Session 2 - Operations Strategy in a Global Environment,...

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Operations Strategy in a Global Environment, Maintenance and Reliability MANA 4301 Mission, Strategy, and Competitive Edge If you had the opportunity to set up an organization, where would you start? If you were asked to reorganize an existing organization, what would be your first action? The text recommends asking the question, "What is the purpose for this organization and how will it get there?" A mission statement can achieve the answer to the first part of this two-part question, and a plan or strategy designed to accomplish the mission, answers the second. Information in this chapter builds on these two concepts. Mission declares where the organization is going, and strategy determines how to get there. A mentor of mine once told me to plan my work and then work my plan. This is simple but good counsel. This is especially true for an Operations Manager because improvement in productivity requires an objective and a plan to get there. When an organization has developed a mission statement, it is then necessary to develop a course of action to make that mission happen. This course of action, or strategy, will be dependent upon an analysis of the current environment and an analysis of the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis) . The strategy to accomplish the mission should exploit strengths and opportunities, neutralize threats, and avoid weaknesses. Now that we understand the organization's mission and we have completed a SWOT analysis, we must develop a strategy. The organization needs this information to gain competitive advantage through strategic planning. The text presents three primary means for an Operations Manager to gain competitive advantage: Differentiation is to distinguish a product or service by value added. A good example would be a new car dealership that provides comparatively better customer service than what is offered by other dealerships. In Dallas, Sewell Cadillac's reputation for customer care differentiates them from other dealers who sell the same type of car. Low Cost is defined as achieving maximum value as perceived by the customer. If there are two products that have the same attributes (same value), a customer will select the product or service that costs less. Customer loyalty may be a consideration, but if the value is the same, cost becomes the deciding factor in
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This note was uploaded on 03/24/2012 for the course BUAD 4301 taught by Professor Gailarnott during the Spring '12 term at Dallas Baptist.

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Session 2 - Operations Strategy in a Global Environment,...

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