...MISSIONS & STRATEGY An effective operations management effort must have a mission so it knows where it is going and a strategy so it knows how to get there. This applies for both small organisations and large international organisations. Mission According to Heizer and Render (2006), a mission can be defined as the purpose or rationale for an organisation’s existence. Economic success and survival is the result of identifying missions to satisfy a customer’s needs and wants. Developing a good strategy would be easier if the organisation’s mission is clearly defined. A mission statement usually includes the following six elements: 1. The intention of the business. 2. The role of the business. 3. The interests of different stakeholders. 4. The strategy of the business. 5. The industry in which the organisation operates. 6. The target market. Examples of mission statements are as follows: To provide society with superior products and services-innovations and solutions that improve the quality of life and satisfy customer needs-to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return.To manufacture and service an innovative, growing, and profitable worldwide microwave communications business that exceeds our customers’ expectations. Once an organisation’s mission has been formulated, each functional area within the firm determines its supporting mission. Missions for each function are...
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...Chapter 2 Winning Customers and Competing Effectively 1. The five internal performance objectives analysed further by Neely (2008) are cost, quality, flexibility, dependability and speed. 2. Value added is an activity carried out by an organization that increases the worth of a product or service and for which a customer is willing to pay an additional price. An example would be the provision of 'Fairtrade' or organic foods where there is a perceived ethical and social benefit which customers are prepared to pay for. 3. The ability to change a product or service offering to suit customers' needs is called flexibility. 4. The ability of an organization to consistently meet its promises to the customer is called dependability. 5. Designing a set of sales and profit targets for a particular product is known as category management which is a strategic management approach through trade partnerships to satisfy consumer and shoppers' needs. 6. Consumer market segmentation can be divided into four categories, geographic, demographic, behavioural and psychographic. Chapter 3 Operations Processes and Life Cycles 1. In the craft era the 3 types of operations process were job shop, batch process and simple project. 2. In the mass production era the 4 types of operations process were complex project, batch production, assembly line and continuous flow process. 3. In a materials processing operation, the process which is associated with the highest variety is the project...
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...Chapter 2: Operations Strategy and Competiveness This chapter explains the importance of business strategy and the ties it has with operation strategy. A business strategy includes the company’s visionary mission, its market, and core competencies. This is what ultimately makes the companies long term plan. The overall model for development operations strategies are marketing strategy, finance strategy and operational strategy. Operational strategy must come together with the company’s strategy to attain its long-term method. It develops a plan for operations function. Operations strategy has four competitive properties. Quality is about staying competitive. It has two dimensions, which are high performance design and goods and services consistency. High performance design is an operations function, which focused on different parts of quality like, features, high durability, and satisfactory customer service. Goods and services consistency is the rating of how goods and services meet their precise conditions. Time is all about speed. Companies must be able to meet its competition priority. Two issues of time are rapid delivery and on time delivery. This can be crucial in the process of deciding a system to be time effective for time management. Flexibility can make or break a company. This is the skill of how companies transition from goods and services to goals and strategies. Companies must stay within the competition, which sometimes mean accommodating to change. How effectively...
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...previous turbulence environment it faced. Now, the AirAsia Berhad had become the leader in the lowest cost carrier in the airplane industry. Cost Leadership Strategy Datuk Tony Fernandez as CEO of AirAsia Berhad said his philosophy is very clear: before a business can grow, it needs to have its costs under control. It must be cost-efficient and profitable, and it must create value. Costs that do not add value must be contained, reduced and even eliminated. It means that AirAsia can be growing in the airline business if they can control their cost. The cost that they have to running there must be efficient and reliable. Everything that can make inefficiencies must be reduced and possibly to eliminate. AirAsia can be possibly competing with other airplane industries if they can make efficiencies to reduce cost and make the low possible fare than other airplane industries. Alignment with what Datuk Tony Fernandez said AirAsia business strategy was centered on cost leadership which targets specific markets which are price sensitive customers. The cost leadership in AirAsia Company is already approving because AirAsia more focused and concentrated in the lowest cost carrier in airplane industries. AirAsia builds and sustains its competitive advantage by providing services at a price that simply lower than competitors price. Operation effectiveness and outstanding efficiency...
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...Information Systems MN5121 Competing with IS Yasaman Soltan-Zadeh y.soltan-zadeh@rhul.ac.uk Office: MX 120 Competing with IS • Does IT Matter? • IS and Competitive Advantage • The New Competitive Paradigm Does IT Matter? • Can IT provide a strategic advantage? • Is it sustainable? • Carr, Nicholas (2003), “IT doesn’t matter”, Harvard Business Review, May 2003, pp. 41-49. – “As information technology’s power and ubiquity have grown, its strategic importance has diminished. The way you approach IT investment and management will need to change dramatically” (Carr, 2003) IT Doesn’t Matter! • Information Technology: – Proprietary Technology vs. Infrastructural Technology • The Commoditization of IT – Transport mechanism – more valuable shared rather than isolated – Interconnectivity and interoperability – Standardisation of technology and homogenisation of its functionality – Highly replicable – Rapid price deflation http://www.youtube.com/watch?v=PO2dCaaSDk8 IT Doesn’t Matter! • From Offence to Defence – Spend less – Follow, don’t lead – Focus on vulnerabilities, not opportunities Does IT matter? • Inherently strategic because of indirect effects • Creates possibilities and options that did not exist before • May become ubiquitous! The insight to harness the potential is not distributed evenly. Does IT matter? Three broad lessons • Extracting value from IT requires innovations in business practices. • IT’s economic impacts comes from incremental...
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...Process Management Case story - July 19th 2008 Helps Build Best Practices for Port Logistics Standardized process methodologies and intuitive modeling/collaboration tools enables EFFORTS to gain a comprehensive view of port operations Introduction A port is like a miniature city. Built around commerce and industry, a port is constantly in motion, always growing and changing. This presents organizational challenges of a major scale. With many different entities competing for access to the same waterway, the variety of industry and commerce operating in the port, and the constant volume of incoming and outgoing ships, capturing the processes that underlay port operations is like trying to understand the dependencies and subtle connections that underlay a city. Every port has its own specific way of doing things because it developed in its own unique way. The result leaves very little certainty over how to improve practices, how to plan future expansion, and how to protect the environment that surrounds the port. EFFORTS (Effective Operation in Ports) The Objectives is an initiative funded by the European Commission that seeks to take on this huge task. Made up of 37 partner organizations from 13 different European countries, EFFORTS seeks to streamline the movement of ships, transportation trucks, and other clients to European ports for the overall reduction in wait times due to unnecessary traffic. Their method of choice is Business Process Management (BPM), a...
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...Strategic Management by Pearce and Robinson. Case #10 Good Hotel: Doing Good, Doing Well is the focus. In the examination, basic question will be given a view point. These viewpoints will discuss the topic of; what is the mission statement behind the operation concept. The options that can be considered by the owner with the pros and cons of each possible opportunity. What type of customers is the business entity trying to target? The marketing strategy that is used to promote the operation. Is the market strategy effective enough? In addition, other possible alternatives will be given consideration that could produce the desired results while competing against others in the industry. (Good Hotel.jpg, 2014) Case Overview The Good Hotel is a hotel that is operated by the Joie de Vivre group (jVd), located in the San Francisco area. What distinguishes this hotel from the standard big chain hospitality operation is that the hotel focus and being socially and environmentally favorable. Over all jVd manages multiple properties in the San Francisco area include the Best Western Americana and Best Western Carriage Inn. These properties are managed by Pam Janusz who has been in charges since 2009. On April 10, 2010 Ms. Janusz received an e-mail stated that the properties had been foreclosed on forcing a sale to a new ownership group. Ms. Janusz was instructed by the jVd president that she is to prepare an evaluation of the hotel’s performance while implementing a strategy for...
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...Boeing Management and Leadership University of Phoenix Name MGT 330 April 7, 2012 The art of management and leadership is working with your employees and its resources to accomplish and achieve the organizations goals. In order for a manager to be successful they must be able to lead. This paper will discuss how in Boeing management and leadership are different, it will explain how managers and leaders create and maintains a healthy organization culture through it s roles and responsibilities. Across the borders I will evaluate all the effects of management and globalization. In this paper I will talk about and recommend two strategies in the organization that the managers and leaders can use to maintain and create a healthy organization culture. Also with the concepts from my own experience I will support my recommendations. Management and leadership have been used by people for years and the two words do not have the same meaning and within the structure of an organization both plays a different role. In an organization some management teams lack leadership, but successful management teams have great leadership. Management is for the positions that organizations...
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...International strategy Explain the role and effect of any two international business strategies. As the globalization of the world economy and the speed up integration process the international competition is increased, the requirement for international business strategy is rising ever higher. International business strategy plays a vital role in the global economy, it not only to guide a company's development, but also link the global economy. What is strategy? A strategy is the pattern or plan that integrates an organisation's major goals, policies and action sequences into a cohesive whole. (Mintzburg, 1984) Those strategies established long-term objectives and provided the overall guidance for the operational decisions which are focus on the whole companies. They determine the overall direction of an enterprise and its ultimate viability in light of the predictable, the unpredictable and the unknowable changes that may occur in its most important surrounding environments. (Elizabeth, 2001) Internationalization of operations has led organizations to assume different types of strategies. For instance: the localization of KFC. When you eat in KFC you will discover that the test of food in England is different from the test in China. KFC changed the favour of food to Cater to the tastes of local people. McDonald's and KFC use this kind of international business strategy to make their profit. There are four basic strategies to enter and compete in the international environment:...
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...University Rothaermel Exercise 2 Assignment 6.1: There are drawbacks and risks of both broad generic business strategy and focused strategy. Focused strategy’s lowcost could be a potential drawback and risk. Especially if the competition is able to lower their cost offering there product and service at a comparable price. Acording to the text, the product/service cost can be difficult in industries where economies of scale play a significant role. And as technology increases and companies become more innovative competition is likely to increase and close in. Another drawback addressing the focus strategy low prices may also result in a negative potential customer mind-set towards the quality of the product. “Low cost leadership when combined with low prices can bring about to a disadvantage which is less customer loyalty” (Vokurka & Davis, 2004). Other risks of focus strategies include the ease of imitation. The potential drawback is the niche may no longer be a niche. On the contrarary, the broad market strategyfirm will adapt its product and services for competing directly. 6.4: Value Chain Components consist of five key firm activities. The first activity of the internal value chain is the supply chain management. This consist of the receiving of merchandise and products, warehousing, and the firms inventory control system. Operations which are the value creating activities that transform the fims inputs into the final product. Distribution which...
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...Executive Summary This report is a well-researched report presented with the facts of strategic management. I have discussed the role of strategic management in organisations. There are few strategies described in the report as well. I have read a lot of books and journals therefore I have mentioned a few in the reference list. There is also a case study for the body shop. It has been critically evaluated on the strategies. Moreover, the report is a business report with a well research topic. Contents page Introduction-…………………………………………………………………………….1 Findings-…………………………………………………………………………………1 * What is strategy? .......................................................................................1 * What is strategic management? ...............................................................1 * What is operational strategy?....................................................................2 * Discussing the kinds of strategies………………………………………….2 * Body shop case study………………………………………………...……..2 Conclusion………………………………………………………………………………..3 Reference list…………………………………………………………………………….3 Introduction In this paper, I will briefly be discussing the two questions given. The first will be about strategy and strategic management and second will be the case study for body shop. I will be analysing both of the questions to the best of my knowledge. Furthermore...
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...“What recommendations do you propose for the strategic development of the University of East Anglia in existing and new markets from now to 2018?” 12th Nov 2009 INTRODUCTION With the rapid socio-economic development and national policies tilt on education, strategic management at the university became increasingly important. Some schools use strategic management in facing the challenges and catch the opportunities brought by environmental changes to earn improvements and thus to achieve a historic leap forward. Competition exists in every field not only in similar businesses, but also in other industries that offering competing products or services (Stacey 2007). The only way to surge ahead of competitors is to have new approaches in the competition. Strategic management principles of the institution must be innovative and creative. It is important because all the organizations are trying to employ traditional methods and this can mean a closer competition level. This essay will discuss the main strategies in existing and new markets of the University of East Anglia under the current situation of UEA in the whole UK educational industry. New market space New market space is the creation or reinvention of existing products in such a way that it must appeal to the existing customers as well as a whole new group of customers. The products offered must be unique in every aspect and it should make the organization...
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...Seagate Technology Profile: Real-Time Response to Demand John A McClain Capella University MBA 6127 Effective Global Strategic Resourcing Abstract Seagate Technology, is one of the world’s largest manufacturers of computer disk drives and related data storage devices, open its information super highway up to achieve a holistic global supply chain. By giving access to their operating system to both suppliers and customers, the company was able to reduce inventory and lead times to corner the market. In the following analysis, I will explain how the company used visibility to ensure an effective and efficient global supply chain, review the risks associated with real time demand systems, describe categories of regulatory and legal requirements for ensuring compliance in a global supply chain, describe implications of the Foreign Corrupt Practices Act in global operations, assess strategies for ensuring adherence to ethical labor practices, analyze the use of supply chain visibility to ensure equal treatment of partners, and evaluate the role of ethics and regulations in an effective and efficient supply chain. Seagate’s use of visibility to ensure an effective and efficient global operations and supply chain process Seagate characterized it supply chain as a real time demand forecasting process by removing the lag time between supply chain lead time and customer acknowledgement. Seagate has many customers all around the globe, at the same time there are customer...
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...Woolworth’s Strategy and its Implementation Lecturer – Jessica Kennedy Due Date – 11:00pm Thursday 26th April 2012 Word Count – 2669 In order to analyse Woolworths’ strategy and its implementation, consideration will be given to the competitive environment that exists between Woolworths and Wesfarmers (Coles), the notion of competing duopolies and the role that management plays in the process. The purpose of this essay is to discuss competing duopolies and how they impact on the development of an organisation’s strategy and implementation. In a duopoly two firms compete for market share, so strategic thinking by management plays an important part in strategy development and the creation of a competitive advantage. Strategic thinking allows management ‘to more fully capture and analyse the relevant forces creating new market opportunities and business strategy requirements’ (Cravens, Piercy & Baldauf 2009, p.32). Woolworths has for many years been the dominant player in the Food and Staples Retailing Industry but since Wesfarmers’ takeover of Coles, Woolworths has had to be more on the defensive matching Coles in its low-cost pricing strategy on many product items (Sell on News 2011). Whilst Coles is trying to regain market share within its supermarket division, Woolworths is endeavouring to develop operational scope in the area of hardware, where Coles has held a monopoly situation (Sell on News 2011). In competing duopolies, the quality of the management team and...
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...INTERNATIONAL HUMAN RESOURCE MANAGEMENT: Definitions of IHRM: Scullion (2005) tracked the evolution of definitions of IHRM. He observed that although there has been little consensus, definitions have broadly concentrated on examining the HRM issues, problems, strategies, policies and practices which firms pursue in relation to the internationalization of their business. Schuler et al (2009) similarly recently positioned the different views that have existed about the nature of IHRM. IHRM encompasses: ‘. . . the worldwide management of people in the multinational enterprise’ (Poole, 1990; p1) ‘. . . human resource management in an international environment . . . problems created in an MNC performing business in more than one country, rather than those posed by working for a foreign firm at home or by employing foreign employees in the local firm’ (Briscoe and Schuler, 2004; p1) ‘. . .how MNCs manage their geographically dispersed workforce in order to leverage their HR resources for both local and global competitive advantage’ (Scullion, 2005; p5) ‘. . . a branch of management studies that investigates the design of and effects of organizational human resource practices in cross-cultural contexts’ (Peltonen, 2006; p523) ‘. . . all issues related to the management of people in an international context [including] human resource issues facing MNCs in different parts of their organizations [and] comparative analyses of HRM in different countries’ (Stahl and Björkman...
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