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Competitiveness Strategy, and Productivity

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Sumaya Nimat Khan
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18 views

Competitiveness Strategy, and Productivity

Uploaded by

Sumaya Nimat Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Competitiveness, Strategy, and

Productivity
Competitiveness
How effectively an organization meets the
wants and needs of customers relative to
others that offer similar goods or services.

Marketing influences competitiveness in


several ways
– Identifying consumer wants and/or needs
– Price and quality
– Advertising and promotion
Operations has a major influence on competitiveness in
many ways:
– Product and service design
– Cost
– Location
– Quality
– Quick response
– Flexibility
– Inventory Management
– Supply chain management
– Service
– Managers and workers
Why some organizations fail?
1. Neglecting operations strategy.
2. Failing to take advantage of strengths and opportunities,
and/or failing to recognize competitive threats.
3. Putting too much emphasis on short-term financial
performance at the expense of research and development.
4. Placing too much emphasis on product and service design
and not enough on process design and improvement.
5. Neglecting investments in capital and human resources.
6. Failing to establish good internal communications and
cooperation among different functional areas.
7. Failing to consider customer wants and needs.
Mission and Strategies
• Mission: The reason for the existence of a company.
• Mission statement: States the purpose of an
organization.
• Goals: Provide detail and scope of the mission.
– SMART
• Specific
• Measurable
• Achievable
• Realistic
• Timely
• Strategies: Plans for achieving organizational goals.
Three Basic Strategies

• Low cost.
• Responsiveness.
• Differentiation from competitors.
Strategies and tactics

• Strategies provide focus for decision making.


• Tactics are the methods and actions taken to
accomplish strategies.
Figure: Planning and decision making are hierarchical in organizations
• Some of the example strategies from where
organizations may choose:
– Low cost
– Scale-based strategies
– Specialization
– Newness
– Flexible operations
– High quality
– Service
– Sustainability
Examples of operations strategies
Core competencies

The special attributes or abilities that give an


organization a competitive edge.
Strategy Formulation
• SWOT analysis
• Order qualifiers: Characteristics that customers
perceive as minimum standards of acceptability to
be considered as a potential for purchase.
• Order winners: Characteristics of an organization’s
goods or services that cause it to be perceived as
better than the competition.
• Environmental scanning
Environmental scanning

• External factors • Internal factors


– Economic conditions – Human resources
– Political conditions – Facilities and
equipment
– Legal environment
– Financial resources
– Technology
– Customers
– Competition – Products and services
– Markets – Technology
– Suppliers
– Other
After external and internal analysis and organization’s
distinctive competencies, the following questions
need to be explored...

• What role, if any, will the Internet play?


• Will the organization have a global presence?
• To what extent will outsourcing be used?
• What will the supply chain management strategy be?
• To what extent will new products or services be introduced?
• What rate of growth is desirable and sustainable?
• What emphasis, if any, should be placed on lean production?
• How will the organization differentiate its products and/or
services from competitors’?
• Supply chain strategy
• Sustainability strategy
• Global strategy
Operations Strategy

• Operations strategy is the approach, consistent with


the organization strategy, that is used to guide the
operations function.
• Operations strategy is narrower in scope, dealing
primarily with the operations aspect of the
organization. Operations strategy relates to products,
processes, methods, operating resources, quality,
costs, lead times, and scheduling.
Strategic operations management decision areas
Quality and time strategies

• Quality-based strategies focus on quality in all phases of an


organization.
• Time-based strategies focus on reducing the time required to
accomplish various activities (e.g., develop new products or services
and market them, respond to a change in customer demand, or
deliver a product or perform a service).
• Organizations have achieved time reductions in some of the following:
– Planning time
– Product/service design time
– Processing time
– Changeover time
– Delivery time
– Response time for complaints
Implications of Organization Strategy for Operations
Management
Transforming strategy into action: The
Balanced Scorecard
• The balanced scorecard is a top-down management system that
organizations can use to clarify their vision and strategy and transform
them into action.
Productivity

• Productivity is a measure of the effective use


of resources usually expressed as the ratio of
output to input.
• Productivity = output/input
• Productivity growth:
Computing Productivity
• Partial productivity
• Multifactor productivity
• Total measure
Factors that affect Productivity
Thank You

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