OM (Chapter 4)
Operations Strategy
Operations Strategy
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Lernkarten
Competitive advantage
Competitive advantage denotes a firm’s ability to achieve market and financial superiority over its competitors.
Requirements for creating competitive advantage
Understanding customer needs and expectations and how the value chain can best meet these through designing and delivering customer benefit packages. Building and leveraging operational capabilities to support desired competitive priorities.
Order qualifiers
Order qualifiers are basic customer expectations generally considered the minimum performance level required to stay in business.
Order winners
Order winners are goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer’s business.
Search attributes
Search attributes are those that a customer can determine prior to purchasing the goods and/or services.
(color, price, freshness, style, fit, feel, hardness, and smell)
Experience attributes
Experience attributes are those that can be discerned only after purchase or during consumption or use.
(friendliness, taste, wearability, safety, fun, and customer satisfaction)
Credence attributes
Credence attributes are any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption.
(expertise of a surgeon or mechanic, the knowledge of a tax advisor, or the accuracy of tax preparation software)
Competitive priorities (def. + 5 key priorities)
Competitive priorities represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.
- Cost
- Quality
- time
- flexibility
- Innovation
Strategy
Strategy is a pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.
Strategic planning
Strategic planning is the process of determining long-term goals, policies, and plans for an organization.
core competencies
the strengths unique to that organization
corporate strategy
A corporate strategy is necessary to define the businesses in which the corporation will participate and develop plans for the acquisition and allocation of resources among those businesses.
business strategy
A business strategy defines the focus for SBUs. The major decisions involve which markets to pursue and how best to compete in those markets; that is, what competitive priorities the firm should pursue.
strategic business units
(SBU)
The businesses in which the firm will participate. Defined as families of goods or services having similar characteristics or methods of creation.
functional strategy
A functional strategy is the set of decisions that each functional area—marketing, finance, operations, research and development, engineering, and so on—develops to support its particular business strategy.
Operations strategy
The operations strategy defines how an organization will execute its chosen business strategies.
Developing an operations strategy involves translating competitive priorities into operational capabilities by making a variety of choices and trade-offs for design and operating decisions.
