Bus189chpt4FALL9-15-09

Bus189chpt4FALL9-15-09 - FUNCTIONAL LEVEL STRATEGIES - CHPT...

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FUNCTIONAL LEVEL STRATEGIES - CHPT 4 BUSINESS 189 Fall 2009 DR. MARK FRUIN
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FUNCTIONAL-LEVEL STRATEGIES PP 110-111, THE BOOK CONTINUES TO CONFUSE FUNCTIONAL STRATEGIES AND DISTINCTIVE COMPETENCIES WELL DONE FUNCTIONAL STRATEGIES CAN RESULT IN DISTINCTIVE COMPETENCIES, the book says BUT DISTINCTIVE COMPETENCIES DO NOT LEAD TO FUNCTIONAL STRATEGIES ALTHOUGH THEY MAY CHANNE/DIRECT WHERE FURTHER INVESTMENT & EFFORT MAKE SENSE
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FUNCTIONAL LEVEL STRATEGIES SUPERIOR EFFICIENCY ANYWHERE IN THE ORGANIZATION NOT JUST THE PRODUCTION LINE SUPERIOR QUALITY ANYWHERE IN THE ORGANIZATION QUALITY AS RELIABILITY; QUALITY AS EXCELLENCE SUPERIOR CUSTOMER RESPONSIVENESS ANYWHERE IN THE ORGANIZATION CUSTOMERS ARE NOT JUST “OUT THERE” SUPERIOR INNOVATION ANYWHERE IN THE ORGANIZATION
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EFFICIENCY TWO FACTORS DETERMINE A FIRM’S PROFIT RATE THE VALUE CUSTOMERS PLACE ON FIRM OFFERING THE COSTS OF PRODUCING & DELIVERING THOSE OFFERINGS DIFFERENCE BETWEEN COSTS OF INPUTS AND VALUE OF OUTPUT PRODUCTIVITY MEASURES OUTPUT PER EMPLOYEE
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SUPERIOR VALUE CREATION EITHER ENJOY THE LOWEST COST STRUCTURE IN THE INDUSRY 2Ss: SCALE & SCOPE OTHER COST ADVANTAGES? OR CREATE THE MOST VALUABLE PRODUCT IN EYES OF CUSTOMERS THE GAP BETWEEN PERCEIVED VALUE AND COSTS OF PRODUCTION ALLOWING A HIGH PRICE = DIFFERENTIATION STRATEGY
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SUPERIOR EFFICIENCY TEXT DISCUSSES ECONOMIES & DISECONOMIES OF SCALE ON PP 111-12 AT SOME POINT INCREASING SCALE MAY NOT YIELD LOWER COSTS PER UNIT GENERALLY, SCALE RELATED INVESTMENTS ARE LUMPY; NOTION OF MES
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This note was uploaded on 09/08/2010 for the course BUS 189 at San Jose State.

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Bus189chpt4FALL9-15-09 - FUNCTIONAL LEVEL STRATEGIES - CHPT...

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