Week 3

This week we covered chapter 2 - Operations Strategy.  We focused a lot on competitive priorities and capabilities.  There are nine broad competitive dimensions, which fall into four groups:

• Cost
• Quality
• Time
• Flexibility

Cost basically speaks for itself.  There are two dimensions of quality- top quality, and consistent quality.  Time has three dimensions- delivery speed, on-time delivery, and development speed.  There are also three dimensions to flexibility- customization, variety, and volume flexibility.

Competitive priorities are the dimensions one aims to compete on.  Competitive capabilities are what one actually possesses and is able to deliver.  As we discussed these competitive dimensions, I was reminded of what a good friend of mine said last weekend. 

Her husband owns a small business that provides services such as embossing, piecing, gluing, and die-cutting.  I asked her about some of the local scrapbooking companies, and if they used her husband’s services.  She replied that work has been done for some of these scrapbooking companies.  I inquired as to whether a lot of these companies are going to China for manufacturing.  She replied that some of them have.  She added that sometimes these companies need something faster than what they can get through their regular manufacturing operations in China.  These companies will approach her husband for the job.  He tells them he’d be happy to help them.  They express their gratitude and add a request.  They wonder if my friend’s husband can drop the price to match what they pay through their regular operations in China.  My friend’s husband knowing his competitive capabilities, that he cannot compete on the cost, kindly replies that he understands there are three things they want- low cost, quality, and speed.  He then points out that they can have only two of these three desires at present.  They must choose between a combination of quality and speed or quality and low-cost.   Ultimately they go for the quality and speed he has to offer.  He understands that speed is what they are after right now.

I’ll try to remember this for the future when negotiating price- there are more competitive dimensions than just cost.  I won’t forget that cost is a big dimension though, and  always strive to keep my costs down.

Week 2

We discussed chapters 1 & 2 from our textbook tonight.  Chapter 1 focuses on Operations as a Competive Weapon. Chapter 2 focuses on Operations Strategy.  I really enjoyed class tonight.  We watched a video clip about Starwood Hotels that I found very enlightening.  Starwood Hotels owns at least nine different hotel brands including the Sheraton, St. Regis, Aloft, Le Meridien, and Westin.  A part of one of Starwood’s operations management processes includes seeking feedback from their clients.

 

Conferences, meetings, and special events are a big part of the company’s business offerings.  Starwood learned about the frustrations of the various meeting planner clients they work with; each hotel location had its own method of operations, causing continuous confusion.  In response, Starwood created and implemented a standard for all its brands.  Now meeting planner clients don’t have to guess what they need to do at each hotel, the process is uniform throughout.  Starwood even developed a Preferred Guest program which rewards their loyal clients.  Most importantly, Starwood set standards for itself in client feedback ratings and the company monitors the ratings very closely.

It made me take note of the customer value that can be added in providing uniform customer relations processes.  It’s all part of the brand image.  I know I would be confused if I ever walked into a Wal-Mart and there was nobody there to greet me when I walked in.

The company that I work for now does not have multiple locations.  It is a small business office with only five regular employees.  I will remember what I learned for possible future growth.

Week 1

Class started tonight.  I’m excited.  I think this will be a great class.  Tonight Mr. Allen introduced himself (nice guy), and introduced the course.  We discussed the four pillars of the Huntsman School of Business at Utah State University (Entrepreneurial Spirit, Ethical Leadership, Analytical Rigor, and Global Vision) and the connection to the course content.  I think I’ve heard about the pillars before, but this time they really made an impression on my mind.  I think they are very valuable concepts to follow in my life.

Mr. Allen has a plane.  I wonder if he was in the military to learn how to fly?  I’d like to learn to fly someday.  I took an aviation history class once at Salt Lake Community College's airport satellite.  It was very interesting.  I couldn't afford the actual flight training classes at the time. 

Mr. Allen