Operations Strategy in A Global Environment

Operations Strategy in
a Global Environment 2
PowerPoint presentation to accompany
Heizer, Render, Munson
Operations Management, Thirteenth Edition, Global Edition
Principles of Operations Management, Eleventh Edition
PowerPoint slides by Jeff Heyl
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-1

Mission
► Mission - where is the organization
going?
► Organization’s purpose for being
► Answers “What do we contribute to
society?”
► Provides boundaries and focus

Merck
The mission of Merck is to provide society

with superior products and services—
innovations and solutions that improve the
quality of life and satisfy customer needs—to
provide employees with meaningful work
and advancement opportunities and
investors with a superior rate of return.
Figure 2.2

PespsiCo
Our mission is to be the world's premier

consumer products company focused on
convenient foods and beverages. We seek
to produce financial rewards to investors as
we provide opportunities for growth and
enrichment to our employees, our business
partners and the communities in which we
operate. And in everything we do, we strive
for honesty, fairness and integrity.
Figure 2.2

Arnold Palmer Hospital
Arnold Palmer Hospital for Children provides

state of the art, family-centered healthcare
focused on restoring the joy of childhood in
an environment of compassion, healing, and
hope.
Figure 2.2

Strategic Process
Organization’s
Mission
Functional Area
Missions
Finance/
Marketing Operations Accounting

Sample Missions
Sample Company Mission

To manufacture and service an innovative, growing, and
profitable worldwide microwave communications business
that exceeds our customers’ expectations.
Sample Operations Management Mission
To produce products consistent with the company’s mission

as the worldwide low-cost manufacturer.
Figure 2.3
Strategy
Strategies require managers to
► Develop action plan to achieve
mission
► Ensure functional areas have
supporting strategies
► Exploit opportunities and strengths,
neutralize threats, and avoid

weaknesses

Strategies for Competitive
Advantage
1. Differentiation – better, or at least

different
2. Cost leadership – cheaper
3. Response – more responsive

Competing on Differentiation
Uniqueness can go beyond both the
physical characteristics and service
attributes to encompass everything that
impacts customer's perception of value
► Safeskin gloves – leading edge products
► Walt Disney Magic Kingdom –
experience differentiation
► Hard Rock Cafe – dining experience
Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2 - 10

Experience Differentiation
Engaging a customer with a product
through imaginative use of the five
senses, so the customer “experiences”
the product
► Theme parks use sight, sound, smell,
and participation
► Movie theatres use sight, sound, moving
seats, smells, and mists of rain
► Restaurants use music, smell, and open
kitchens
Competing on Cost
Provide the maximum value as perceived
by customer. Does not imply low quality.
► Southwest Airlines – secondary airports,
no frills service, efficient utilization of
equipment
► Walmart – small overhead, shrinkage, and
distribution costs
► Franz Colruyt – no bags, no bright lights,
no music

Competing on Response
▶ Flexibility is matching market changes in
design innovation and volumes
▶ A way of life at Hewlett-Packard
▶ Reliability is meeting schedules
▶ German machine industry
▶ Quickness in design,
production, and delivery
▶ Johnson Electric,
Pizza Hut

Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Lean, Short Haul, Point-to-

Productive Point Routes, Often to
Employees Secondary Airports
Competitive Advantage:
Low Cost
High Frequent,
Aircraft Reliable
Utilization Standardized Schedules
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Lean, Point-to-Point
Productive Routes, Often to
Employees Automated ticketing Secondary Airports
No seat assignments
“Bags fly free” and
Low Cost
no baggage transfers
No meals
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
No meals
Lean,
Lower gate costs at secondary Point-to-Point
Productive airports Routes, Often to
Employees
High number of flights reduces Secondary Airports
employee idle time between flights
Low Cost
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
High number of flights reduces
employeeCompetitive
idle time between Advantage:
flights
Saturate a city with Low
flights,Cost
lowering
administrative costs per passenger
High for that city Frequent,
AircraftPilot training required on only Reliable
Utilization one type ofStandardized
aircraft Schedules
Reduced maintenance inventory
Fleet of Boeing
required because of only one type of
737 Aircraft
aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Pilot training required on only
one type of aircraft
Productive Reduced maintenance inventory Routes, Often to
Employees required because of only one type Secondary
of Airports
aircraft
Excellent supplier
Competitive relations with
Advantage:
Boeing have aided financing
Low Cost
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Reduced maintenance inventory
required because of only one type of
aircraft is used
Low Cost
Flexible employees/unions and
standard planes aid scheduling
High Maintenance personnel trained Frequent,
on
Aircraft only one type of aircraft Reliable
Utilization 20-minute gate turnaroundsSchedules
Standardized
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
LimitedAutomated
Passengerticketing
Service
Empowered employees
High employee compensation
Hire for attitude, then train
Employees High level of stock ownership
Secondary Airports
High number of flights reduces
Competitive
employeeAdvantage:
idle time between flights
Low Cost
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8

Operations Strategy in A Global Environment

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Operations Strategy in A Global Environment

Uploaded by

Copyright:

Available Formats

Operations Strategy in

PowerPoint slides by Jeff Heyl

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-1

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-2

The mission of Merck is to provide society

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-3

Our mission is to be the world's premier

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-4

Arnold Palmer Hospital for Children provides

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-5

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-6

Sample Company Mission

Sample Operations Management Mission

To produce products consistent with the company’s mission

neutralize threats, and avoid

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-8

1. Differentiation – better, or at least

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2-9

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2 - 10

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2 - 12

Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2 - 13

Lean, Short Haul, Point-to-

You might also like