MGT 3

• Competitiveness


  Relates to the effectiveness of an organization in the marketplace relative to other organizations that offer similar products or services
• Strategy


  Relates to the plans that determine how an organization pursues its goals
• Productivity


  Relates to the effective use of resources and has a direct impact on competitiveness
• Identifying Consumer wants and/or needs

  1. Price and quality

  2. Advertising and promotion
• Ways that business organizations compete (OPERATION)

  • Product and service design
  • Cost
  • Location
  • Quality
• Ways that business organizations compete (Operations)

  • Flexibility
  • Inventory Management
  • Supply Chain Management
  • Service
• Reasons why some organizations fail
• Reasons why some organizations fail

  • Putting too much emphasis on short-term financial performance at the expense of research and development
  • Failing to take advantage of strengths and opportunities, and/or failing to recognize competitive threats
  • Neglecting operations strategy
  • Placing too much emphasis on product and service design and not enough on process design and improvement
  • Neglecting investments in capital and human resources
  • Failing to establish good internal communications and cooperation among different functional areas
  • Failing to consider customer wants and needs
• Mission


  Organization’s reason for existence
• Mission Statement


  Expresses the purpose of an organization
• Goals


  Provide detail and scope of the mission
• Strategies


  The plans for achieving organizational goals
• Three basic business strategies

  • Low cost
  • Responsiveness
  • Differentiation from Competitors
• Strategy and Tactics


  Planning and Decision Making are Hierarchical in Organizations
• Strategy Formulation


  1. Link strategy directly to the organization’s mission or vision statement

  2. Assess strengths, weaknesses, threats and opportunities, and identify core competencies

  3. Identify the Distinctive Competencies (order winners and order qualifiers)

  4. Select one or two strategies to focus on
• Environmental Scanning


  Considering events and trends that present either threats or opportunities for the organization
• SWOT Analysis


  Assessing Strengths, Weaknesses, Opportunities, and Threats
• Key Internal Factors


  • Human Resources
  • Facilities and Equipment
  • Financial Resources
  • Products and Services
  • Labor Relations
  • Company or Product Image
  • Distribution Channels
• Key External Factors


  • Customers
  • Suppliers
  • Economic Conditions
  • Political Conditions
  • Legal environment
  • Technology
  • Competition
• Productivity


  A measure of the effective use of resources, usually expressed as the ratio of output to input
• Productivity Growth


  Current productivity minus previous productivity divided by previous productivity
• Numerous factors affecting productivity

  • Methods
  • Capital
  • Quality
  • Technology
• Improving Productivity


  1. Develop productivity measures for all operations

  2. Look at the system as a whole in deciding which operations are most critical

  3. Develop methods for achieving productivity improvements

  4. Establish reasonable goals for improvement

  5. Make it clear that management supports and encourages productivity improvement

  6. Measure improvements and publicize them
• are characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase.

  ORDER QUALIFIERS
• are characteristics of an organization’s goods or services that cause it to be perceived as better than the competition.

  ORDER WINNERS
• -The approach, consistent with the organization strategy, thatisused to guide the operations functions

  OPERATION STRATEGY
• -Strategies focuses on quality in all phases of an organization.


  QUALITY BASED STRATEGY
• -Strategy that focuses on reduction of timeneededtoaccomplish tasks.

  TIME- BASE STRATEGY
• organization's overall strategies


  Organizational strategies
• are organization's key areas strategies

  functional strategies
• are the methods and actions used to accomplish strategies

  tactics