ECON 1 Lecture 7:
Document Summary
Chapter 2 operations and supply chain management: elements of the business. Structural elements is one of two major decision categories addressed by a strategy and includes tangible resources (buildings, equipment, computer systems) which require large investments (difficult to reverse). Infrastructural elements is one of two major decision categories addressed by a strategy and includes policies, people, decision rules, organisational structure choices which is not as visible as structural elements: strategy. Strategies are mechanisms by which businesses coordinate their decisions regarding structural and infrastructural elements (rather in the long-term). A mission statement explains why an organisation exists; describes what is important to organisation (core values), and identifies the organisation"s domain. A business strategy identifies firm"s targeted customers and sets time frames and performance objectives for the business. Core competencies are organisational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy.
