1. Chapter 2 – Operations Strategy for Competitive Advantage

2. Introduction What – How to choose a strategy for your business Where – In any strategy that wants to achieve its mission Why – To decide how the business will be conducted

3. Strategy Mission: The purpose or rationale for an organization’s existence Effective endeavors have a mission Strategy: How an organization expects to achieve its missions and goals Strategy is an organization’s plan to achieve a mission

4. Competitive Advantage We want to craft the strategy that will achieve the best competitive advantage Competitive advantage is the creation of a unique advantage over competitors

5. Three Basic Strategies Differentiation Cost Leadership Response

6. Ten Strategic Operations Management Decisions Ten OM decisions that support missions and implement strategies 1. Goods and Service Design 2. Quality 3. Process and Capacity Design 4. Location Selection 5. Layout Design

7. Ten Strategic Operations Management Decisions 6. Human Resources and Job Design 7. Supply-Chain Management 8. Inventory 9. Scheduling 10. Maintenance

8. Strategy Development and Implementation SWOT Analysis Firms position themselves, through their strategy, to have a competitive advantage Recognize internal strengths and weaknesses Recognize external opportunities and threats

9. Critical Success Factors Activities that are key to achieving a competitive advantage