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How does mission, strategies and tactics relate Low cost - outsourcing
to decision making and distinctive Scale-based strategies - capital
competencies? intensive method for high volume
Strategy production
Mission Specialization - focus on narrow
The reason for existence for product line for higher quality
an organization Flexible operations - customization
Mission Statement High quality – focus on higher quality
States the purpose of an than competitors
organization Services – focus on various aspect of
Goals Strategy Example services
Provide detail and scope of Ratana is a high school student. She Strategy and Tactics
mission would like to have a career in business, have a Strategy Factors
Strategies good job, and earn enough income to live Price – low cost
Plans for achieving comfortably Quality – consistent quality,
organizational goals Mission: Live a good life high quality
Tactics Goal: Successful career, Time – rapid delivery, on-time
The methods and actions good income delivery
taken to accomplish strategies Strategy: Obtain a Flexibility – variety, volume
college education Service – customer services
Tactics: Select a college and a Location - convenience
major Distinctive Competencies- The special
Operations: Register, buy books, attributes or abilities that give an organization
take a competitive edge.
Strategy Formulation Strategic OM Decisions Four International Operations Strategies
Distinctive competencies
Environmental scanning
SWOT
Order qualifiers
Order winners
Order qualifiers
Characteristics that customers
perceive as minimum
standards of acceptability to
be considered as a potential
purchase Quality and Time Strategies
Order winners Quality-based strategies
Characteristics of an Focuses on maintaining or Productivity
organization’s goods or improving the quality of an Productivity
services that cause it to be organization’s products or A measure of the effective use
perceived as better than the services of resources, usually
competition Quality at the source expressed as the ratio of
Key External Factors Time-based strategies output to input
Economic conditions Focuses on reduction of time Productivity ratios are used for
Political conditions needed to accomplish tasks Planning workforce
Legal environment Global Strategy requirements
Technology Strategic decisions must be made with Scheduling equipment
Competition respect to globalization Financial analysis
Markets What works in one country may not Partial measures
Key Internal Factors work in another output/(single input)
Human Resources Strategies must be changed to account Multi-factor measures
Facilities and equipment for these differences output/(multiple inputs)
Financial resources Other issues Total measure
Customers (loyalty, understanding) Political, social, legal, cultural output/(total inputs)
Products and services and economic differences
PRODUCTIVITY= OUTPUTS/INPUTS Examples of Partial Productivity Measures Factors Affecting Productivity
Productivity Growth