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Chapter Operations Management

In: Business and Management

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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 business does this can help them perform better and meet customer needs and wants. Cost focuses on productivity. Competing prices for products will guide the business in how effective it can make its products and configure price. It helps operations function use its resources at is best, dispensing waste. The business strategy is made of three fundamental blocks of business

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