BUAD 341- Importance of strategyo Mission – statements that tell: Where an organization is going Purpose for being – what it contributes to society Set boundaries and provide focuso Strategy Action plan to achieve mission General strategy distilled into functional strategies Strategies exploit opportunities and strengths, neutralize threats, and avoidweaknesses- Operations Strategy: Exampleo Mission: Manufacture and service an innovative, growing, and profitable worldwide microwave communications business that exceeds out customer’s expectationso Possible operations strategy: To manufacture products consistent with the organizations mission as the global low cost provider of microwave communications equipment- Strategies for Competitive Advantageo Competing of differentiation Offer products that are different, better, or unique Can result from any aspect of the product or service that impacts customer’s perception of value- E.g., quality & reliability, features, product variety, after-sale services, delivery, technical support, etc.- Special focus on “experience” in services, e.g., Disney, Hard Rock Caféo Competing on Cost Focus on maximizing value to customer. Does not necessarily imply low quality- Southwest airlines – secondary airports, no frills service, efficient utilization of equipment- Walmart – small overhead, shrinkage, and distribution costs- Aldi – no bags, no bright lights, no musico Competing on Response Flexibility – matching market changes with design innovation and flexiblevolumes- e.g., Hewlett Packard Reliability in meeting schedules and deadlines- e.g., FedEx, German machine tool industry Quickness- e.g., Pizza Hut, Motorola, Amazon RELIABILITY OF RESPONSE: Guarantee to do what they say, like
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