Receiving shipments from suppliers verifying quality

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Receiving shipments from suppliers, verifying quality, placing in inventory, and reporting receipt for inventory records Gross- docking
Corporate Strategy . Environmental scanning o Core competencies . Core processes . Global strategies o Managing processes . Managing supply chains Performance Gap? Competitive Capabilities o Current . Needed . Planned ilew Service/ Product Development . Design o Analysis o Development . Full launch USING OPERATIONS TO CREATE VALUE CHAPTER 1 29 processes needed to be competitive in the marketplace. Competitive priorities are important to the design of existing as well as new services or products, the processes that will deliver them, and the operations strategy that will develop the firm's capabilities to fulfill them. Developing a flrm's operations strategy is a continuous process because the firm's capabilities to meet the competitive priorities must be periodically checked, and any gaps in performance must be addressed in the operations strategy. Corporate Strategy Corporate strategy provides an overall direction that serves as the framework for carrying out all the organization's functions. It specifies the business or businesses the company will pursue, isolates new opportunities and threats in the environment, and identifies growth objectives. Developing a corporate strategy involves four considerations: (1) environmental scanning: moni- toring and adjusting to changes in the business environment, (z) identifying and developing the firm's core competencies, (3) developing the firm's core processes, and (4) developing the firm's global strategies. Environmental Scanning The external business environment in which a firm competes changes continually and an organization needs to adapt to those changes. Adaptation begins with enuironmental scanning, the process by which managers monitor trends in the environment (e.g., the industry, the marketplace, and society) for potential opportunities or threats. A crucial reason for environmental scanning is to stay ahead of the competition. Competitors may be gaining an edge by broadening service or product lines, improving quality, or lowering costs. New entrants into the market or competitors that offer substitutes for a firm's service or product may threaten continued profitability. Other important environmental concerns include economic trends, technological changes, political conditions, social changes (i.e., attitudes toward work), and the availability of vital resources. For example, car manufacturers recognize that dwindling oil reserves will eventually require alternative fuels for their cars. Consequently, they have designed prototype cars that use hydrogen or electric power as supplements to gasoline as a fuel. < FIGURE 1.5 Connection Between Corporate Strategy and Key 0perations N{anagement Decisions l"lyOMLab Animation No Yes
30 CHAPTER 1 USING OPERATIONS TO CREATE VALUE core competencies The unique resources and strengths that an organization's management considers when formulating strategy.

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