![]() ![]() In these situations the market expectations of what can be achieved are changed by the operations performance. I am conducting a mediation analysis (model 4) in SPSS using the PROCESS macro by Hayes. Very few organisations ever operate at the levels described in Stage 4 of the model, where operations convey such a competitive advantage through their performance and capability that the entire organisation strategy can be built around the operation. The organisation can exploit the operations’ capabilities to offer better prices, differentiated products, faster deliveries or greater flexibility to maximise returns and increase market share. These operations are good enough to help implement the organisation’s strategy but the operation itself does not convey any competitive advantage.Īt Stage 3 the operation offers the best capabilities in the sector and so the competitive strategy can be linked to operations. This is because the operation regularly underperforms, relative to its market requirements, and/or regularly makes mistakes that can deliver low quality product or service to the customer at tremendous cost of loss of reputation and rework.Ī high proportion of operations are probably at Stage 2: they are striving to adopt best practice in their industry and are usually as good as their competitors at serving their market. ![]() Figure 2: The four-stage model of the operations function’s contribution to organisational competitivenessĪt the lowest levels of capability ( Stage 1) the operation is seen as holding the organisation back. The bottom right box is labelled ‘Stage 4: Externally Supportive’. The top Right box is labelled ‘Stage 3: Internally Supportive’. The bottom left box is labelled ‘Stage 2: Externally Neutral’. The top left box is labelled ‘Stage 1: internally Neutral’. There are ‘Neutral’ and ‘Supportive’ labels on the horizontal axis and Internally and Externally on the vertical axis. ![]()
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