PHYSICS 102 Lecture Notes - Lecture 29: Core Competency
Document Summary
Supply chain strategies: elements of the business. Structural elements = one of two major decision categories addressed by a strategy. Includes tangible resources, such as buildings, equipment, and computer systems. These resources typically require large capital investments that are difficult to reverse. Infrastructural elements = one of two major decision categories addressed by a strategy. Includes the policies, people, decision rules, and organizational structure choices made by a firm. These elements are not as visible as structural elements but there are just as important. For a business to compete successfully, all these elements must work together. Because some of these elements can take years and millions of dollars to develop, businesses need to ensure that their decisions are appropriate and consistent with one another. This is why strategy is necessary: strategy. Strategy = a mechanism by which a business coordinates its decisions regarding structural and infrastructural elements.
