Operations Strategy

Question 1

What tell the mission of a company ?

Answer 1

It tells an organization where it is going
• Organization’s
purpose for being
• Answers ‘What do we
provide to society?’
• Provides boundaries
and focus

Question 2

What tells the strategy of an organization?

Answer 2

It tells the organization how to achieve their mission
• Action plan to achieve
mission
• Functional areas have
strategies
• Strategies exploit
opportunities and
strengths, neutralize
threats, and avoid
weaknesses

Question 3

what factors affect the mission of an Organization?

Answer 3

• Philosophy
• Environment
• Customers
• Benefit to society
• Public Image
• Profitability and growth

Question 4

What are the 3 types of competitive advantage an organization can have?

Answer 4

1. Differentiation: Uniqueness in products or services that set them apart from competitors in the market.
2. Cost leadership: Provide maximum value as perceived by the costumer( does not imply quality)
3. Quick response: Matching market changes in design innovation and volumes, reliability meeting schedules

Question 5

What are the important elements of OM strategy?

Answer 5

• Strengths and weaknesses of
competitors and possible
new entrants into the market
• Current and prospective
environmental,
technological, legal, and
economic issues
• The product life cycle
• Resources available within
the firm and within the OM
function
• Integration of OM strategy
with company’s strategy and
with other functional areas

Question 6

What are the phases in a Pdoruct life´s cycle?

Answer 6

1. Introduction (increase market share, R&D engineering is critical)
2. Growth (Practical to change price or quality image)
3. Maturity (poor time to change image, price or quality, defend market share)
4. Decline (cost control is critical)

Question 7

What are possible reasons for a company to globalize?

Answer 7

1. Reduce costs (labor, taxes, tariffs, etc.)
2. Improve supply chain
3. Provide better goods and services
4. Understand markets
5. Learn to improve operations
6. Attract and retain global talent