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24 Cards in this Set
- Front
- Back
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Order quantifiers
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Characteristics of a product or service that qualify it to be considered.
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Order winners
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The characteristics of a product or service that wins orders in the marketplace.
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Price/Cost strategy
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Low production cost enables the company to product below competitors. In order to do this, the company must eliminate/minimize waste from the system. This can be minimized by efficient processes which can be made efficient by automation. Example, self checkouts eliminate loss of customers and save on labor costs. Drawback is they limit the product range and have little customization.
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What are distinctive competencies?
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Things a firm does better than anyone else/
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Quality strategy
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Higher performance or a more consistent product can support a price premium.
Could also relate to a design with superior features or Process consistency such as error free delivery or close tiolerance. |
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Product differentiation strategy
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Refers to any special feature of a product/service. It is unique. This is part of quality.
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Flexibility strategy
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To be successful must have a highly skilled workforce. Highly customized products or volume flexibility can support a price premium.
A) Product: Offer a wide range of products; customize. Dell uses this strategy. B) Volume: Increase or decrease the amount of product being produced to match the demand. Have to use FMS (Flexible Manufacturing Systems). |
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Time/Speed strategy
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Faster delivery or consistent on-time delivery can support a price premium.
A)Rapid delivery-How quickly an order is delivered. B) On-time delivery-Ability to deliver exactly when expected. Domino's has switched from on time to rapid. UPS Rapid. |
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Positioning the firm
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Involves making choices- focus on one or 2 importat things to concentrate on and doing them extremely well.
Suppose you like a dine in pizza parlor. They distinguish themselves by using fresh ingredients which makes them a high quality manufacturer. |
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Decision environments
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1. Risk
2. Uncertainty 3. Certainty |
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What conditions are present under uncertain decision state?
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No information is available to decision maker.
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What is the condition for a decision maker under risk
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Somr information but the nature of information is imperfect. It is probablistic in nature.
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What is the condition like for a decision maker under certainty
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Perfect information is available.
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Hurwicz
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Coefficient of optimism is the alpha symbol. 1-alpha is the coefficient of pessimism. Economists decide the value of the alpha. Take the highest payout in the situation.
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Expected value of perfect information
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It is the maximum amount a decision maker would pay for additional information.
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EVPI equation
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Expected value under certainty - maximum expected monetary value.
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Executive opinion
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Use expertise present within the company. For example, if htey want to know the interest rate in future ask an expert.
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Market research
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Design a survey form/focus group.
Target audience. If you only survey a tiny county that'd be a biased sample and not good. |
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Delphi technique
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Exact opposite of executive opinion. The nature of the problem is so vague the expertise is not there. We use the help of expert 1, expert 2, and expert 3. We don't know when there will be an HIV vaccine. We can reach to the experts of these companies to see when they think they will have a vaccine. Problems, can be time consuming and since they are experts can also be expensive
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Random variation
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We have short term variation, we can overcome the noise effect by minimizing the noise. We use averaging techniques to minimize noise effect.
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Associative models
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Use explanatory variables to preduct the future.
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Naieve forcast
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Forecast for any period equals the previous period's actual value.
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Coefficient of R
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Measure of the strength and direction of relationship between 2 variables. Multiple R value
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Coefficient of determination
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Provides a measure of how well a regression line fits the data. R^2 value
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