Operations management as a source of competitive advantage

Contents Executive Summary2 Introduction3 Section A4 Section B17 Recommendations21 Conclusion22 Appendices23 Bibliography26 Executive Summary The following assignment looks at operations management as a source for gaining a competitive advantage, operations management and TQM are defined and discussed as to their importancy in the organisation. The differing ways of gaining a competitive advantage are explained as is the way organisational structures and the implementation of technologies aid the building of these advantages. The Cambrian Conservatory and window world is used as an example of efficient operations management. Introduction Operations management is based around the decision-making associated with the use of†¦show more content†¦These costs will be heavily outweighed by the increase of net income achieved by the implementation of TQM. Cost cutting is not the only reason for TQM, the philosophy behind it agrees with the basic marketing concept. It is a philosophy that puts the consumer at the centre of the organisation. TQM states that it is essential to satisfy consumers needs to encourage customer satisfaction and in turn loyalty. The simple reason for consumer satisfaction is: if a customer is not satisfied with the product, he or she will not repeat purchase. Even worse, the consumer will not recommend other potential consumers to purchase. And if the consumer is very dissatisfied he/she will almost certainly go out of their way to tell other potential consumers not to purchase a certain product. By building TQM, we are gaining a competitive advantage of quality, the effects of having a good reputation for quality is easily seen in the Japanese electronics industry. The improvement of quality has meant the gradual building of their reputations from cheap and nasty to high tech and desirable and of course meant a huge increase in sales. See appendix 2 for Demings Chain reaction model of TQM. Types of competitive advantage Strategies based around competitive advantage see three main areas as important levels to compete on: *Differentiation (being better) *Cost leadership (being cheaper) *ResponseShow MoreRelatedThe Relationship Between Unique Resources and Competitive Advantage for Mega-Retailers1773 Words   |  7 PagesResources and Competitive Advantage for Mega-Retailers Introduction In an increasingly globalized marketplace, some corporations are succeeding while others are failing by virtue of a valuable competitive advantage. Although competitive advantages can assume a wide range of forms, they are typically characterized by a combination of skills and technology that provide improved efficiencies and economies that facilitate firm performance and profitability. In some cases, competitive advantages are readilyRead MoreGe Talent1121 Words   |  5 Pagesbeen able to develop management talent as a sustainable source of competitive advantage. How has it managed to do so? 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