Common Reasons why Organizations

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Fail
 Too much emphasis on short-term.
 Failing to take advantage of strengths and
opportunities.
 Failing to recognize competitive threats.
 Neglecting operations strategy.
Common Reasons why Organizations
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Fail
 Too much emphasis on product and
service design.
 Neglecting investments in capital and
human resources.
 Failing to establish good internal
communication.
 Failing to consider customer wants and
needs.
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1. How Organization Compete against
each other
1. Price

2. Quality

3. Product Differentiation

4. Flexibility

5. Time
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Competitiveness

 The allocation of resources to obtain the

organization's long term objectives in the
most efficient and effective way.
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Businesses Gain Competitive Advantage by
using Operations based strategies
1. Product and service design
2. Cost
3. Location
4. Quality
5. Quick response
6. Flexibility
7. Inventory management
8. Supply chain management
9. Service
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2. Strategy
 Strategies
 Plans for achieving organizational goals.
 Mission
 The reason for existence for an organization.
 Mission Statement
 Answers the question “What business are we in?”
 Goals
 Provide detail and scope of mission.
 Tactics
 The methods and actions taken to accomplish strategies.
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Strategy Example

You are a business student at Virtual University of Pakistan. You

would like to have a career in business, have a good job, and earn
enough income to live comfortably
Mission: Live a good life
 Goal: Successful career, good income.
 Strategy: Obtain a Business Degree from VU.
 Tactics: Select a business field of your interest
and high market value.
 Operations: Register
Buy books
Take courses
Study
Graduate
Apply & get job
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Examples of Strategies

 Low cost
 Scale-based strategies

 Specialization

 Flexible operations

 High quality

 Service
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Strategy and Tactics

 Distinctive Competencies:
The special attributes or abilities that give an
organization a competitive edge.
 Price
 Quality
 Time
 Flexibility
 Service
 Location