Competitiveness

 Competitiveness
 Affected by combination of marketing and operations
management
 Marketing:
 Consumer wants:
 Information on consumer wants and needs: central to
competitiveness
 Match between needs/wants and offerings
 Pricing:
 Key factor
 Can involve trade-off
 Advertising and promotions
 Information reaching out to potential
customers

Source: STLUCIANCPC (2015); Impact of Competing Businesses to

Productivity & Competitiveness; https://ncpcstlucia.wordpress.com 11
Competitiveness (cont.)
 Operations Management
 Product & Service design
 Match required between requirements, financial capabilities
etc.
 Innovation
 Time to market
 Costs
 Productivity
 Outsourcing

 Location
 Near input / market

Source: STLUCIANCPC (2015); Impact of Competing Businesses to

Productivity & Competitiveness; https://ncpcstlucia.wordpress.com 12
Competitiveness (cont.)
 Combination of Ops & marketing (contd..)
 Operations..
 Quality
 Consumer can pay more if convinced!

 Quick response
 New product, deliveries, customer complaints

 Flexibility
 Responding to changes

 Inventory management
 Scheduling
 Timely and cost effective

Source: STLUCIANCPC (2015); Impact of Competing Businesses to

Productivity & Competitiveness; https://ncpcstlucia.wordpress.com
13
Competitiveness (cont.)
 Failures
 If the approach is short term
 Failing to do SWOT correctly
 Operations strategy is neglected
 Focus only on products and services and not on process
improvement
 Failure to assess the customer wants and needs correctly

Source: STLUCIANCPC (2015); Impact of Competing Businesses to

Productivity & Competitiveness; https://ncpcstlucia.wordpress.com
14
Strategy
 Meaning
 Plan for achieving organizational goals
 Short term / Intermediate / Long term
 Support comes from
 Mission
Reason for existence
 States the purpose of an organization

 Answer for, in what business you are Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

in!
 Goal
 Details on the scope of mission
Strategy (cont.)
 Mission + goal => Positioning
 Goals foundation for org. strategy >>
strategies and tactics of functional units

Road
map

Strategies Goals Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

Focus for decision

making
Strategy (cont.)
 Three basic business strategies:
 Low cost
 Responsiveness
 Differentiation from competitors
 Functional strategy should be in sync
with organizational strategy and this
should be followed at higher levels as Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

well
 Funct. Stgr. > Org. Stgr. > Goals >
Mission
Strategy (cont.)
 Tactics
 Methods and actions taken to accomplish
strategies
 Involves detailed planning and decision
making
 Tactical Vs. Ops: “How to” vs. “ Actual doing”
 Difference between Strategic / Tactical /
Operational
Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

 The time frame

 Strategic: long term

 Tactical / operational: Short term

Strategy (cont.)
 Different strategies
 Low cost: outsourcing
 Scale based: volume driven
 Specialization: Niche
 Flexible
 High quality
 Service Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com
Strategy (cont.)
 Strategy formulation
 Critical to the success of strategy
 Organizational strategy : link
“SWOT” : Ops. strategy
 SWOT
 SW: Operations Management
 OT: Marketing Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com
Strategy (cont.)
 Order qualifiers
 Order winners
 Differentiation of the characteristics
should be made by marketing and
communicated to operations
 Environmental scanning
 Considering events and trends posing Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

opportunities or threats
Strategy (cont.)
 Key external factors :
 Economic conditions, political conditions, legal,
technology, competition, markets

 Internal factors :
 HR, facilities and equipment, Financial resources,
customers, products, technology, suppliers etc.
Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

 Global strategy
Strategy formulation
 The key steps:
 Link to organization’s Vision/mission
 Assess SWOT
 Identify order winners and qualifiers
 Select one or two of the strategies

Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data

Science; medium.com
Operations Strategy
 Narrow in scope
 Organization strategy vs. functional
strategy
 Power struggles
 Involvement of senior managers
 The rise of the Ops Manager to CEO?
Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com
Strategic Operations Management
and decision making
 Traditionally
 Cost minimization
 Product differentiation
 Quality based strategies
 Strategy that focus on quality in all
phases of organization Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

 Factor in attracting and retaining

customers
 Overcome image of poor quality,
competition,
Strategic Operations Management
and decision making (cont.)
 Time based strategies
 Strategies that focus on reduction of time
that is required to accomplish tasks
 Service improvement and competitive
advantage
 The rationale regarding cost / productivity,
quality, innovation and customer service
 Areas Source: Davy C. (2016); Sports Is Your Perfect Introduction to Data
Science; medium.com

 Planning time, product / service design time,

processing time, changeover, delivery,
response to complaints