Download presentation
Presentation is loading. Please wait.
Published byGregory White Modified over 8 years ago
1
1-1 Business Strategy Context for Operations Strategy Chapter 1 McGraw-Hill/Irwin Operations Strategy Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
2
1-2 What is strategy? Strategic thinking has its roots in military strategy “The branch of military science dealing with military command and the planning and conduct of a war.” And has evolved to focus on business “An elaborate and systematic plan of action.”
3
1-3 Competitive Strategy: The Positioning View
4
1-4 Competitive Strategy: The Positioning View Options for firm positioning: Cost leadership Differentiation Focus And, within each of the three: Variety-based Needs-based Access-based
5
1-5 Competitive Strategy: The Positioning View SWOT Analysis Strengths Weaknesses Opportunities Threats
6
1-6 Concerns with the Positioning View Too narrowly focused on industry and product economics rather than customer economics Allows too few options for positioning. Looking at conflicts among positions might lead to new options. Relies too much on analytical tools Does not acknowledge the need for learning and adaptation over time
7
1-7 Competitive Strategy: The Resource- Based View Competitive advantage is derived from the firm’s development of unique bundles of resources and capabilities that are: Inimitable: are difficult or costly to imitate or replicate Valuable: allow the firm to improve its market position relative to competitors Rare: in relatively short supply
8
1-8 Competitive Strategy: The Resource- Based View Resource: an observable, but not necessarily tangible, asset that can be valued and traded e.g., brand, patent, parcel of land, license Asset or input to production than an organization owns, controls or has access to on a semi-permanent basis Capability: not observable, and hence necessarily intangible, cannot be valued and changes hands only as part of an entire unit Processes, activities or functions performed within a system Utilize the organization's resources
9
1-9 Competitive Strategy: The Resource- Based View Types of capabilities Process-based e.g., McDonald’s Systems- or coordination-based e.g., Ritz-Carlton e.g., Southwest Airlines Organization-based e.g., Nucor Steel Network-based e.g., Zara e.g., Dell
10
1-10 Competitive Strategy: Integrating the Positioning and Resource-Based Views
11
1-11 How Strategy Is Made
12
1-12 Levels of Strategy-Making
13
1-13 Business Strategy: Views the Firm Might Take
14
1-14 Business Strategy: Focus on the Customer Types of customer needs Must haves Linear satisfiers Delighters Neutral
15
1-15 Business Strategy: Dimensions along which Customers Assess Performance Cost Quality Availability Features/Innovativeness Environmental performance
16
1-16 Business Strategy: Dimensions along which Customers Assess Performance
17
1-17 Business Strategy: Making Tradeoffs in Positioning
18
1-18 Strategy-Making in Context
19
1-19 Strategy-Making: Cross-Functional Participation
20
1-20 Operations Strategy: Goals Cost Quality Availability Features/Innovativeness Environmental Performance
21
1-21 Operations Strategy: Connecting Operations Goals to Customer Concerns
22
1-22 Operations Strategy: Decision Categories Structural decisions Vertical integration Process technology Capacity Facilities Infrastructural decisions Sourcing Information technology Supply chain coordination Business processes and policies Capabilities development Lean operation Quality Flexibility
23
1-23 Strategy-Making: Step 1 Understand what position the firm wants to or can take in the marketplace by learning about: Competitors Suppliers Complementary product or service offerings and firms offering them Spaces outside the industry into which the firm might expand Customer needs in terms of: Cost Quality Availability Features/innovativeness Environmental performance
24
1-24 Strategy-Making: Step 2 Understand what capabilities the firm has to offer, can or should develop both within and across the key functional areas of the firm: Operations Marketing Research and development Human resources Finance and accounting As well as outside the firm with supply chain partners
25
1-25 Strategy-Making: Step 3 Integrate or synthesize the activities and capabilities of the functions to achieve: Coherent strategic fit in support of a desired strategic direction Development of a set of capabilities to pursue a new strategic direction
26
1-26 Integrated Strategy-Making Framework
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.