Competitiveness - an important factor that determines if a company fails.

● Consumer wants and needs (how much of a good or service people want)
● Price and quality (lower price high quality)
● Advertising and promotions (to attract buyers)
● Product and service design (Better design = more customers)
Product and service design is a strategic tool that influences a company's ability to
compete in the market by aligning offerings with customer needs, improving efficiency, and
differentiating from competitors.
● Cost (Lower cost = lower prices = more competitive or how much it costs the
business to create what it sells)
● Productivity (Higher productivity = faster, cheaper work)
● Location (Good location = more sales, faster service, lower delivery costs)
● Quality (High quality = happy customers as it was able to meet their expectations)
● Quick response (reacting fast to customers needs)
● Flexibility (adapting to new changes like trends)
● Inventory management (right amount of stocks to avoid waste or delays)
● Supply chain management (activities in production of goods or services)
● Service (helping customers)
● Managers and workers (having skilled employees)

Why organization fails

● Neglecting operations strategy
● Failing to take advantage on strength and weaknesses
● Too much emphasis on short-term financial performance
● Too much emphasis on products design
● Neglecting investments in capital and human resources
● Lack of good internal communication
● Failing to consider wants and needs based on historical data

To be a successful competitor, we must know what customers want and need and
then focus on efforts to meet or exceed customers' expectations.

Mission statement - what business are we in? It talks about company’s main goal

Three Basic strategies

● Low cost (lower price)
● Responsiveness (reacting to changes or problems/on time delivery)
● Differentiation from competitors (unique or better)
● Differentiation newness (innovation)
● Differentiation service (special service ex. disneyland amazon)
● Differentiation location (convenient)

Mission - main purpose

Goals - targets a business wants to achieve to fulfil its mission
Organizational goals - big goals of the whole company. They focus on the overall
mission, vision, and success of the business.
Functional goals - These are the smaller goals of each department (like operations,
marketing, HR, etc.) that help achieve the big organizational goals.
Strategies - big plan of a company to succeed goals
Tactics - actions to carry out strategy

Strength and weaknesses - internal conflict

Opportunities and threats - external conflict

External factors - Outside influences the business can’t control

● Economic conditions (inflation or unemployment that affects customers’ ability to buy)
● Political conditions (wars, political stability or instability)
● Legal environment (government policies that can affect taxes, minimum wage)
● Technology (new machines, equipment or materials for product innovation)
● Competition (businesses selling the same goods or offering services, competition in
terms of price, quality or features)
● Customers (what people want and need; loyalty)
● Suppliers (suppliers relationship; it affects the business if the supplier is slow or
expensive)
● Markets (the place where products are sold)

Internal factors - Inside elements the business can control and improve
● Human resource (skills, attitude and performance)
● Facilities and equipment (machines used to make or deliver a product)
● Financial resources (money available for running the business or producing goods)
● Products and services (what the business offers)
● Technology (the tools company uses)
● Other factors (company culture or leadership)

Supply chain strategy - how to manage supply to achieve goals (transformation process)
Supply chain - sequence of activities and organizations involved in producing goods and
services
Transformation process - transforming inputs into outputs.
Sustainability strategy - plan to protect the environment
● Economic goals (financial well-being)
● Environmental goals (ecological well-being)
● Social goals (wellness of human conditions)

Global strategy - how a company compete or expands internationally

Operation strategy - plan on how business will produce goods or service

1.​ People - Use resources wisely, follow eco-friendly practices, create a culture of
sustainability​
Example: Training workers to reduce waste or use energy efficiently
2.​ Equipment - Modern, energy-efficient machines reduce pollution and power use,
well-maintained equipment lasts longer (less waste)​
Example: Using solar-powered machines or machines that use less water.
3.​ Material - Raw materials used to make products, choosing eco-friendly or recyclable
materials, reducing material waste during production​
Example: Using recycled paper instead of cutting new trees.
 4.​ Process - The way products are made or services are delivered, efficient processes
save energy and reduce waste, greener methods (like lean production) help protect
the environment​
Example: Streamlining steps in production to avoid overuse of resources.

Streamlining production means making the production process faster, simpler, and
more efficient by removing unnecessary steps, reducing waste, and improving how
things are done. Streamlining helps with sustainability too — by using less energy,
time, and materials, it helps protect the environment.

5.​ Supply Chain - The whole system of getting materials and delivering products,
choosing local suppliers to reduce transport emissions, working with partners who
follow green practices​
Example: Getting supplies from nearby farms instead of importing from far away.

Strategic operations management decision

1. Product and Service Design

This is about deciding what to sell and how it should look, feel, and work. The goal is to
make products or services that customers want and that can be made or delivered efficiently.

2. Capacity

This means how much you can produce or do. For example, how many cakes a bakery can
make in a day or how many patients a clinic can serve. You need the right amount of
resources (people, machines, space).

3. Process Selection and Layout

This is about how work is done and how equipment or desks are arranged. You choose the
best way to get things done and organize the space to make work faster and easier.

4. Work Design

This focuses on who does what and how They do it. It aims to make jobs easier, safer, and
more satisfying for workers while keeping everything productive.

5. Location

Choosing where to place your factory, office, or store. A good location helps reduce costs
and reach customers more easily.

6. Quality

Making sure the product or service is good, reliable, and consistent. Quality builds trust with
customers.

7. Inventory
Deciding how much stock or materials to keep. Too little means delays, too much wastes
money. The goal is to have just enough at the right time.

8. Maintenance

Keeping machines and equipment in good working condition so there are no breakdowns or
delays.

9. Scheduling

Planning who does what and when. It helps organize work, avoid clashes, and make sure
everything is done on time.

10. Supply Chain

Managing the flow of materials and products** from suppliers to your business to the
customer. It includes buying, transporting, and storing goods.

11. Projects

Managing temporary tasks like building a new store, launching a product, or upgrading
software. It includes planning, budgeting, and meeting deadlines.

Quality and Time strategies

Quality - This means making sure that the products or services are good, reliable, and meet
customer expectations.

●​ Trying to overcome a poor quality reputation

●​ Desire to maintain a quality image
●​ Desire to catch up with the competition

Time - This means doing things faster than the competition—like delivering products quickly,
responding to customer needs fast, or reducing waiting time.

●​ Reducing time, costs are lower, quality is higher, productivity is higher, time to market
is faster, and customer service is improved.

1. Planning Time

Time needed to plan before doing anything — like creating schedules, budgets, or designs.

👉 How long does it take to get ready before starting the work?
2. Product/Service Design Time

Time used to create or improve a product or service before it is offered to customers.

👉 How long does it take to design something new or make it better?

3. Processing Time
The time it takes to actually make the product or deliver the service

👉 How long to do the job or complete the task?

4. Changeover Time

Time needed to switch from making one product to another (like changing machine settings).

👉 How long to switch between different tasks or products?

5. Delivery Time

Time from when the customer orders until they receive the product or service

👉 How long does the customer wait for delivery?

6. Response Time for Complaints

Time it takes to reply and solve customer problems or complaints

👉 How fast do you help when something goes wrong?

factors that affect productivity

1. Method

The way work is done.

👉 Better methods = faster and easier work.

Example: A smart way of organizing tasks can save time.

2. Capital

The tools, machines, and money used to produce goods or services.

👉 More or better equipment = more output.

Example: A delivery company with more vans can deliver more packages.

3. Quality

Making things right the first time.

👉 *Fewer mistakes = less rework and more productivity.

Example: High-quality work avoids wasting time fixing errors.

4. Technology

The use of machines, software, or automation.

👉 New tech = faster, more accurate work.
Example: Using computers instead of manual records.

5. Management

How well leaders plan, organize, and guide workers.

👉 Good management = smoother, more efficient work.

Example: A manager who gives clear instructions helps the team work faster.

Agile Operations

●​ Cost
●​ Quality
●​ Reliability
●​ Flexibility