Aligning Resources with Strategic Plans

 

Types of Strategies

·         Financial strategy

·         Product development strategy

·         Operations strategy

·         Marketing strategy

    Corporate Strategy:

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    ·         SWOT

    o   Strengths

    o   Weaknesses

    o   Opportunities

    o   Threats

    Business Strategy

    • Deals with company’s distinctive competence in which value is added to goods/service
    • Link between Corporate Strategy and Operation Strategy

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    • Approaches:

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    Operations Strategy

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    ·         Focus of operation strategy:

    o   Process-focused

    o   Product/service – focused

    o   Customer-focused

     

    Strategy Development Approaches

    ·         Overview approach

    o   Several core strategic focuses

    o   Checklist

    o   Focus on one or two of issues

    ·         Trade-off approach

    o   Identify most important variables

    o   Identify iteration and possible impacts

    ·         Reductionist approach

    o   Identify root causes

    o   Reduce effects

    ·         Sequential approach

    o   Address competitive priorities one at a time

    o   Build upon foundation priority

     

    Financial Strategy

    ·         Key Indicators

    o   Customer service

    o   Inventory Turns

    o   Quality

    ·         Plans

    o   Short and long term planning

    o   Controls plan

    o   Directions plan

     

    Product development Strategy

    ·         Concerned with dominant technologies employed by the business and they way they evolve over time

    ·         Plans

    o   Critical skills plan

    o   Product technology plan

    o   Product generation plan

     

    Marketing Strategy

    ·         Plans

    o   Determining the market segment plan

    o   Developing market niches

    o   Completing competitive analysis:  3 forces:

    1.       Existing competitive rivalry

    2.       Bargaining power of both supplier/buyers

    3.       Threat of new entrants or substitutes in the product or service market

    o   Increasing market share

     

    Operations Strategy

    ·         Plans

    o   Critical skills plan

    o   Facilities plan

    o   Process plan

    o   Unit capability plan

     

    Characteristics that create competitive advantage:

    ·         Price

    ·         Quality

    ·         Delivery speed

    ·         Delivery reliability

    ·         Flexibility

    ·         Product design

    ·         Service

     

    Competitive advantage categories

    ·         Order Winners:  what make your customers prefer you over competitors

    ·         Order Qualifiers:  what you need to get in the game

    ·         Nonissues:  stuff that doesn’t even enter the competitive picture

     

    Market Analysis Tool

    ·         Bargaining power of customer/buyers

    ·         Threat of new entrants

    ·         Bargaining power of suppliers

    ·         Threat of substitute products or services

     

    Quality

    ·         Two Major Components

    1.       Quality of conformance:  defined by absence of defects

    2.       Quality of design:  measured by degree of customer satisfaction

    ·         House of Quality Six-Step Process

    1.       Identify customer attributes

    2.       Identify supporting technical features

    3.       Correlate customer attributes with supporting technical features

    4.       Assign priorities to customer requirements and technical features

    5.       Evaluate competitive stances and competitive products

    6.       Identify technical features to be used in final design of product

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