管理学专业英语教程(第4版)

ModernManagementMovement管理学专业英语教程Outlines

——approachestomodernmanagement123456Processapproach

Systemapproach

Contingencyapproach

Strategicmanagementapproach

Japanesestylemanagementapproach

Excellenceapproach

Outlines

——frameworkofthemodernmanagementmovement123ClassicaltheoryBehavioraltheoryQuantitativetheory4systemsandcontingencymanagementtheoryHarodKoontz

ManagementjungletheoryVariances

intheprocessapproachProcessApproach

ProcessApproach

PlanningOrganizingLeadingControllingDefininggoalsestablishingstrategy,anddevelopingplanstocoordinateactivitiesDeterminingwhatneedstobedone,howitwillbedone,andwhoistodoitMotivating,leading,andanyotheractionsinvolvedindealingwithpeopleMonitoringactivitiestoensurethattheyareaccomplishedasplanned

LeadtoAchievingtheorganization’sstatedpurposesProcessapproachproposedbyFayol

SystemApproach

Twobasictypes——focusonproductionandefficiency※Closedsystem

notinfluencedbyanddonotinteractwiththeirenvironment

e.g.Taylor’sscientificmanagement,Weber’sbureaucratictheory,etc.※

Opensystemrecognizeandrespondtotheirenvironmente.g.humanrelationsschool,organizationaldevelopment,etc.SystemApproach

VonBertalanffy“system”

connectedpartsjoinedtoformawholeinwhichthecoordinatedandcombinedeffectofthesubsystemscreatessynergyInternalbehavior

peopleinsideorganizationsperformtheirindividualandgrouptasksExternalbehavior

integratesorganizationaltransactionswithotherorganizationsandinstitutions

SystemApproach

DistinctpurposeDeliberatestructurePeople

organizationClosedsystem

routinetaskstaskspecializationclassspecificationchainofcommandformalhierarchy1864512Spanof8Employees=512Managers(level1-3)=73SystemApproach

systemenvironmentenvironmentOpensystem★non-routinetaskperformance

★interactionbetweenstaffandemployeesbothverticallyandhorizontally

★prestigeisexternalized(reputation,knowledge)Theorganizationtakesresources(inputs)fromthelargersystem(environment),andreturnsthemtotheenvironmentinchangedform(outputs)ContingencyApproach

SimplisticprinciplesareincompleteContingencyapproachisproposedbyorganizationaltheorists(Lawrence,LorschandSchein)Contingencymanagementstressestheneedforappraisalandanalysisoftheentiremanagerialenvironmentwithintheorganization.ContingencyapproachpromotesorganizationaleffectivenessItsetscentersonthebestcontingencyplayThereisanappropriatepatternforrelationshipswhichexistsfororganizationsAgreementexistsbetweenorganizationsandtheirinternalandexternalenvironments,andbetweenthemanagementsystemanditsvariouscomponents.ContingencyApproach

ThreePrincipleSetsStrategicmanagementisconcernedprimarilywiththedecision-makingprocessandactionswhichdetermineanorganization’slong-runperformanceItemphasizesmonitoringandevaluatingexternalandinternalenvironmentalopportunitiesandcontrolsinviewofanorganization’sstrengthsandweaknesses(case1:SWOT)StrategicmanagementApproach

InternalExternalUtilizeImproveOpportunitiesCSRawarenessFavorablepoliciesandenvironmentTechnologicaladvantageAdvantageinmarketingchannelsCompatibilityabilityLong-establishedcompanywithsignificantexperienceinmarketingandgoodrelationshipwithmanufacturers.HavenotyetfullytakenthelargeimmatureemergingAsianmarket.Cross-industryadvantageGovernmentpriceceilingsSynergyWeakregionalportabilityExpansionbarrierMonitorEliminateThreats100%oftheshareholdersin3EuropeancountriesandmajoritiesinotherEuropeancountries.Lowfeesforcallsmadeoutsidethehomecountry）voiceusage.EarningrateofprimarybusinesstoohighEffectofinternationalfinancialcrisisCompetitionpressureIncompatibilitywithlocalcommunicationstandardsHardtodifferentiatedifferentfirmsStrengthWeaknessCASE1:SWOT

analysisonDIZZcompanyStrategicmanagementApproach

Strategicmanagementinvolvesfourbasiccomponents:(1)environmentalscanning;(2)strategyformulation;(3)strategyimplementation;(4)evaluationand

control.e.g.Porter’s5competitiveforcesanalysisStrategicmanagementApproach

VonNeumannand

Morgensterntheydefinedstrategyasaseriesofactionstakenbyacorporationwhicharedecidedonaccordingtotheparticularsituation

DruckerdescribesstrategyasameansofanalyzingthepresentsituationandchangingitifnecessaryChandlerstrategyisthatitdeterminesthebasiclong-termgoalsofacorporationAnsoffexaminedstrategy,fromaprogrammaticandanalyticapproachHoferandSchendelMintzbergstrategyasamediatingforcebetweenanorganizationanditsenvironmentStrategicmanagementApproach

Deming,1950,introducedacomprehensivemanagementsystemwhichisthemodelforJapanese-stylemanagement,ortotalqualitymanagement(TQM)TQMusesstatisticstoanalysesvariabilityinproductionprocessesinordertoimprovetheproductqualitycontinuouslystructuredannualimprovements1majortrainingprograms2uppermanagementleadership3StrategicmanagementApproach

Juranthefirsttodealwiththebroadmanagementfeaturesofquality,whichdistinguisheshimfromthosewhoadvocatespecifictechniques,statisticalorotherwise.Heincludedthreebasicstepstoprogress:StrategicmanagementApproach

Crosby

conceptofzerodefects

qualityisconformancetorequirementsanditcanonlybemeasuredbythecostofnon-conformance

threecomponentsthancanbeusedbyorgznizationstopreventnon-conformances---determination,educationandimplementation.OuchiTheoryZcorporationsgeneratedcloserelationshipswiththeiremployeesandevenmadelong-termemploymentcommitmentstothenewhiresTheyalsodevelopedtheiremployees’talentsandfocusedonteamworkthroughlateraljobrotationsandcollectivedecisionmaking.ExcellenceApproach

PetersandWatermanThemajorfocusofexcellencemanagementisimprovingmanagementinordertogainormaintainexcellencewithinacorporation.effectiveorganizationscontinuetostriveforimprovement.References

Management

（9thedition）,StephenP.Robbins&MaryCoulterPracticeofManagement,Drucker1954TheArtofJapaneseManagement,Pascale&Athos,1981InSearchofExcellence,Peters&WatermanTwoDimensionofOrganizations管理学专业英语教程Outlines

——twobasicdimensionsoforganizations112212TheHorizontalDimensionDivisionofLaborDepartmentalizationTheVerticalDimensionUnityofCommandAuthority-responsibilityequationHorizontalDimensionVerticalDimensionDivisionofLaborDepartmentalizationIntegrationbetweenorganizationallevels发挥优势迎接OrganizationalStructureOutlines

——twobasicdimensionsoforganizationsCoordinationbetweenorganizationallevelsOrganizationateachspecificlevelHorizontalDimension1DivisionofLaborindividualsspecializeindoingpartofanactivityratherthantheentireactivity

Assembly-lineproductionFast-foodcompaniesHorizontalDimension1DivisionofLaborPros&ConsofDivisionofLabormakesefficientuseofthediversityofskillsandcapabilitiesthatemployeeshave——anunendingsourceofincreasedproductivityduringearlytimesLeadstoboredom,jobstress,lowproductivity,poorquality,increasedabsenteeism,andhighturnover

HorizontalDimension2DepartmentalizationgroupingindividualsintoseparateunitsordepartmentstofacilitatetheaccomplishmentoforganizationalgoalsHorizontalDimension2Departmentalization123functionaldepartmentalizationcustomerdepartmentalizationgeographicdepartmentalization3processdepartmentalizationHorizontalDimension1functionaldepartmentalizationEngineeringDept.AccountingDept.ManufacturingDept.PurchasingDept.HRDept.AManufacturingPlantProduct-relatedHorizontalDimension1functionaldepartmentalizationTaxDept.ConsultingDept.AuditingDept.AnAccountingFirmService-relatedHorizontalDimension2CustomerdepartmentalizationcustomersineachdepartmenthaveacommonsetofproblemsandneedsthatcanbestbemetbyhavingspecialistsforeachHorizontalDimension2CustomerdepartmentalizationRetailingDept.WholesalingDept.Gov.Dept.AnOfficeSupplyFirmHorizontalDimension2CustomerdepartmentalizationDeptforindividualclientsDeptforcorporateclientsALawOfficeHorizontalDimension3GeographicdepartmentalizationCoca-Colain1990sWesternDept.MidwesternDept.EasternDept.SouthernDept.HorizontalDimension4ProcessdepartmentalizationPressDept.

CastDept.InspectDept.PackDept.

ShipDept.An

AluminiumPlantHorizontalDimension2DepartmentalizationNewTrends:

IncreasedcustomerdepartmentalizationCross-functionalteams3

MatrixDepartmentalizationHorizontalDimension2DepartmentalizationCross-functionalteamstheybringtogetheradiversityofexpertswhomightnevercrosspathsinatraditionalorganizationalthoughtheirworkmightbehighlyinterdependent3

MatrixDepartmentalizationHorizontalDimensioncopewiththedemandsofefficientlyandeffectivelymanaginganumberofconcurrentprojectsanorganizingapproachthatassignsspecialistsfromdifferentfunctionaldepartmentstoworkononeormoreprojectsthatareledbyaprojectmanager3

MatrixDepartmentalizationHorizontalDimension3

MatrixDepartmentalizationVerticalDimension12UnityofCommandAuthority-responsibilityequationHowtodeterminethetypesandamountsofanauthorityandresponsibilitythatorganizationalmemberswillhaveAddresseswhoaworkerreportstoVerticalDimension1UnityofCommandOneincommandConflictingdemandsPrioritiesfromseveralmgrsVerticalDimension2Authority-responsibilityequationAuthorityCouldbedelegated

Relatestoone’spositionwithinanorganizationandignoresthepersonalcharacteristicsoftheindividualmanagerVerticalDimension2Authority-responsibilityequationAuthorityTwoForms:LineAuthorityStaffAuthorityTosupport,assist,advice,reduceinformationalburdensofLineAuthorityCreatesVerticalDimension2Authority-responsibilityequationResponsibilityCouldnotbedelegatedTwoForms:OperatingResponsibilitiesUltimateResponsibilities

TheCasefor

ContingentGovernance

管理学专业英语教程（第四版）Outlines123Thereasonsforcontingentgovernance

TwobroadstreamsofcommentaryandresearchFocusedversusbroadgovernanceEvolvingconditionsGovernancehastocontinuallyadapttochangingconditionsbecauseacompany,itsmanagementandbusinessenvironmentareforeverevolving.Asaresult,corporateboardsmustadopttherightrolestoreflectandshapethosegovernanceconditions.ThereasonforcontingentgovernanceThereasonforcontingentgovernanceImperfectmarketsInanidealworldcomprisingcompetitivemarketsandtransparentinformation,thelegalsystemandmarketprocesseswould,bythemselves,provideperfectlyadequatecorporategovernance.Therealworld,however,isfarfromideal.Thus,governanceisnecessarytodealwiththethingsthatfalloutsidemarketsaswellasthepeoplewhowouldmanipulatedecisionsintheirowninterests.Twobroadstreamsofcommentaryandresearch

ExternalityAgencyproblemsTwobroadstreamsofcommentaryandresearch

ExternalityMarketsalonedonotcapturethefullimpactofcompanies;inparticular,theydonotpricecertaininputsandoutputsofthebusiness,so-calledexternalities,suchastheeffectofanorganization’sactivitiesonsocietyatlarge.Payattention:Therightroleoftheboarddependsontheimportanceoftheexternalities,whichcanvaryfromcountrytocountryandfrommarkettomarketoverthelifeofthecompany.AgencyproblemsRegulationisrarelyoptimal,marketsarenotefficient,andinformationcanneverbefullytransparent.InsideanorganizationOutsideanorganizationTwobroadstreamsofcommentaryandresearchPayattention:Therightroleoftheboarddependsontheimportanceoftheagencyproblems,thedifficultyofgettingmanagerstoactintheowner’sinterests,whichcanvaryoverthelifeofthecompany,andthetenureofeachCEO.TwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsAuditingOversightmechanismsCompanypoliciesCompensationincentivesSuccessionplanningTwobroadstreamsofcommentaryandresearchMethodsusedtodealwithproblemsThedrivinggovernanceroleBoardsmustemphasizeaparticularsubsetofactivitiesindecisionmakingandresourceallocation.Thedominantsubsetofthoseactivitiesiscalledthedrivinggovernancerole.TherolemustchangeItmustchangewithshiftsintheimportanceandnatureoftheexternalitiesthatshapetheagendasofshareholderscreatedbydysfunctionalmanagerialpower.FocusedversusbroadgovernanceMarketwithinsignificantexternalitiesAuditingBoardsalwayshavetheresponsibilityofauditingAfocusedviewofgovernancerestrictedtotheauditingroleisappropriateinmarketswithinsignificantexternalities.FocusedversusbroadgovernanceMarketwithexternalitiesSuccessfulcompaniesareaddressingoftheirownaccordbybroadeningthescopeoftheiroversightandpolicies.Theseinclude:emergingeconomiesmarketsintransitionmarketswithinfluentialNGOsFocusedversusbroadgovernanceMarketwithexternalitiesEmergingeconomiesValuecreationinemergingmarketsrequiresawiderrangeofcompanyactivitiesthaninthedevelopedworld.Manyessentialinputsmightbemissingorofsubstandardquality.Theboardsofcompaniesactiveinemergingeconomieshavetotakeanevenbroaderviewoftheiroversightandpolicyresponsibility.Examples:NikeInc.Wal-MartStoresInc.

FocusedversusbroadgovernanceMarketwithexternalitiesMarketsintransitionItalsorequireabroadergovernanceperspectivethanthatdictatedbyshort-termmarketforces.Examples:EnronCorp.ElectricitymarketintheUnitedStatesTheprivaterailwaycompaniesinU.K.FocusedversusbroadgovernanceMarketwithexternalitiesMarketswithinfluentialNGOsInfluentialNGOsoftenemergeinresponsetoexternalitieswithnegativesocietalimpactsthatareeitherunpricedbythemarketorareperceivedtobeinadequatelyregulated.Examples:RalphNaderOutline-TheCaseforContingentGovernance(2)1MonitoringVersusInvolvedGovernance2FourMainRolesMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerApplication:GMCEOs’MonopolyMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpoweriseffectiveTheboardcanrestrictitsactivitytomonitoringthevalue-creatingperformanceofthecompanyanddevelopingpolicytogovernthedistributionofvaluetoshareholdersandotherstakeholders.WhenmanagerialpowerisdysfunctionalTheboardhastobecomemoreinvolved.Examples:performanceispooreitherfinanciallyorindealingwithexternalitiestheCEOmakesmajorstrategicmovesunilaterallyethicalortransparencystandardsarebreachedtheCEOasksforexcessivecompensationthatisnotlinkedtoperformsMonitoringVersusInvolvedGovernanceDifferentstatusofmanagerialpowerWhenmanagerialpowerisdysfunctionalthepowerbalancebetweentheCEOandtheboardChangingthisbalanceofpsychologicalculturalandpoliticalforcesandmovingfromamonitoringroletoamoreinvolvedroleisoneoftheboard’sbiggestchallenges.MonitoringVersusInvolvedGovernanceApplication:GMStatus:AsGMincreaseditsrevenuesandfinancialmarketvaluethroughWorldWarIIandbeyond,topmanagementbecamesopowerfulthattheonlyrealroleleftfortheboardwasoneofauditing.MonitoringVersusInvolvedGovernanceApplication:GMResults:Ittook10yearsbeforeGMrespondedtosafetyandpollutionexternalitieswithtwonewcommittees.GMfailedtorespondagainwhentheJapanesebeganmakingseriousinroadsintotheU.S,marketaftertheoilcrisisoftheearly1970s.Theboarddidnothingtopreventmanagement’sdrivetospend$90billiononnewhightechnologyandacquisitions.MonitoringVersusInvolvedGovernanceCEOs’MonopolyCEOsaretemptedtotakepersonaladvantageoftheirmonopolyoncertainkindsofinformation,contactsandresource.Examples:KennethLayGaryWinnickFourMainRolesTwomaindifferencesinboardcultureAuditingRoleSupervisingRoleCoachingRoleSteeringRoleFourMainRolesTwomaindifferencesinboardcultureBoardscanbeconcernedmainlywithshareholderinterests,ortheycanalsotakeintoaccounttheinterestsofotherstakeholderstodealwithimportantexternalities.Boards

canrestricttheiractivitiestomonitoring,ortheycanbeinvolvedintheconductoftheorganizationatthetoptodealwithineffectivemanagement.FourMainRolesAuditingRolePoint:Thedominantactivityhereisthefundamentalfiduciaryresponsibilityofmonitoringcompanyperformanceintheinterestsoftheshareholders.Situation:Anauditingroleisappropriateinstablebusinessenvironmentsthatdonotrequirelargeinvestmentsorbigmoveswithhighexternalimpact.FourMainRolesSupervisingRolePoint:Theperspectiveoftheboardhastogowellbeyonditsfiduciaryresponsibilitytoincorporateoversightandpolicyforthestrategic,societalandriskeffectsoftheexternalities.Thedecision-makingcriteriahavetoincludemultipleobjectives.FourMainRolesSupervisingRoleSituation:Asupervisingroleisappropriatewhenalarge,powerfulcompanywitheffectivemanagementmakesstrategicmovesthatcreatevalueoverthelongrunbuthavesignificantrisksorhaveanimpactonsocietyoutsidethecompany’smarkets.FourMainRolesCoachingRolePoint:TheboardhastochangethepowerbalanceandestablishitsindependencefromtheCEOwiththeindependentleadershipofoutsidedirectorsorbysplittingtherolesofCEOandchairmanoftheboard.Situation:ItisappropriatewhentheCEOandothertopexecutivesareineffectiveincreatingvalueorwhentheymanipulatevaluedistributiontotheiradvantage,

theboardhastomovefrommonitoringroletomoreactiveinvolvement.FourMainRolesSteeringRolePoint:Theboardtakesthereinsindealingwithexternalities.Ultimately,theboardmightalsohavetoensuretheimplementationofthecompany’sagreementswiththosestakeholders.Situation:Whenmanagementisineffectiveandthebusinessisaffectedbyanumberofnonmarketfactors,theboardhastogobeyondeithercoachingorsupervisingandbecomeactivelyinvolvedinexecutionwithabroad,long-termperspective.WhatIsStrategy?管理学专业英语教程（第四版）1245OutlinesBackgroundIntroduction

OperationalEffectiveness

OperationEffectivenessVSStrategicPositioningStrategyRestsonUniqueActivities3

ProductivityFrontier

Foralmosttwodecades,managershavebeenlearningtoplaybyanewsetofrules:Companiesmustbeflexibletorespondrapidlytocompetitiveandmarketchanges.Theymustbenchmarkcontinuouslytoachievebestpractice.

Theymustoutsourceaggressivelytogainefficiencies.

Theymustnurtureafewcorecompetenciesintheracetostayaheadofrivals.BackgroundIntroduction

BackgroundIntroduction

BarriersCopymarketpositionGlobalizationPositioning---oncetheheartofstrategy---isrejectedastoostaticfortoday’sdynamicmarketsandchangingtechnologies.Accordingtothenewdogma,rivalscanquicklycopyanymarketposition,andcompetitiveadvantageis,atbest,temporary.Somebarrierstocompetitionarefallingasregulationeasesandmarketsbecomeglobal.Companieshaveproperlyinvestedenergyinbecomingleanerandmorenimble.BackgroundIntroduction

Butthosebeliefsaredangeroushalf-truths,andtheyareleadingmoreandmorecompaniesdownthepathofmutuallydestructivecompetition.Inmanyindustries,however,whatsomecallhyper-competitionisaself-inflictedwound,nottheinevitableoutcomeofachangingparadigmofcompetition.Therootoftheproblemisthefailuretodistinguishbetweenoperationaleffectivenessandstrategy.OperationalEffectivenessStrategy≠Why?Theprobableanswer：Thequestforproductivity,quality,andspeedhasspawnedaremarkablenumberofmanagementtoolsandtechniques:totalqualitymanagement,benchmarking,time-basedcompetition,outsourcing,partnering,reengineering,changemanagement.Althoughtheresultingoperationalimprovementshaveoftenbeendramatic,manycompanieshavebeenfrustratedbytheirinabilitytotranslatethosegainsintosustainableprofitability.

Andbitbybit,almostimperceptibly,managementtoolshavetakentheplaceofstrategy.Asmanagerspushtoimproveonallfronts,theymovefartherawayfromviablecompetitivepositions.BackgroundIntroduction

OperationalEffectivenessOperationalEffectiveness(OE)andstrategyarebothessentialtosuperiorperformance,whichafterall,istheprimarygoalofanyenterprise.Buttheyworkinverydifferentways.CreatecomparablevalueatalowercostBothgreatervalue&lowercostDelivergreatervaluetocustomersAcompanycanoutperformrivalschargehigheraverageunitpricesgreaterefficiencyresultsinloweraverageunitcostsOperationalEffectivenessOthersTrainingemployeesDeliverSellProduceCreateOveralladvantageOrdisadvantageUltimately,alldifferencesbetweencompaniesincostorpricederivefromthehundredsofactivities(e.g.therightchart)Costisgeneratedbyperformingactivities,andcostadvantagearisesfromperformingparticularactivitiesmoreefficientlythancompetitors.

Similarly,differentiationarisesfromboththechoiceofactivitiesandhowtheyareperformed.Activities,then,arethebasicunitsofcompetitiveadvantage.

Overalladvantageordisadvantageresultsfromallacompany’sactivities,notonlyafew.DifferencesinOEamongcompaniesarepervasiveSuchdifferencesinOEareanimportantsourceofdifferencesinprofitabilityamongcompetitorsbecausetheydirectlyaffectrelativecostpositionsandlevelsofdifferentiation.OperationalEffectivenesseliminatewastedeffortemploymoreadvancedtechnologymotivateemployeesbetterhavegreaterinsightintomanagingparticularactivitiesorsetsofactivitiesImagineforamomentaproductivityfrontierthatconstitutesthesumofallexistingbestpracticesatanygiventime.Thinkofitasthemaximumvaluethatacompanydeliveringaparticularproductorservicecancreateatagivencost,usingthebestavailabletechnologies,skills,managementtechniques,andpurchasedinputs.Theproductivityfrontiercanapplytoindividualactivities,togroupsoflinkedactivitiessuchasorderprocessingandmanufacturing,andtoanentirecompany’sactivities.WhenacompanyimprovesitsOE,itmovestowardthefrontier.Doingsomayrequirecapitalinvestment,differentpersonnel,orsimplynewwaysofmanaging.ProductivityFrontierthree-dimensionalproductivityfrontierplanarproductivityfrontierTheproductivityfrontierisconstantlyshiftingoutwardasnewtechnologiesandmanagementapproachesaredevelopedandasnewinputsbecomeavailable.Laptopcomputers,mobilecommunications,theInternet,andsoftwarehaveredefinedtheproductivityfrontierforsales-forceoperationsandcreatedrichpossibilitiesforlinkingsaleswithsuchactivitiesasorderprocessingandafter-salessupport.Similarly,leanproduction,whichinvolvesafamilyofactivities,hasallowedsubstantialimprovementsinmanufacturingproductivityandassetutilization.*WecanuseMatlabtodrawmultidimensionalsituations*WealsocanusemultidimensionallinearregressiontocalculatedifferentinfluencesfromdifferentfactorsProductivityFrontierForatleastthepastdecade,managershavebeenpreoccupiedwithimprovingOE.Learningorganization:Hopingtokeepupwithshiftsintheproductivityfrontier,managershaveembracedcontinuousimprovement,empowerment,changemanagement.Thepopularityofoutsourcingandthevirtualcorporation:reflectthegrowingrecognitionthatitisdifficulttoperformallactivitiesasproductivelyasspecialists.Ascompaniesmovetothefrontier,theycanoftenimproveonmultipledimensionsofperformanceatthesametime.Forexample,manufacturersthatadoptedtheJapanesepracticeofrapidchangeoversinthe1980swereabletolowercostandimprovedifferentiationsimultaneously.benchmarkingtime-basedcompetitionTQMeliminateinefficienciesimprovecustomersatisfactionachievebestpracticeProductivityFrontierConstantimprovementinOEisnecessarytoachievesuperiorprofitability.However,itisnotusuallysufficient.FewcompanieshavecompetedsuccessfullyonthebasisofOEoveranextendedperiod,andstayingaheadofrivalsgetshardereveryday.Themostobviousreasonforthatistherapiddiffusionofbestpractices.Themostgenericsolutions---thosethatcanbeusedinmultiplesettings--diffusethefastest.Witnesstheproliferationofoperationalefficiencytechniquesacceleratedbysupportfromconsultants.ProductivityFrontierBarriersCopygenericsolutionsRapiddiffusionofbestpracticesThelater-comerssurpasstheformers:Lowercostforthemanagementtechniques,newtechnologies,inputimprovements,andsuperiorwaysofmeetingcustomers’needs.OperationEffectivenesssimilaractivitiesbetterthanrivalsperformthem.includesbutisnotlimitedtoefficiencyreferstoanynumberofpracticesthatallowacompanytobetterutilizeitsinputsby,forexample,reducingdefectsinproductsordevelopingbetterproductsfaster.

OperationEffectivenessVSStrategicPositioningStrategicPositioningperformingdifferentactivitiesfromrivals’orperformingsimilaractivitiesindifferentways.Noticethedifferences!Whyoperationeffectivenessisinsufficie