Please help, I need some ideas. MGMT 5315 - Operations Management

Strategy and PLC

It is not uncommon for a large organization to have an overall strategy and also develop strategies specific to each of the organization's product families. For example, within General Motors the strategy for the Chevrolet Malibu places greater emphasis on cost leadership, where the strategy for the Cadillac Escalade places greater emphasis on differentiation. Figure 2.5 on page 41 suggests that the strategy of a product should evolve over the product's life-cycle. Do you believe the strategy of a product should evolve over the life-cycle of the product? If so, why? If not, why not? Give an example that supports your opinion. Focus your response on the product strategy, instead of specific functional strategies (marketing, operations, etc.).

4 CHAPTER 2 OPERATIONS STRATEGY IN A GLOBAL ENVIRONMENT Introduction Growth Maturity Decline Best period to increase market share Practical to change price or quality image Cost control critical Poor time to change image, price, or quality Competitive costs become critical Defend market position R&D engineering is critical Strengthen niche Laptop computers Company Strategy / Issues Hybrid engine vehicles Boeing 787 Xbox One 3D printers DVDs Electric vehicles Life Cycle Curve Video physical rentals 3-D game players Apple SmartWatch Product design and development critical Forecasting critical Standardization Little product differentiation Product and process reliability Fewer rapid product changes, more minor changes Frequent product and process design changes Cost minimization Competitive product improvements and options Overcapacity in the industry Optimum capacity OM Strategy / Issues Short production runs DOSTOL High production costs Increasing stability of process to Increase capacity Prune line to eliminate items not returning good margin Shift toward product Long production runs focus Limited models to de Reduce capacity PGO Enhance distribution Product improvement and cost cutting Attention to quality ONCU Figure 2.5 Strategy and Issues During a Product's Life Strategy Development and Implementation STUDENT TIP A SWOT analysis pro excellent model for e A SWOT analysis is a formal review of internal strengths and weaknesses and external opportuni- strategy. ties and threats. Beginning with SWOT analyses, organizations position themselves, through their strategy, to have a competitive advantage. A firm may have excellent design skills or SWOT analysis great talent at identifying outstanding locations. However, it may recognize limitations of its A method of date