COMPETITIVENESS, STTRATEGY, AND PRODUCTIVITY

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STRATEGY

Mission– The reason for existence for an organization

Mission Statement– A clear statement of purpose

Strategy– A plan for achieving organizational goals

Tactics– The actions taken to accomplish strategies

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STRATEGY FORMULATION

Distinctive Competencies– The special attributes or abilities that give

an organization a competitive edge.

Environmental Scanning– The considering of events and trends that

present threats or opportunities for a company.

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Key external factors– Economic conditions– Political conditions– Legal environment– Technology– Competition– Markets

KEY FACTORS

Key internal factors– Human Resources– Facilities and equipment– Financial resources– Customers– Products and services– Technology– Suppliers

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PRODUCTIVITY

Partial measures :output/(single input) Multi-factor measures : output/(multiple

inputs) Total measure : output/(total inputs)

Productivity = Outputs

Inputs

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COMPETITIVENESS

How effectively an organization meets the needs of customers relative to others that offer similar goods or services

Quality

Price

Time

Flexibility

Differentiation

Service

7Banks, ATMsConvenienceLocation

DisneylandNordstroms

Superior customer service

Service

Burger KingSupermarkets

VarietyVolume

Flexibility

Express MailOne-hour photo

Rapid deliveryOn-time delivery

Time

Sony TVLexus, CadillacPepsi, Kodak, Motorola

High-performance design or high quality Consistent quality

Quality

U.S. first-class postageMotel-6, Red Roof Inns

Low CostPrice

EXAMPLES OF DISTINCTIVE COMPETENCIES

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VALUE

Firm’s tasks : It must create customers and then keep them.

Value – the customer’s subjective evaluation, adjusted for cost, of

how well a good or service meets or exceeds expectations.– Value is defined in terms of the customer

Customers impute product value using a value equation that seeks to quantify the trade-offs between product performance and its total long term cost

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VALUE EQUATION

Value = Performance / Cost Performance = (ß1×Quality) +( ß2 × Speed) +(ß3 ×

Flexibility) Cost

– 고객이 Output 을 취득 , 사용 , 처분 과정에 투입하는 모든 주관적 , 객관적 의미의 원가 개념

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FORCES THAT INFLUENCE CHANGE

Familiarity Economic Condition

Implementing Change– Refinement - an incremental approach to improve

an existing good or service.– Redefinition- a sudden, dramatic approach to

a product that is often driven by new methods of enhancing value.

Income/Education Competitors’ Actions Government Actions

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WASTE

Categories of Waste– Overproduction– Waiting in queues– Transportation– Processing waste– Inventory waste

Product defects Waste of time Waste of human capabilities Paperwork waste Waste of motion

Any activity or action that adversely affects the value equation for a customer