GMS 401 Chapter Notes - Chapter 2: Strategic Planning, Workforce Productivity, Business Process
28 Jun 2018
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GMS – Chapter 2 – Competitiveness, strategic planning, and productivity
Competitiveness – ability and performance of an organization in the market compared to other
organizations that offer similar G or S
Strategy – the long term plans that determine the direction an organization takes to become
competitive
Strategic planning – the managerial process that determines a strategy for the organization
Productivity is a measure of how efficiently the resources are being used
Competitiveness
Key purchasing material – the major elements influencing a purchase: price, quality, variety
and timeliness
Other purchasing factors include customer service and convenient location
Value = quality, timeliness, etc. / price
Order qualifiers – purchasing criteria that customers perceive as minimum standards of
acceptability to be considered for purchase
Order winners – purchasing criteria that cause the selling organization to be perceived as
better than the competition
Competitive priorities – the importance given to operations characteristics: cost, quality,
flexibility, and delivery
Strategic planning
Mission – where the organization is going now, its products and markets
Vision – where the organization desires to be in the future
Values – shared beliefs of the organization’s stakeholders
Mission/vision provides a general direction for an organization and should lead to
organizational goals. An objective is a specific goal containing numerical values
Tactics – medium-term plans used as components of a strategy
Action plan – a medium or short-term project to accomplish a specific objective, assigned to an
individual, with a deadline and the resources needed
Operations strategy – comprises a set of well coordinated policies, objectives and action plans,
directly affecting the operations function, which is aimed at securing a long term sustainable
advantage over the competition
Nine strategic decision categories: facility, capacity, vertical integration/outsourcing, supplier
relationship/partnership, product mix and new products, process types and technology, human
resources, quality, operations infrastructure and systems
Generic operations strategies: low labour cost strategy, scale based strategy (higher
productivity, lower unit costs), focused factories strategy (narrow product lines, specialization),
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Document Summary
Gms chapter 2 competitiveness, strategic planning, and productivity. Competitiveness ability and performance of an organization in the market compared to other organizations that offer similar g or s. Strategy the long term plans that determine the direction an organization takes to become competitive. Strategic planning the managerial process that determines a strategy for the organization. Productivity is a measure of how efficiently the resources are being used. Key purchasing material the major elements influencing a purchase: price, quality, variety and timeliness. Other purchasing factors include customer service and convenient location. Order qualifiers purchasing criteria that customers perceive as minimum standards of acceptability to be considered for purchase. Order winners purchasing criteria that cause the selling organization to be perceived as better than the competition. Competitive priorities the importance given to operations characteristics: cost, quality, flexibility, and delivery. Mission where the organization is going now, its products and markets. Vision where the organization desires to be in the future.
