Operations Management and Strategy

This set of flashcards covers key concepts from Operations Management and Strategy as presented in the lecture, focusing on competitive advantage, mission statements, strategy development, and the importance of understanding the competitive environment.

What is the primary goal of gaining a competitive advantage in operations management?

To deliver a better service or product that is valuable to the customer.

What does a mission statement define for an organization?

It states the organization's core line of business, objectives, and purpose.

What are the main components of strategy development?

Analyze the environment, determine strengths and weaknesses, establish corporate mission, and form a strategy.

What is SWOT analysis used for?

It is a tool for identifying strengths, weaknesses, opportunities, and threats.

Name two generic types of strategies in operations management.

Organizational strategies and functional strategies.

What is the difference between strategy and tactics?

Strategy is a long-term plan for achieving goals, while tactics are specific actions taken to implement strategies.

What is the significance of competitive environment understanding?

It helps organizations to recognize threats and seize opportunities in the market.

How does differentiation contribute to competitive advantage?

It creates uniqueness based on core competencies and added services.

List two factors affecting a mission statement.

Profitability and growth, philosophy and values.

What are essential characteristics of a good mission statement?

It should be simple, memorable, broad enough for longevity, specific for direction, and written plainly.

What does effective competition require according to the lecture?

A thorough understanding of the competitive environment.

What risks should be assessed in strategy management?

Supply chain risks, disruption risks, and operational risks.

What are some strategic options to gain competitive advantage?

Operations management, marketing/distribution, and quality/service.

What role does environmental scanning play in strategy formulation?

It helps organizations identify threats and opportunities in the external marketplace.