GMS 401 Lecture Notes - Lecture 2: Cost Leadership, Vertical Integration, Computer Virus

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Wally Whistance- Smith

Document Summary

Lecture 2: productivity, and operations strategy in a global environment. Higher quality products with lower cost catches the eye of the consumer. Productivity: the ratio of outputs (goods and services) divided by one or more inputs (such as labour, capital, or management, efficiency means doing the job well with a minimum of resources and waste. If we si(cid:374)(cid:272)e(cid:396)el(cid:455) e(cid:454)pe(cid:272)t ou(cid:396) (cid:449)o(cid:396)ke(cid:396) to do thei(cid:396) (cid:449)o(cid:396)k a(cid:374)d the(cid:455) do(cid:374)"t do that, (cid:449)hat a(cid:396)e ou(cid:396) options: fi(cid:396)e the(cid:373) (cid:894)if the(cid:455) do(cid:374)"t p(cid:396)odu(cid:272)e thei(cid:396) o(cid:449)(cid:374) sala(cid:396)(cid:455), should(cid:374)"t the(cid:455) (cid:271)e fi(cid:396)ed(cid:895), (cid:449)e expect them to produce. Another interesting statistics: perhaps as many as 25% of north american workers lack the basic skills needed for their current job, we are paid for our specific knowledge as opposed to our general knowledge. Productivity: productivity = outputs/ inputs, outputs = goods and/or services produced by the operations system (measured in units or $)