Case Study: Operation Strategy A leading tier-1 automotive supplier for the production and processing of rubber,...

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Case Study: Operation Strategy A leading tier-1 automotive supplier for the production and processing of rubber, plastics and metal with RM 1,680,000 sales revenue faced significant growth rates, but structures, process efficiency and financial performance did not follow accordingly and significant refinancing/ cash flow complications evolved. The Operation Director was tasked with reshaping the company operation strategy and strategy decision making process starting from Product selection and design; Quality. Process, Location, Layout, Supply Chain to Inventory management. An overall restructuring concept based on two potential operation strategy was developed: 1) Differentiation Strategy or 2) Cost Leadership Strategy. Operation strategy influences the strategy and operation decision making process. Hence, a decision need to be made by the Operation Director to select either one of the operation strategy. QUESTION Based on the case study above, if the company selects "Differentiation" as the operation strategy. Analyze (with example) the strategy decision that should be adopted by the company in term of Product selection and design, Quality, Process, Location, Layout, Supply Chain, Inventory and Scheduling. The grade structure is based on: 1. Selection of strategy and justification 2. Impact on production selection and design 3. Impact on quality 4. Impact on process 5. Impact on location 6. Impact on layout (1 mark) 7. Impact on supply chain (1 mark) 8. Impact on inventory and scheduling (1 mark) Maximum word count 500-750 words and plagiarism should not exceed 20%. (3 mark) (1 mark) (1 mark) (1 mark) (1 mark) Case Study: Operation Strategy A leading tier-1 automotive supplier for the production and processing of rubber, plastics and metal with RM 1,680,000 sales revenue faced significant growth rates, but structures, process efficiency and financial performance did not follow accordingly and significant refinancing/ cash flow complications evolved. The Operation Director was tasked with reshaping the company operation strategy and strategy decision making process starting from Product selection and design; Quality. Process, Location, Layout, Supply Chain to Inventory management. An overall restructuring concept based on two potential operation strategy was developed: 1) Differentiation Strategy or 2) Cost Leadership Strategy. Operation strategy influences the strategy and operation decision making process. Hence, a decision need to be made by the Operation Director to select either one of the operation strategy. QUESTION Based on the case study above, if the company selects "Differentiation" as the operation strategy. Analyze (with example) the strategy decision that should be adopted by the company in term of Product selection and design, Quality, Process, Location, Layout, Supply Chain, Inventory and Scheduling. The grade structure is based on: 1. Selection of strategy and justification 2. Impact on production selection and design 3. Impact on quality 4. Impact on process 5. Impact on location 6. Impact on layout (1 mark) 7. Impact on supply chain (1 mark) 8. Impact on inventory and scheduling (1 mark) Maximum word count 500-750 words and plagiarism should not exceed 20%. (3 mark) (1 mark) (1 mark) (1 mark) (1 mark)

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Differentiation Strategy Operational Decisions for Product Selection and Design in an Automotive Supplier Company Selection of Strategy and Justification In the given case study the company is a leadi... View the full answer