Chapter 2 Flashcards
(35 cards)
What is Operational Effectiveness?
ability to perform similar operations activities better than competitiors
What is competitive advantage?
firm must determine how to differentiate themselves from competitors
What is a competitive strategy?
plan for how the firm will compete in the marketplace
Strategic Alliance is:
joint ventures among international companies to exploit global business opportunities
What is product sharing?
designed and financed by one country, but raw materials produced in many countries and shipped to other countries for further processing.
What is a global village?
global economy that interconnects the economies of all nations
What are International Companies?
those whose scope of operations span the globe as they, product, and sell
Keiretsu is?
linking of companies into industrial groups (Toyota)
Financial Keiretsu is?
links companies together with cross-holding of shares, sales, and purchases within the group
Production Keiretsu is?
web of interlocking long-term relationships between a big manufacture and its suppliers
Operations that are labor intensive have:
higher labor cost relative to other costs
Advanced Technologies:
initial cost is high, but benefits are increased product quality, reduced costs, faster responses, faster introduction
Like the U.S manufacturing sector, the U.S. service sector must:
streamline and improve its operations if it is to survive
What does the phrase Service Economy mean?
many services could not exist without a strong manufacturing sector
What are Consumer Attitudes?
consumers expressing their likes/dislikes by such means as stockholder meetings, liability suits, and buying preferences
What are Government Regulations?
Federal Agencies that control the behavior of U.S. businesses. EPA, OSHA, Clean Air Act, Family Leave Act
What are Self Interests?
Companies realize that profits will be greater if they act responsibly.
Environmental Impact
Need for standardizing government regulations of the environment. ISO 14000
Product Safety Impact
harm to people or animals that results from poor product design (calls for a recall, replace, or repair)
Employee Impact
Benefits and policies impact long-term profitiability
What is a Corporate Mission?
set of long range goals unique to each organization
What is a Business Strategy?
long range game plan of an organization and provides a road map on how to achieve the corporate mission
What are Distinctive Competencies?
aka weaknesses, represent great competitive advantage or disadvantage in capturing markets
What is an Operations Strategy?
long range game plan for the production of a company’s products/services and provides a road map in order to succeed
