Download - 04 - Technological Strategy I
-
7/27/2019 04 - Technological Strategy I
1/28
2-1
Technology Strategy Supplement
Learning Objectives
List and briefly discuss the primary waysthat business organizations compete.
List five reasons for the poor
competitiveness of some companies. Define the term strategy and explain why
strategy is important for competitiveness.
Contrast strategy and tactics.
-
7/27/2019 04 - Technological Strategy I
2/28
2-2
Learning Objectives
Discuss and compare organization strategyand operations strategy, and explain why it is
important to link the two.
Describe and give examples of time-basedstrategies.
Define the term productivity and explain why
it is important to organizations and tocountries.
List some of the reasons for poor productivity
and some ways of improving it.
-
7/27/2019 04 - Technological Strategy I
3/28
2-3
Competitiveness:
How effectively an organization meets the
wants and needs of customers relative to
others that offer similar goods or services
-
7/27/2019 04 - Technological Strategy I
4/28
2-4
Businesses Compete UsingMarketing
Identifying consumer wants and needs
Pricing
Advertising and promotion
-
7/27/2019 04 - Technological Strategy I
5/28
2-5
Businesses Compete UsingOperations
Product and service design
Cost
Location
Quality
Quick response
-
7/27/2019 04 - Technological Strategy I
6/28
2-6
Businesses Compete UsingOperations
Flexibility
Inventory management
Supply chain management
Service and service quality
Managers and workers
-
7/27/2019 04 - Technological Strategy I
7/282-7
Why Some Organizations Fail
Too much emphasis on short-term
financial performance
Failing to take advantage of strengths
and opportunities
Neglecting operations strategy
Failing to recognize competitive threats
-
7/27/2019 04 - Technological Strategy I
8/282-8
Why Some Organizations Fail
Too much emphasis in product andservice design and not enough on
improvement
Neglecting investments in capital andhuman resources
Failing to establish good internal
communications Failing to consider customer wants and
needs
-
7/27/2019 04 - Technological Strategy I
9/282-9
Mission/Strategy/Tactics
How does mission, strategies and tactics relate to
decision making and distinctive competencies?
Strategy TacticsMission
-
7/27/2019 04 - Technological Strategy I
10/282-10
Strategy
Mission The reason for existence for an organization
Mission Statement
States the purpose of an organization
Goals
Provide detail and scope of mission
Strategies
Plans for achieving organizational goals
Tactics
The methods and actions taken to accomplish strategies
-
7/27/2019 04 - Technological Strategy I
11/282-11
Planning and Decision Making
Mission
Goals
OrganizationalStrategies
Functional Goals
Finance
Strategies
Marketing
Strategies
Operations
Strategies
Tactics Tactics Tactics
Operating
procedures
Operating
procedures
Operating
procedures
Figure 2.1
-
7/27/2019 04 - Technological Strategy I
12/282-12
Strategy Example
Rita is a high school student. She would like to havea career in business, have a good job, and earnenough income to live comfortably
Mission: Live a good lifeGoal: Successful career, good income
Strategy: Obtain a college education
Tactics: Select a college and a major
Operations: Register, buy books, takecourses, study, graduate, get
job
Example 1
-
7/27/2019 04 - Technological Strategy I
13/282-13
Examples of Strategies
Low cost
Scale-based strategies
Specialization
Flexible operations High quality
Service
-
7/27/2019 04 - Technological Strategy I
14/282-14
Strategy and Tactics
Distinctive CompetenciesThe special attributes or abilities that give an
organization a competitive edge.
Strategy Factors
Price
Quality
Time
Flexibility Service
Location
-
7/27/2019 04 - Technological Strategy I
15/282-15
Banks, ATMsConvenienceLocation
Disneyland
Nordstroms
Superior customer
serviceService
Burger King
Supermarkets
Variety
VolumeFlexibility
Express Mail, Fedex,
One-hour photo, UPSRapid delivery
On-time deliveryTime
Sony TV
Lexus, Cadillac
Pepsi, Kodak, Motorola
High-performance design
or high quality Consistent
quality
Quality
U.S. first-class postageMotel-6, Red Roof Inns
Low CostPrice
Examples of Operations StrategiesTable 2.2
-
7/27/2019 04 - Technological Strategy I
16/282-16
Global Strategy
Strategic decisions must be made withrespect to globalization
What works in one country may not work in
another Strategies must be changed to account for
these differences
Other issues Political, social, cultural, and economic
differences
-
7/27/2019 04 - Technological Strategy I
17/282-17
Strategy Formulation
Distinctive competencies Environmental scanning
SWOT
Order qualifiers Order winners
-
7/27/2019 04 - Technological Strategy I
18/282-18
Strategy Formulation
Order qualifiers Characteristics that customers perceive as
minimum standards of acceptability to be
considered as a potential purchase Order winners
Characteristics of an organizations goods or
services that cause it to be perceived as
better than the competition
-
7/27/2019 04 - Technological Strategy I
19/282-19
Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
Key External Factors
-
7/27/2019 04 - Technological Strategy I
20/282-20
Human Resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology Suppliers
Key Internal Factors
-
7/27/2019 04 - Technological Strategy I
21/282-21
Operations Strategy
Operations strategy The approach,consistent with organization strategy,
that is used to guide the operations
function.
-
7/27/2019 04 - Technological Strategy I
22/282-22
Strategic OM Decisions
Decision Area AffectsProduct and service design Costs, quality liability and environmental
Capacity Cost structure, flexibility
Process selection and layout Costs, flexibility, skill level, capacity
Work design Quality of work life, employee safety, productivity
Location Costs, visibility
Quality Ability to meet or exceed customer expectations
Inventory Costs, shortages
Maintenance Costs, equipment reliability, productivity
Scheduling Flexibility, efficiency
Supply chains Costs, quality, agility, shortages, vendor relations
Projects Costs, new products, services, or operating systems
Table 2.4
-
7/27/2019 04 - Technological Strategy I
23/282-23
Quality and Time Strategies
Quality-basedstrategies Focuses on maintaining or
improving the quality of anorganizations products or
services
Quality at the source
Time-based strategies Focuses on reduction of
time needed to accomplish
tasks
-
7/27/2019 04 - Technological Strategy I
24/282-24
Time-based Strategies
JAN FEB MAR APR MAY JUN
Planning
Processing
ChangeoverOn time!
Designing
Delivery
-
7/27/2019 04 - Technological Strategy I
25/28
-
7/27/2019 04 - Technological Strategy I
26/28
2-26
Improving Productivity
Develop productivity measures
Determine critical (bottleneck)operations
Develop methods for productivityimprovements
Establish reasonable goals
Get management support Measure and publicize improvements
Dont confuse productivity with
efficiency
-
7/27/2019 04 - Technological Strategy I
27/28
2-27
Video: Process Strategy
-
7/27/2019 04 - Technological Strategy I
28/28
Video: Compet. Analysis