...OPERATIONS MANAGEMENT -TOPICS & EXAMPLES What Is Operations and Supply Chain Management? 1-2 The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services ¨ Operations and supply chain management (OSCM) is ¨ ¤ A functional field of business ¤ Concerned with the management of the entire production/delivery system Goods versus Services 1-3 Goods Services Pure Goods Core Goods Core Services Pure Services Tangible Less interaction with customers Often homogeneous Not perishable – can be inventoried Intangible Interaction with customer required Inherently heterogeneous Perishable/time dependent Defined and evaluated as a package of features Importance 1-4 ¨ Regardless of the type of organization, they all must ‘do’ operations management because all of them exist to produce some mixture of products and services. ¤ Even if the term “operations management” is not used Operations management decisions have a major impact on both the cost of producing products or services and how well the products and services are produced and delivered (which in turn impacts profits) ¨ In the non-profit sector, quality services that are delivered efficiently provide greater value to the community ¨ Operations and Supply Chain Processes 1-5 Operations Manufacturing and service processes used to transform resources into products Supply Chain Processes that...
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...materials management and physical distribution. For both parts, decision problems and cost aspects are examined. Design and logistics aspects of products and services will be compared. We will discuss how to formulate objectives and constraints to measure the performance of logistics processes. Furthermore, several logistics control aspects are discussed. Finally, it is explained in which way logistics activities can be changed to operate abroad. Characteristics and specific aspects of global supply chains will be treated. Chapter 1 Operation and supply chain management = the design, operation and improvement of the system that create and deliver the firm’s primary products and services. Manufacturing process: would produce some type of physical product Service process: would produce an intangible process. Supply chain = refers to the process that move information and material to and from the manufacturing and service process of the firm. Process = made up of one or more activities that transforms inputs into outputs. There is work involved in each type of process: * Planning: consists of the process needed to operate an existing supply chain strategically. * Sourcing: involves the selection of suppliers that will deliver the goods and the services needed to create the firm’s...
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...notes are handwritten, rather than typed, they must be submitted as photocopies as evidence you have prepared your notes before class. I. Current Situation A. Current Performance (required) How has the organization performed in recent years in terms of return on investment, market share, and profitability? (This section must be based on and present evidence of your conduct of appropriate numerical analyses of the firm’s market and financial performance i.e. ratio analyses and/or change (and percentage change) over time in key market and financial measures over time.) Your task is to conduct analyses and discover possible problems facing the company, not to just present data. What are the organization’s current mission, objectives, strategies and policies? B. Corporate Governance Who are the Board of Directors and what is their level of involvement in strategic management? C. Top Management What person or group constitutes top management? Have they established a systematic approach to strategic management? Are strategic decisions made ethically in a socially responsible manner? Is top management sufficiently skilled to cope with likely future challenges? II. External Environment A. General Environment (required) What general environmental forces are currently affecting both the organization and the industries in which it competes? Which of these forces present future threats or opportunities? Are these forces...
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...alliances fail”. What criteria should managers use to determine whether to enter into an alliance with or acquire another firm and how can they increase the chances of success when following either strategy? In today’s globalised world companies find it increasingly hard to achieve and sustain growth, many look to develop better competencies and grow resources through the use of acquisitions and alliances. However, these are far from simple strategies to implement, they are multi-factorial with both tangible and intangible elements creating many conundrums. As identified by Holzner (2014) their ‘failure’ or ‘success’ are subjective terms, and are often misappropriated in this context. Success or failure may not be determined by the longevity of a union, financial gains or the eventual occurrence of termination. This essay will examine success as defined by the extent to which the relationship meets the prior entry needs and desires of the parties. It will evaluate assessment frameworks and models of how firms might identify and increase the chance of success, and will highlight managerial techniques. Acquisitions and alliances are different undertakings, and as such carry with them specific concerns and peculiarities. It is wrong to address the success factors for both concepts as if they are a homogenous group – though there will be areas of crossover. Success can only be realised by parties within a union if both have a clear understanding of what their objectives are, and...
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...FIRST PAGES Part One Overview of Strategic Management The first chapter of this book introduces strategic management, the set of decisions and actions that result in the design and activation of strategies to achieve the objectives of an organization. The chapter provides an overview of the nature, benefits, and terminology of and the need for strategic management. Subsequent chapters provide greater detail. The first major section of Chapter 1, “The Nature and Value of Strategic Management,” emphasizes the practical value and benefits of strategic management for a firm. It also distinguishes between a firm’s strategic decisions and its other planning tasks. The section stresses the key point that strategic management activities are undertaken at three levels: corporate, business, and functional. The distinctive characteristics of strategic decision making at each of these levels affect the impact of activities at these levels on company operations. Other topics dealt with in this section are the value of formality in strategic management and the alignment of strategy makers in strategy formulation and implementation. The section concludes with a review of the planning research on business, which demonstrates that the use of strategic management processes yields financial and behavioral benefits that justify their costs. The second major section of Chapter 1 presents a model of the strategic management process. The model, which will serve as an outline for...
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...CORPORATE STRATEGY AND DIVERSIFICATION Definition of Corporate Strategy Business Strategy addresses the question How should a firm or business compete with sustained advantage in a given competitive environment? Corporate Strategy addresses the question What should be the appropriate scale and scope of the enterprise? Corporate Strategy therefore influences how large and how diversified a firm should be. The definition of a business determines to a large extent the Corporate strategy. A firm can be a single business firm operating in a single industry environment with a fairly apparent definition. On the other hand a large and widely diversified firm with many different businesses each operating in a different industry environment, faces the challenge of defining each of its various businesses as well as developing an overall definition. It is easier for Microsoft to define its business than it is for G.E. or the Tata group to develop an overall business definition. Why do Firms Diversify. 1) To Grow. Growth is an implicit objective in nearly all organisations. Stock markets tend to reward growing companies. Managers find growth extremely attractive because it hold out the prospects of increased earnings for the firm leading to increased compensations for themselves. They also see the acquisition of new knowledge as instrumental in improving their self actualisation prospects. 2) Fuller utilisation of Resources and Capabilities. Firms find that they have un utilised...
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...The Five Factors of a Strategic Alliance by: Jason WakeamIssues: May / June 2003. Tags: Strategy. Categories: Strategy. • Share on LinkedIn • Share on googlePlus • Share on facebook • Share on twitter • Share by email [pic] “Strategic” may be one of the most over-used words in business today. This observation is especially valid in the world of alliances, where managers must distinguish between those alliances that are merely conventional and those that are truly strategic. This author outlines the five factors that make an alliance “strategic.” As companies gain experience in building alliances, they often find their portfolios ballooning with partnerships. While these partnerships may contribute value to the firm, not all alliances are in fact strategic to an organization. This is a critical point, since, as this article will explain, those alliances that are truly strategic must be identified clearly and managed differently than more conventional business relationships. Due to the levels of organizational commitment and investment required, not all partner relationships can be given the same degree of attention as truly strategic alliances. The impact of mismanaging a strategic alliance or permitting it to fall apart can materially impact the firm’s ability to achieve its core business objectives. The five criteria of a “strategic” alliance What is it that makes an alliance truly strategic to a particular company? Is it possible for an alliance...
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...organizational culture principles into the strategic fabric of a modern firm competing in a global, competitive, high tech industry. The achievements of Atul Jain, founder, CEO, and Chairman of TEOCO, are extraordinary given his limited business expertise, compliant personality, and unconventional belief system – all which he has parlayed into a competitive advantage for the his mid-sized telecommunications software company. The introduction of the case places TEOCO at a major juncture, having recently completed an acquisition which doubles the size of the company and committed to a new ownership structure with a venture capital company’s minority equity investment. Reasons behind the unlikely partnership agreement are discussed before delving into TEOCO’s background and core product categories. The industry landscape and company’s growth strategies are described next. This leads into an explanation of the TTI acquisition, which seriously tests the strength of Atul’s proven business approach. Finally, the case depicts how the shared leadership, employee ownership, and human resource practices at TEOCO are the foundation of the competitive advantage created by Atul. As the company enters a new era, the shaping of its future is already underway. The case analysis is intended to anticipate the likely impact of the TTI acquisition and TA alliance on the strategic elements that have led to TEOCO’s success. It will produce suggestions to prepare management for the critical challenges...
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...topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business models and management techniques for the future. Given its enormous reach and connection to important business topics ranging from climate change to social networking, the fashion industry’s practices provide broadly-relevant lessons for future business leaders in all fields as they focus on ways to minimize negative impacts and maximize positive sustainable outcomes for businesses,...
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...after a movie's release. c. Windowing greatly benefited movie theaters. d. Windowing greatly threatened movie theaters. e. Windowing may be replaced with new approach to distribution that shortened the time consumers can purchase movies. 2. Which of the following is a false statement about the relationship between channel strategy and marketing strategy? a. Channel strategy is concerned with the place aspect of the marketing strategy. b. Channel strategy is narrower in scope than the marketing strategy. c. Channel strategy focuses on distribution objectives. d. The channel strategy is important to the firm’s overall objectives. e. The marketing channel strategy focuses on product, price, and promotion. 3. Channel strategy may be of more importance than the other strategic variables of the marketing mix and is also important to: a. The operations strategy. b. The development of the breadth of the product line. c. The firm’s overall objectives and strategies. d. The firm’s competitive position in the market place. e. The level of profits the firm achieves. 4. Which of the following is not one of the basic distribution decisions that most firms must address? a. Which individual should be chosen as channel...
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...and therefore (believe= repetition) that Quick Result could find opportunities that could steer it out of the current crisis in the shortest possible time. This is a strategic plan on how Quick Results can revamp its operations and deliver itself from the challenge it currently faces and take advantage favourable future economic conditions. In doing so it would still apply its resources available currently in the form of infrastructure, vehicles/carriers, experiences personnel, management (though a change in management would be the best way to go). Introduction Generally, every firm irrespective of the market it operates exists to survive, maximise profit and grow in order to generate appreciable return on investment to the shareholders and contribute to the wellbeing of the environment that it operates in. in the bid to achieve these objectives firms have to contend with challenges of competition and being cost effective in their operations. The former is beyond the Firm and has to find a way to manage so as to influence its outcome while the other is within the firms grasp. These have the tendency to overwhelm the firm if not properly monitored. Success is achieved when management is able to plan and structure the right mix of the many factors that affect the firm to achieve the above...
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...of the competitors of Apple, the underlying company provides a deep focus on the product research. Apple Company has faced several challenges and also competition in the smart phones and tablets. The development strategies of Apple help the underlying company to become successful in the market place. Apple provides a deep focus on creativity and designing of the products because the consumers are more conscious about the design of the products. Also, the innovation in the products helps the underlying company in its success (Gómez Cruz et.al, 2012...
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...Impact of Outsourcing in improving productivity in modern Organizational Introduction In today’s world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more than $300 billion by the year 2001 (Dun and...
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...Chapter2: Multiple Choice Questions 1. Which of the following is true about business strategies? a. An organization should stick with its strategy for the life of the business. b. All firms within an industry will adopt the same strategy. c. Well defined missions make strategy development much easier. d. Strategies are formulated independently of SWOT analysis. e. Organizational strategies depend on operations strategies. The fundamental purpose for the existence of any organization is described by its a. policies b. mission c. procedures d. strategy e. tactics Which of the following activities takes place once the mission has been developed? a. The firm develops alternative or back-up missions in case the original mission fails. b. The functional areas develop their functional area strategies. c. The functional areas develop their supporting missions. d. The ten OM decision areas are prioritized. e. Operational tactics are developed. Which of the following statements about organizational missions is false? a. They reflect a company's purpose. b. They indicate what a company intends to contribute to society. c. They are formulated after strategies are known. d. They define a company's reason for existence. e. They provide guidance for functional area missions. The impact of strategies on the general direction and basic character of a company is a. short ranged b. medium range c. long range d. temporal e. minimal The fundamental purpose of an organization's mission statement is...
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...The Perceived Impact of Outsourcing on Organizational Performance Dean Elmuti, Eastern Illinois University Introduction In todays world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Strategic management of outsourcing is perhaps the most powerful tool in management, and outsourcing of innovation is its frontier (Quinn 2000). Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999). The market for providers of outsourced services of all types is growing rapidly. In 1996, American firms spent over $100 billion in outsourced business activities (Casale and Overton 1997). Other estimates place the total U.S. market for outsourcing at more...
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