Chapter 2 Competitiveness, Strategy, and Productivity

Vocabulary flashcards covering key concepts from Chapter 2 on competitiveness, strategy, and productivity.

Competitiveness

The degree to which an organization meets customer wants and needs relative to competing firms, achieved through a blend of marketing and operations.

Strategy

A plan for achieving organizational goals; includes organizational and functional strategies; tactics are the 'how-to' actions.

Productivity

A measure of the effective use of resources, typically output divided by input.

Mission

The reason for an organization's existence.

Mission statement

A statement of the organization's purpose, answering the question, What business are we in?

Goals

Specific destinations that elaborate the mission and provide the basis for organizational strategies.

Organizational strategies

Overall strategies that apply to the entire organization and support its mission and goals.

Functional level strategies

Strategies that apply to individual functions (e.g., marketing, operations) to support organizational strategy.

Tactics

The methods and actions taken to accomplish strategies—the how-to steps.

Operations

The actual doing part of the process—the activities that convert inputs into outputs.

Core competencies

Unique capabilities that give an organization a competitive edge and should align with its strategy.

Environmental scanning

The process of collecting, scrutinizing, and using information about external and internal factors that affect the organization.

SWOT

A framework identifying Strengths, Weaknesses, Opportunities, and Threats.

Order qualifiers

Minimum standards of acceptability a product or service must meet to be considered for purchase.

Order winners

Characteristics that cause a firm's products or services to be perceived as better than competitors'.

Key external factors

External forces affecting strategy: economic, political, legal, technology, competition, customers, suppliers, and markets.

Economic conditions

Macro-level conditions influencing demand, prices, and business costs.

Political conditions

Government policies, stability, and regulatory environment impacting operations.

Legal environment

Laws and regulations affecting business conduct.

Technology

Advances that enable new products, processes, and competitive differentiation.

Competition

Rivalry among firms in the marketplace that shapes strategic choices.

Customers

End-users and buyers whose needs and preferences drive demand.

Suppliers

Inputs providers whose capabilities affect cost, quality, and delivery.

Markets

Geographic or segment groups of potential buyers and their demand characteristics.

Key internal factors

Internal resources a firm relies on: human resources, facilities/equipment, financial resources, customers, products/services, technology, and other factors.

Human resources

The people, skills, and knowledge available to the organization.

Facilities and equipment

Physical assets and machinery used to produce goods/services.

Financial resources

Capital, cash flow, and funding available for operations and growth.

Technology (internal)

The organization's information systems and manufacturing/operating technology.

Inventory

Stock of raw materials, work-in-process, and finished goods.

Process design decisions (Product and service design)

Decisions affecting cost, quality, liability, and environmental impact of offerings.

Capacity

The amount of output that an operation can produce; includes cost structure and flexibility.

Process selection and layout

Choosing processes and arranging facilities to balance cost, flexibility, and capacity.

Work design

Organization of tasks, responsibilities, and jobs to influence safety, motivation, and productivity.

Location

Site choice for operations affecting costs, visibility, and access to markets.

Maintenance

Costs and activities ensuring equipment reliability and productivity.

Scheduling

Plans for timing and sequencing of work to optimize throughput and efficiency.

Supply chains

Networks of suppliers, manufacturers, and distributors that deliver products to customers; focus on costs, quality, agility.

Projects (Strategic OM Decision Areas)

Decisions about costs, new products, or operating systems undertaken as projects.

Quality-based strategies

Strategic approach prioritizing quality across all operations to improve reputation, meet standards, or reduce costs.

Time-based strategies

Strategies aiming to reduce time to market and respond faster, lowering costs and often improving quality.

Agile operations

A strategic approach emphasizing flexibility and rapid adaptation by blending cost, quality, reliability, and flexibility.

Balanced Scorecard

Top-down management system translating vision/strategy into objectives, metrics, initiatives, and links across four perspectives: finance, customer, internal, learning/growth.

Productivity

A measure of the effective use of resources; typically output divided by input.

Labor productivity

Output per labor hour; a measure of workforce efficiency.

Multifactor productivity

Productivity measure using multiple inputs (labor, materials, etc.) in the denominator.

Process yield

Ratio of output quality to input, used for evaluating productive efficiency in processes.

Drones

Unmanned aerial devices used to support productivity in logistics, surveying, and field work.

GPS devices

Global Positioning Systems enhancing tracking, routing, and asset management.

Smartphones

Mobile devices enabling communication, data access, and process coordination.

3D printers

Additive manufacturing devices enabling rapid prototyping and on-demand production.

RFID

Radio Frequency Identification technology for tracking and inventory control.

Artificial intelligence

Computer systems capable of learning and improving processes, supporting productivity gains.

Bottleneck

The slowest operation or constraint in a process that limits overall throughput.

Time-to-market

The time required to conceive, develop, produce, and deliver a product or service.