SCHM 2301 Chapter Notes - Chapter 2: Smog, Profit Margin, Performance Measurement

• School: Northeastern University
• Department: Supply Chain Management
• Course: SCHM 2301
• Professor: Power Michael

Document Summary

Operations strategy: a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers. Within most firms, planning processes take place at several different levels. Internally, there is a hierarchy of strategic plans consisting of (1) corporate planning, (2) strategic business unit (sbu) planning, and (3) functional planning. Strategic plans made at all levels need to take into account the business environment, including economic conditions, competitor actions, market opportunities, regulatory changes, and so on. A firm"s culture typically influences the objectives it sets and the decisions it makes in strategic planning. Corporate strategic planning addresses the portfolio of businesses owned by a firm. Of the three levels of strategic planning, corporate strategic planning is the broadest in scope and the least constrained. Decisions made at this level limit the choices that can be made at lower strategic planning levels.