- Ability and performance of a company, compared to the company’s competitors.
- Order qualifiers X Order winners
- Order qualifiers : minimum standards of acceptability; allow product to be
considered; However, these may not be sufficient to get a customer to purchase from the
- Order winners : purchasing criteria that cause perception of being better
than competition; allow product to be purchased.
- Businesses compete using operations (cost, quality, flexibility, timeliness)
- Cost/ Price
- All other factors being equal, a customer will choose the lowest price
- Firms that compete on price alone may settle for lower profit
- Most firms focus on lowering their costs of delivering goods
and/or services to their customers.
- Materials, workmanship, design.
- Buyer: how well will the product or service serve its purpose?
- Company? How consistently they can produce the costumers
-The ability to respond to changes.
-The better the response, the greater the competitive advantage.
-This may be changes in demand or design.
- How quickly is a product or service delivered to the customer
- How quickly new products are developed.
- Rate at which changes to product or process are made.
-What does the customer want ?
- Value = Performance / cost
- Value = (quality + speed + flexibility) / cost
- Value = (w1*quality + w2*speed + w3*flexibility)/ cost w =
- Mission / Vision / Values
- Where the organization is going now - Vision
- Where the organization desires to be in the future
- Shared beliefs of the organization’s stakeholders
- Goals and Objectives
- Provide detail and scope of mission
- Plans that determine direction for achieving organizational goals
- Tactics and Action Plans
- The methods and actions taken to accomplish strategies
- 9 Strategic Decisions
- specialize or focus by market, product group, or production process type?
- size of plants and major equipment. how to change to meet future demand.