1、1245 Outlines Outlines Background Introduction Operational Effectiveness Operation Effectiveness VS Strategic PositioningStrategy Rests on Unique Activities3 Productivity Frontier For almost two decades,managers have been learning to play by a new set of rules:vCompanies must be flexible to respond rapidly to competitive and market changes.vThey must benchmark continuously to achieve best practice.vThey must outsource aggressively to gain efficiencies.vThey must nurture a few core competencies i

2、n the race to stay ahead of rivals.Background Introduction Background Introduction BarriersCopymarket positionGlobalizationvPositioning-once the heart of strategy-is rejected as too static for todays dynamic markets and changing technologies.v According to the new dogma,rivals can quickly copy any market position,and competitive advantage is,at best,temporary.vSome barriers to competition are falling as regulation eases and markets become global.vCompanies have properly invested energy in becomi

3、ng leaner and more nimble.Background Introduction vBut those beliefs are dangerous half-truths,and they are leading more and more companies down the path of mutually destructive competition.vIn many industries,however,what some call hyper-competition is a self-inflicted wound,not the inevitable outcome of a changing paradigm of competition.vThe root of the problem is the failure to distinguish between operational effectiveness and strategy.Operational EffectivenessStrategyWhy?The probable answer

4、：vThe quest for productivity,quality,and speed has spawned a remarkable number of management tools and techniques:total quality management,benchmarking,time-based competition,outsourcing,partnering,reengineering,change management.vAlthough the resulting operational improvements have often been dramatic,many companies have been frustrated by their inability to translate those gains into sustainable profitability.vAnd bit by bit,almost imperceptibly,management tools have taken the place of strateg

5、y.As managers push to improve on all fronts,they move farther away from viable competitive positions.Background Introduction Operational EffectivenessvOperational Effectiveness(OE)and strategy are both essential to superior performance,which after all,is the primary goal of any enterprise.But they work in very different ways.Create comparable value at a lower costBoth greater value&lower costDeliver greater value to customersA company can outperform rivalscharge higher average unit pricesgreater

6、 efficiency results in lower average unit costs Operational EffectivenessOthersTraining employeesDeliverSellProduceCreateOverall advantage Or disadvantagevUltimately,all differences between companies in cost or price derive from the hundreds of activities(e.g.the right chart)vCost is generated by performing activities,and cost advantage arises from performing particular activities more efficiently than competitors.vSimilarly,differentiation arises from both the choice of activities and how they

7、are performed.Activities,then,are the basic units of competitive advantage.vOverall advantage or disadvantage results from all a companys activities,not only a few.vDifferences in OE among companies are pervasivevSuch differences in OE are an important source of differences in profitability among competitors because they directly affect relative relative cost positionscost positions and levels of levels of differentiationdifferentiation.Operational Effectivenesseliminate wasted effortemploy more

8、 advanced technologymotivate employees betterhave greater insight into managing particular activities or sets of activitiesvImagine for a moment a productivity frontier that constitutes the sum of all existing best practices at any given time.vThink of it as the maximum value that a company delivering a particular product or service can create at a given cost,using the best available technologies,skills,management techniques,and purchased inputs.vThe productivity frontier can apply to individual

9、 activities,to groups of linked activities such as order processing and manufacturing,and to an entire companys activities.vWhen a company improves its OE,it moves toward the frontier.Doing so may require capital investment,different personnel,or simply new ways of managing.Productivity Frontierthree-dimensional productivity frontierplanar productivity frontiervThe productivity frontier is constantly shifting outward as new technologies and management approaches are developed and as new inputs b

10、ecome available.vLaptop computers,mobile communications,the Internet,and software have redefined the productivity frontier for sales-force operations and created rich possibilities for linking sales with such activities as order processing and after-sales support.vSimilarly,lean production,which involves a family of activities,has allowed substantial improvements in manufacturing productivity and asset utilization.*We can use Matlab to draw multidimensional situations*We also can use multidimens

《《管理学专业英语教程（精编版）（第二版）》课件Unit 2 What is Strategy.ppt》由会员m****u分享，可在线阅读，更多相关《《管理学专业英语教程（精编版）（第二版）》课件Unit 2 What is Strategy.ppt》请在八斗文库上搜索。