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Copyright ? 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Two Operations Strategy Operations ManagementContemporary Concepts and Cases 5/e Chapter 2 Outline McDonald’s Operations Strategy Global Scope of Operations and Supply Chains Supply Chain Strategy Operations Strategy Model Emphasis on Operations Objectives Linking Strategies Environmental and sustainable operations Operations Strategy “Operations strategy is a consistent pattern of business decisions for the transformation system and associated supply chain that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.” Global Scope of Operations and Supply Chains “Traditional” versus “Global” company, i.e. companies operating in one country vs. those operating in many. Characteristics of the “Global Corporation” are different from the traditional company. Operations must have a global distinctive competence. Characteristics of “Global Corporations” Facilities plants located worldwide, not country by country. Products services can be shifted among countries. Sourcing is on a global basis. Supply chain is global in nature Global product design process technology. Products fit global tastes. Demand considered on worldwide basis. Logistics inventory control on worldwide basis. Divisions have world-wide responsibility. Supply Chain Strategy Should aim at achieving a competitive advantage for the entire supply chain. Two type of supply chain strategies: Imitative products (e.g. commodities) Predictable demand Efficient, low-cost supply chain Innovative products Unpredictable demand Flexible, fast supply chain Firms must choose the right supply chain for each product or group of products, and not use “one size fits all.” Distinctive Competence “Something an organization does better than any competing organization that adds value for the customer.” “Something that operations does better than anyone else.” Ope