Chapter 2: Operations Strategy and Competiveness
This chapter explains the importance of business strategy and the ties it has with operation strategy. A business strategy includes the company’s visionary mission, its market, and core competencies. This is what ultimately makes the companies long term plan. The overall model for development operations strategies are marketing strategy, finance strategy and operational strategy. Operational strategy must come together with the company’s strategy to attain its long-term method. It develops a plan for operations function. Operations strategy has four competitive properties. Quality is about staying competitive. It has two dimensions, which are high performance design and goods and services consistency. High performance design is an operations function, which focused on different parts of quality like, features, high durability, and satisfactory ...view middle of the document...
How effectively business does this can help them perform better and meet customer needs and wants. Cost focuses on productivity. Competing prices for products will guide the business in how effective it can make its products and configure price. It helps operations function use its resources at is best, dispensing waste.
The business strategy is made of three fundamental blocks of business factors. Environmental scanning which scans for external environmental changes and directions to pin down a business opportunities and threats. For example, with the technological advances we have now can be effective to some business but not to others. The mission that entails everything about the company and helps to stay focused on the real core beliefs to have a stable approach of the business. For example, if a candy shop mission is to serve sweets, a customer will not go in the shop and find hair products. Last, core competencies are unique strengths of an organization. These can differentiate a business to any other business. To develop your operations strategy it begins with a business strategy, operations strategy or competitive properties, and the making of operations functions. Operations function fuses to center to competitive properties and structures/infrastructures. Structures are for example facilities and technology. Infrastructure is planning and control systems, quality, and workers. Ability to find trade-offs between the competitive priorities, which are either order qualifiers or winners. Order qualifiers are the specifications that need to be meet and may have been an order winner but with time changed. Order winners are what makes the companies perform at top level. Strategic role in technology is what can make a company benefit from product, process technology, or information technology. Productivity answered by three equations, which are total, partial and multifactor productivity ratios. This effectively gives a range of how well a company is doing in terms of percentages. This focuses on the importance of operations strategies and over all the ability of companies producing an effective business with these resources.