BU385 Chapter Notes - Chapter 2: Strategic Planning, Operations Management, Niche Market
Document Summary
Competitiveness- ability and performance of an organization in the market compared other organizations that offer similar goods or service. Strategy- long-term plans that determine that direction an organization takes to become or remain competitive. Strategic planning- managerial process that determines a strategy for the organization and productivity is a measure of how efficiently the resources are used. Increased competition caused companies to rethink strategy and emphasize on operations. Reason companies prosper, barely gets by or fails. Depends on capabilities and performance of the company in its market. Capabilities can be developed over time by focusing on a limited range of goods or services and. / or on a technology, using teamwork and rewards (core competencies) Should use past experiences and leverage them to introducing new things. Performance depends on expectation of customers for purchase of goods or services, mainly price, quality, variety and timeliness. Key purchasing criteria- major elements influencing a purchase: price, quality, variety, timeliness.
