Strategy - Chapter 2 Flashcards
(20 cards)
What is Strategy?
is the means by which individuals or organizations achieve their objectives.
a plan, method or series of actions designed to achieve a specific goal or effect.
What is operations strategy?
is a fundamental part of operations management. It involves making
strategic decisions to align operational activities with corporate objectives.
What are the different levels of strategies in organisations?
- Corporate Strategy (entire org level)
- Business Strategy (business unit level)
- Functional Strategy (business function level)
- Operational Strategy (implementation level)
What does corporate strategy do in relation to operations strategy?
It provides overall direction and aligns operational goals with the larger organization’s objectives.
How does operations strategy relate to corporate strategy?
It helps set broad plans for using resources effectively.
Ensures coordination across the organization.
What is required for an effective operations strategy?
Must be integrated with corporate and business strategies.
Account for how different operational activities relate to one another.
What is the ultimate goal of operations strategy?
To achieve both effectiveness and efficiency.
Implement strategic priorities in a cost-effective way.
Recognize there is no one-size-fits-all solution.
What is a competitive dimension?
forms the competitive position and operations strategy of a company.
6 Competitive dimensions:
Price – Deliver products/services at a low cost
Quality – Offer superior products/services
Delivery Speed – Ensure fast delivery
Delivery Reliability – Meet promised delivery timelines
Flexibility – Adjust production volumes as needed according to demand and offer variety in product/ services
New Product Introduction Speed – Adapt quickly to market changes
+ other competitive dimensions: innovation, customization, sustainability
What are Trade-Offs in Operations?
The decision to prioritize certain operational aspects over others.
- a company cannot excel in all comp. dimensions
What is Strategic Alignment?
Ensuring the operational priorities match the overall strategy
Misalignment Example:
a firm focusing on low-cost production may struggle with high customization
What is Straddling?
when a company tries to imitate a competitor’s strategy while maintaining its existing position.
- this is risky as it can dilute focus and create inefficiencies.
What are Order qualifiers?
Basic product/service features required to compete in a market and to be considered for purchase
- they are features customer will NOT give up and they MUST exist
What are Order winners?
Unique features that differentiate a product/service from competitors and drive customer final purchase decisions.
What is Productivity?
a relative measure of how well resources are used
- must be compared to something else to be meaningful and can be analyzed over time.
Productivity Measure Formula:
Productivity = Outputs/ Inputs
3 Productivity Measurements:
- Partial Productivity: compares output to a single input.
Example: labor productivity = output per worker - Multifactor Productivity: compares output to multiple inputs.
Example: output per unit of labor & materials - Total Productivity: considers all inputs.
Examples of measures of productivity:
- Restaurant: customers per labour hour
- Retail Store: sales per store staff
- Chicken Farm: pounds of meat per pound of feed.
- Utility plan: kilowatt hours per ton of coal.
- Paper mill: tons of paper per cord of wood
