ECON 1 Lecture 2:
Document Summary
Ch2: operations and supply chain strategies: elements of the business. There are two major decision categories addressed by a strategy: Structural elements are tangible resources, such as buildings, equipment, and information technology. They typically require large capital investments that are difficult to reverse. Infrastructural elements are the people, policies, decision rules, and organizational structure choices made by the firm: strategy. Strategy are the mechanisms by which businesses coordinate their decisions regarding their structural and infrastructural elements. The mission statement explains why an organization exists; it describes what is important to the organization, called its core values, and identifies the organization"s domain. Business strategy is the strategy that identifies a firm"s targeted customers and sets time frames and performance objectives for the business. Clearly identify the firm"s targeted customers and broadly indicate what the operations and supply chain function need to do to provide value to these customers.
