Lecture2 - Operations Strategy Defining how firms compete...

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Operations Strategy Defining how firms compete
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OBJECTIVES Introduce the concept of operations strategy and its various components, and show how it relates to the overall business strategy of the firm. Illustrate how operations strategy leads to adding value for the customer. Identify the ways operations strategy can help an organization achieve a competitive advantage. Introduce the concept of trade-offs among different strategies and the need for a firm to align its operations strategy to meet the needs of the particular markets it serves. 2–2
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OBJECTIVES Explain the difference between order-qualifiers and order- winners as they pertain to operations strategy. Describe how firms integrate manufacturing and services to provide an overall “bundle of benefits” to their customers. 2–3
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Managerial Issues Developing and Implementing Effective Strategies Meeting the challenges of increased competition in a  globalized business environment. Keeping up with technology advances. Learning to do more with less. Staying ahead of copycat competitors. Keeping an eye on the future. 2–4
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Operations Strategy – An Overview A Short History of Operations Strategy Corporate strategy largely developed by marketing  and finance functions within companies. Lack of global competitors and competition Focus on low-cost labor and assembly-line production Wickham Skinner believed that operations  (manufacturing) strategy was a complement to  corporate strategies and a competitive weapon. 2–5
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Developing Missions and Strategies Developing Missions and Strategies Mission Mission statements tell an statements tell an organization where it is going organization where it is going The The Strategy Strategy tells the tells the organization how to get there organization how to get there
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Mission Mission Mission - where are Mission - where are you going? you going? Organization’s Organization’s purpose for being purpose for being Answers ‘What do we Answers ‘What do we provide society?’ provide society?’ Provides boundaries Provides boundaries and focus and focus
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Benefit to Society Mission Factors Affecting Mission Factors Affecting Mission Philosophy and Values Profitability and Growth Environment Customers Public Image
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Strategic Process Strategic Process Marketing Operations Finance/ Accounting Functional Area Missions Organization’s Mission
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Strategy Strategy Action plan to achieve Action plan to achieve mission mission Functional areas have Functional areas have strategies strategies Strategies exploit Strategies exploit opportunities and opportunities and strengths, neutralize strengths, neutralize threats, and avoid threats, and avoid weaknesses weaknesses
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Strategies for Competitive Advantage Strategies for Competitive Advantage Differentiation – better, or at least different Cost leadership – cheaper Response – rapid response
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  • Spring '14
  • Management, international operations strategies

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