Choosing which processes are core to a firm’s competitive position is a key strategic decision. For example, Nike, a popular sports shoe company, focuses on the customer relationship, new product development, and supplier relationship processes and leaves the order fulfillment process to others. Allen Edmonds, a top-quality shoe company, considers all four processes to be core processes. What considerations would you make in determining which processes should be core to your manufacturing company?
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- As operations manager of Holz Furniture, youmust make a decision about adding a line of rustic furniture. Indiscussing the possibilities with your sales manager, Steve Gilbert,you decide that there will definitely be a market and that your firmshould enter that market. However, because rustic furniture has adifferent finish than your standard offering, you decide you need another process line. There is no doubt in your mind about the deci-sion, and you are sure that you should have a second process. But you do question how large to make it. A large process line is going to cost $400,000; a small process line will cost $300,000. The ques-tion, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Tim Ireland of Ireland MarketResearch, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of profit from sales aslarge as $600,000 and a one-out-of-three chance as low as $300,000.With a large process line,…arrow_forwardRead each statement below and identify the correct term or concept.Q.1.1A process that determines the mission and goals of the business, including the ways in which the goals are to be reached in the long term, and the resources needed for this task.arrow_forwardThere are 9 competitive priorities for success in the marketplace. Why would a company not necessarily try to excel in all of them. What determines the choice of competitive priorities that a company should emphasize for its key processes?arrow_forward
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- Give a shining example of how process choices can lead to competitive advantages?arrow_forwardWhat are the equivalent units? Why are they needed in a process-costing system? What is the production report? How does the operations manager use the production report to make business decisions?arrow_forwardDescribe the four basic types of production processes.What are the advantages and disadvantages of each? Whenshould each be used?arrow_forward
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