COMPETITIVE

NESS
Productivity
Presented by:
Angelica Jane Tapia
 COMPETITIVENESS
company’s ability to balance the price
of their products and services with the
quality to provide customers with the
optimal experience

relates to the effectiveness of an

organization in the marketplace
relative to other organizations that
offer similar products or services.
 competitiveness: MARKETING

Price
and quality
Identifying Advertising and
consumer wants promotion
and/or needs
 competitiveness: OPERATIONS
01 Product and service design 06 Flexibility

02 Cost 07 Inventory management

Supply chain
03 Location 08
management
04 Quality 09 Service

05 Quick response 10 Managers and workers

 Why some organizations FAIL?
Neglecting operations strategy.

Failing to take advantage of or recognize SWOT

Putting too much emphasis on short-term financial performance at the expense of

research and development.
Placing too much emphasis on product and service design and not enough on process
design and improvement
Neglecting investments in human capital and resources.

Failing to establish good internal communications and cooperation among different

functional areas.
Failing to consider customer wants and needs.
 STRATEGY

Mission Strategy Tactics

Planning and
Decision
Making
Pyramid
 • Have a good life
MISSION

GOAL • Successful career, financial freedom

STRATEGY • Obtain a degree

• Select a college and a

TACTIC major, Enroll

• Study hard, read in

OPERATIONS advance
ORGANIZATI
OPERATION
ONAL
S STRATEGY
STRATEGY
provides the overall a narrower in scope,
direction for the dealing primarily
organization. It is with the operations
broad in scope, aspect of the
covering the entire organization.
organization.
 Additional operation strategies
QUALITY- TIMELY-
BASED BASED
STRATEGY STRATEGY
focus on focus on
maintaining or reducing the
improving the time required to
quality of an accomplish
organization’s various activities
products or
services
Key Steps In Strategy

1. Link strategy directly to the organization’s

mission or vision statement.
2. Assess strengths, weaknesses, threats and
opportunities, and identify core competencies.
3. Identify order winners and order qualifiers.
4. Select one or two strategies (e.g., low cost,
speed, customer service) to focus on
 ENVIRONMENTAL SCANNING

INTERNAL EXTERNAL
Human resources Economic conditions
Facilities and equipment Political
Financial resources. Legal Environment
Products and services Technology
Suppliers. Competition
existing technology Market
Transforming Strategy Into
Action:
 introduced in the early 1990s by Robert
Kaplan and David Norton
 top-down management system that
organizations can use to clarify their
vision and strategy and transform them
into action.
 move away from a purely financial
perspective of the organization and
integrate other perspectives such as
customers, internal business processes,
and learning and growth.
 PRODUCTIVITY
 an index that measures output (goods and services) relative to the
input (labor, materials, energy, and other resources) used to
produce it.
 an important factor in determining how competitive a company
is.
Computing Productivity
 Computing Productivity
EXAMPLE:
Input Output: 7,040 units
Four workers installed 720 square yards
Labor: $1,000
of carpeting in eight hours. Materials: $520
Overhead: $2,000
Factors That Affect

 Methods
 Capital
 Quality
 Technology
 Management
 HOW TO Improve Productivity
Develop productivity measures for all operations

Look at the system as a whole in deciding which operations are most critical.

Develop methods for achieving productivity improvements

Establish reasonable goals for improvement

Make it clear that management supports and encourages productivity

improvement. (INCENTIVES)

Measure improvements and publicize them

THAN
K