Brand name drugs inc generic drug corp generic drug

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Brand Name Drugs, Inc. Generic Drug Corp. Generic Drug Corp. Competitive Competitive Advantage Advantage Product Differentiation Product Differentiation Low Cost Low Cost Scheduling Centralized production planning Many short-run products complicate scheduling Layout Layout supports automated product- focused production Layout supports process-focused “job shop” practices Table 2.2
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2 - 57 Operations Strategies of Operations Strategies of Two Drug Companies Two Drug Companies Brand Name Drugs, Inc. Brand Name Drugs, Inc. Generic Drug Corp. Generic Drug Corp. Competitive Competitive Advantage Advantage Product Differentiation Product Differentiation Low Cost Low Cost Human Resources Hire the best; nationwide searches Very experienced top executives; other personnel paid below industry average Supply Chain Long-term supplier relationships Tends to purchase competitively to find bargains Table 2.2
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2 - 58 Operations Strategies of Operations Strategies of Two Drug Companies Two Drug Companies Brand Name Drugs, Inc. Brand Name Drugs, Inc. Generic Drug Corp. Generic Drug Corp. Competitive Competitive Advantage Advantage Product Differentiation Product Differentiation Low Cost Low Cost Inventory High finished goods inventory to ensure all demands are met Process focus drives up work-in-process inventory; finished goods inventory tends to be low Maintenance Highly trained staff; extensive parts inventory Highly trained staff to meet changing demand Table 2.2
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2 - 59 Issues In Operations Strategy Issues In Operations Strategy Resources view Value Chain analysis Porter’s Five Forces model Operating in a system with many external factors Constant change
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2 - 60 Product Life Cycle Product Life Cycle Best period to increase market share R&D engineering is critical Practical to change price or quality image Strengthen niche Poor time to change image, price, or quality Competitive costs become critical Defend market position Cost control critical Introduction Growth Maturity Decline Company Strategy/Issues Figure 2.5 Internet search engines Sales Drive-through restaurants CD-ROMs Analog TVs iPods Boeing 787 LCD & plasma TVs Twitter Avatars Xbox 360
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2 - 61 Product Life Cycle Product Life Cycle Product design and development critical Frequent product and process design changes Short production runs High production costs Limited models Attention to quality Introduction Growth Maturity Decline OM Strategy/Issues Forecasting critical Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focus Enhance distribution Standardization Fewer product changes, more minor changes Optimum capacity Increasing stability of process Long production runs Product improvement and cost cutting Little product differentiation Cost minimization Overcapacity in the industry Prune line to eliminate items not returning good margin Reduce capacity Figure 2.5
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2 - 62 Strategy Analysis SWOT Analysis SWOT Analysis Internal S trengths Internal W eaknesses External O pportunities External T hreats Mission
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  • Spring '13
  • john
  • Management, Operations, Boeing 737

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