MODULE 5: Strategy and Productivity

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RAFAEL

Cards (27)

A high-level plan that defines the long-term goals and direction of a company, focusing on how it will compete in the market and achieve a sustainable competitive advantage.
Business Strategy
TYPES OF BUSINESS STRATEGY
Cost Leadership
Differentiation
Focus
Growth
Innovation
Sustainability
Diversification
Defensive
Retrenchment
Cooperative
Digital
Blue Ocean
A functional plan that outlines how a company’s resources and processes will be managed to support the broader business strategy, focusing on efficiency, quality, flexibility, and cost-effectiveness in delivering goods or services.
Operations Strategy
TYPES OF OPERATIONS STRATEGY
Cost-Driven
Quality-Driven
Flexibility
Delivery/Time-Based
Innovation
Service-Driven
Sustainability
Capacity
Supply-Chain
Technology-Driven
Lean
Outsourcing
Definition and Focus: Broad and High-Level; Focus on Competitive Advantage
Business Strategy
Definition and Focus: Functional and Specific; Focus on Efficiency and Process Optimization
Operations Strategy
KEY COMPONENTS OF BUSINESS STRATEGY
Vision, Mission and Values
Environmental Scanning
Competitive Analysis
Identifying Competitive Advantage
Setting Strategic Goals and Objectives
Resource Allocation
Choosing Growth Strategies
Strategic Implementation and Execution
Evaluating and Controlling Strategy
Types of Environmental Scanning
SWOT
PESTEL
Growth Strategies in Business
Market Penetration
Product Development
Market Development
Diversification
KEY ELEMENTS OF OPERATIONS STRATEGY
Aligning Operations Strategy to Business Strategy
Competitive Priorities in Operations Strategy
Decisions in Operations Strategy
Aligning Operations Strategy with Product or Service Design
Global Operations Strategy
Sustainability and Operations Strategy
Continuous Improvement
Balancing Trade-offs in Operations Strategy
Decisions in Operations Strategy
– Process Design and Layout
– Capacity Planning
– Supply Chain Management
– Technology and Innovation
– Inventory Management
– Workforce and Human Resources
STRATEGIC ROLE OF TECHNOLOGY
Technology as a Competitive Advantage
Improving Operational Efficiency
Enhancing Product and Service Innovation
Role in Supply Chain Management
Facilitating Data-Driven Decision Making
Supporting Flexibility and Scalability
Enabling Sustainable Operations
Enhancing Customer Experience
Typically defined as the ratio of outputs to inputs; it measures how resources like labor, materials, and capitalare efficiently used to produce goods and services.
Productivity
Importance of Productivity
Cost Reduction
Competitive Advantage
Economic Growth
Factors Affecting Productivity
Labor Efficiency
Technology
Process Design
Supply Chain Efficiency
Management Practices
Why Measure Productivity?
Assess Efficiency
Identify Areas for Improvement
Set Benchmarks
Inform Decision-Making
Key Metrics for Measuring Productivity
Labor Productivity
Capital Productivity
Material Productivity
Industry-Specific Productivity Metrics
$Labor Productivity =$ $Total Output ÷ Total Labor Hours$  
FORMULA OF Labor Productivity
$Capital Productivity =$ $Output ÷ Capital Input$  
FORMULA OF Capital Productivity
$Material Productivity =$ $Output ÷ Material Input$  
FORMULA OF Material Productivity
Industry-Specific Productivity Metrics involve in:
Manufacturing
Service Industry
Healthcare
Hospitality
Output per machine hour or output per unit of energy consumed
Manufacturing
Output per employee or output per customer interaction
Service Industry
Number of patients treated per doctor or cost per patient
Healthcare
Room occupancy rates or revenue per available room (RevPAR)
Hospitality
Measuring Productivity
Cost Reduction
Competitive Advantage
Economic Growth
Improving Productivity
Investing in Employee Training
Adopting Technology
Lean Practices
Process Reengineering
Outsourcing Non-Core Activities