CBA 390 Fall 07 CHAPTER 2 Outline - OPERATIONS STRATEGIES IN A GLOBAL INVIRONMENT Global Company Profile: Boeing 787 program I. STRATEGIC PLANNING Top managers must try to coordinate all parts of the organization toward the same long-term objectives by making strategic decisions. A. Development of mission statement B. Identification of strategic business units C. Corporate strategy – Business strategy – Functional strategy II. STRATEGY PROVIDES FOCUS The company’s strategy is its plan for how the company will pursue its mission and establishes the general direction in which the company will move. A. Strategy is the method by which the company intends to accomplish its objectives. B. Policies coordinate decisions and establish general direction at lower levels. C. An overall strategy assists in achieving coordination among the various company parts. D. Strategy must be reevaluated regularly. III. COMPETITIVE ADVANTAGE (Differentiation, Cost, Response) IV. STRATEGIC POM DECISIONS A. Goods and service design B. Quality C. Supply chain management D. Process and capacity design E. Inventory V. F. G. H. I. J. HRM and job design Location Scheduling Layout Maintenance STRATEGY – ASSEMBLY PROCESS A. Job shop C. Continuous B. Assembly line D. Mass Customization VI. ISSUES IN OPERATIONS STRATEGY – Research, Preconditions, Dynamics. VII. STRATEGY DEVELOPMENT AND IMPLEMENTATION (SWOT) A. Critical Success Factors B. Organizational Structure C. Integrate all Functional Activities VIII. GLOBAL OPERATIONS STRATEGY OPTIONS International, Multinational, Global, Transnational companies IX. STRATEGY FORMULATION: The company must consider its external and internal environments to determine the current or potential opportunities and problems that may be present. A. External conditions to be considered: Internal conditions are evaluated to identify internal strengths and weaknesses. (SWOT) B. The company seeks to determine how its capabilities can best be applied to the opportunities or challenges in the environment. C. A company can develop a strategy of distinctive competence by identifying performance capabilities needed to compete successfully (differentiation, cost, response) D. Critical success factors – key to achieving competitive advantage.