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Productivity and Year Output Input

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Productivity and Year Output Input
Chapter 2
StRATEGY and sustAINABILITY

Review and Discussion Questions

1. Can a factory be fast, dependable, flexible, produce high-quality products, and still provide poor service from a customer’s perspective?

Yes, if a customer’s needs are not considered and does not influence strategy development, an organization could be delivering the wrong service or product. Even though the product is of high quality, delivered quickly, and offers many options and features, overall service could be rated “poor” by a customer who demands a different mix of features and attributes. It also could be a factor of how the product is delivered to the customer. Rude or inattentive salespersons, incompetent technical support, or difficulty in obtaining warranty service can all negatively impact the customer’s impression of a firm’s service, regardless of the ultimate quality of the goods and the speed of delivery.

2. Why should a service organization worry about being world class if it does not compete outside its own national border? What impact does the Internet have on this?

As the environment changes, firms can find themselves faced with competition from outside their industry, or from outside their home country. Even if they do not, the principles of a world-class firm can be applied to any and all manufacturing and service concerns. Benchmarking or rating your firm’s performance to the best in your industry or class can provide future strategic directions for improvements.

The Internet is global by its very nature. Retail stores must now compete with Internet stores. Local auction houses will be in competition with Internet auction sites such as eBay. Virtually all organizations will be impacted in some form by the Internet. It is important that this impact be considered.

3. What are the major priorities associated with operations and supply chain strategy? How has their relationship to each other changed over the years?

Bad question, sorry

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