GMS 401 Lecture Notes - Lecture 2: Medical Diagnosis, Factors Of Production, Cost Leadership

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Payman Ahi

Document Summary

Lecture 2: productivity and operations strategy in a global environment. Competitive advantage: implies the creating of a system that has a unique advantage over competitors (ex: using less resources efficiency) Managers achieving competitive advantages via: differentiation, low cost, response. Differentiation: distinguishing the offerings of an organization in a way that the customer identifies them as adding value. Differentiation is concerned with providing uniqueness: innovative design, broad product line, reliable after-sales service, customer"s experience. Low cost leadership: while lowering the cost providing the maximum value as defined by customer. Examining each of the 10 om strategic decision in a persistent effort to lower costs while meeting customer expectations of value. A low-cost strategy does not imply low value or low quality. When we add machinery we are adding a cost, but strategically we might invest money now but we will be able to automate some processes and that will provide opportunity to lower cost.