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Lecture Operations management: Chapter 2 - William J. Stevenson

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Chapter 2 - Competitiveness, strategy, and productivity. In this chapter: List several ways that business organizations compete, name several reasons that business organizations fail, define the terms mission and strategy and explain why they are important,. | Competitiveness, Strategy, and Productivity Chapter 2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 You should be able to: LO 2.1 List several ways that business organizations compete LO 2.2 Name several reasons that business organizations fail LO 2.3 Define the terms mission and strategy and explain why they are important LO 2.4 Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two LO 2.5 Describe and give examples of time-based strategies LO 2.6 Define the term productivity and explain why it is important to organizations and to countries LO 2.7 Describe several factors that affect productivity Chapter 2: Learning Objectives 2 Competitiveness Competitiveness: How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services Organizations compete through . | Competitiveness, Strategy, and Productivity Chapter 2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 You should be able to: LO 2.1 List several ways that business organizations compete LO 2.2 Name several reasons that business organizations fail LO 2.3 Define the terms mission and strategy and explain why they are important LO 2.4 Discuss and compare organization strategy and operations strategy, and explain why it is important to link the two LO 2.5 Describe and give examples of time-based strategies LO 2.6 Define the term productivity and explain why it is important to organizations and to countries LO 2.7 Describe several factors that affect productivity Chapter 2: Learning Objectives 2 Competitiveness Competitiveness: How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services Organizations compete through some combination of their marketing and operations functions What do customers want? How can these customer needs best be satisfied? LO 2.1 3 Product and service design Cost Location Quality Quick response Flexibility Inventory management Supply chain management Service Managers and workers Businesses Compete Using Operations LO 2.1 4 Neglecting operations strategy Failing to take advantage of strengths and opportunities and/or failing to recognize competitive threats Too much emphasis on short-term financial performance at the expense of R&D Too much emphasis in product and service design and not enough on process design and improvement Neglecting investments in capital and human resources Failing to establish good internal communications and cooperation Failing to consider customer wants and needs Why Some Organizations Fail LO 2.2 5 Mission The reason for an organization’s existence It answers the question “What business are we in?” Goals Provide detail and the scope of the mission .

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