Operations Strategy and Supply Chain Management

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Questions and Answers

What is the main idea behind the operations resource perspective?

Market position is the sole determinant of success.

Human resources are the only type of resources that matter.

Resources have little impact compared to financial investment.

Resource application significantly affects strategic success. (correct)

Which of the following is NOT a step in the formulation of operations strategy?

Implementation

Evaluation (correct)

Control

Formulation

Why is developing organisational resources essential for operational success?

It allows for servicing target markets effectively. (correct)

It focuses solely on customer satisfaction.

It enhances the ability to enter new markets instantly.

It minimizes the need for market research.

What should be evaluated to control the rollout of an operations strategy?

The results of the implemented strategy. Signup and view all the answers

How do intangible assets contribute to a business's success?

They facilitate the transformation of inputs and value addition. Signup and view all the answers

What is a key characteristic of a good strategy according to the provided content?

It must be comprehensive and coherent. Signup and view all the answers

Which phase comes after monitoring in the strategy formulation process?

Control Signup and view all the answers

What is the commitment regarding response time for queries?

Responses will be provided within 48 hours. Signup and view all the answers

What impact does effective operations management have on a business?

It can create a competitive advantage and enhance profitability. Signup and view all the answers

Who should you contact for any administrative query?

Student Support via email. Signup and view all the answers

What service is promised by the tutor line?

Explanation of content within two business days. Signup and view all the answers

What is the suggested method for academic queries?

Use the tutor forums in the online course environment. Signup and view all the answers

When is it advised to contact support if struggling with course content?

Whenever there is any difficulty with the module. Signup and view all the answers

What types of queries should not be forwarded to programme managers?

Administrative queries. Signup and view all the answers

What should students do if they require academic assistance?

Contact the tutor for clarification. Signup and view all the answers

What is the purpose of the tutor forums in myCourses?

To ask questions related to academic studies. Signup and view all the answers

What does supply chain management primarily focus on?

The management of various aspects of the supply operation in a cross-functional way Signup and view all the answers

Which of the following activities is NOT included in supply chain management?

Social media marketing Signup and view all the answers

How is the internal supply chain defined?

The flow of material throughout the organization Signup and view all the answers

What is one of the roles of supply chain managers?

Selecting suppliers and managing location decisions Signup and view all the answers

What is the importance of accurate inventory and demand information in supply chain management?

It is essential for effective coordination and integration of the supply chain Signup and view all the answers

What does the term 'downstream' refer to in the context of supply chain management?

The delivery of finished goods to the end customer Signup and view all the answers

What is one factor that complicates supply chain management in a global economy?

Variation in sales volumes and emerging markets Signup and view all the answers

What does developing processes across the entire supply chain ensure?

Delivering a standardized product or service Signup and view all the answers

What is the primary responsibility of a business in supply chain management?

To build strong relationships with customers Signup and view all the answers

What is the bullwhip effect in supply chain management?

A phenomenon where small disturbances create larger issues upstream Signup and view all the answers

How should supply chain policies differ based on the product life cycle stage?

Supply chain policies should adapt to maintain either low inventory or high service levels Signup and view all the answers

What is a crucial skill that supply chain managers must possess?

Understanding the macro environment and preparing for disruptions Signup and view all the answers

What technology is typically used to track customer specifications in supply chain management?

Various software systems Signup and view all the answers

What type of supply chain policy emphasizes maintaining high service levels?

Responsive supply chain policy Signup and view all the answers

Which of the following trends poses a threat to supply chain stability?

Scarcity of material Signup and view all the answers

Which statement best describes efficient supply chain policies?

They aim to maintain fast throughput and low inventory. Signup and view all the answers

What is a key benefit of e-business in supply chain management?

Real-time information sharing Signup and view all the answers

What is a significant risk faced by supply chains?

Shipping disasters Signup and view all the answers

What does the co-opetition approach identify as players surrounding a business?

Suppliers, customers, competition, and complementors Signup and view all the answers

Which trend in supply network configuration aims to minimize complexity?

Minimizing suppliers Signup and view all the answers

What is one advantage of outsourcing in supply chain management?

Increased capacity without capital investment Signup and view all the answers

What aspect of supply chain network design provides a holistic view of the entire operation?

Considering the broader supply network Signup and view all the answers

Which is NOT a goal of embracing technology in supply chain management?

Increasing documentation requirements Signup and view all the answers

What does the design of the supply chain network primarily focus on?

Locating each part and determining capacity Signup and view all the answers

Study Notes

Operations Resource Perspective

Firms should focus on strategically developing their resources to achieve success.
Resource capabilities are crucial for strategic success, comparable to market positioning.
The focus should be on understanding and exploiting the potential of intangible assets, like transforming inputs and unlocking capital.
Firms that accumulate better or more appropriate resources gain a sustainable competitive advantage.

Strategy Formulation

Operations strategy is formulated in four steps:
- Formulation
- Implementation
- Monitoring
- Control
A comprehensive, coherent, and corresponding strategy that identifies critical issues is crucial for success.
Implementation operationalizes the strategy to achieve vision and objectives.
Ongoing performance monitoring ensures necessary adjustments.
Control evaluates the strategy's rollout results.

Supply Chain Management Definition

Supply chain management (SCM) involves managing the chain of suppliers and customers.
It emphasizes managing various supply operations across functional units.
SCM focuses on the flow of raw materials, information, and customers, and distribution of finished goods.
The supply chain is divided into internal and external components, with external being upstream (towards the organization) and downstream (from the organization to the end customer).
The internal supply chain comprises the material flow within the organization.
SCM involves coordinating, managing, and improving collaboration among supply chain partners.
Standard product or service delivery requires developing processes across the entire supply chain.

Activities of Supply Chain Management

Supply chain activities include:
- Purchasing
- Physical distribution management
- Logistics
- Materials management
- Customer relationship management (CRM)
SCM managers make crucial decisions, including:
- Location decisions
- Forecasting
- Supplier selection
- Distribution network choices

Supply Chain Management Benefits

Benefits of transactional and partnership supply chain relationships are detailed in Table 12.1 on page 415 of the prescribed textbook.
The aim is to build strong relationships with customers.
Customer relationship management (CRM) helps understand customer needs and develop solutions while maximizing profitability.

Supply Chain Management Challenges

Supply chain management faces numerous challenges, including:
- Trends
- Fashions
- Varying demand
- Material scarcity
Supply chain managers must understand the macro environment and prepare for contingencies.
The competitive environment, including direct competitors and substitute products, poses significant disruptions and threats.
Supply chain managers often face products in various stages of the product lifecycle.

The Bullwhip Effect

The bullwhip effect describes how a small disturbance at the downstream end of a supply chain creates increasingly larger disruptions and volatility upstream.
SCM managers must be aware of potential disturbances and mitigate their impact.
E-business in SCM enhances:
- Real-time information sharing
- Channel alignment
- Operational efficiency
The focus is on accuracy, delivery speed, and efficiency.

Supply Chain Network Design

Understanding the entire supply network provides a holistic view of customer satisfaction.
It helps identify network links and address long-term issues.
Figure 5.2 on page 146 of the prescribed textbook depicts a network for a plastic hardware company and a shopping mall.
Network design involves decisions on:
- Configuration
- Location of parts
- Capacity requirements
Network configuration involves the overall pattern, encompassing decisions on shape, arrangement, and ownership.
Recent trends include:
- Minimizing suppliers to reduce complexity.
- Disintermediation, where organizations bypass supply chain partners to reach end customers directly.
The co-opetition approach recognizes four types of players:
- Suppliers
- Customers
- Competition
- Complementors

Outsourcing

Outsourcing can increase capacity without capital investment.

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Description

This quiz covers the essential concepts of operations strategy formulation, resource capability development, and the principles of supply chain management. It emphasizes the importance of intangible assets and a coherent strategic approach for achieving competitive advantage. Test your understanding of these key elements crucial for organizational success.