Production and Organizing Strategies

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Presentation transcript:

Production and Organizing Strategies Strategy Formulation Process Identify Company Mission and Goals Identify Core Competencies and Value-Creating Activities Formulate Strategies

Company Mission and Goals Define the Business Define Main Objectives

Core Competencies and Value-Creating Activities Business Environments Primary Activities Support Unique Abilities

International Strategies Multinational Strategies International Strategies Global Strategies

Corporate-Level Strategies Growth Retrenchment Corporate-Level Strategies Stability Combination

Business-Level Strategies Strategic Advantage Uniqueness Perceived by the Customer Low Cost Position Differentiation Overall Cost Leadership Industrywide Strategic Target Focus Particular Segment Only

Department-Level Strategies Primary Support Manufacturing Marketing and Sales Customer Service Efficient Logistics Research & Development Human Resources Procurement Accounting & Finance

Production Considerations Capacity Planning Facilities Location Planning Process Planning Facilities Layout Planning

Organizational Structure Coordination Flexibility

International Division Structure Headquarters Planes Division (domestic) Trains Division (domestic) Automobiles Division (domestic) International Division Planes Division (France) Planes Division (Brazil) Trains Division (United States)

International Area Structure Headquarters Asia Division Americas Division Europe Division Middle East and Africa Division Japan China S. Korea

Global Product Structure Headquarters Planes Division (global) Trains Division (global) Automobiles Division (global) Trains Division (domestic) Trains Division (Germany) Trains Division (India) Trains Division (Mexico)

Global Matrix Structure Headquarters Asia Division Americas Division Europe Division Planes Division Trains Division Automobiles Division

Global Sourcing and Production Strategy Sourcing of raw materials, parts, and components Manufacture and assembly of components and final products Sale of products Stage of production and sales Home country Abroad Both Home country Abroad Both Home country Location of sourcing, production, and sales Both Abroad

Quality Control Quality standards—exist at three levels General standard award for quality—Baldridge and Deming awards certification standard—accepted worldwide ISO 9000 ISO 9001 ISO 9004-2 Industry-specific standards—typically pertain to quality of suppliers Individual companies—set standards for their suppliers