COMM 103 Study Guide - Final Guide: Sodium Bicarbonate, Accounts Receivable, Toothpaste

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16 Dec 2012
Comm 103 Final Exam Notes
Chapter 9 Operations and Supply Chain Management
-successful organizations understand the interconnectivity of strategy, business
structure, and operations, and seek to ensure that all three are integrated into the
decision making process and that both structure and operations are aligned and in
support of the organization’s strategic intent
Three components of a business system:
1. Strategy what we want to accomplish
2. Business structure provides the controls and formal communication and
responsibility framework which will guide the organization as it seeks to
realize its strategy
3. Operations the actual processes employed, which, when combined with
the utilization of the organization’s capital assets, enable strategic outcomes
to be actualized
-Successful businesses look to establish within their business systems competitive
advantages which enable them to deliver their products/services to their targeted
market segments in a manner which is superior to the competition
Operations management all about the effective design, development, and
management of the processes, procedures, and practices embedded within an
organization’s business system for the purpose of achieving its strategic intent
-The areas of interconnected responsibility for operations management are:
-Process management - the design and development of the work flow and
connectivity of the operational requirements needed to ensure that an
organizations products/services are efficiently produced and effectively
delivered to the marketplace
-Supply Chain management the management of the flow of
materials/products, information, and costs through the front end of an
organization’s value chain
-Product/Service management the variety of activities which commence
with the design and development of potential new products in R&D, and
extend to the post purchase support of products and services now in the
hands of customers
-at the centre of the ‘value chain’ model is the underlying principle that managers
should seek to make decisions across the chain’s activity areas in a manner which
contributes positively to the overall value of the products or services being
produced or offered
Value Chain Primary Activities
Inbound logistics the management of supplier relationships relating to those
parts/components or finished products which are brought into the organization in
order to manufacture finished products for the marketplace i.e. purchase
components of ipad, purchase a shirt from Thailand and coordinating shipping to
warehouse, storage etc.
Operations the manufacturing and/or product change processes which are set up
to ensure that the final product is ready for the marketplace
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Outbound logistics distribution activities required to get the right product to the
right place at the right time
Marketing and sales those activities which create profile and awareness for the
organization’s products, services, or brands, and the benefits derived from the
acquisition and use of such products or services
Customer service the support provided to customers before, during, and
following the purchase process. I.e. tech support, repair support, installation,
customer training etc.
-the development of strong supplier and distributor relationships are invaluable to
the organization, with regards to understanding market trends and shifts,
maintaining a watchful eye on competitive innovation, and ensuring that cost
control management practices are put into place throughout the supply chain in
order to maintain competitive pricing strategies
Support activities those areas within the organizations which are not directly
associated with the actual processes which the organization uses to produce
products/deliver services. They are still integral parts of the support structure,
however i.e. IT dept., R & D dept., HR mgmt, legal dept., etc
Business Planning Cycle
Operations cycle the alignment of the operational tasks within an organization,
by its management team, in order to meet the strategic outcomes defined in the
organization’s business strategy
Growth and
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Operations Cycle
i.e. if an organization’s intent is to focus on differentiated markets, the operations
cycle will possess flexibility and customization. If the organization’s desired
strategic position is to focus on low price and acceptable quality, the operations
cycle will place an emphasis on process standardization and simplification
Strategic Intent
Operation Management
Operations Applications
Low cost / Low
Tight cost control
Structured organization
Tight process supervision
Meeting volume based
Process standardization
Process simplification
Economies of Scale
Technology intensive
Low cost distribution
R&D process improvement
Focus on quality vs quantity
Emphasis on culture of
collaboration and
Greater allowance for
creativity and self
Emphasis on defining and
adding value to products
Higher labour skills
Strong emphasis on
creativity skills
Strong tie in with marketing
Strong R&D product
development focus
Strong partnership approach
with distributors
Manage the
process to
realize desired
START: What is
the strategy?
Does this
translate into
an emphasis on
lower prices or
better quality?
what needs to
be done to
execute the
Make the
changes and
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