BUS 370 Operations and Supply Chain Strategies - Vocabulary Flashcards

Vocabulary flashcards covering key terms and definitions from the lecture notes on business strategy and supply chain concepts.

Strategy (business)

A mechanism for coordinating and guiding decisions regarding the elements of a business, including how to compete and which structural/infrastructural elements to implement.

Functional strategy

Translates the business strategy into functional terms; identifies actions; coordinates with other areas; guides functional decisions.

Core competencies

Organizational strengths and abilities developed over time that customers value and that competitors find difficult to imitate.

Structural elements

Physical capital assets that are relatively difficult to change (buildings, equipment, computer systems, etc.).

Infrastructural elements

People, policies, decision rules, and organizational structure; relatively easy to change.

Structural decisions

Decisions about capacity, facilities, technology, and other capital assets; typically hard to change.

Infrastructural decisions

Decisions about organization, sourcing, planning/control, processes, and product/service design; changes are easier to implement.

Capacity (structural decision)

Size/timing/type of capacity to meet demand.

Facilities (structural decision)

Size and location of physical facilities.

Technology (structural decision)

Equipment, processes, and information systems used in operations.

Organization (infrastructural decision)

Control/reward systems; centralization vs decentralization; workforce composition.

Sourcing and Purchasing (infrastructural)

Supplier selection, procurement systems, and sourcing strategy.

Planning and Control (infrastructural)

Forecasting, inventory management, and production planning/control.

Process and Quality (infrastructural)

Continuous improvement, business process management, SPC/Six Sigma.

Product and Service Design (infrastructural)

Development process and roles of organization/suppliers.

Mission statement

Statement of the organization’s reason for existence and guiding purpose.

Core values

Key beliefs that guide behavior and decisions within the organization.

Competitive Advantage/Core Competency

A distinctive capability that gives a firm an edge over competitors.

Role of Supply Chain Partners

The involvement and influence of suppliers, distributors, and other partners in executing strategy.

Time Frames and Performance Objectives

The planned time horizons and specific targets for implementing strategy.

Value index

A metric that combines performance and importance scores across dimensions to determine customer value.

Trade-offs

Choosing to emphasize one performance dimension (quality, time, flexibility, cost) over others.

Performance dimensions

The four dimensions customers care about: quality, time, flexibility, and cost.

Quality

Characteristics that affect satisfaction, including performance quality, conformance quality, and reliability.

Time

Delivery speed and delivery reliability, including delivery window and quantity accuracy.

Flexibility

Ability to respond quickly to different customer needs (mix, changeover, volume).

Cost

Expenses such as labor, materials, engineering, and quality.

Netflix – Virtual storefront

Netflix’s online interface for selecting and ordering content (digital availability).

Netflix – Distribution centers

Network of physical centers used to store and process DVDs (historically).

Netflix – Inventory system

System that tracks DVDs and manages subscriptions.

Netflix streaming advantages

Immediate access to content via streaming, reducing need for physical distribution.