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OperationsStrategy Chapter2 HowOperationsStrategyfitstheOperationsManagementPhilosophy OperationsAsaCompetitiveWeaponOperationsStrategyProjectManagement ProcessStrategyProcessAnalysisProcessPerformanceandQualityConstraintManagementProcessLayoutLeanSystems SupplyChainStrategyLocationInventoryManagementForecastingSalesandOperationsPlanningResourcePlanningScheduling Starbucks Ifsomeonesays Letsgooutforcoffee Starbucksoftencomestomind EntrepreneurHowardSchultzhadanoperationsstrategyinmindin1990whenheboughtthe17 storeSeattlechainandturneditintoaglobalsuccess Servicestrategywaskey OfferingavarietyofspecializedproductsandservicesInternetaccess phoneaheadordering andCDburning allinasociallyinteractiveatmosphereCustomerintimacy OperationsStrategy Operationsstrategyisthemeansbywhichoperationsimplementsthefirm scorporatestrategyandhelpstobuildacustomer drivenfirm Itlinkslong termandshort termoperationsdecisionstocorporatestrategy Itisthecoreofmanagingprocessesandvaluechains Customer DrivenOperationsStrategy Corporatestrategyviewstheorganizationasasystemofinterconnectedparts eachworkingwiththeotherstoachievedesiredgoals OperationsStrategysupportsthecorporatestrategyandrequirescontinuouscross functionalinteraction Theoperationsstrategyshouldbecustomerdriven Zaracase DevelopingaCorporateStrategy Developingacorporatestrategyinvolvesthreeconsiderations MonitoringandadaptingtotheenvironmentIdentifyinganddevelopingcorecompetenciesDevelopingthefirm scoreprocessesAdaptingrequiresenvironmentalscanningtomonitortrendsforopportunitiesandthreats CoreCompetenciesaretheuniqueresourcesandstrengthsanorganizationpossesses CoreCompetencies Corecompetenciesinclude Awell trainedandflexibleWorkforceHavingwell located flexibleFacilitiesHavingMarketandFinancialKnow How ExpertiseinSystemsandTechnology Thecorecompetenciesshoulddeterminethefirm scoreprocesses Thesecanincludecustomerrelations newservice productdevelopment orderfulfillment andsupplierrelationships Afirmmayhavealloftheseorfocusonasubsetofthem asdeterminedbyitscorecompetencies Corecompetenceexamples Starwoodcase page19Franchisingfranchiseefranchisorservicefee McDonald4 monthlysalesConsistency GlobalStrategies Aglobalstrategymayincludebuyingforeignservicesorpartsandenteringorexpandingforeignmarkets Twoeffectiveglobalstrategiesare StrategicAlliancesCollaborativeeffortsJointventuresTechnologylicensingLocatingabroad MarketAnalysis AMarketAnalysisisonekeytodevelopingacustomer drivenstrategy andisaccomplishedintwoparts MarketSegmentation whichidentifiesgroupsofcustomerswithenoughincommontowarrantdevelopingservicesand orproductsforthem NeedsAssessmentidentifiestheneedsofeachmarketsegment Needsincludesuchthingsas ServiceorproductneedsDeliverysystemneedsVolumeneeds ArrivingattheCompetitivePriorities CorporateStrategyenvironmentalscanningcorecompetenciescoreprocessesglobalstrategies CompetitivePriorities Cost1 Low costoperationsQuality2 Topquality3 ConsistentqualityTime4 Deliveryspeed5 On timedelivery6 DevelopmentspeedFlexibility7 Customization8 Variety9 Volumeflexibility CompetitiveCapabilities TheCompetitiveCapabilitiesarethecost quality timeandflexibilitydimensionsofcompetitiveprioritiesthataprocessorvaluechainactuallypossessesandisabletodeliver LowCostmeansdeliveringaserviceorproductatthelowestpossiblecosttothesatisfactionofthecustomer TopQuality Deliveringanoutstandingserviceorproduct Considerableinteractionwiththecustomersmayberequiredtodeterminewhatthatmeans ConsistentQuality Producingservicesorproductsthatmeetdesignspecificationsonaconsistentbasis QualityasaCompetitiveCapability TimeasaCompetitiveCapability DeliverySpeedisquicklyfillingacustomer sorder LeadTimeisthetimebetweenreceiptofanorderandfillingtheorder On TimeDeliverymeansmeetingthedeliverytimepromises DevelopmentSpeedisquicklyintroducinganewserviceorproduct Time BasedCompetitionisastrategythatfocusesondevelopmentspeedanddeliveryspeed Customizationmeanssatisfyingtheuniqueneedsofeachcustomerbychangingtheserviceorproductdesigns Varietyinvolveshandlingawideassortmentofservicesorproductsefficiently VolumeFlexibilityrequiresacceleratingordeceleratingtherateofproductionquicklytohandlelargefluctuationsindemand FlexibilityasaCompetitiveCapability Costcocase page50 OrderWinnersandOrderQualifiers Thesearecriteriausedbycustomersinserviceorproductselection OrderWinnersarecriteriafordifferentiatingservicesorproductsofonefirmfromthoseofanother Price quality time flexibility aftersalessupport reputation etc OrderQualifiersaredemonstratedlevelsofperformancerequiredtodobusinessinaparticularma
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