Name of the book: Operations management for competitive advantage 11th edition. Section# 1: Operations Strategy and Managing Change
Chapter# 2: Operations Strategy and Competitiveness
The first section of this chapter explains the meaning of operations strategy. It includes a brief introduction to operations strategy with a historical example about the scenario of the post-World War II era. The second section is divided into three sub-sections: competitive dimensions, the notion of trade-offs, and the marketing-operations link. The competitive dimensions form the competitive position of a firm. The six dimensions mentioned are cost or price, quality, delivery speed, delivery reliability, coping with changes in demand, flexibility, and other product-specific criteria. After explaining the different competitive dimensions the author talks about trade-offs among these dimensions. The underlying logic behind the notion of trade-offs is that an operation cannot excel simultaneously on all competitive dimensions. In this sub-section the author talks about two concepts: plant-within-a-plant (PWP), in which different locations are allocated to different product lines each with their own operations strategy, and straddling, where a company seeks to match the benefits of a successful position while maintaining its existing position. In the last sub-section the author discusses the two terms, “order winner” and “order qualifier” coined by Terry Hill, a professor at Oxford University.
The third section explains the corporate strategy design process with the help of two strategy maps designed one by Kaplan and Norton and another by Rockwater. These strategy maps are designed by incorporating four perspectives: financial perspective, customer perspective, internal perspective, and learning and growth perspective. These maps show different components which lead to goals of each of the perspectives and the inter-relation between the components of different...
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