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Operation Strategy in Automobile Industry
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| Words: 3028 | Submitted: 05-Jan-2013
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DescriptionOperation Strategy in Automobile Industry
Operation strategy in automobile industry
1.what is strategy 2
2. Design of operation 3
3. developing a strategy 5
4. approach to developing strategy 8
Facing with the pressure of increasing competition, business have to keep pace of the market and the needs from consumers. From this point of view, for a firm, it should develop their business strategy which can embrace all component operating within the company. In this paper, the definition of strategy will be given at first, then explain strategy decision and how to develop strategies. At this part, some detail relate to the process system, lay out and services will be included. At last will demonstrate approach to develop strategy based on top-down and bottom-up.
The cases used in this essay are all about automobile industry, most of them are analyzing the operation strategy in Japanese cars, such as Toyota, Honda. Expect those brands, Ford, BMW will be talk about as an comparison.
1.what is strategy
“Strategy is the direction and scope of an organization over the long term: ideally, which matches its resources to its changing environment, and in particular its market, customers or clients so as to meet stakeholder expectations.” (Johnson et al, 2008)
Hill (2011) provided a frameworks in the development of operation strategies. His work is very important in evaluating the current operation strategy and its links to production system.
The five steps in the framework are defined as:
Determine marketing strategies in order to obtain objectives.
Figure out how can make a company distinguish from others by different products/services .
Optimize the manufacture system to satisfied these sets of products or services.
Establish a complete infrastructure to guarantee the production/operations process. (Hill. 2011)
Design of operation
Decision of operation can divied into long-term and short-term, both of them have a significant in keep a firm developing continually. If a company focus on designing its transformation system to meet the needs of the consumers, the future of the firm will be a good prospect.
The major operation decision including quality, layout, process type and location etc. (Donald. 2010)
The choice of location is always decided by the senior manager in a firm. The important of choosing a superior geographical area is based on the how closer to the raw resource, how much is the labor cost and how effective the distribution chain is. (Slack, 2011)
The main factors that can determine how effective and successful the company is are as following:
?Proximity to sources of supply : Maximizing the profit is the primary target for firms, if the industry was built closer to the material, the cost of transportation will be less. In which way, increase the interest.
?Labor factors: which is a vital element of operation decision, including the salary rate, education level and working ...
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