Submit Search
Upload
Business Strategy
•
Download as PPT, PDF
•
3 likes
•
787 views
DetikBet
Follow
Business Strategy
Read less
Read more
Leadership & Management
Report
Share
Report
Share
1 of 38
Download now
Recommended
Supplier selection
Supplier selection
joecobe
Capacity planning ppt
Capacity planning ppt
Gagan bhati
Operational strategy
Operational strategy
Harman Rana
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Osama Yousaf
Supplier evaluation & selection
Supplier evaluation & selection
Ankit
Demand Management
Demand Management
Anand Subramaniam
Inventory management in supply chain
Inventory management in supply chain
Sonia Peri
Inventory management
Inventory management
Kuldeep Uttam
Recommended
Supplier selection
Supplier selection
joecobe
Capacity planning ppt
Capacity planning ppt
Gagan bhati
Operational strategy
Operational strategy
Harman Rana
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Osama Yousaf
Supplier evaluation & selection
Supplier evaluation & selection
Ankit
Demand Management
Demand Management
Anand Subramaniam
Inventory management in supply chain
Inventory management in supply chain
Sonia Peri
Inventory management
Inventory management
Kuldeep Uttam
purchasing process
purchasing process
onearbaein
Managing the operations function
Managing the operations function
teacherTLE
Inventory
Inventory
JhOnie JhOan
Strategic Sourcing
Strategic Sourcing
mubarak2009
Jit & Lean Operations
Jit & Lean Operations
kahogan62
Production and Operations Management- Chapters 1-8
Production and Operations Management- Chapters 1-8
vc_santos
Aggregate planning in supply chain
Aggregate planning in supply chain
Moine Iqbal
Demand Planning
Demand Planning
Graeme Shepherd
Best practices in Inventory Management
Best practices in Inventory Management
Rafel Mayol
What is-strategic-sourcing-102811
What is-strategic-sourcing-102811
Blue Coral
Introduction to Operation & production Management
Introduction to Operation & production Management
Qamar Farooq
Inventory Management Presentation
Inventory Management Presentation
KattareeyaPrompreing
Chapter 5 design_of_goods_and_services
Chapter 5 design_of_goods_and_services
Nên Trần Ngọc
Product Operation Planning & Control
Product Operation Planning & Control
We Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program.
Operations management
Operations management
Prithvi Ghag
PURCHASING STRATEGY.pptx
PURCHASING STRATEGY.pptx
Nikunj Jain
S&OP FINAL
S&OP FINAL
Muhammad Daniyal Khan
Strategic marketing management
Strategic marketing management
Hailemariam Kebede
Product Design and Development
Product Design and Development
SURYAPRAKASH S
Production control
Production control
deepu2000
Ch02 (1)
Ch02 (1)
Siemens Power
Operations strategy for MBA, CA, CMA, B COM, M COM
Operations strategy for MBA, CA, CMA, B COM, M COM
Bibek Prajapati
More Related Content
What's hot
purchasing process
purchasing process
onearbaein
Managing the operations function
Managing the operations function
teacherTLE
Inventory
Inventory
JhOnie JhOan
Strategic Sourcing
Strategic Sourcing
mubarak2009
Jit & Lean Operations
Jit & Lean Operations
kahogan62
Production and Operations Management- Chapters 1-8
Production and Operations Management- Chapters 1-8
vc_santos
Aggregate planning in supply chain
Aggregate planning in supply chain
Moine Iqbal
Demand Planning
Demand Planning
Graeme Shepherd
Best practices in Inventory Management
Best practices in Inventory Management
Rafel Mayol
What is-strategic-sourcing-102811
What is-strategic-sourcing-102811
Blue Coral
Introduction to Operation & production Management
Introduction to Operation & production Management
Qamar Farooq
Inventory Management Presentation
Inventory Management Presentation
KattareeyaPrompreing
Chapter 5 design_of_goods_and_services
Chapter 5 design_of_goods_and_services
Nên Trần Ngọc
Product Operation Planning & Control
Product Operation Planning & Control
We Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program.
Operations management
Operations management
Prithvi Ghag
PURCHASING STRATEGY.pptx
PURCHASING STRATEGY.pptx
Nikunj Jain
S&OP FINAL
S&OP FINAL
Muhammad Daniyal Khan
Strategic marketing management
Strategic marketing management
Hailemariam Kebede
Product Design and Development
Product Design and Development
SURYAPRAKASH S
Production control
Production control
deepu2000
What's hot
(20)
purchasing process
purchasing process
Managing the operations function
Managing the operations function
Inventory
Inventory
Strategic Sourcing
Strategic Sourcing
Jit & Lean Operations
Jit & Lean Operations
Production and Operations Management- Chapters 1-8
Production and Operations Management- Chapters 1-8
Aggregate planning in supply chain
Aggregate planning in supply chain
Demand Planning
Demand Planning
Best practices in Inventory Management
Best practices in Inventory Management
What is-strategic-sourcing-102811
What is-strategic-sourcing-102811
Introduction to Operation & production Management
Introduction to Operation & production Management
Inventory Management Presentation
Inventory Management Presentation
Chapter 5 design_of_goods_and_services
Chapter 5 design_of_goods_and_services
Product Operation Planning & Control
Product Operation Planning & Control
Operations management
Operations management
PURCHASING STRATEGY.pptx
PURCHASING STRATEGY.pptx
S&OP FINAL
S&OP FINAL
Strategic marketing management
Strategic marketing management
Product Design and Development
Product Design and Development
Production control
Production control
Similar to Business Strategy
Ch02 (1)
Ch02 (1)
Siemens Power
Operations strategy for MBA, CA, CMA, B COM, M COM
Operations strategy for MBA, CA, CMA, B COM, M COM
Bibek Prajapati
OPM101Chapter1.ppt
OPM101Chapter1.ppt
muhammadhaziqabdulgh
Opm101 chapter1
Opm101 chapter1
joadrian1
Finance project.ppt
Finance project.ppt
shakeelabbas23
Chapter-3.ppt
Chapter-3.ppt
shakeelabbas23
Operations management Meaning , use , need
Operations management Meaning , use , need
Bibek Prajapati
Operation strategy
Operation strategy
sachin kumar sharma
Ch01
Ch01
roslizacherahim
Anyone Can Build a Value Model: Let Me Show You How
Anyone Can Build a Value Model: Let Me Show You How
LeveragePoint Innovations
Lean.ppt
Lean.ppt
ssuser2cc0d4
ch07.ppt
ch07.ppt
HakimaNejmi
Operation Management Lecture 2.pdf
Operation Management Lecture 2.pdf
eslamhamdy43
Ch03 (1)
Ch03 (1)
kamilleyen
Ch01
Ch01
Mallikarjun Avisala
Tech clarity perspective-industrial_top_performers
Tech clarity perspective-industrial_top_performers
Bentley Systems
chap 1.ppt
chap 1.ppt
TadiMekonen
opm101chapter5_000.ppt
opm101chapter5_000.ppt
NBAdypcet
opm101chapter5_000.ppt
opm101chapter5_000.ppt
FaisalRafique27
TQM.ppt
TQM.ppt
RamchandraKeny
Similar to Business Strategy
(20)
Ch02 (1)
Ch02 (1)
Operations strategy for MBA, CA, CMA, B COM, M COM
Operations strategy for MBA, CA, CMA, B COM, M COM
OPM101Chapter1.ppt
OPM101Chapter1.ppt
Opm101 chapter1
Opm101 chapter1
Finance project.ppt
Finance project.ppt
Chapter-3.ppt
Chapter-3.ppt
Operations management Meaning , use , need
Operations management Meaning , use , need
Operation strategy
Operation strategy
Ch01
Ch01
Anyone Can Build a Value Model: Let Me Show You How
Anyone Can Build a Value Model: Let Me Show You How
Lean.ppt
Lean.ppt
ch07.ppt
ch07.ppt
Operation Management Lecture 2.pdf
Operation Management Lecture 2.pdf
Ch03 (1)
Ch03 (1)
Ch01
Ch01
Tech clarity perspective-industrial_top_performers
Tech clarity perspective-industrial_top_performers
chap 1.ppt
chap 1.ppt
opm101chapter5_000.ppt
opm101chapter5_000.ppt
opm101chapter5_000.ppt
opm101chapter5_000.ppt
TQM.ppt
TQM.ppt
Recently uploaded
Empowering Local Government Frontline Services - Mo Baines.pdf
Empowering Local Government Frontline Services - Mo Baines.pdf
PPMA - Public Sector People Managers' Association
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
PPMA - Public Sector People Managers' Association
VIP 7001035870 Find & Meet Hyderabad Call Girls Ameerpet high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Ameerpet high-profile Call Girl
aditipandeya
Day 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC Bootcamp
PLCLeadershipDevelop
Discover -CQ Master Class - Rikita Wadhwa.pdf
Discover -CQ Master Class - Rikita Wadhwa.pdf
PPMA - Public Sector People Managers' Association
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Nehwal
LoveLocalGov - Chris Twigg, Inner Circle
LoveLocalGov - Chris Twigg, Inner Circle
PPMA - Public Sector People Managers' Association
Call Girls Service Tilak Nagar @9999965857 Delhi 🫦 No Advance VVIP 🍎 SERVICE
Call Girls Service Tilak Nagar @9999965857 Delhi 🫦 No Advance VVIP 🍎 SERVICE
Call Girls In Delhi Whatsup 9873940964 Enjoy Unlimited Pleasure
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Pooja Nehwal
GENUINE Babe,Call Girls IN Baderpur Delhi | +91-8377087607
GENUINE Babe,Call Girls IN Baderpur Delhi | +91-8377087607
dollysharma2066
VIP 7001035870 Find & Meet Hyderabad Call Girls Kondapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Kondapur high-profile Call Girl
aditipandeya
Peak Performance & Resilience - Dr Dorian Dugmore
Peak Performance & Resilience - Dr Dorian Dugmore
PPMA - Public Sector People Managers' Association
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
PPMA - Public Sector People Managers' Association
internal analysis on strategic management
internal analysis on strategic management
harfimakarim
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
divyansh0kumar0
Imagine - Creating Healthy Workplaces - Anthony Montgomery.pdf
Imagine - Creating Healthy Workplaces - Anthony Montgomery.pdf
PPMA - Public Sector People Managers' Association
Disrupt or be Disrupted - Kirk Vallis.pdf
Disrupt or be Disrupted - Kirk Vallis.pdf
PPMA - Public Sector People Managers' Association
{ 9892124323 }} Call Girls & Escorts in Hotel JW Marriott juhu, Mumbai
{ 9892124323 }} Call Girls & Escorts in Hotel JW Marriott juhu, Mumbai
Pooja Nehwal
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
PPMA - Public Sector People Managers' Association
Becoming an Inclusive Leader - Bernadette Thompson
Becoming an Inclusive Leader - Bernadette Thompson
PPMA - Public Sector People Managers' Association
Recently uploaded
(20)
Empowering Local Government Frontline Services - Mo Baines.pdf
Empowering Local Government Frontline Services - Mo Baines.pdf
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
VIP 7001035870 Find & Meet Hyderabad Call Girls Ameerpet high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Ameerpet high-profile Call Girl
Day 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC Bootcamp
Discover -CQ Master Class - Rikita Wadhwa.pdf
Discover -CQ Master Class - Rikita Wadhwa.pdf
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
LoveLocalGov - Chris Twigg, Inner Circle
LoveLocalGov - Chris Twigg, Inner Circle
Call Girls Service Tilak Nagar @9999965857 Delhi 🫦 No Advance VVIP 🍎 SERVICE
Call Girls Service Tilak Nagar @9999965857 Delhi 🫦 No Advance VVIP 🍎 SERVICE
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
GENUINE Babe,Call Girls IN Baderpur Delhi | +91-8377087607
GENUINE Babe,Call Girls IN Baderpur Delhi | +91-8377087607
VIP 7001035870 Find & Meet Hyderabad Call Girls Kondapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Kondapur high-profile Call Girl
Peak Performance & Resilience - Dr Dorian Dugmore
Peak Performance & Resilience - Dr Dorian Dugmore
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
internal analysis on strategic management
internal analysis on strategic management
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
Imagine - Creating Healthy Workplaces - Anthony Montgomery.pdf
Imagine - Creating Healthy Workplaces - Anthony Montgomery.pdf
Disrupt or be Disrupted - Kirk Vallis.pdf
Disrupt or be Disrupted - Kirk Vallis.pdf
{ 9892124323 }} Call Girls & Escorts in Hotel JW Marriott juhu, Mumbai
{ 9892124323 }} Call Girls & Escorts in Hotel JW Marriott juhu, Mumbai
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
Becoming an Inclusive Leader - Bernadette Thompson
Becoming an Inclusive Leader - Bernadette Thompson
Business Strategy
1.
© Wiley 2010
1 Chapter 2 - Operations Strategy and Competitiveness Operations Management by R. Dan Reid & Nada R. Sanders 4th Edition © Wiley 2010
2.
2 The Role of
Operations Strategy Provide a plan that makes best use of resources which; Specifies the policies and plans for using organizational resources Supports Business Strategy as shown on next slide © Wiley 2010
3.
3 Business/Functional Strategy © Wiley
2010
4.
Background: Business Strategy ©
Wiley 2010 4 http://www.youtube.com/watch?v=mYF2_FBCvXw http://www.youtube.com/watch?v=ehMAwIHGN0Y
5.
© Wiley 2010
5 Importance of Operations Strategy Companies often do not understand the differences between operational efficiency and strategy Operational efficiency is performing tasks well, even better than competitors Strategy is a plan for competing in the marketplace Operations strategy is to ensure all tasks performed are the right tasks
6.
© Wiley 2010
6 Developing a Business Strategy A business strategy is developed after taking into many factors and following some strategic decisions such as; What business is the company in (mission) Analyzing and understanding the market (environmental scanning) Identifying the companies strengths (core competencies)
7.
© Wiley 2010
7 Three Inputs to a Business Strategy
8.
© Wiley 2010
8 Examples from Strategies Mission: Dell Computer- “to be the most successful computer company in the world” Environmental Scanning: political trends, social trends, economic trends, market place trends, global trends Core Competencies: strength of workers, modern facilities, market understanding, best technologies, financial know-how, logistics
9.
© Wiley 2010
9 Example: Nokia Nokia extended its already formidable dominance of the global handset business on Jan. 24, announcing it had achieved 40% market share in the fourth quarter of 2007. But perhaps the biggest surprise was that the Finnish company achieved this long-promised and psychologically important milestone while also becoming more profitable. http://www.businessweek.com/globalbiz/content/jan2008/gb20080124_974301.htm?chan=search
10.
© Wiley 2010
10 Developing an Operations Strategy Operations Strategy is a plan for the design and management of operations functions Operation Strategy developed after the business strategy Operations Strategy focuses on specific capabilities which give it a competitive edge – competitive priorities
11.
© Wiley 2010
11 Operations Strategy – Designing the Operations Function
12.
© Wiley 2010
12 Competitive Priorities- The Edge Four Important Operations Questions: Will you compete on – Cost? Quality? Time? Flexibility? All of the above? Some? Tradeoffs?
13.
© Wiley 2010
13 Competing on Cost? Offering product at a low price relative to competition Typically high volume products Often limit product range & offer little customization May invest in automation to reduce unit costs Can use lower skill labor Probably use product focused layouts Low cost does not mean low quality
14.
© Wiley 2010
14 Competing on Quality? Quality is often subjective Quality is defined differently depending on who is defining it Two major quality dimensions include High performance design: Superior features, high durability, & excellent customer service Product & service consistency: Meets design specifications Close tolerances Error free delivery Quality needs to address Product design quality – product/service meets requirements Process quality – error free products
15.
© Wiley 2010
15 Competing on Time? Time/speed one of most important competition priorities First that can deliver often wins the race Time related issues involve Rapid delivery: Focused on shorter time between order placement and delivery On-time delivery: Deliver product exactly when needed every time
16.
© Wiley 2010
16 Competing on Flexibility? Company environment changes rapidly Company must accommodate change by being flexible Product flexibility: Easily switch production from one item to another Easily customize product/service to meet specific requirements of a customer Volume flexibility: Ability to ramp production up and down to match market demands
17.
© Wiley 2010
17 The Need for Trade-offs Decisions must emphasis priorities that support business strategy Decisions often required trade offs Decisions must focus on order qualifiers and order winners Which priorities are “Order Qualifiers”? e.g. Must have excellent quality since everyone expects it Which priorities are “Order Winners”? e.g. Southwest Airlines competes on cost McDonald’s competes on consistency FedEx competes on speed Custom tailors compete on flexibility
18.
© Wiley 2010
18 Competitive Priorities front & center http://www.businessweek.com/magazin e/content/06_13/b3977009.htm http://www.businessweek.com/magazin e/content/06_13/b3977010.htm? chan=search http://www.businessweek.com/technolo gy/content/dec2007/tc20071228_10685 7.htm?chan=search
19.
© Wiley 2010
19 Translating to Production Requirements Specific Operation requirements include two general categories Structure – decisions related to the production process, such as characteristics of facilities used, selection of appropriate technology, and the flow of goods and services Infrastructure – decisions related to planning and control systems of operations
20.
© Wiley 2010
20 Translating to Production Requirements Dell Computer example – structure & infrastructure They focus on customer service, cost, and speed ERP system developed to allow customers to order directly from Dell Product design and assembly line allow a “make to order” strategy – lowers costs, increases turns Suppliers ship components to a warehouse within 15 minutes of the assembly plant - VMI Dell set up a shipping arrangement with UPS
21.
© Wiley 2010
21 Strategic Role of Technology Technology should support competitive priorities Three Applications: product technology, process technology, and information technology Products - Teflon, CD’s, fiber optic cable Processes – flexible automation, CAD Information Technology – POS, EDI, ERP, B2B
22.
© Wiley 2010
22 Technology for Competitive Advantage Technology has positive and negative potentials Positive Improve processes Maintain up-to-date standards Obtain competitive advantage Negative Costly Promotes dependency Risks such as overstating benefits
23.
© Wiley 2010
23 Technology for Competitive Advantage Technology should Support competitive priorities Can require change to strategic plans Can require change to operations strategy Technology is an important strategic decision
24.
© Wiley 2010
24 Measuring Productivity Productivity is a measure of how efficiently inputs are converted to outputs Productivity = output/input Total Productivity Measure: Total Productivity = (total output)/(total of all inputs) Partial Productivity Measure: Partial Productivity = (total output)/(single input) Multifactor Productivity Measure: Multi-factor Productivity = (total output)/(several inputs)
25.
© Wiley 2010
25 Total Productivity: example Bluegill Furniture makes kitchen chairs. The weekly dollar value of its output, including finished goods and work-in-progress, is $14,280. The value of inputs (labor, materials, capital) is approximately $16,528. What is the total productivity measure for Bluegill? Total productivity = output/input = $14,280/$16,528 = .864 or 86.4%
26.
© Wiley 2010
26 Partial Productivity: example Bluegill Furniture has hired 2 new workers to paint chairs. Together they have painted 10 chairs in 4 hours. What is labor productivity for the pair? Labor productivity = output/labor = (10 chairs)/(2 x 4 hr) = (10 chairs)/(8 hr) or 1.25 chairs/hr
27.
© Wiley 2010
27 Multifactor Productivity: example Bluegill Furniture averages 35 chairs/day. Labor costs average $480, material costs are typically $200, and overhead cost is $250. Bluegill sells the chairs to a retailer for $70/unit. Find multifactor productivity. Multifactor productivity = (value of output)/(labor + material + overhead costs) = ($70/chair x 35 chairs)/(480+200+250) = ($2450)/($930) or 2.63
28.
© Wiley 2010
28 Interpreting Productivity Measures Productivity measures must be compared to something, i.e. another year, a different company Raw productivity calculations do not tell the complete story unless there are no major structure differences.
29.
© Wiley 2010
29 Interpreting Productivity Measures Other productivity measure questions; Is this partial productivity measurement enough to make an investment decision? Should you also look at productivity measures for the two major competitors for comparison? Productivity measure provides information on how the firm is doing relative to what is critical to the firm
30.
© Wiley 2010
30 Productivity, Competitiveness, and the Service Sector Productivity is a scorecard on effective resource use A nation’s Productivity effects its standard of living US productivity growth averaged 2.8% from 1948-1973 Productivity growth slowed for the next 25 years to 1.1% Productivity growth in service industries has been less than in manufacturing
31.
© Wiley 2010
31 Productivity and the Service Sector Measuring service sector productivity is a unique challenge Traditional measures focus on tangible outcomes Service industries primarily produce intangible outcomes Measuring intangibles is challenging
32.
© Wiley 2010
32 Operations Strategy Across the Organization Business strategy defines long-term plan Operations strategy support the business strategy Marketing strategy needs to fully understand operations capability Financial plans in effect support operations activities.
33.
© Wiley 2010
33 Review of Learning Objectives Define the role of Business Strategy Explain how a Business strategy is developed Explain the role of Operations Strategy in the organization Explain the relationship between business strategy and operations strategy Describe how an operations strategy is developed
34.
© Wiley 2010
34 Review of Learning Objectives Identify competitive priorities for of the operations function Explain the strategic role of technology Define productivity and identify productivity measures Compute productivity measures
35.
© Wiley 2010
35 Chapter 2 Highlights Business Strategy is a long range plan and vision. Each individual business function develop needs to support the business strategy An organization develops its business strategy by doing environmental scanning and considering its mission and its core competencies. The role of operations strategy is to provide a long- range plan for the use of the company’s resources in producing the company’s primary goods and services. The role of business strategy is to serve as an overall guide for the development of the organization’s operations strategy.
36.
© Wiley 2010
36 Chapter 2 Highlights The operations strategy focuses on developing specific capabilities called competitive priorities. There are four categories of competitive priorities: cost, quality, time, and flexibility Technology can be sued by companies to gain a competitive advantage and should be acquired to support the company’s chosen competitive priorities Productivity is a measure that indicates how efficiently an organization is using its resources Productivity is computed as the ratio or organizational outputs divided by inputs
37.
© Wiley 2010
37 Example: Detroit Edison DTE's journey into the distributed-energy business began in 1994 when CEO Anthony Earley took over Detroit Edison. Convinced that the utility industry was on an eventual collision course with customer needs…Distributed generation soon became a strategic goal of the company. The idea behind distributed generation is that a school, hospital, or office complex can produce its own power just as cheaply as it can buy it from the grid. When rates go up, it can produce extra energy and sell it back to the grid. When rates go lower, it can shut down its generator and buy the cheaper electricity from the utility. This approach allows customers to get slightly cheaper electricity from a more stable source that won't suffer interruptions (which is especially important to computer-intensive companies) and can flexibly meet changing demands. http://www.businessweek.com/bwdaily/dnflash/jul2001/nf2001072_224.htm?chan=search
38.
© Wiley 2010
38 Example: Nestle Brabeck's other strategic goal is transforming Nestle from a set of far- flung operations into a single global machine. He has inked a $200 million deal with SAP to link its five e-mail systems and permit Nestle's headquarters in Vevey, Switzerland, to know for the first time how many raw materials its subsidiaries buy, in total, from around the world. The company then will be able to negotiate better contracts with suppliers and centralize production. Last year alone, Brabeck closed 38 different factories. All told, he has slashed $1.6 billion in costs, without labor strife. http://www.businessweek.com/magazine/content/01_24/b3736644.htm?chan=search
Download now