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UniversityofTennesseeatChattanoogaIntroductiontoOperationsand
SupplyChainManagement–Part2OperationsManagement-6thEditionChapter1RobertaRussellBernardW.Taylor,IIICopyrightJohnWileySons,Inc.
LectureOutlineStrategyFormulationCompetitivePrioritiesOperations’RoleinCorporateStrategyStrategyandtheInternetStrategyDeployment2CopyrightJohnWileySons,Inc.
FourStepsforStrategyFormulationDefiningaprimarytaskWhatisthefirminthebusinessofdoing?Needstobeasbroadaspossibletocorrespondtothebusiness’missionstatementAssessingcorecompetenciesWhatdoesthefirmdobetterthananyoneelse?DeterminingorderwinnersandorderqualifiersWhatwinstheorder?Whatqualifiesanitemtobeconsideredforpurchase?PositioningthefirmHowwillthefirmcompete?3CopyrightJohnWileySons,Inc.
MissionStatement–IntelExampleOurmission
Delightourcustomers,employees,andshareholdersbyrelentlesslydeliveringtheplatformandtechnologyadvancementsthatbecomeessentialtothewayweworkandlive.Ourvalues
Customerorientation
Resultsorientation
Risktaking
Greatplacetowork
Quality
DisciplineOurobjectives
Extendoursilicontechnologyandmanufacturingleadership
Deliverunrivaledmicroprocessorsandplatforms
Growprofitabilityworldwide
Excelincustomerorientation4CopyrightJohnWileySons,Inc.
CompetitivePrioritiesCostQualityFlexibilitySpeed5CopyrightJohnWileySons,Inc.
CompetitivePriorities:CostLincolnElectricreducedcostsby$10millionayearfor10yearsskilledmachineoperatorssavethecompanymillionsthatwouldhavebeenspentonautomatedequipmentSouthwestAirlinesonetypeofairplanefacilitatescrewchanges,record-keeping,maintenance,andinventorycostsdirectflightsmeannobaggagetransfers$30millionannualsavingsintravelagentcommissionsbyrequiringcustomerstocontacttheairlinedirectly6CopyrightJohnWileySons,Inc.
CompetitivePriorities:QualityRit
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