CHAPTER 2
Tuesday, 21 July 2020 5:52 PM
NOTES 2.2 - Competitiveness
• Competitiveness - an important factor in determining whether a company prospers, barely
gets by, or fails.
• Marketing Influences
○ Identifying consumer wants or needs - basic input in an organization's decision-
making
○ Price and quality - key factors in consumer buying decisions
○ Advertising and promotion - informing potential customers
• Operations Influences
○ Product and service design - reflect joint efforts; innovation and time-to-market
○ Cost - key variable that affects pricing decisions and profits
○ Location - important in terms of cost and convenience
○ Quality - materials, workmanship, design, and service
○ Quick Response - bringing new or improved products
○ Flexibility - ability to respond to changes
○ Inventory Management - matching supplies of goods with demand
○ Supply Chain Management - coordinating internal and external operations
○ Service - after-sale activities; service quality
○ Managers and workers - people at the heart and soul of an organization
• Organizations Failure
○ Neglecting operations strategy.
○ Failing to take advantage of strengths and opportunities, and/or failing to recognize
competitive threats.
○ Putting too much emphasis on short-term financial performance at the expense of
research and development.
○ Placing too much emphasis on product and service design and not enough on process
design and improvement.
○ Neglecting investments in capital and human resources.
○ Failing to establish good internal communications and cooperation among different
functional areas.
○ Failing to consider customer wants and needs.
NOTES 2.3 - Mission and Strategies
• Mission - the reason for the existence of an organization.
• Mission statement - states the purpose of an organization.
• Goals- provide detail and scope of the mission.
• Strategies - plans for achieving organizational goals.
• Three basic busines strategies
○ Low cost
○ Responsiveness - ability to respond to changing demands
○ Differentiation from competitors
• Strategies - focus for decision-making
○ Organization Strategies - relate to entire organization
○ Functional Strategies - relate to functional areas of the organization
• Tactics - methods and actions to accomplish strategies
• Hierarchical - overall relationship that exists from the mission down to actual operations
• Different Strategies
Low cost. Outsource operations to third-world countries that have low labor costs.
DSIOPMA Page 1
Tuesday, 21 July 2020 5:52 PM
NOTES 2.2 - Competitiveness
• Competitiveness - an important factor in determining whether a company prospers, barely
gets by, or fails.
• Marketing Influences
○ Identifying consumer wants or needs - basic input in an organization's decision-
making
○ Price and quality - key factors in consumer buying decisions
○ Advertising and promotion - informing potential customers
• Operations Influences
○ Product and service design - reflect joint efforts; innovation and time-to-market
○ Cost - key variable that affects pricing decisions and profits
○ Location - important in terms of cost and convenience
○ Quality - materials, workmanship, design, and service
○ Quick Response - bringing new or improved products
○ Flexibility - ability to respond to changes
○ Inventory Management - matching supplies of goods with demand
○ Supply Chain Management - coordinating internal and external operations
○ Service - after-sale activities; service quality
○ Managers and workers - people at the heart and soul of an organization
• Organizations Failure
○ Neglecting operations strategy.
○ Failing to take advantage of strengths and opportunities, and/or failing to recognize
competitive threats.
○ Putting too much emphasis on short-term financial performance at the expense of
research and development.
○ Placing too much emphasis on product and service design and not enough on process
design and improvement.
○ Neglecting investments in capital and human resources.
○ Failing to establish good internal communications and cooperation among different
functional areas.
○ Failing to consider customer wants and needs.
NOTES 2.3 - Mission and Strategies
• Mission - the reason for the existence of an organization.
• Mission statement - states the purpose of an organization.
• Goals- provide detail and scope of the mission.
• Strategies - plans for achieving organizational goals.
• Three basic busines strategies
○ Low cost
○ Responsiveness - ability to respond to changing demands
○ Differentiation from competitors
• Strategies - focus for decision-making
○ Organization Strategies - relate to entire organization
○ Functional Strategies - relate to functional areas of the organization
• Tactics - methods and actions to accomplish strategies
• Hierarchical - overall relationship that exists from the mission down to actual operations
• Different Strategies
Low cost. Outsource operations to third-world countries that have low labor costs.
DSIOPMA Page 1
