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Competitive Priorities
The key to developing an effective operations strategy lies in understanding how to create or add value for customers Specifically value is added through the competitive priority or priorities that are selected to support a given strategy Skinner and others initially Identified four basic competitive priorities These were cost quality delivery and flexibility These four priorities translat
Trends Affecting Operations Strategy Decisions
Two major trends that have significantly impacted the role of operations strategy within an organization are an increasing trend towards the globalization of business and advances in technology especially information technology.
Globalization
As we saw in the first chapter the world is quickly becoming a global village caused in large part by technology As a result
Operations Strategy Means Adding Valuefor the Customer
customers perceive value in the product The more the benefits exceed the costs the more value the product provides In other words.
When this ratio is I customers perceive value the greater the number the more value When this ratio is I customers feel they have overpaid for the product that they have been ripped off and are highly unlikely to buy that pr
What is Operations Strategy?
Operations strategy is concerned with the development of a long-term plan for determining how to best utilize the major resources of the firm so that there is a high degree of compatibility between these resources and the firm’s long-term corporate strategy Operations strategy addresses very broad questions about how these major resources should be configured in order to ach
A Short History of Operations Strategy
In the period following World War II corporate strategy in the United States was usually developed by the marketing and finance functions within a company With the high demand for consumer products that had built up during the war years U.S. companies could sell virtually everything they made at comparatively high prices In addition there was very little
international compe
Functional strategies
Functional strategies (for example operations marketing human resources) are developed to support or align with the established business strategy A company or Sbjct competitiveness refers to it relative position in the marketplace in terms of how it competes with the other firms in it industry Operations strategy refers to how the operations management function contribute to a firm abilit
Operations Strategy-An Overview
Definitions
There often develops within an industry or company a unique set of tunes that are familiar only to those associated with that industry or company. This is also true for the functional areas within an organization. Since operations strategy is a relatively new and evolving concept several of the terms more commonly used are defined here Today many corporations especial
Managerial Issues
An organization’s operations strategy provides an overarching framework for determining hew it prioritizes and utilizes its resources to gain a competitive advantage in the marketplace Today’s operations-managers face many new challenges with respect to strategy issues from developing effective strategies to properly implementing them throughout tile organization.
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DELL COMPUTER UNDERSTANDS OPERATIONS STRATEGY
No one will argue that the market for personal computers (PCs) is highly competitive Consequently pea are typically viewed commodity in which there is little or no difference Arno the major competitors Nevertheless Dell Computer continues to gain market share while simultaneously generating significant profits and is now the leader in both categories Bet
Operations Strategy
Defining how firms compete
Introduce the concept of operations strategy and its various components and show ho I it relates to the overall business strategy of the firm.
Illustrate how operations strategic pertains to adding value for the customer.
Identify the different ways in which operations strategy can provide an organization with a controvert advantage.
Introduce the concept of trade
