operations strategy

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1、OperationsStrategy2DefininghowfirmscompeteChapterObjectives•Introducetheconceptofoperationsstrategyanditsvariouscomponents,andshowhowitrelatestotheoverallbusinessstrategyofthefirm.•Illustratehowoperationsstrategypertainstoaddingvalueforthecustomer.•Identifythedifferentwaysinwhichoperationsst

2、rategycanprovideanorganizationwithacompetitiveadvantage.•Introducetheconceptoftrade-offsbetweendifferentstrategiesandtheneedforafirmtoalignitsoperationsstrategytomeettheneedsoftheparticularmarketsitisserving.•Explainthedifferencebetweenorder-qualifiersandorder-winnersastheypertaintooperatio

3、nsstrategy.•Describehowfirmsareintegratingmanufacturingandservicestoprovideanoverall“bundleofbenefits”totheircustomers.STEELMAKERDOFASCODOESATURNAROUNDTHROUGHSTRATEGICREFOCUSINGItisnosecretthatCanadiansteelmakersareunderpressure.Theindustryisincreasinglyfacingcompetitionfromsteelmakersindev

4、el-opingcountriessuchasBrazil,China,andIndiawherelabourcostsarelow.WhilesomeotherCanadiansteelmakersstruggle,Hamilton-basedDofasco,inbusinesssince1912,hasturnedarounditslossesfromadecadeagothrougharevisedstrategy.ThecompanyalsoownsorhaspartialownershipinfacilitiesintheUnitedStatesandMexic

5、o.Untilthelate1980s,thecompanycom-petedonpricebyproducingasmuchsteelaspossibleatthelowestpossibleprices.How-everbytheearly1990sincreasedcompetitionresultedinDofasconotbeingabletocompeteprofitably.Asaresult,by1992itfounditselfindebtandlosingmoney.Realizingthatthecurrent“competingoncost”stra

6、tegy(costleadership)wasuntenable,Dofascorefocuseditsstrategytodevelopingnewandinnovativeproducts,andtoprovidingitscustomerswithsolutionsforhigh-qualityandspecializedapplications(productdifferentia-tion).ThebusinessstrategywascalledSolutionsinSteelandfocusedonoperationalexcel-lence,technol

7、ogyandinnovation,andintimatecustomerrelationships.By1999itwasthemostprofitablesteelproducerinNorthAmerica.In2000itwasrankedfirstinNorthAmericaamongthirtysteelsuppliersinanindependentcustomersatisfactionsurveyandwasratedoneofthebestCanadiancompaniestoworkforbyReportonB