INTRODUCTION:
The purpose of this paper is to compare and contrast the operations strategy of two ‘manufacturing firms’ with two ‘service’ firms and to evaluate the order qualifying and order winning criteria.
Operations strategy is one part of an enterprise’s overall strategy (corporate strategy, business strategy and operational strategy) and defines the enterprise adjustment concerning “core competencies, capabilities and processes, technologies, resources and key tactical activities necessary in any supply network, in order to create and deliver products or services and the value demanded by a customer” (Lowson, 2001).
CONCLUSION:
The analysis of two manufacturing (Dell, Zara) and two service firms (Lufthansa, McDonalds) shows the correspondence between the theoretical approach of operations management and current practice. Each company has a whole enterprise strategy that includes the operations strategy. Each industry has different order qualifiers, but no company analyzed was able to be the best in all qualifiers, which supports the theoretical conclusion that fulfilling all objectives simultaneously, is impossible (Skinner, 1969).
AUTHOR:
Markus Baum is Group Finance Director at a management consulting (Germany) firm with focus on business strategy, supply chain management (SCM), manufacturing & logistics, sourcing & purchasing, marketing & sales, financial management and information technology (IT-strategy). The company has subsidiaries in Germany, Switzerland, Belgian, France, United Kingdom and Russia.
Markus Baum earned a MBA with distinction from the University of Surrey (UK), is an international certified accountant, has and graduation in accounting & controlling and an apprenticeship as tax adviser assistant. Markus Baum is a member of the International Controlling Association.
Table of Contents
1. INTRODUCTION, THEORETICAL BACKGROUND AND DEFINITIONS
2. CASE ANALYSIS
2.1 Dell Incorporated (Dell)
2.1.1 Company Profile, Industry and Environment
2.1.2 Order Qualifiers
2.1.3 Order Winners
2.1.4 Operations Strategy
2.2 Zara Trading Incorporated (Zara)
2.2.1 Company profile, Industry and Environment
2.2.2 Order Qualifiers
2.2.3 Order Winners
2.2.4 Operations Strategy
2.3 McDonalds Corporation (McDonalds)
2.3.1 Company profile, Industry and Environment
2.3.2 Order Qualifiers
2.3.3 Order Winners
2.3.4 Operations Strategy
2.4 Deutsche Lufthansa AG (Lufthansa)
2.4.1 Company profile, Industry and Environment
2.4.2 Order Qualifiers
2.4.3 Order Winners
2.4.4 Operations Strategy
3. CONCLUSION
Objectives and Topics
The primary objective of this paper is to compare and contrast the operations strategies of two manufacturing firms (Dell and Zara) with two service firms (McDonalds and Lufthansa), while evaluating their respective order qualifying and order winning criteria.
- Analysis of operations strategies within manufacturing versus service industries
- Application of the "order qualifiers" and "order winners" framework
- Evaluation of structural and infrastructural decision-making in corporate strategy
- Comparison of performance objectives such as cost, quality, speed, and flexibility
- Identification of industry-specific benchmarks and success factors
Excerpt from the Book
2.1.3 Order Winners
Dell’s order winners are low price, high flexibility and fast delivery, which all influence each other. Dell’s business model has two components “direct-sales” and “built-to-order”. The direct-sales approach allows customers to order directly from Dell, which eliminates retail expenses and thereby lowers the price. The built-to-order-production allows customers to customize their product according to their personal requirements and, in terms of fast delivery, they allow for the opportunity to choose the latest technologies (Kraemer, Dedrick and Yamashiro, 2000).
Chapter Summary
1. INTRODUCTION, THEORETICAL BACKGROUND AND DEFINITIONS: This chapter defines operations strategy as a core component of enterprise strategy and introduces the fundamental frameworks of order qualifiers and order winners.
2. CASE ANALYSIS: This section examines four distinct companies, comparing their operational approaches, competitive factors, and strategic choices to illustrate the practical application of operations management theories.
3. CONCLUSION: The final chapter synthesizes the findings, noting that while manufacturing firms focus on flexibility and supply chain excellence, service firms prioritize quality and human resource management to achieve competitive advantage.
Keywords
Operations strategy, Order qualifiers, Order winners, Manufacturing firms, Service firms, Dell, Zara, McDonalds, Lufthansa, Supply chain management, Process design, Performance objectives, Competitive advantage, Just-in-time, Lean manufacturing
Frequently Asked Questions
What is the primary focus of this academic paper?
The paper focuses on comparing and contrasting the operations strategies of two manufacturing companies and two service companies to understand how they align their processes with customer demands.
What core theoretical framework is used for the analysis?
The study utilizes Terry Hill's framework of "order qualifiers" (minimum standards to compete) and "order winners" (criteria that lead to customer purchase).
What is the central research goal?
The goal is to evaluate how different industries define their competitive priorities and whether these priorities differ significantly between manufacturing and service sectors.
Which specific companies are analyzed in the document?
The analysis covers Dell and Zara as manufacturing examples, and McDonalds and Lufthansa as representatives of the service industry.
How is the main body structured?
The main body is structured into four distinct case studies, each examining the company profile, industry environment, order qualifiers, order winners, and the specific operations strategy.
What does the term "order winner" mean in this context?
An order winner is a characteristic of a product or service that differentiates a company from its competitors and serves as the primary reason a customer chooses to purchase from that specific firm.
How does Dell achieve its competitive advantage?
Dell achieves cost leadership and high flexibility through its unique "direct-sales" model and a "built-to-order" production system, which minimizes inventory costs.
What distinguishes Zara's operational strategy in the fashion industry?
Zara utilizes a vertically-integrated production system that allows for extremely short time-to-market periods, enabling the company to respond rapidly to changing fashion trends.
What role does Human Resource Management play at Lufthansa?
Given that the airline industry is a service-based business, Lufthansa relies on centrally-controlled human resource management and thorough employee training to ensure high service quality.
What is the main finding regarding "green management"?
The author identifies green management as an emerging trend that may soon evolve from a general consideration into a critical order winner for many industries.
- Citar trabajo
- Markus Baum (Autor), 2011, Comparison and contrast of the operations strategy of two ‘manufacturing firms’ with two ‘service’ firms, Múnich, GRIN Verlag, https://www.grin.com/document/193738
