week two Flashcards
what is business trategy about
Strategy is about creating a sustainable competitive advantage by
delivering a unique mix of value
Strategic positioning means performing :
- Different activities from rivals’, or
- Similar activities in different ways
A company can outperform rivals only if it can establish a
difference that it can preserve
what is operational effectiveness (OE)
Operational effectiveness (OE) means performing similar activities better
than rivals perform them
it is not the same as strategy
strategic positionong vs operational effectiveness
create a unique and competive value propesition– do things differently
OE- assimilating, attaining and extending best practice– do the same thing but better
productivety frontier
(dot on the parabol)state of best practise (performing activety in the most effective wey known
(dot in the parabol)-performing sub-optimally
Dot puched out of parabol - Pushing outward
the frontier
value disciplines three options
Operational excellence ‘‘best total costs’’: Accomplishing cost leadership. Here the
main focus centers on automating manufacturing processes and
work procedures in order to streamline operations and reduce cost.
The strategy lends itself to high-volume, standardized production
that has little need for much differentiation.
example= easyjet
Product leadership ‘‘best product’’: Build a culture that continuously brings
superior products to market. Strong focus on innovation and brand
marketing. Here product leaders achieve premium market prices
thanks to the experience they create for their customers. exapmle= KLM
Customer intimacy ‘‘best ttal seoution’’: Offering a unique range of customer services
that allows for the personalization of service and the customization
of products to meet differing customer needs. Strong focus on the
needs of the individual customer. ex; qatar airlaines
what should the strategic alligmnet why
- The business strategy should be translated into specific
functional areas (i.e., functional strategy). - A functional strategy should provide direction and guidance
for operations and supply chain decisions.
logistics performance in dimentions to the total product
production (fixed characteristics)
+ Mrketing ( expressive characteristics)
+ logistics: (variable characteristics)
=tottal product
logistics variable characteristigs
The product should be available:
* At the right place
* At the right time
* In the right quality
in an cost-efficient manner
Ensuring the availability
1. of the right product (or service)
2. in the right quantity
3. in the right condition
4. at the right place
5. at the right time
6. for the right customer
7. at the right cost
order qualefiers vs order winners
Order Qualifiers
A performance dimension on which customers expect a minimum
level of performance to be considered (=minimum ‘entry ticket’).
Order Winners
A performance dimension that differentiates a company’s products
and services from its competitors.
examples DIMENSIONS you can go off if it is an order winner of qualifier
ou want to buy an expensive, luxury car.
On what will you base your decision?
* Price?
→ Will you buy this car instead of another brand because this one is cheaper?
If the answer is ‘no’, then Price is an Order Qualifier
* Brand?
→ Will you buy this car compared to another brand because this one will increase your
status among your friends or colleagues?
If the answer is ‘yes’, then Brand is an Order Winner
* Availability?
→ Will you buy this car compared to another because this one is immediately available
when you go buy it?
If the answer is ‘no’ because you are willing to wait to buy this car, then Availability is an
Order Qualifier
—————————————-
You want to have a burger at a fast-food
restaurant. On what will you base your
decision of fast-food restaurant?
* Delivery time?
→ Will you choose to go to ABurger instead of BBurger because it serves
burgers faster?
If the answer is ‘no’, because both serve quickly (they are, after all, fast-food
restaurants) then Delivery Time is an Order Qualifier
* Quality?
→ Will you choose to go to ABurger instead of BBurger because its burgers
are of greater quality (i.e. fresher lettuce)?
If the answer is ‘yes’, then Quality is an Order Winner
forecast driven and cosumer driven
make-to- stock - high fc driven short delivery lus costumer order driven
assamble to order- have to set up things before chipping to costumer
make-to-orde; sucha as funeture you need mesurementst
engeneer- to - order for if you want an vaccine the company does everything
decoupeling point
A decoupling point is a critical concept in supply chain management and production, representing the point in the supply chain where the flow of goods switches from a push-based system (driven by forecasted demand) to a pull-based system (driven by actual demand). This point essentially “decouples” the upstream production processes (typically driven by anticipated demand) from downstream processes that respond to actual customer orders
