Learning Objectives

1
Learning Objectives

• To learn the methods that a firm might employ to
  successfully achieve each of the four building
  blocks of competitive advantage

2
Achieving Superior Efficiency

• Economies of scale
• Learning effects
• The experience curve
• Flexible manufacturing mass customization
• Marketing
• Materials management JIT

3
Achieving Superior Efficiency (cont)

• R D Strategy
• Human resource strategy - Hiring
  strategy - Employee training -
  Self-management teams - Pay for performance
• Information systems
• Infrastructure

4
Achieving Superior Quality Attaining superior
reliability

• Build organizational commitment to quality
• Create quality leaders
• Focus on the customer
• Identify processes and the source of defects
• Find ways to measure quality
• Set goals and create incentives

5
Achieving Superior Quality Implementing TQM

• Solicit input from employees
• Build long-term relationships with suppliers
• Design for ease of manufacture
• Break down barriers between functions

6
Achieving Superior Innovation

• High failure rates - Uncertainty - Poor
  commercialization - Poor positioning strategy
  - Technological myopia - Being slow to
  market

7
Achieving Superior Innovation (cont)

• Building competencies in innovation - Skills in
  basic and applied research - Project
  selection and management - Cross-functional
  integration - Product development teams -
  Partly parallel development processes -
  Learn from experience

8
Achieving Superior Customer Responsiveness

• Focusing on the customer - Demonstrating
  leadership - Shaping employee attitudes -
  Bringing customers into the company
• Satisfying customers needs - Customization
  - Response time