity
Pp = previous period productivity
