Master of Business Administration - Semester 2
MB0044 - Production and Operation Management
ASSIGNMENT- Set 1
Q1. Explain the basic competitive priorities considered while formulating operations strategy by a firm?
Competitiveness is at the core of all strategies. Even among them, priorities tend to bring the organisation’s focus on the areas to be dealt with in terms of allocation of resources – people, money, and time. This means that different functional areas with their own capabilities and constraints have to be integrated for the overall corporate strategy. Corporate strategy, functional area strategies, market analysis, competitive priorities, competitive capabilities, and new service/product design are the main operations strategies in any organisation. Operations strategy is formulated to leverage the advantages, absorb the consequences of the variable nature of various functions and provide a dependable implementation programme.
Assessment of strengths
Understanding of the weaknesses
Nature of external environment
Resilience of the internal environment
The policies derived from the operations strategy should be amenable to go along with other functions. Organisation strategy should be such that the strategies of different functions are designed to lend support to one another. Culture of the organisation should be established and nurtured in such a way, that, conflicts are resolved with the overall organisation strategy in view. Operations strategy takes under its umbrella the quality, time, and flexibility. a) Quality: Quality is the driving factor for any organisation. When buying a product, a customer will always think about the value of the money he is investing. Even if the price of the product is high, the quality of the product will provoke the customer to buy it. Typical examples of quality are: Amway, Coco-Cola, Pepsi, Tupperware, Sony, BMW. Quality also includes cost reduction by various methods...