iom 2 op strategy
TRANSCRIPT
-
8/8/2019 IOM 2 Op Strategy
1/3
1
Operations Strategy
Dr.Chayakrit Asvathitanont, Ph.D.
For IBM4710: International Operations Management
The Concept of Strategy
Strategy Greek term: Strategos
Strategic thinking has its roots in militarystrategyThe branch of military science dealing with
military command and the planning andconduct of a war.
And has evolved to focus on businessAn elaborate and systematic plan of action.
Competitive Strategy: The Positioning ViewCompetitive Strategy: The Positioning
View
Options for firm positioning:
Cost leadership
Differentiation
Focus
And, within each of the three:
Variety-based
Needs-based
Access-based
Levels of Strategy-Making International Business Strategy:An alternative
Corporate Strategy
Region A
Business Strategy
Region B
Business Strategy
Region C
Business Strategy
Finance & Accounting MarketingOperations
-
8/8/2019 IOM 2 Op Strategy
2/3
2
International Business Strategy:An alternative
Corporate Strategy
Business Strategy Business Strategy
Finance & Accounting MarketingOperations
Region A
Region B
Views to Develop Strategy
1. Best Product
Classic competitive strategy: low-cost, uniqueset of features, or niche segment
2. Total Customer Solution
Customer center and satisfy them is priority,close relationship to customer
3. System Lock-in
comprehends, company, customers, suppliersand its product & service to please customers
Business Strategy: Views the Firm Might
Take
Business Strategy: Dimensions along
which Customers Assess Performance
Cost
Quality
Availability
Features/Innovativeness
Environmental performance
Strategy-Making in Context Strategy-Making: Cross-FunctionalParticipation
-
8/8/2019 IOM 2 Op Strategy
3/3
3
Operations Strategy: Goals
Cost
Quality
Availability
Features/Innovativeness
Environmental Performance
Operations Strategy: Connecting Operations
Goals to Customer Concerns
Operations Strategy: Decision Categories
Structural decisionsVertical integration
Process technology
Capacity
Facilities
Infrastructuraldecisions
Sourcing
Information technology
Supply chaincoordination
Business processesand policies
Capabilitiesdevelopment
Lean operation
Quality
Flexibility
Strategy-Making: Step 1
Understand what position the firm wants to orcan take in the marketplace by learning about:Competitors
Suppliers
Complementary product or service offerings and firmsoffering them
Spaces outside the industry into which the firm might
expandCustomer needs in terms of:
Cost
Quality
Availability
Features/innovativeness
Environmental performance
Strategy-Making: Step 2
Understand what capabilities the firm has tooffer, can or should develop both within andacross the key functional areas of the firm:
Operations
Marketing
Research and development
Human resources
Finance and accounting
As well as outside the firm with supply chain
partners
Strategy-Making: Step 3
Integrate or synthesize the activities andcapabilities of the functions to achieve:
Coherent strategic fit in support of a desiredstrategic direction
Development of a set of capabilities to pursue anew strategic direction