1: Operations and Productivity I. What is Operations Management? a. The business functions responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services. b. Production is the creation of goods and services c. OM is the set of activities that create value in the form of goods and services by transforming inputs (human resources, facilities and processes, technologies, raw materials) into outputs (goods & services). d. Basic Management Functions: Planning, Organizing, Staffing, Leading, Controlling Strategic Decisions | Tactical Decisions | * Broad in scope * Long-term in nature * All encompassing | * Narrow in scope * Short-term …show more content…
4. Understand Markets: interacting with foreign customers and suppliers can lead to new opportunities. EX: knowledge of markets helps firms understand where the market is going & helps diversify customer base, add production flexibility, and smooth the business cycle. 5. Learn to Improve Operations: remain open to the free flow of ideas. EX: GM partnered with Japanese auto manufacturers to learn new approaches to production and inventory control. GM to Jap: capital and knowledge of US laws, Jap to GM: production & inventory ideas 6. Attract and Retain Global Talent: offer better employment opportunities worldwide II. Mission and Strategy a. Mission statements answer the question “Where are you going?” It’s purpose needs to benefit society. i. Factors affecting mission include: environment, values, benefit to society, profitability, public growth b. The Strategy answers the question “How are we going to get there?” It is an action plan to achieve the mission. ii. Strategies for Competitive Advantage: 1. Differentiation- better at or different 2. Cost Leadership- cheaper 3. Rapid Response III. Product Life Cycle- ***may be any length from a few hours to decades Introduction | Growth | Maturity | Decline | * Product design and development critical * Frequent product and process design changes * Limited models * Attention
1. Mission and Vision Statement – Mission is a written declaration of the purpose of an organization and Vision is that business will accomplish in future years.
Answer: Capacity is the maximum rate of output of a process or a system. And utilization is measured as the ratio of average output rate to maximum capacity. In Southwest, capacity can be measured in available seat-miles (AMS) pre month. Therefore, utilization can be measured as the ratio of average seat-mile rate to maximum
Thompson, Peteraf, Gamble, and Strickland (2012) found that competitive strategy depend on whether a company’s target market is narrow or broad, and whether a company is seeking competitive advantage through low-cost or product differentiation. These two factors reveal five generic competitive strategies. The five strategies are Overall Low-Cost Provider Strategy, Focused Low-Cost Strategy, Broad Differentiation Strategy, Focused Differentiation Strategy, and Best Cost
There are many strategies discussed by Jobber and Chadwick (2013) to obtain such competitive advantage, either on broad or narrow or broad scope dimensions, or by different competitive base of differentiation or cost.
Using ‘Tyson Foods’ as an example, a senior manager would constantly seek out opportunities to excel their firm further ahead of its competitors. One way that Tyson food’s upholds it’s impressive competitive advantage is through differentiation in terms of prioritizing customer service and quality
Compare and contrast the market-based approach and the resource-based view as approaches to competitive strategy. To what extent are they rival or complementary views?
Operations processes refers to the acquisition of inputs which are transformed in a business through the addition of value into outputs of goods and services. Businesses use operational processes involving inputs and transformation processes to increase efficiency and output. The operations management focuses on carefully and managing processes to produce and distribute products and services based on the nature of the business. To achieve objectives in a business, the quality of products are monitored regularly using customer services and warranties. Both Qantas and McDonalds, utilise operation process in order to gain maximum efficiency and productivity.
1. What is competitive advantage, and how does it relate to a company’s business model?
Competitive strategy is the moves and methods that the firm has taken and is taking to appeal buyers, improve its market position, and to endure competitive pressures. The strategy is about what a firm’s capability to try to knock off competitors and attain competitive advantage, which can be offensive or defensive. There are three approaches to competitive strategy, which are low-cost leadership strategy where struggling to be the overall low-cost manufacturer in the in industry. Moreover, pursuing to distinguish one’s product offering from competitors (differentiation strategy), and the last one is focus or niche strategy where aiming on thin portion of the market rather than the whole market (Porter, 1998).
As I seek to enter the workforce/company, one of the first things that I wish to remember is the importance the company has placed on their strategic planning and goals. How decisions made by this team will directly affect the operations, finance, accounting, purchasing and administrative departments. The things that help to make any organization successful, are the value the organization places on their strategic, and operational goals. Therefore, before taking a position with a company I hope to learn as much as I can about the various functions of the company, and how each department works with the next in order to achieve these goals. Thus, I hope to use the knowledge I have gained in this class in operations management to access the company’s operational strategies. This should be reflective in their mission and vision statements as well as their financial reports. I would also look for the value they place on ethics, corporate responsibility and giving back to the community. I feel a company’s success will be directly tied to how effective they are in meeting the daily challenges of processes/production/service, operations, and sales. The value placed on these specific areas will be evident by their success and reflective in both their short and long term goals, in their financial statements.
There are five generic business strategies that companies choose from when trying to successfully compete within their respective industries. This is the first choice a company must make, even before deciding an overall strategy. These generic business strategies include low-cost provider strategy, broad differentiation strategy, best-cost provider strategy; focused strategy based on low costs, and focused strategy based on differentiation. These strategies have many advantages as well as disadvantages. Choosing which one to use depends on what market position a company wants to pursue. Deciding to be more offensive or defensive also plays a role in choosing a
Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).
Porter’s generic strategies describe how a company attains competitive advantage across its chosen market scope. There are three generic strategies-cost leadership, differentiation and