SCM 372 Lecture Notes - Lecture 2: Southwest Airlines, Consumer Reports
Document Summary
Operations strategy is concerned with setting broad policies and plans for using firm resources to best support long-term competitive strategy. Operations strategy needs to support overall corporate strategy. Southwest airlines overall corporate strategy is to provide an efficient and effective form of transportation (moving people from one place to another) The a(cid:374)s(cid:449)er depe(cid:374)ds o(cid:374) ho(cid:449) south(cid:449)est pla(cid:374)s o(cid:374) co(cid:373)peti(cid:374)g . Competitive dimensions: cost, make it cheap, quality (product & process), make it good, time, make it fast, flexibility, make more than one type, demand management, handle changes in demand. Trade-offs: decisions that arise because of the inability of processes to excel simultaneously across all competitive dimensions, what are the customer priorities, what do you want to specialize in, due to limited resources. Order winners: criterion that differentiates one firm from another. Examples: cost (southwest airlines), service quality (ritz-carlton hotels), flexibility (dell) Order qualifier: criterio(cid:374) that per(cid:373)its the fir(cid:373)"s produ(cid:272)ts to eve(cid:374) (cid:271)e (cid:272)o(cid:374)sidered for pur(cid:272)hase.
