COMPETITIVENESS, STTRATEGY, AND PRODUCTIVITY

2 STRATEGY n Mission – The reason for existence for an organization n Mission Statement – A clear statement of purpose n Strategy – A plan for achieving organizational goals n Tactics – The actions taken to accomplish strategies

3 STRATEGY FORMULATION n Distinctive Competencies – The special attributes or abilities that give an organization a competitive edge. n Environmental Scanning – The considering of events and trends that present threats or opportunities for a company.

4 n Key external factors – Economic conditions – Political conditions – Legal environment – Technology – Competition – Markets KEY FACTORS n Key internal factors – Human Resources – Facilities and equipment – Financial resources – Customers – Products and services – Technology – Suppliers

5 PRODUCTIVITY n Partial measures :output/(single input) n Multi-factor measures : output/(multiple inputs) n Total measure : output/(total inputs)

6 COMPETITIVENESS n How effectively an organization meets the needs of customers relative to others that offer similar goods or services Quality Price Time Flexibility Differentiation Service

7 Banks, ATMsConvenience Location Disneyland Nordstroms Superior customer service Service Burger King Supermarkets Variety Volume Flexibility Express Mail One-hour photo Rapid delivery On-time delivery Time Sony TV Lexus, Cadillac Pepsi, Kodak, Motorola High-performance design or high quality Consistent quality Quality U.S. first-class postage Motel-6, Red Roof Inns Low Cost Price EXAMPLES OF DISTINCTIVE COMPETENCIES

8 VALUE n Firm’s tasks : It must create customers and then keep them. n Value – the customer’s subjective evaluation, adjusted for cost, of how well a good or service meets or exceeds expectations. – Value is defined in terms of the customer n Customers impute product value using a value equation that seeks to quantify the trade-offs between product performance and its total long term cost

9 VALUE EQUATION n Value = Performance / Cost n Performance = (ß1×Quality) +( ß2 × Speed) +(ß3 × Flexibility) n Cost – 고객이 Output 을 취득, 사용, 처분 과정에 투입하는 모든 주관적, 객관적 의미의 원가 개념

10 FORCES THAT INFLUENCE CHANGE n Familiarity n Economic Condition n Implementing Change – Refinement - an incremental approach to improve an existing good or service. – Redefinition- a sudden, dramatic approach to a product that is often driven by new methods of enhancing value. n Income/Education n Competitors’ Actions n Government Actions

11 WASTE n Categories of Waste – Overproduction – Waiting in queues – Transportation – Processing waste – Inventory waste n Product defects n Waste of time n Waste of human capabilities n Paperwork waste n Waste of motion n Any activity or action that adversely affects the value equation for a customer