Marketing Management

Presented By:
1. Syeda Huma Ali – 22812
2. Muhammad Umair Ul Haque – 22953
Operational Effectiveness: Necessary but not sufficient
 Primary goal of any enterprise…
 Two important factors:
1. Operational effectiveness
2. Strategy
 A company can outperform rivals only if it can establish a difference that it
can preserve. For example:
1. Greater value to customer
2. Comparable value at lower cost
3. Or both
 Resulting in higher average unit price, greater efficiency and lower unit cost.
 The activities perform throughout the supply chain derives the difference
between companies.
 Activities are the basic unit of competitive advantage.
 Operational Effectiveness: performing different activities better than the
rivals perform them.
 Strategic positioning: performing different activities from the rivals or
performing similar activities in different ways.
 Differences in OE among companies are pervasive.
 In 80s Japanese were par ahead of rivals in OE by offering superior quality at
lower cost.
 Productivity frontier: the sum of all existing best practices at any given time
and offering maximum value by using available resources.
 When a company improves its OE, it moves towards the frontier.
 The productivity frontier is constantly shifting outward.
 Similarly lean production has allowed substantial improvements in
manufacturing productivity and asset utilization.
 Tools for improving OE:
1. TQM
2. Time based competition
3. Benchmarking
 Outsourcing helps enterprises on focusing on their core competencies.
 As companies move towards frontier, they can often improve on multiple
dimensions of performance at the same time.
 For example: Japanese practice of rapid changeovers in 80s resulted in lower
cost and improved differentiation simultaneously.