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9 - Functional Strategies For Competitive Advantage
9 - Functional Strategies For Competitive Advantage
McGraw-Hill/Irwin
Contemporary Management, 5/e
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
9-4
Four Ways to Create a Competitive
Advantage
9-5
Toyota’s Product Lineup
Figure 9.2
9-6
Functional Strategies and Value-Chain
Management
• Functional-level strategy
– plan of action to improve the ability of each
of an organization’s departments to
performs its task-specific activities in ways
that add value to an organization’s goods
and services
9-7
Functional Strategies and Value-Chain
Management
• Value chain
– coordinated series or sequence of functional
activities necessary to transform inputs into
finished goods or services customers value
and want to buy
9-8
Functional Activities and
the Value Chain
9-9
Functional Strategies and Value-Chain
Management
• Value-chain management
– development of a set of functional-level
strategies that support a company’s
business-level strategy and strengthen its
competitive advantage
9-10
Functional Strategies and Value-Chain
Management
• Product development
– engineering and scientific research activities
involved in innovating new or improved
products that add value to a product
• Marketing function’s task is to persuade
customers a product meets their needs
and convince them to buy it
9-11
Functional Strategies and Value-Chain
Management
9-12
Functional Strategies and Value-Chain
Management
• Production function
– responsible for the creation, assembly or
provision of a good or service, for
transforming inputs into outputs
• Sales function
– plays a crucial role in locating customers
and then informing and persuading them to
buy the company’s products
9-13
Functional Strategies and Value-Chain
Management
9-14
Improving Responsiveness to
Customers
9-15
What Do Customers Want?
9-16
Customer Relationship Management
9-17
Impact of Increased Quality on
Organizational Performance
Figure 9.4
9-18
Improving Quality
9-19
Total Quality Management
9-20
Steps to Successful TQM
Implementation
9-21
Steps to Successful TQM
Implementation
9-22
Focus on the Customer
• Facilities Layout
– strategy of designing the machine-worker
interface to increase production system
efficiency
• Flexible Manufacturing
– strategy based on the use of IT to reduce
the setup costs associated with a product
assembly process
9-24
Three
Facilities
Layouts
Figure 9.5 9-25
Facilities Layout
• Product layout
– machines are organized so that each
operation is performed at work stations
arranged in a fixed sequence
• Process Layout
– self contained work stations not organized
in a fixed sequence
9-26
Facilities Layout
• Fixed-Position Layout
– the product stays in a fixed spot and
components produced at remote stations
are brought the product for to final assembly
9-27
Changing a Facilities Layout
Figure 9.6
9-28
Flexible Manufacturing
9-29
Just-in-Time Inventory and Efficiency
9-30
Self-Managed Work Teams and
Efficiency
9-31
Process Reengineering and Efficiency
• Process Reengineering
– fundamental rethinking and radical redesign
of the business process to achieve dramatic
improvement in critical measures of
performance
9-32
Two Kinds of Innovation
9-33
Two Kinds of Innovation
9-34
Strategies to Promote Innovation and
Speed Product Development
• Product
development
– management of
the value-chain
activities involved
in bringing new or
improved kinds of
goods and
services to the
market
9-35
Strategies to Promote Innovation and
Speed Product Development
9-36
Strategies to Promote Innovation and
Speed Product Development
9-37
A Stage-Gate Development Funnel
Figure 9.7
9-38
A Stage-Gate Development Funnel
9-39
Members of a Cross-Functional Product
Development Team
Figure 9.8
9-40
Managing the Value-Chain: Some
Remaining Issues
9-41
Boundary-Spanning Roles
• Boundary-Spanning roles
– Interacting with individuals and groups
outside the organization to obtain valuable
information from the environment
9-42
The Nature of Boundary-Spanning
Roles
Figure 9.9
9-43