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  • The direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations
  • 10 Strategic Decisions
  • Differentiation: UniquenessCost: Low priceResponse: Flexibility, Reliability and Timeliness
  • Demand Forecastinghttp://www.scribd.com/doc/5990377/DELL-Operation


  • 1. OPERATIONS STRATEGYIN ACTIONCase Study 2.3 (Andrew Greasley, 2009)
  • 2. Group Members Miranda Nasasara Nathan Williams Subhi Pradhan
  • 3. Case Study Questions Discuss how operations can provide strategic advantage Discuss the performance of the company in terms of the five performance objectives
  • 4. Table of Contents Case Study Summary Define the role of Strategy Levels of Strategy Operations Strategy and Its Importance Strategic advantages Five performance objectives Conclusion/Recommendations References
  • 5. Case Study Summary Companies restructuring to tackle negative changes in the economy through its operations Corporate Strategy →Operations Strategy i. Dell the undisputed leader (PC industry) ii. Schefenacker Vision Systems (car wing mirrors)
  • 6. Strategy: An Overview “ Strategy is about setting broad objectives that direct an enterprise towards its overall goal” (Slack and Lewis, 2008). “Strategy is about doing the right things” (Collins, 2008)
  • 7. Levels of Strategy Corporate Strategy Business Unit Strategy Functional Area Strategies
  • 8. Operations Strategy & Its Importance “This concerns the pattern of strategic decisions and actions which set the role, objectives and activities of operations” (Slack et al., 2004).
  • 9. Strategic Advantage Through Operations Achieving Strategic Advantage Through Operations a) Competing on Differentiation b) Competing on Cost c) Competing on Response
  • 10. Q1: Dell Operations SystemOPERATIONS STRATEGIC ADVANTAGEBuild-to-Order Manufacturing and Low Price/ Increase Market shareMass customizationDirect Selling Intelligence about customer preferences and needs; Quality feedback; SpeedVirtual Integration and Information Immediate Access to Customers andSharing PartnersCommitted to Just-in-Time Inventory Cost advantage; Speed
  • 11. Schefenacker Vision SystemsOPERATIONS STRATEGIC ADVANTAGEDirect supply to car assembly Entry into international business Cost EffectiveVirtuosity Increase market share Expand the value chainLean productions Reduction of waste in supply chain
  • 12. Q2: Definition of Five Performance ObjectivesWhat is Five Performance Objectives? Definition: “A criterion against which to evaluate the performance of operations.”  (Slack et. al., 2004)
  • 13. The ‘Sand cone’ model of Operations Excellence Source: , Ferdows, K. and Meyer, D (1990) Lasting Improvements In Manufacturing Performance. The Journal Of Operations Management, Pg 168–184.
  • 14. Five Performance ObjectivesEXCELLENT OPERATIONS GIVES THE ABILITY TOPERFORMANCE IN …. COMPETE ON…Cost Low PriceQuality High QualitySpeed Fast DeliveryDependability Reliable DeliveryFlexibility Frequent new products/services Wide range of products/services Changing the volume of product/service deliveries Changing the timing of product/service deliveries Source: Slack and Lewis (2001)
  • 15. Dell/SchefenackerDell Schefenacker Well known brand.  Able to satisfy most Cheap. demanding customers. Good quality.  Cost effective. Able to alter production  Able to design and build for customer demand. better parts. Good warranties.  Extra space for production cells.
  • 16. Discussion Question 1 How well do you think Dell’s manufacturing strategy supports its competitive priorities for the personal computer market? What changes, if any, would you like to suggest?
  • 17. Recommendations What about the non-expert buyers? Dells supply chain is shrinking1. HPs retailing prowess,2. Apples product design and3. Acers low costs
  • 18. References Collins, D. J. and M. G. Rukstad. (2008) Can you say what your strategy is? Harvard Business Review. 82-90. ReComparison (2011) Dell vs HP. Available at www.recomparison.com. [Last Accessed on 15th November, 2011]. Greasley, A. (2009) Operations Strategy in Action. 2nd edn, Chichester, England: John Wiley & Sons. Helium Leak Detector (2011) Best Quality Laptop Computer Brands-Comparison of All Well-Known Laptop Computer Manufacturing Companies in the Marketplace. Available at www.heliumleakdetector.com . [Last Accessed on 15th November, 2011] Ferdows, K. and Meyer, D (1990) Lasting Improvements In Manufacturing Performance. The Journal Of Operations Management, 168–184.
  • 19. Cont… Lewis, M. and Slack, N. (2008) Operations strategy . 2nd edition, Harlow: FT Prentice-Hall. Prahalad, C.K. and Hamel, G. (1990) The core competence of the corporation’, Harvard Business Review. 68(3):79–91. Reisinger, D. (2010) Dell’s HP Opportunity: 10 Things It Can Do to Capitalize on Mark Hurd’s Departure. Channel Insider. Slack, N. and Lewis, M. (2001) Operations Strategy . European Edition, FT Prentice-Hall: Financial Times. Slack, N., Chambers, S. and Johnston R. (2004) Operations Management. 4th Ed., Harlow: Pearson Education. The Manufacturers US (2010) Schefenacker, Clear View. The Manufacturer. Available on www.themanufacturers.com. [Last Accessed on 14th November, 2011].