tailieunhanh - Lecture Operations and supply chain management: The Core (3/e) – Chapter 2: Strategy and sustainability

After reading the material in this chapter, you should be able to: Understand the parameters of a sustainable operations and supply chain strategy, understand the competitive dimensions of operations and supply chain strategy, identify order winners and order qualifiers, . | Strategy and Sustainability Chapter 02 McGraw Hill Irwin Copyright 2013 by The McGraw Hill Companies Inc. All rights reserved. Learning Objectives 1. Understand the parameters of a sustainable operations and supply chain strategy. 2. Understand the competitive dimensions of operations and supply chain strategy. 3. Identify order winners and order qualifiers. 4. See how strategy is implemented through operations and supply chain activities. 5. Introduce the concept of risk assessment and mitigation. 6. Show how productivity is measured and how it relates to operations and supply chain processes. 2 2 Sustainable Strategy The firm s strategy describes how it will create and sustain value for its current shareholders Shareholders individuals or companies that legally own one or more shares of stock in the company Stakeholders individuals or organizations who are directly or indirectly influenced by the actions of the firm Adding a sustainability requirement means meeting value goals without compromising the ability of future generations to meet their own needs Triple bottom line evaluating the firm against social economic and environmental criteria 2 3 Triple Bottom Line 2 4 Operations and Supply Chain Strategy Setting broad policies and plans for using the resources of a firm must be integrated with corporate strategy Corporate strategy provides overall direction and coordinates operational goals with those of the larger organization Operations effectiveness performing activities in a manner that best implements strategic priorities at a minimum cost 2 5 Formulating an Operations and Supply Chain Strategy Activity 1 performed at least yearly Activity 2 updated as often as four times per year 2 6 Competitive Dimensions 2 7 Trade-Offs Management must decide which parameters of performance are critical and concentrate resources on those characteristics For example a firm that is focused on low-cost production may not be capable of quickly introducing new products .

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