LESSON 3

• Strategy is a plan for competing in the marketplace.
• Operation Strategy is to ensure all tasks performed are the right task
• Operational Strategy is the performing the tasks well, even better than competitors
• Business Strategy developed after taking into many factors and following some strategic decisions such as

  • MISSION
  • ENVIRONMENTAL SCANNING
  • CORE COMPETENCIES
• THREE INPUTS TO A BUSINESS STRATEGY

  1. MISSION
  2. ENVIRONMENTAL SCANNING
  3. CORE COMPETENCIES
• Mision- statement that defines what is our business, who are our clients
• Environmental Scanning- monitoring the business environment for market, trends, threats and opportunities.
• Core Competencies- unique strengths that can help us with the market
• Business Strategies- defines long-range for the company
• Operations Strategy is the plan for the design and management of operations functions
• Competitive edge - Competitive Priorities
• Competitive Priorities

  1. Cost
  2. Time
  3. Quality
  4. Flexibility
• Structures

  1. FACILITIES
  2. FLOW OF GOODS
  3. TECHNOLOGY
• Infrastructures

  1. PLANNING AND CONTROLLING SYSTEM
  2. WORKERS
  3. PAY
  4. QUALITY
• Cost

  • offering products at a low price relative to competition
  • high volume products
  • limit product range
  • invest in automation
  • lower skill labor
  • product focused on layout
  • low cost does not mean low quality
• Economies of Scale- cost advantages that enterprises obtain due to size throughput or scale of operation
• 2 dimensions

  1. High Performance Design
  2. Product and service consistency
• High Performance Design - superior features, high durability and excellent customer service
• Product and Service Consistency - meet design specification close tolerance and error-free delivery
• Quality needs to be addressed

  1. Product Desing Quality
  2. Process Quality
• Product Design Quality

  • product/service meets requirements
• Process Quality

  • error-free products
• Time

  • one of the most important competition priorities
  • first that can serve often win the race
• TIME-RELATED ISSUES INVOLVED:

  1. RAPID DELIVERY
  2. ON-TIME DELIVERY
• Rapid delivery - focused on shorter time between order placement and delivery
• On-time Delivery - deliver products exactly when needed time.
• Flexibility

  • product flexibility- easily switched production from one item to another
  • volume flexibility- ability to ramp production up and down match market demands.
• 3 generic strategies

  1. low-price provider
  2. differentiate
  3. market niche
• Niche- a position that is exactly suitable for a small group
• JAMAIS CASCIO- a north american anthropologist, coined the term BANI
• VUCA MODEL

  • 1987
• VUCA means?

  Volatile, Uncertain, Complex, Ambigous
• BANI means?


  Brittle, Anxious, Non-Linear, Incomprehensible
• GIG ECONOMY - segment of the service based on flexible, temporary or freelance job
• DIGITAL NATIVE- generation of people who grew up in the era of technology
• DIGITAL IMMIGRANTS- people who have had to adapt the new language of technology
• DIGITAL REFUGEES- people who's job, livelihood, and life disrupted by the rapid advanced of AI.
• INTERNAL AUDIT

  1. core competencies
  2. internal assets
  3. vision and mision statements
• 4 excellent service strategy

  1. QUALITY
  2. SERVICE
  3. VALUE
  4. EQUIPMENT
• SUPPORTING STRATEGIES

  1. SERVICE PRODUCT
  2. ENVIRONMENT
  3. DELIVERY SYSTEM