Business Competitiveness and Strategy

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Questions and Answers

What is the main purpose of an operations strategy in an organization?

To ensure rapid expansion into new markets

To maximize profit margins above all else

To develop new products for future consumption

To guide the operations function in alignment with organizational strategy (correct)

Which of the following is considered a distinctive competency related to flexibility?

In-store convenience

Volume production (correct)

High-performance design

Superb customer service

What does the term 'order qualifiers' refer to in business strategy?

Minimum standards deemed acceptable for customers to consider a purchase (correct)

The highest prices that customers are willing to pay

The unique features that enhance customer loyalty

The branding elements that differentiate a product in the market

In terms of competitive strategy, what advantage does Wal-Mart primarily focus on?

Low cost of products Signup and view all the answers

Which of the following best illustrates environmental scanning in strategy formulation?

Monitoring competitors’ actions and plans Signup and view all the answers

What defines an 'Order Winner' for an organization?

A characteristic that makes goods or services perceived as superior to competitors. Signup and view all the answers

Which of the following is part of the productivity measurement formula for Total Measure?

Goods/Services Produced/(Total Inputs) Signup and view all the answers

What is an example of Partial Productivity Measure?

Units of output per machine hour Signup and view all the answers

What distinguishes Multifactor Measures from Partial Measures in productivity analysis?

Multifactor Measures include multiple inputs in the calculation. Signup and view all the answers

Given ABC Company produced 7,040 units with a unit sale price of $1.10 and cost components for labor, materials, and overhead are $1,000, $520, and $2,000 respectively, how do you calculate the Multifactor Productivity?

Total Output/(Labor + Materials + Overhead) Signup and view all the answers

What does competitiveness primarily assess in an organization?

Effectiveness in meeting customer needs compared to peers Signup and view all the answers

Which element is essential for achieving organizational goals?

Mission statement Signup and view all the answers

In business operations, which factor influences consumer buying decisions the most?

Pricing structure Signup and view all the answers

Which term describes the detailed plans for achieving an organization's goals?

Strategy Signup and view all the answers

How is productivity best defined in the context of an organization?

Efficient use of resources to achieve outputs Signup and view all the answers

Which of the following is NOT a competitive factor in business operations?

Brand loyalty Signup and view all the answers

What role does advertising play in a business strategy?

Attracts potential customers to purchase goods/services Signup and view all the answers

Which statement best describes the relationship between strategy and tactics?

Tactics are specific actions taken to accomplish strategies. Signup and view all the answers

What is a critical input in creating an organization’s marketing strategy?

Market research Signup and view all the answers

Study Notes

Competitiveness, Strategy, and Productivity

Competitiveness is the effectiveness of an organization in the marketplace compared to other similar organizations.
Strategy involves plans determining the direction of an organization in pursuing its goals.
Productivity is the efficient use of resources.

Competitiveness

Competitiveness is how effectively an organization meets the wants and needs of customers relative to others that offer similar goods/services
It determines whether a business prospers, survives, or fails.

Business Competes Using Marketing

Identifying customer wants and needs is a basic input in an organization’s decision-making process and is central to its competitiveness.
Pricing is a key factor in consumer buying decisions.
Advertising and promotion entice potential customers to purchase goods or services.

Business Competes Using Operations

Operations include: product and service design, cost, location, quality, time/speed/quick response, flexibility, inventory management, supply chain management, service and service quality, and managers and workers.

Mission, Goal, Strategy, and Tactics

Mission is the reason for existence of an organization.
A mission statement states the purpose of an organization.
Goals provide detail and scope for a mission.
Strategies are plans for achieving organizational goals.
Tactics are the methods and actions taken to accomplish strategies.

Operations Strategies

Operations strategy is the approach used to guide the operations function, consistent with the organization’s strategy.

Distinctive Competencies

Distinctive competencies are special attributes or abilities that give an organization a competitive edge.
Examples of these include: low cost, high-performance design/high quality, consistent quality, rapid delivery, on-time delivery, variety/volume flexibility, and superior customer service.

Strategy Formulation

Environmental scanning is used to determine what competitors are doing/planning to do.
SWOT analysis focuses on internal and external Strengths, Weaknesses, Opportunities, and Threats.
Order qualifiers are characteristics that customers perceive as minimum standards of acceptability to be considered as a potential purchase, such as price and quality.
Order winners are characteristics of an organization’s goods/services that cause it to be perceived as better than the competitor, including price and quality.

Productivity

Productivity is a measure of the effective/efficient use of resources, usually expressed as the ratio of output to input.
The formula is: Outputs / Inputs
Productivity ratios are used for planning workforce requirements, scheduling equipment, and financial analysis.

Measures of Productivity

Partial measures compare output to a single input, such as: labor productivity, machine productivity, capital productivity, and energy productivity.
Multifactor measures compare output to multiple inputs, such as: output over labor and machine or output over labor, capital, and energy.
Total measure compares all goods/services produced to the total inputs used to produce them.

Examples of Partial Productivity Measures

Labor productivity is measured using units of output per labor hour, units of output per shift, or value-added per labor hour.
Machine productivity is measured using units of output per machine hour or dollar value of output per machine hour.
Capital productivity is measured using units of output per dollar input or dollar value of output per dollar input.
Energy productivity is measured using units of output per kilowatt-hour or dollar value of output per kilowatt-hour.

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Description

This quiz explores the concepts of competitiveness, strategy, and productivity in the business environment. You'll learn how organizations compete through marketing and operations while effectively meeting customer needs. Test your knowledge on the critical factors that influence success in the marketplace.