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OPERATIONS STRATEGY IN A GLOBAL ENVIRONMENT - Coggle Diagram
OPERATIONS STRATEGY IN A GLOBAL ENVIRONMENT
DEVELOPING MISSIONS AND STRATEGIES
Mission
-Mission statements tell an organization where it is going.
Strategy
-The strategy tells an organization how to get there.
Factors affecting mission:
Philosophy and values
Profitability and growth
Public image
Benefit to society
Customers
Environment
Strategy:
Action plan to achieve mission
Functional areas to have strategies
Strategies exploit opportunities and strengths, neutralize threats, and avoid weakness
ACHIEVING COMPETITVE ADVANTAGE THROUGH OPERATIONS
Strategies for competitive advantage
Cost leadership
Cheaper
Provide the maximum value as perceived by the customers. Does not imply low quality.
Response
Flexibility is matching market changes in design innovation and volumes
Reliability is meeting schedules
Quickness in design, production and delivery
Differentiation
Better, or at least different.
Uniqueness can go beyond both the physical characteristic and service attributes to encompass everything that impacts customers' perception of value
Engaging a customer with a product through imaginative use of the five senses, so the customer experiences the product
STRATEGIC PLANNING, CORE COMPETENCIES, AND OUTSOURCING
Accelerating due to
Increased technological expertise
More reliable and cheaper transportation
Rapid development and deployment of advancements in telecommunications and computers
Subcontracting- Contract manufacturing
Outsourcing- Transferring activities that traditionally been internal to external suppliers
Outsourced activities
Legal services
IT services
Travel Services
STRATEGY DEVELOPMENT AND IMPLIMENTATION
Integrate OM with other activities
Build and staff the organization
Identify key success factors
Productions/ Operations
Finance/ Accounting
Marketing
ISSUES IN OPERATIONS STRATEGY
Porter's Five Forces model
Operating in a system with a many external factors
Value-chain analysis
Constant change
Resources view
A GLOBAL VIEW OF OPERATIONS AND SUPPLY CHAINS
Reasons to globalize
Improve the supply chain
Reduce cost and exchange rate risks
Improve operations
Understand markets
Improve products
Attract and retain global talent