Strategy Competitivenes and Productivity
Strategy, competitiveness and productivity Lina Vallejo Florida National College Operations Management March 13, 2010 Dr. Harvey J. Weiss Strategy, Competitiveness, and productivity Strategy Organization strategy has a major impact on operations management depending on the variations for operations and supply chain.
Operations strategy can have a major influence on the competitiveness of an organization and when it is properly applies and well executed, there are good chances that the organization will be successful.
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Competitiveness Efficient organization operations are a vital tool in achieving competitive advantage in the daily contest for customers/clients. Companies need to be competitive to sell their product or services. To achieve this, companies should identify consumer wants and needs, price and promotion. The major influences competitiveness has on operations are: product and service design, cost, location, quality, response time, flexibility, inventory and supply management, and service. Productivity
Measure of the effective use of the resources, expressed as the ratio of output to input Productivity us very important to business because they can gain market share and make great profits.
For example, when productivity increases, product costs decline and product price can be reduced. Productivity relates to competitiveness in the way that if two firms have the same level of output but one requires less input because of higher productivity, that one will be able to charge a lower price and consequently increase its shares of the market.
The use and updated of technology systems controls costs, help employees to do their work better and give operation managers the information they need to perform more effectively and be more productive. Impact on the employees and productivity in the organization Involving workers and managers is one of the latest strategies that may reflect a growing awareness of the positive effects of working together rather than competing internally. Operations managers should work closely to match customer needs with the operations capabilities.