Operations Strategy and Competitiveness

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Chapter 2 - Operations Strategy and Competitiveness
© Wiley 2007
Learning Objectives
Define the role of Business Strategy Explain how a Business strategy is developed Explain the role of Operations Strategy in the organization Explain the relationship between business strategy and operations strategy Describe how an operations strategy is developed Learning Objectives

Identify competitive priorities for of the operations function Define productivity and identify productivity measures Compute productivity measures The Role of Business Strategy
a long-range plan of a business, designed to provide and sustain shareholder value. The Role of Operations Strategy
Provide a plan that makes best use of resources which;
Specifies the policies and plans for using organizational resources Supports Business Strategy Business/Functional Strategy
Importance of Operations Strategy
Companies often do not understand the differences between operational efficiency and strategy Operational efficiency is performing tasks well, even better than competitors  Strategy is a plan for competing in the marketplace Operations strategy is to ensure all tasks performed are the right tasks Developing a Business Strategy

A business strategy is developed after taking into many factors and following some strategic decisions such as; What business in the company in (mission) Analyzing and understanding the market (environmental scanning) Identifying the companies strengths (core competencies) Three Inputs to a Business Strategy

Examples from Strategies
Mission: Dell Computer- “to be the most successful computer company in the world” Environmental Scanning: political trends, social trends, economic trends, market place trends, global trends Core Competencies: strength of workers, modern facilities, market understanding, best technologies, financial know-how, logistics FedEx

FedEx is committed to our People-Service-Profit philosophy. We will produce outstanding financial...
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