The success of timex depended upon a careful matching

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foreign countries) were made by Timex. The success of Timex depended upon a careful matching of production and marketing strategies. The Timex formula through the early years: Mass Production and Mass Marketing.
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TIMEX: Mass Production Single, simple product focus Simple process technology Unskilled labor Economies of Scale Product durability stressed High degree of standardization Swiss Timex 98 parts 125 parts 6 plates 2 plates 31 screw s 6 screw s 100 steps 6 steps
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TIMEX: Mass Marketing Mass distribution through drug stores Changed consumer s views towards watches: No longer a heirloom , but functional T.V. Ads used to reach masses Now consumer challenged that relationship
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TIMEX: (follow-up story) In the 1960 s Timex upgraded its product lines partly as a competitive weapon and partly as an attempt to expand its market. The plan: moved to 17 and 21 jeweled watches, electronic watches, multiple technologies, expanded retail outlets. Timex expanded its focus from the single product, single technology company it was in 1950 s. Pros: Upper end of their line made lower portion of line look good. Cons: Image problem, customers confused. Increased competition. Multi product line increased inventory holdings, operating costs.
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Competitive Priorities: Cost Quality Flexibility Delivery Structure: Capacity Facility Technology Infrastructure: Workforce Quality Production Planning Organization Operations Strategy Model
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Time line for Operations Strategies
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Characteristics of a good operations strategy 1. Is the operations adaptive and flexible? (Ready for changing in operations when necessary?) 2. Dose the operations unit provide a real competitive advantage? (An advantage in facility may not be an advantage in the marketplace.)
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Thanks, but I really have no use for a Stairmaster. A unique competence may not give you a real competitive advantage - a lesson for Operations managers.
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Characteristics of a good operations strategy 3. Are operations decisions internally consistent? 4. Are operations decisions compatible with and supportive if the firm s strategy? 5. Is the operation unit focused on a limited dimensions?
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Strategic vs Tactical Decision 1.MGT level 2.Time horizon 3.Importance 4. Uncertainty 5.Problem nature Strategic Top Long range Large impact (across organization) High unstructured Tactical Middle or low Short range Small impact (within functional unit) Low structured
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Strategic vs Tactical Decision (II) 6.Information Needs 7.Correction after implementati on Strategic Qualitative External Related to future Difficult and expensive Tactical Quantitative Internal Related to past Relatively easy and inexpensive
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Examples of strategic decisions in operations management 1.Product and process design 2.Technology selection 3.Inventory level determination 4.Work force size and composition 5.Facility location 6.Facility size and layout (capacity planning)
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Examples of strategic decisions in operations management (II) 7.Integration degree 8.span of process (e.g. make of buy
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