BUAD 341 Importance of strategy o Mission statements that tell Where an organization is going Purpose for being what it contributes to society Set boundaries and provide focus o Strategy Action plan to achieve mission General strategy distilled into functional strategies Strategies exploit opportunities and strengths neutralize threats and avoid Operations Strategy Example weaknesses o Mission Manufacture and service an innovative growing and profitable worldwide microwave communications business that exceeds out customer s expectations o Possible operations strategy To manufacture products consistent with the organizations mission as the global low cost provider of microwave communications equipment Strategies for Competitive Advantage o 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 Caf o Competing on Cost quality Focus on maximizing value to customer Does not necessarily imply low 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 music o Competing on Response Flexibility matching market changes with design innovation and flexible volumes 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 Amazon
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