Chapter 2 Operations

Strategy for Competitive

Advantage
Introduction
What How to choose a strategy
for your business
Where In any strategy that wants
to achieve its mission
Why To decide how the business
will be conducted
Strategy
Mission: The purpose or rationale for
an organizations existence
Effective endeavors have a mission
Strategy: How an organization
expects to achieve its missions and
goals
Strategy is an organizations plan to
achieve a mission
Competitive Advantage
We want to craft the strategy that
will achieve the best competitive
advantage
Competitive advantage is the
creation of a unique advantage
over competitors
Three Basic Strategies
Differentiation
Cost Leadership
Response
Ten Strategic Operations
Management Decisions
Ten OM decisions that support
missions and implement strategies
1. Goods and Service Design
2. Quality
3. Process and Capacity Design
4. Location Selection
5. Layout Design
Ten Strategic Operations
Management Decisions
6. Human Resources and Job
Design
7. Supply-Chain Management
8. Inventory
9. Scheduling
10. Maintenance
Strategy Development and
Implementation
SWOT Analysis
Firms position themselves, through
their strategy, to have a
competitive advantage
Recognize internal strengths and
weaknesses
Recognize external opportunities
and threats
Critical Success Factors
Activities that are key to achieving
a competitive advantage