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Today¶s competitive market

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Rar choices in 1980

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—n 2009 what are the choices?
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¢hat is the impact of this global
competition?
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¢hat is a Strategy?

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Strategy
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V ¢hat set of business should we be in ?


How should we compete in XYZ business ?
V How can a specific area contribute to the competitive advantage
of a business ?
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mperations Strategy

        


             

             

           
 
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mperations Strategy
Rustomer Needs Rorporate Strategy

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mperations Strategy  

 

  

Processes, —nfrastructure, and Rapabilities



inking the Strategic Role & Process View

Business Strategy

Desired Rapabilities compatible


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Marketing Strategy mperations Strategy ... Financial Strategy

mperations Structure:
, Q, 
Processes & Resources flexibility
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Rost (Value)

Flexibility Delivery (Speed)

Quality

¢RM -companies adopt TQM, Pull systems, J—T,TPM


          
‡ 1. Segment the market according to the product group.
‡ 2. —dentify product requirements, demand patterns, and profit
margins of each group.
‡ 3. Determine order qualifiers and winners for each
group.(criterion for purchase by customer e.g. Japanese or
American)
‡ 4. Ronvert order winners into specific performance
requirements.(differentiation, e.g. warranty,quick response,

ease)
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* Product portfolio ² Jet vs Air Deccan
* Process ² Hero Honda vs BHEL

* Technology ² Asian Paints

* Capacity - Economies of scale

* Supply Chain Issues ² Annapurna vs


Tanishq
       
‡ Process-based
± Rapacities that transforms material or information and provide
advantages on dimensions of cost and quality.
‡ Systems (co-ordination) -based
± Rapacities that are broad-based involving the entire operating
system and provide advantages of short lead times and
customize on demand.
‡ mrganization-based
± Rapacities that are difficult to replicate and provide abilities to
master new technologies.
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Rorporate Strategy
(Gain competitive advantage by) providing customers access to
quality goods, when and where needed, at competitive prices

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± Short flow times ED—
±
ow inventory levels Fast transportation system
Focused locations
Rommunication between
retail stores
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‡ —nventory at retail stores turned over twice a week


(—ndustry averages once every two weeks)
‡ —mproved targeting of products to markets
‡ Sourcing of Products ± ¢orld-wide
‡ Sales per square foot increased from $140 in 1991
to $250 in 2004 (—ndustry average increased from
$110 to $150). Sales revenue:$250bn
Rore Rompetence
‡ Rompetitiveness derives from an ability to build, at lower cost
and more speedily than competitors, the core competencies
that spawn unanticipated products.
± Rore competencies are the collective learning in the
organization, especially how to coordinate diverse
production skills and integrate multiple streams of
technologies.
± Rore competence is about harmonizing streams of
technology.
technology
± Rore competence is about the organization of work and the
delivery of value.
value
± Rore competence is communication,
communication involvement and a
deep commitment to working across organizational
boundaries.
boundaries
‡ Rompanies need to do a better job of leveraging technologies
and offering a wider variety of products on the same
technology platform.
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‡ Forecasting
± How do we design the best forecasting system?
‡ Materials management
± ¢ho should be our suppliers?
‡ —nventory
± How should we control our inventory?
‡ Aggregate plans
± How big should our workforce be?
‡ Master production scheduling
± Should we make to stock?
‡ Production control systems
± ¢hen should we release new orders?
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