Professional Documents
Culture Documents
Chapter 2
Mission/Strategy
Mission - where you are going Strategy - how you are going to get there
Mission
Organizations purpose for being Provides boundaries & focus Answers How can we satisfy peoples needs? Expressed in mission statement
Public Image
Strategy Process
Environment al Analysi s Compan y Mission Busines s Strategy Functional Functional Area Area Strategies Operation s Decision s
SWO T Analysi s
Marketin g ecision D s
Fin./Acc t. Decision s
Competing on Differentiation
Uniqueness - can go beyond both the physical characteristics and service attributes to encompass everything that impacts customers perception of value
Competing on Cost
Maximum value as defined by customer Does not imply low value or low quality
Competing on Response
10 Decision Areas of OM
Quality Goods & service design Process & capacity design Location selection Layout design Human resource and job design Supply-chain management Inventory Scheduling Maintenance
High quality product High capacity utilization High operating effectiveness Low investment intensity Low direct cost per unit
28% - Operations Management 18% - Marketing and Distribution 17% - Momentum/Name Recognition 16% - Quality/service 14% - Good Management 4% - Financial Resources 3% - Other
Strengths & weaknesses of competitors and new entrants into the market Current and prospective environmental, legal, and economic issues The notion of product life cycle Resources available with the firm and within the OM function
Changes in the organization Stages in the product life cycle Changes in the environment
Best period to increase market share R&D engineering are critical Product design and development are critical Frequent product and process design changes Over-capacity Short production runs High skilled-labor content High production costs Limited number of models Utmost attentions to quality Quick elimination of market-revealed design defects
Little product differentiation Cost minimization Overcapacity in the industry Prune line to eliminate items not returning Good margin Reduce capacity
Environmental Analysis
Form a Strategy
Critical success factors are those activities or factors that are key to achieving competitive advantage. An Activity Map links competitive advantage, CSFs, and supporting activities.