GMS 401 Chapter Notes - Chapter 2: Factors Of Production, Cost Leadership, Total Factor Productivity
13 Apr 2018
School
Department
Course
Professor
Document Summary
Chapter 2: productivity and operations strategy in an global environment. We define the organizations mission as its purpose - what it will contribute to society. Mission statements provide boundaries and focus for organizations and the concept to society. The mission states the rationale for the organizations existence. Once a mission is established, strategy and its implementation may begin. Strategy is an organization"s action plan to achieve the mission. Each functional area has a strategy for achieving its mission and for helping the organization reach the overall mission. Identify and explain three strategic approaches to competitive advantage. Productivity is the ratio of outputs (goods and services) divided by the inputs (resources, labour, capital. The om managers job is to improve this ratio of outputs to inputs. Efficiency means doing the job well - with minimal resources and waste. Note the difference between being efficient, which implies doing the job well, and being effective, which means doing the correct thing.
