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

2. Company Mission and Goals
Define the
Business
Define Main
Objectives

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

4. International Strategies
Multinational
Strategies
International
Strategies
Global
Strategies

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

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

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

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

9. Organizational Structure
Coordination
Flexibility

10. 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)

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

12. 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)

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

14. 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

15. 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
Industry-specific standards—typically pertain to quality of suppliers
Individual companies—set standards for their suppliers