Chapter 2 Flashcards Preview

Operations > Chapter 2 > Flashcards

Flashcards in Chapter 2 Deck (13)
Loading flashcards...
1
Q

mission

A

statements tell an organisation where it is going

2
Q

strategy

A

tells the organisation how to get there

- action plan to achieve mission

3
Q

factors affecting mission

A
  • customers
    • environment
    • philosophy and values
    • profitability and growth
    • public image
4
Q

strategies for competitive advantage

A
  • differentiation - better or different (uniqueness)
    • low cost leadership - cheaper (doesn’t necessarily mean low quality)
    • response - rapid response (reliability, speed)
5
Q

resources view

A

potential strategy is compatible with resources

6
Q

value-chain analysis

A

identify activities that represent strengths, or potential strengths, and may be opportunities for developing competitive advantage

7
Q

five forces model

A

analysing the five forces

  1. immediate rivals
  2. potential entrants
  3. customers
  4. suppliers
  5. substitue products
8
Q

strategy development process

A
  1. Analyse the environment
  2. Determine the corporate mission
  3. form a strategy
9
Q

product life cycle

A

introduction-growth-maturity-decline

10
Q

Introduction

A
  • product design and development critical
    • frequent product and process design changes
    • short production runs
    • hight production costs
    • limited models
    • attention to quality
11
Q

Growth

A
  • forecasting critical
    • product and process reliability
    • competitive product improvements and options
    • increase capacity
    • shift toward product focus
    • enhance distribution
12
Q

Maturity

A
  • standardisation
    • less rapid product changes - more minor changes
    • optimum capacity
    • increasing stability of process
    • long production runs
    • product improvement and cost cutting
13
Q

Decline

A
  • little product differentiation
    • cost minimisation
    • overcapacity in the industry
    • eliminate items not returning good margin
    • reduce capacity