Are Porter's generic strategies enough to guide operations strategy?
Are Porter's generic strategies enough to guide operations strategy? Operations management's main aim is to identify a common set of objectives such that the organisation can deploy its resources and capabilities to produce goods and services for internal and external customers. Operational management not only supports operational efficiency, but it also provides a potential source of strategic competitive advantage and it explains how operations strategy influences the activities of operations managers. Porter's three generic strategies broadly define a process through which these common set of objectives can be found. However, these strategies are mutually exclusive as Porter emphasises the need to only adopt one strategy and failure to do so will result in a "stuck in the middle" (Porter , 1980) scenario. He discusses the idea that practising more than one strategy will lose the entire focus of the organisation hence a clear direction for a future path cannot be established. Operations Strategy The changing business environment over the last century has prompted operations management to change the pattern of decisions and actions that were intended to achieve its long-term goals. Increased cost-based competition, demands for better service, choice and variety, increased ethical awareness and more legal regulations (Slack et al., 2004, p.8) have led to the
Supply chain management. In order to determine the efficiency of supply chain management and make improvements, some indicators are used to evaluate the processes such as demand planning, distribution planning, production planning, inventory management a
SUPPLY CHAIN MANAGEMENT . Introduction As the significance of efficient supply chain operations increase, the companies have to determine their processes integrated with their supply chains. It is critical to run an efficient supply chain, since the supply chain management does not only refer to the management of the relationships among the stakeholders, but also aligns to the success of the company in terms of competitiveness and profitability. However, the present global and competitive environment brings about some requirements for the companies. In order to be involved in the markets and sustain their successes, the companies have to follow some strategies based on the collaboration of the customers, suppliers, retailers and subsidiaries. Therefore, some new arrangements and innovative managements should be made in the supply chain management processes. The supply chain is the managerial and operational component of the distribution channel comprising the procurement of materials, intermediate and finished goods manufacturing as well as supplying the customers with the products. It needs to be processed not only in the manufacturing industries, but also within services; nevertheless, the routes and the techniques used during the processes vary among the companies depending on the industry and the structure of the environment. 2. Requirement for Supply Chain
I am going to discuss the difference between managerial accounting and cutting cost. I will also provide some of where lean production came from and how it started
Andrea Blake IP 2 September 3, 2012 American Intercontinental University Cutting Cost Abstract In this paper I am going to discuss the difference between managerial accounting and cutting cost. I will also provide some of where lean production came from and how it started or originated from. I am going to also briefly touch on how Dr. White can prepare to cut budgets as well as the company and the other employees that surround her. Cutting cost The difference between cost accounting and managerial accounting is that when talking about cost accounting it is mainly used within the company to manage the companies’ costs or even drop costs. Cost accounting is used internally and is primarily an internal mechanism, it is not tied with managerial accounting standards such as GAAP, and the steps to try and figure out where reductions in budgets and costs will be realistic. When talking about lean production it actually came from the Japanese and originated in Toyota Company. The goal was to try and get rid of any area or sourcing, material or production related costs unless it was used and tied up directly to adding value to the production line. If this philosophy is used in the right manner than there is no waste, and the quality of products go up and in most cases the costs will reduce. One example that I can think have for learn production are the “kanban” or the
Strategic Procurement Management.
University of Strathclyde Strathclyde Business School MSc Procurement Management Strategic Procurement Management By: Maurice Morwood February 2003 Introduction The traditional purchasing methods of procuring materials and services have evolved over the last 20 years and to-day is often referred to as "Supply Chain Management". The simple definition of "supply chain management" is the "integration of all organisations involved in supporting the customer with a quality product utilising inventory in the most effective and efficient manner". This concept is vague because it embraces a number of procedures and policies within an organisational structure and senior executives in many corporations often fail to understand the important role of the supply chain function This paper will attempt to answer the questions posed by J.R. Electronics, a Scottish electronics company established in the 1980's who feel that that a new competitive advantage must be developed to maintain the company's position as a market leader. The management of the company have identified the four key strategic procurement activities of location and liaison with world class suppliers, global sourcing, E-commerce and a lean or agile approach to procurement as key initiatives that they believe will form the basis of their ongoing advantage. In writing this paper I have assumed that J.R. Electronics are
MANAGEMENT OVERVIEW OF OPERATIONS - Gallaher Group PLC
WHERE ARE WE NOW . MANAGEMENT OVERVIEW OF OPERATIONS Gallaher Group PLC began its operation in 1857. The Group's principle activity is the manufacture, marketing and distribution of tobacco and tobacco-related products. Gallaher is the fifth largest international tobacco company in the world. The organizations headquarters is based in the UK with a further three divisions, which comprises of Europe, Commonwealth of Independent States (CIS) and Rest of World. The organization has in its employ 11000 people. The Group depends on the skills and commitment of its employees in order to achieve its objectives as staff at every level is encouraged to make their fullest possible contribution to the organizations success. The Group strongly believes that the quality of its employees is one of the main sources of sustainable competitive advantage. The organization practices equality of opportunity for all employees irrespective of ethnic origin, religion, political opinion, gender, marital status, disability, age or sexual orientation. The Group embarks on a range of programs, collectively called corporate responsibility, which underpins its key principle of behaving responsibly in all areas of the business. The organization has an active approach to research and development and the contribution that it can make to the Group's profit. The
In this analysis of Boeing we will analyse various structure of organisation, management, chain of command, production range, marketing strategy
Table of content . Introduction……………………………………………………………………… 3 2. History of organization…………………………………………………………...5 3. Countries were organisation is working…………………………………………5 4. Culture…………………………………………………………………………….8 5. Type of organization………………………………………………………….…..8 6. Employees……………………………………………………………………….....8 7. Boards Interaction with stakeholders……………………………………………8 8. Conclusion……………………………………………………………..……..……9 9. Reference……………………………………………………………………..……9 ________________ Introduction. In this analysis of Boeing we will analyse various structure of organisation, management, chain of command, production range, marketing strategy , history of the organisation, its culture, employees and various other aspects. . A description and analysis of the organization. Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, with capabilities in rotorcraft, electronic and
Operations Management Dor Dor Case Study. Production was 37,000 pairs of hose and 2000 childrens garments were produced each day, to forecast DD mainly relied on intuition so Marguet decided to decrease manufacturing lead time to closely
INDIAN INSTITUTE OF MANAGEMENT, INDORE Operations Management Doré Doré Case Study Submitted by Group 04, Section B Amit Chanakya Praveen Ravi Sakshi Souarv Soumen Viswas Execuitive Summary Dore family started a garments business, slowly and slowly it succeeded and become a world famous name in quality hosiery. Dore Dore then established a Knitwear division by expanding a separate line of small knitted garments. Marguet became the new Director of Operations for taking DD to anew height, DD already have competitive strength of superior customer service for hosiery clientele. Long lead times were common in the apparel industry. Dore Dore had faced difficulties due to mismatch in production and actual demand, so Marguet began to investigate quick response strategies. She came up with a supply chain divided in upstream as manufacturing and downstream as retail. DD hosiery produces mainly socks and Knitwear division produces children knitwear. Production was 37,000 pairs of hose and 2000 children's garments were produced each day, to forecast DD mainly relied on intuition so Marguet decided to decrease manufacturing lead time to closely track seasonal fluctuations Cellular manufacturing experiments were first tried in children knitwear division, a cellular manufacturing system is a group of cross trained workers working on small cluster of machines to manufacture
service and operations
Service and Operation "Operations is what a company "does". It is how it delivers its "product" to customers. It is the core of a company's business. Manufacturing companies make products, stockholders purchase, store and distribute materials, whilst retailers procure, stock and supply the public with goods. This definition of operations can be applied to almost any organisation but this module is focused on industrial, rather than public sector or pure service operations. Typically over 70% of a company's assets are the responsibility of the operations function." (1) Operations strategy is related with matching the characteristics of the operations function with the requirements of the market in order to carry out the needs of the business. A proper understanding of this process requires not just an understanding of the beliefs and methods used to develop an operations strategy but also knowledge of the techniques and principles involved in its implementation. Implementation requires knowledge of operations systems and polices including those that relate to resource planning and activity control, quality, plant management, motivation and organization of people, performance metrics and continuous improvement. Components of the Operations Strategy Structural decision categories: Capacity * Growth as needed through additional stores - but capacity added carefully *
This report looks into the management and operations of Anheuser-Busch, the world's top brewing company.
Abstract This report looks into the management and operations of Anheuser-Busch, the world's top brewing company. It will take an in-depth look at the mission and vision statements of the company and how they have incorporated them into their management and operations procedures. It will also discuss the issues related to Anheuser-Busch's global strategies and operations including marketing approaches and defining itself in various markets. It will look into the various ways that Anheuser-Busch has responded to pressure to improve corporate responsibility and ethical behaviour as well as the quality and innovations they have incorporated into their products and operations. A German immigrant named Adolphus Busch founded Anheuser-Busch in 1852 in St. Lois, Missouri. The brewing company has grown to become one the largest brewery in the world creating such brands as Budweiser, Michelob, Busch, and Kirin. Though it primarily focuses on beer, the St. Louis-based company has several subsidiaries include one of the largest U.S. manufacturers of aluminium beverage containers and one of the largest theme park operators in the United States. In addition, Anheuser-Busch also has interests in malt production, rice milling, real estate development, turf farming, metalized and paper labelling, bottle production and transportation services. Mission and Visions Statements "A compelling
In this assignment, my focus will be on Malaysian low-cost airline company - AirAsia Berhad (AirAsia). First of all, I will explain about operations management and operations strategy. Then, in literature review part I will describe some OM decision area
MASTER OF BUSINESS ADMINISTRATION MGT 6206: OPERATIONS MANAGEMENT SESSION: JAN 2012 INDIVIDUAL CASE STUDY LECTURER: ANTHONY VAZ Ruslan Sansyabayev I12000706 Table of Contents Chapter I: Introduction 4 .1 Operations Management 4 Chapter II: Literature Review 6 2.1 Operations Strategy 6 2.2 Location Selection Strategy 9 2.3 Capacity Planning and Control 10 Chapter III: Background of the Organization 12 Chapter IV: Analysis of OM Strategy Decisions 13 4.1 Business and Operations Strategy 13 4.2 Capacity Planning and Control 17 4.3 Location Selection Strategy 19 Chapter V: Recommendations 22 Chapter VI: Possible Organisational Barriers 23 Chapter VII: Learning Points 24 Chapter VIII: Conclusion 25 GANNT CHART 26 REFERENCES 27 LIST OF FIGURES Figure 1 5 Figure 2. 7 Figure 3 8 Figure 4 13 Figure 5. 14 Figure 6 18 Figure 7. 19 LIST OF TABLES Table 2.1 17 Table 2.2 17 Chapter I Introduction .1 OPERATIONS MANAGEMENT The aim of this assignment is to choose an organization, analyse the way in which the organisation's operations strategy complements its business strategy and compare 3-4 decision areas within the operations of the organization from an operations management perspective. In this assignment, my focus will be on Malaysian low-cost airline company - AirAsia Berhad (AirAsia). First of all, I will explain about operations
