Competitiveness, Strategy, and ProductivityChapter 2Copyrigh

Competitiveness, Strategy, and Productivity
Chapter 2
Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education
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1
You should be able to:
LO 2.1List several ways that business organizations compete
LO 2.2Name several reasons that business organizations fail
LO 2.3Define the terms mission and strategy and explain why
they are important
LO 2.4Discuss and compare organization strategy and
operations strategy, and explain why it is important to link the
two
LO 2.5Describe and give examples of time-based strategies
LO 2.6Define the term productivity and explain why it is
important to organizations and to countries
LO 2.7Describe several factors that affect productivity
Chapter 2: Learning Objectives

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2
A Cold Hard Fact
Better quality, higher productivity, lower costs, and the ability
to respond quickly to customer needs are more important than
ever, and…
the bar is getting higher
LO 2.1
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3
This chapter focuses on three separate, but related ideas that are
vitally important to business organizations
Competitiveness
Strategy
Productivity
Chapter Focus
LO 2.1

2-‹#›
4
Competitiveness
Competitiveness:
How effectively an organization meets the wants and needs of
customers relative to others that offer similar goods or services
Organizations compete through some combination of their
marketing and operations functions
What do customers want?
How can these customer needs best be satisfied?
LO 2.1
2-‹#›
5
Identifying consumer wants and/or needs
Pricing and quality
Advertising and promotion
Marketing’s Influence

LO 2.1
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6
Product and service design
Cost
Location
Quality
Quick response
Flexibility
Inventory management
Supply chain management
Service
Managers and workers
Businesses Compete Using Operations
LO 2.1
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7

Neglecting operations strategy
Failing to take advantage of strengths and opportunities and/or
failing to recognize competitive threats
Too much emphasis on short-term financial performance at the
expense of R&D
Too much emphasis in product and service design and not
enough on process design and improvement
Neglecting investments in capital and human resources
Failing to establish good internal communications and
cooperation
Failing to consider customer wants and needs
Why Some Organizations Fail
LO 2.2
2-‹#›
8
Hierarchical Planning
Mission
Goals
Organizational strategies
Tactics

Functional strategies
LO 2.3
2-‹#›
9
Mission
The reason for an organization’s existence
It answers the question “What business are we in?”
Goals
Provide detail and the scope of the mission
Goals can be viewed as organizational destinations
Strategy
A plan for achieving organizational goals
Serves as a roadmap for reaching the organizational destinations
The organizational strategy guides the organization by
providing direction for, and alignment of, the goals and
strategies of the functional units
The organizational strategy is a major success/failure factor
Mission, Goals, and Strategy
LO 2.3

2-‹#›
10
Mission
Mission
The reason for an organization’s existence
Mission statement
States the purpose of the organization
The mission statement should answer the question of “What
business are we in?”
LO 2.3
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11
FedEx Mission Statement
FedEx Corporation will produce superior financial returns for
its shareowners by providing high value-added logistics,
transportation and related information services through focused
operating companies. Customer requirements will be met in the
highest quality manner appropriate to each market segment
served. FedEx Corporation will strive to develop mutually
rewarding relationships with its employees, partners and
suppliers. Safety will be the first consideration in all

operations. Corporate activities will be conducted to the highest
ethical and professional standards.
LO 2.3
2-‹#›
12
Goals
The mission statement serves as the basis for organizational
goals
Goals
Provide detail and the scope of the mission
Goals can be viewed as organizational destinations
Goals serve as the basis for organizational strategies
LO 2.3
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13
Strategies

Strategy
A plan for achieving organizational goals
Serves as a roadmap for reaching the organizational destinations
Organizations have
Organizational strategies
Overall strategies that relate to the entire organization
Support the achievement of organizational goals and mission
Functional level strategies
Strategies that relate to each of the functional areas and that
support achievement of the organizational strategy
LO 2.3
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14
Tactics and Operations
Tactics
The methods and actions taken to accomplish strategies
The “how to” part of the process
Operations
The actual “doing” part of the process
LO 2.3
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15
Core Competencies
Core competencies
The special attributes or abilities that give an
organization a competitive edge
To be effective core competencies and strategies need to be
aligned
LO 2.3
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16
Organizational StrategyOperations StrategyExamples of
Companies or ServicesLow PriceLow costU.S. first-class
postage
Wal-MartResponsivenessShort processing times
On-time deliveryMcDonald’s restaurants
FedExDifferentiation:
High QualityHigh performance design and/or high quality
processing
Consistent qualitySony TV
Coca-ColaDifferentiation:
NewnessInnovation3M, AppleDifferentiation:

VarietyFlexibility
VolumeBurger King (Have it your way”)
McDonald’s (“Buses Welcome”)Differentiation:
ServiceSuperior customer serviceDisneyland
IBMDifferentiation:
LocationConvenienceSupermarkets; mall stores
Sample Operations Strategies
LO 2.4
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17
Effective strategy formulation requires taking into account:
Core competencies
Environmental scanning
SWOT
Successful strategy formulation also requires taking into
account:
Order qualifiers
Order winners
Strategy Formulation
LO 2.4
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18
Order qualifiers
Characteristics that customers perceive as minimum standards
of acceptability for a product or service to be considered as a
potential for purchase
Order winners
Characteristics of an organization’s goods or services that cause
it to be perceived as better than the competition
Strategy Formulation (cont.)
LO 2.4
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19
Environmental scanning is necessary to identify
Internal factors
Strengths and weaknesses
External factors
Opportunities and threats
Environmental Scanning
LO 2.4

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20
Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
Key External Factors
LO 2.4
2-‹#›
21
Human resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology

Suppliers
Other
Key Internal Factors
LO 2.4
2-‹#›
22
Operations Strategy
Operations strategy
The approach, consistent with organization strategy, that is used
to guide the operations function
LO 2.4
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23
Strategic OM Decision AreasDecision AreaWhat the Decisions
AffectProduct and service designCosts, quality, liability, and
environmental issuesCapacityCost, structure, flexibilityProcess

selection and layoutCosts, flexibility, skill level needed,
capacityWork designQuality of work life, employee safety,
productivityLocationCosts, visibilityQualityAbility to meet or
exceed customer expectationsInventoryCosts,
shortagesMaintenanceCosts, equipment reliability,
productivitySchedulingFlexibility, efficiencySupply
chainsCosts, quality, agility, shortages, vendor
relationsProjectsCosts, new products, services, or operating
systems
LO 2.4
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24
Quality-based strategy
Strategy that focuses on quality in all phases of an organization
Pursuit of such a strategy is rooted in a number of factors:
Trying to overcome a poor quality reputation
Desire to maintain a quality image
A desire to catch up with the competition
A part of a cost reduction strategy
Quality-Based Strategies
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25
Time-based strategies
Strategies that focus on the reduction of time needed to
accomplish tasks
It is believed that by reducing time, costs are lower, quality is
higher, productivity is higher, time-to-market is faster, and
customer service is improved
Time-Based Strategies
LO 2.5
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26
Areas where organizations have achieved time reductions:
Planning time
Product/service design time
Processing time
Changeover time
Delivery time
Response time for complaints
Time-Based Strategies (cont.)
LO 2.5

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27
Agile Operations
Agile operations
A strategic approach for competitive advantage that emphasizes
the use of flexibility to adapt and prosper in an environment of
change
Involves the blending of several core competencies:
Cost
Quality
Reliability
Flexibility
2-‹#›
28
The Balanced Scorecard Approach
A top-down management system that organizations can use to
clarify their vision and strategy and transform them into action

Develop objectives
Develop metrics and targets for each objective
Develop initiatives to achieve objectives
Identify links among the various perspectives
Finance
Customer
Internal business processes
Learning and growth
Monitor results
2-‹#›
29
The Balanced Scorecard
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30
Productivity

Productivity
A measure of the effective use of resources, usually expressed
as the ratio of output to input
Productivity measures are useful for
Tracking an operating unit’s performance over time
Judging the performance of an entire industry or country
LO 2.6
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31
Why Productivity Matters
High productivity is linked to higher standards of living
As an economy replaces manufacturing jobs with lower
productivity service jobs, it is more difficult to maintain high
standards of living
Higher productivity relative to the competition leads to
competitive advantage in the marketplace
Pricing and profit effects
For an industry, high relative productivity makes it less likely it
will be supplanted by foreign industry
LO 2.6
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32
Productivity Measures
LO 2.6
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33
What is the
multifactor
productivity?
Productivity Calculation Example
Units produced: 5,000
Standard price:$30/unit
Labor input: 500 hours

Cost of labor:$25/hour
Cost of materials: $5,000
Cost of overhead: 2x labor cost
LO 2.6
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34
Solution
What is the implication of an unitless measure of productivi ty?

LO 2.6
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35
Productivity Growth
Example: Labor productivity on the ABC assembly line was 25
units per hour in 2014. In 2015, labor productivity was 23 units
per hour. What was the productivity growth from 2014 to 2015?
LO 2.6

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36
Service sector productivity is difficult to measure and manage
because
It involves intellectual activities
It has a high degree of variability
A useful measure related to productivity is process yield
Where products are involved
Ratio of output of good product to the quantity of raw material
input
Where services are involved, process yield measurement is
often dependent on the particular process:
Ratio of cars rented to cars available for a given day
Ratio of student acceptances to the total number of students
approved for admission
Service Sector Productivity
LO 2.6

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37
Factors Affecting Productivity
Capital
Methods
Technology
Management
Quality
LO 2.7
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38
Improving Productivity
Develop productivity measures for all operations
Determine critical (bottleneck) operations
Develop methods for productivity improvements
Establish reasonable goals
Make it clear that management supports and encourages
productivity improvement
Measure and publicize improvements
Don’t confuse productivity with efficiency
LO 2.7
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39

Partial Measures
Output
Single Input
;
Ouput
Labor
;
Output
Capital
Multifactor Measures
Output
Multiple Inputs
;
Ouput
Labor
+
Machine
;

Output
Labor
+
Capital
+
Energy
Total Measure
Goods or services produced
All inputs used to produce them
Input
Output
=
ty
Productivi
Multifactor Productivity
=
Output
Labor
+
Material
+
Overhead
$25/hour))

hours
(2(500
+
$5,000
+
$25/hour)
hours
(500
$30/unit
units
5,000
=
´
´
´
3.5294
=
500
,
42
$
$150,000

=
Productivity Growth
=
Current productivity
-
Previous productivity
Previous productivity
´
100
%
Productivity Growth
=
23
-
25
25
´
100
%
=
-

8
%
Introduction to Operations Management
Chapter 1
1-‹#›
You should be able to:
LO 1.1Define the terms operations management and supply
chain
LO 1.2Identify similarities and differences between production
and service operations
LO 1.3Explain the importance of learning about operations

management
LO 1.4Identify the three major functional areas of organizations
and explain how they interrelate
LO 1.5Summarize the two major aspects of process management
LO 1.6Describe the operations function and the nature of the
operations manager’s job
LO 1.7Explain the key aspects of operations management
decision making
LO 1.8Briefly describe the historical evolution of operations
management
LO 1.9Describe the current issues in business that impact
operations management
LO 1.10Explain the need to manage the supply chain
Chapter 1: Learning Objectives
1-‹#›

Operations Management
What is operations?
The part of a business organization that is responsible for
producing goods or services
How can we define operations management?
The management of systems or processes that create goods
and/or provide services
LO 1.1

1-‹#›
Goods are physical items that include raw materials, parts,
subassemblies, and final products.
Automobile
Computer
Oven
Shampoo
Services are activities that provide some combination of time,
location, form or psychological value.
Air travel
Education
Haircut
Legal counsel
Good or Service?
LO 1.1

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Supply Chain
Suppliers’
suppliers
Direct
suppliers
Producer
Distributor
Final
customers
Supply chain – a sequence of activities and organizations
involved in producing and delivering a good or service
LO 1.1

1-‹#›
The Transformation Process
Inputs
Land
Labor
Capital
Information
Outputs
Goods
Services
Transformation/
Conversion
Process

Control
Measurement
and Feedback
Measurement
and Feedback
Measurement
and Feedback
Value-Added
Feedback = Measurements taken at various points in the
transformation process
Control = The comparison of feedback against previously
established standards to determine if corrective action is needed
LO 1.1

1-‹#›
Automobile Assembly, Steelmaking
Products are typically neither purely service- or purely goods-
based.
GoodsServices
Home Remodeling, Retail Sales
Computer Repair, Restaurant Meal
Songwriting, Software Development
Surgery, Teaching
Goods-service Continuum
LO 1.2
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Manufacturing vs. Service
Degree of customer contact
Uniformity of input
Labor content of jobs
Uniformity of output
Measurement of productivity
Production and delivery
Quality assurance
Amount of inventory
Evaluation of work
Ability to patent design
LO 1.2
1-‹#›
Every aspect of business affects or is affected by operations

Many service jobs are closely related to operations
Financial services
Marketing services
Accounting services
Information services
Through learning about operations and supply chains you will
have a better understanding of:
The world you live in
The global dependencies of companies and nations
Reasons that companies succeed or fail
The importance of working with others
Why Study Operations Management?
LO 1.3
1-‹#›

Operations
Finance
Marketing
Organization
Basic Functions of the Business Organization
LO 1.4
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Function Overlap
Finance & operations
Budgeting
Economic analysis of investment proposals

Provision of funds
Marketing & operations
Demand data
Competitor analysis
Lead time data
LO 1.4
1-‹#›
Operations manager
Supply chain manager
Production analyst
Schedule coordinator
Production manager

Industrial engineer
Purchasing manager
Inventory manager
Quality manager
OM and Supply Chain Career Opportunities
1-‹#›
APICS - The Association for Operations Management
American Society for Quality (ASQ)
Institute for Supply Management (ISM)
Institute for Operations Research and Management Science
(INFORMS)
The Production and Operations Management Society (POMS)
The Project Management Institute (PMI)
Council of Supply Chain Management Professionals (CSCMP)
OM-Related Professional Societies

1-‹#›
Process Management
Process - one or more actions that transform inputs into
outputsThree Categories of Business Processes:Upper-
management processesThese govern the operation of the entire
organization.Operational processesThese are core processes that
make up the value stream.Supporting processesThese support
the core processes.
LO 1.5

1-‹#›
Supply & Demand
Supply
Demand
>
Supply
Demand
<
Supply
Demand
=
Wasteful
Costly
Opportunity Loss
Customer Dissatisfaction

Ideal
Operations &
Supply Chains
Sales & Marketing
LO 1.5
1-‹#›
Process VariationFour Sources of Variation:Variety of goods or
services being offeredThe greater the variety of goods and
services offered, the greater the variation in producti on or
service requirements.Structural variation in demandThese are
generally predictable. They are important for capacity
planning.Random variationNatural variation that is present in
all processes. Generally, it cannot be influenced by
managers.Assignable variationVariation that has identifiable
sources. This type of variation can be reduced, or eliminated, by

analysis and corrective action.
Variations can be disruptive to operations and supply chain
processes. They may result in additional costs, delays and
shortages, poor quality, and inefficient work systems.
LO 1.5
1-‹#›
Scope of Operations Management
The operations function includes many interrelated activities
such as:
Forecasting
Capacity planning
Facilities and layout
Scheduling
Managing inventories
Assuring quality

Motivating employees
Deciding where to locate facilities
And more . . .
The scope of operations management ranges across the
organization.
LO 1.6
1-‹#›
Role of the Operations Manager
The Operations function consists of all activities directly
related to producing goods or providing services.
A primary function of the operations manager is to guide the
system by decision making.
System design decisions
System operation decisions

LO 1.6
1-‹#›
System Design Decisions
System design
Capacity
Facility location
Facility layout
Product and service planning
Acquisition and placement of equipment
These are typically strategic decisions that
usually require long-term commitment of resources
determine parameters of system operation
LO 1.6

1-‹#›
System Operation Decisions
System operation
These are generally tactical and operational decisions
Management of personnel
Inventory management and control
Scheduling
Project management
Quality assurance
Operations managers spend more time on system operation
decision than any other decision area
They still have a vital stake in system design
LO 1.6

1-‹#›
Most operations decisions involve many alternatives that can
have quite different impacts on costs or profits
Typical operations decisions include:
What: What resources are needed, and in what amounts?
When: When will each resource be needed? When should the
work be scheduled? When should materials and other supplies
be ordered?
Where: Where will the work be done?
How: How will he product or service be designed? How will the
work be done? How will resources be allocated?
Who: Who will do the work?
OM Decision Making
LO 1.7

1-‹#›
General Approach to Decision Making
Modeling is a key tool used by all decision makers
Model - an abstraction of reality; a simplification of something.
Common features of models:
They are simplifications of real-life phenomena
They omit unimportant details of the real-life systems they
mimic so that attention can be focused on the most important
aspects of the real-life system
LO 1.7
1-‹#›

Understanding Models
Keys to successfully using a model in decision making
What is its purpose?
How is it used to generate results?
How are the results interpreted and used?
What are the model’s assumptions and limitations?
LO 1.7
1-‹#›
Models are generally easier to use and less expensive than
dealing with the real system
Require users to organize and sometimes quantify information
Increase understanding of the problem

Enable managers to analyze “What if?” questions
Serve as a consistent tool for evaluation and provide a
standardized format for analyzing a problem
Enable users to bring the power of mathematics to bear on a
problem.
Benefits of Models
LO 1.7
1-‹#›
Quantitative information may be emphasized at the expense of
qualitative information
Models may be incorrectly applied and the results
misinterpreted
This is a real risk with the widespread availability of
sophisticated, computerized models are placed in the hands of
uninformed users

The use of models does not guarantee good decisions
Model Limitations
LO 1.7
1-‹#›
A decision-making approach that frequently seeks to obtain a
mathematically optimal solution
Supported by computer calculations
Often work together with qualitative approaches
Quantitative Approaches
LO 1.7

1-‹#›
Performance metrics
All managers use metrics to manage and control operations
Profits
Costs
Quality
Productivity
Flexibility
Inventories
Schedules
Forecast accuracy
Metrics and Trade-Offs
Analysis of trade-offs
A trade-off is giving up one thing in return for something else
Carrying more inventory (an expense) in order to achieve a
greater level of customer service
LO 1.7

1-‹#›
System - a set of interrelated parts that must work together
The business organization is a system composed of subsystems
Marketing subsystem
Operations subsystem
Finance subsystem
The systems approach
Emphasizes interrelationships among subsystems
Main theme is that the whole is greater than the sum of its parts
The output and objectives of the organization take precedence
over those of any one subsystem
Systems Approach
LO 1.7

1-‹#›
In nearly all cases, certain issues or items are more important
than others
Recognizing this allows managers to focus their attention to
those efforts that will do the most good
Pareto Phenomenon - a few factors account for a high
percentage of occurrence of some event(s)
The critical few factors should receive the highest priority
This is a concept that is appropriately applied to all areas and
levels of management
Establishing Priorities
LO 1.7
1-‹#›

Historical Evolution of OM
Industrial Revolution
Scientific management
Human relations movement
Decision models and management science
Influence of Japanese manufacturers
LO 1.8
1-‹#›
Pre-Industrial Revolution
Craft production - System in which highly skilled workers use
simple, flexible tools to produce small quantities of customized
goods

Some key elements of the industrial revolution
Began in England in the 1770s
Division of labor - Adam Smith, 1776
Application of the “rotative” steam engine, 1780s
Cotton gin and interchangeable parts - Eli Whitney, 1792
Management theory and practice did not advance appreciably
during this period
Industrial Revolution
LO 1.8
1-‹#›
.
Movement was led by efficiency engineer, Frederick Winslow
Taylor
Believed in a “science of management” based on observation,
measurement, analysis and improvement of work methods, and
economic incentives

Management is responsible for planning, carefully selecting and
training workers, finding the best way to perform each job,
achieving cooperation between management and workers, and
separating management activities from work activities
Emphasis was on maximizing output
Scientific Management
LO 1.8
1-‹#›
The human relations movement emphasized the importance of
the human element in job design
Lillian Gilbreth – applications of psychology
Elton Mayo – Hawthorne studies on worker motivation, 1930
Abraham Maslow – motivation theory, 1940s; hierarchy of
needs, 1954
Frederick Hertzberg – Two Factor Theory, 1959

Douglas McGregor – Theory X and Theory Y, 1960s
William Ouchi – Theory Z, 1981
Human Relations Movement
LO 1.8
1-‹#›
Decision Models & Management Science
F.W. Harris – mathematical model for inventory management,
1915
Dodge, Romig, and Shewart – statistical procedures for
sampling and quality control, 1930s
Tippett – statistical sampling theory, 1935
Operations Research (OR) Groups – OR applications in warfare
George Dantzig – linear programming, 1947
LO 1.8

1-‹#›
Influence of Japanese Manufacturers
Refined and developed management practices that increased
productivity
Credited with fueling the “quality revolution”
Just-in-Time production
LO 1.8
1-‹#›

Economic conditions
Innovating
Quality problems
Risk management
Competing in a global economy
Key Issues for Operations Managers Today
LO 1.9
1-‹#›
Environmental Concerns
Sustainability
Using resources in ways that do not harm ecological systems

that support human existence
Sustainability measures often go beyond traditional
environmental and economic measures to include measures that
incorporate social criteria in decision making
All areas of business will be affected
Consumer education programs
Disaster preparation and response
Supply chain waste management
Outsourcing decisions
LO 1.9
1-‹#›
Ethical Issues in Operations
Ethical issues that may arise in many aspects of operations
management:

Financial statements
Worker safety
Product safety
Quality
The environment
The community
Hiring and firing workers
Closing facilities
Workers’ rights
LO 1.9
1-‹#›
The Need for Supply Chain Management
In the past, organizations did little to manage the supply chain
beyond their own operations and immediate suppliers which led

to numerous problems:
Oscillating inventory levels
Inventory stockouts
Late deliveries
Quality problems
LO 1.10
1-‹#›
Supply Chain Issues
The need to improve operations
Increasing levels of outsourcing
Increasing transportation costs
Competitive pressures
Increasing globalization
Increasing importance of e-business
The complexity of supply chains

The need to manage inventories
LO 1.10
1-‹#›
SEU Discussion Board Rubric
Meets
Expectation
Approaches
Expectation

Below
Expectation
Limited
Evidence
No
Evidence
Content, Research, and Analysis
2 Points 1.5 Points 1 Point .5 Points 0 Points
Content Meets Expectation
- Demonstrates
excellent
knowledge of
concepts, skills,
and theories
relevant to topic.
Approaches
Expectation -
Demonstrates fair
knowledge of
concepts, skills,

and theories.
Below Expectation
- Demonstrates
significantly flawed
knowledge of
concepts, skills,
and theories.
Limited Evidence -
Demonstrates poor
or absent
knowledge of
concepts, skills,
and theories.
No Evidence - Did
not participate.
Support Meets Expectation
- Statements are
well supported;
posts extend

discussion.
Approaches
Expectation -
Statements are
partially
supported; posts
may extend
discussion.
Below Expectation
- Support is
deficient; posts do
not extend
discussion.
Limited Evidence -
Statements are not
supported
No Evidence - Did
not participate.
Writing

Quality
Meets Expectation
- Writing is well
organized, clear,
concise, and
focused; no errors.
Approaches
Expectation - Some
significant but not
major errors or
omissions in
writing
organization,
focus, and clarity.
Below Expectation
- Numerous
significant errors
or omissions in
writing
organization,
focus, and clarity.

Limited Evidence -
Numerous errors
or omissions—at
least some
major—in writing
organization,
focus, and clarity.
No Evidence - Did
not participate.
Timelines
s
Meets Expectation
- Initial post made
before deadline.
Approaches
Expectation - Initial
post made 1 day
late.
Below Expectation

- Initial post 2 days
late.
Limited Evidence -
Initial post 3 days
late.
No Evidence - Did
not participate.
Quantity Meets Expectation
- Initial post and
two other posts of
substance.
Approaches
Expectation - Initial
post and one other
post of substance.
Below Expectation
- Initial post only.

Limited Evidence -
One post of
substance to
colleagues.
No Evidence - Did
not participate.
Total Points Possible: 10
MGT-530: Operation Management – Module 01/Discussion 01
Regulations:
· The writer is encouraged to use his own words.
· The writer must apply APA style guidelines.
· Support your submission with  at least four scholarly, peer -
reviewed journal articles.
· Write 2 pages in length, excludingthe title page, abstract,
conclusion and required reference page, which are never a part
of the minimum content requirements.
Carrefour is a French owned hypermarket operating in many
places including Saudi Arabia. Consider Carrefour in Saudi
Arabia when you, as a customer, judge the quality of the

hypermarket.
Explain how quality is evaluated, and the role of technology in
the customer perception of quality. Compare Carrefour’s quality
and technology to another hypermarket in the area. Order the
following criteria as most to least important for the successful
operation of a hypermarket, and for a different industry (not a
hypermarket) and explain why there are any differences and the
implications for operations:
· Customer satisfaction
· Forecasting
· Capacity planning
· Location
· Inventory management
· Store layout
· Scheduling
Thank you for your support

Competitiveness, Strategy, and ProductivityChapter 2Copyrigh

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