good day glance uh we are now in our week four of our uh module and we are now in module two uh in

cbme100 operations management with qm so in our module 2 okay i will be discussing about
competitiveness and mission and strategies so in lesson one competitiveness there are different
concepts that we will be discussing we'll be discussing about uh the definition of competitiveness and
then we will go the next we'll be discussing about why some organizations fail and in lesson two the
different mission and strategies and strategies and study tactics which are the differences between the
two then we'll be discussing also about the strategy formulation we'll be discussing we'll be focusing
more on the swot analysis i just presented to you here the michael porter five forces model which is
harlow's same swot analysis pero caramel business organizations analysis then we also have to discuss
about order winner and then order qualifiers how we will to identify or an order winner and an order
qualifier then another strategic uh strat strategy formulation is called environmental scanning then our
supply chain strategy sustainability strategy global strategy so those are our topics for week four in
module uh in module two for lesson one and lesson two okay so now we now continue with our
discussions with our issue okay so let's define about competitiveness so competitiveness is an important
factor in determining whether a company prosper barely gets by or fails okay see this is one of our
concept and how can how be able to be productive in in terms of competing with other business
organizations so competitiveness is how effectively an organization meets the ones and needs of
customers relative to others that offer similar goods or services so it's very normal in in our in um in our
industry in the business industry in or in any type of organization there is what we call competitiveness
that exists again so probably in different organizations they consider human competition as a factor on
how they could be able to be more productive and more efficient and more effective in their own type
of organization so business organizations compete through some combination of price yes some of them
compete through prices nameless mata's name because they know they try to consider you affect the
effect of prices among these certain products because customers really wanted to buy a product which
is number one achieved or the price is very low number two in terms of service now in terms of service
you delivery time how fast can they be able to deliver the product to the customers and the last one is in
product per service differentiation what are those certain factors in product and service differentiation
now oriented variability because there are a lot of products that offer uh the they try to offer certain
products with different variabilities about differentiation this one product is different from the other for
example one example is in product differentiation is for example in your cell phone android and we have
also ios so that is the difference between the two it's like a current data product differentiation in
service differentiation if you try to observe if you go to jelly bean mcdonald's service differentiation
mcdonald's when you try to go to mcdonald's using the [Music] using the computer [Music] so that's
one part of how are you able to understand or explain about what we call service differentiation okay
now we continue so marketing influences competitiveness in several ways through including identifying
the consumer ones and needs pricing and advertising and promotion in one aspect of business is what
we call marketing so they are the ones who try to say influence because number one they try to they try
to promote the problem they are the ones who will try to advertise the product and how they can able
to sell the product so managing influential um aspect on marketing you know in the business the
function of marketing business deliver that certain product or how did they able to influence you to buy
that certain product and organizations they focus on promotion or advertising they keep on advertising
the product now so any marketing advertising product okay now uh what are those influences
identifying customer once a needs that is a basic input in an organization's decision-making process and
central to competitiveness okay so first how will be able to stay competitive number one is to identify
what's your name what are the consumer ones and what are their needs number two price and quality
are key factors in consumer buying decisions will i buy this product because it is very cheap will i buy this
product because of its quality it is expensive but the quality is high also so the decision making now why
do you able to buy the certain product it is important to understand the dream of decision consumers
make between price and quality a new intent of decision consumers decisions have been attained it's
about that when the price is low now when the price is low certainly the quality of the product is low
when the price is high certainly the product quality is high so you can get our train off decision you want
to buy the product because it is cheap and in trade of annoying trade of none the quality is low okay
that is in trade off decision next advertising and promotion are ways organizations can inform potential
customers about features of their products or services and that's the way also for them to attract the
buyers so they try to advertise and promote the product now on the aspect of our operations function it
has a major influence on competitiveness okay through product and service design cost location quality
response time flexibility inventory and supply chain management and service many of these are
interrelated none of these are interrelated okay so under operations function influencing
competitiveness is focusing on the effectiveness efficiency and productivity of a business organization
how can they able to be productive how many products can they be able to produce in a certain area
okay that's one of our contexts of what we call on the operations function now uh product and service
design a product and service design what is the okay what is design the design in terms of product in
terms of the goods okay how can be able to use the certain product so for example in different cell
phones they introduce they introduce the touch screen specifications of the product in terms of service
design and services how can we able to deliver the product on what how can we able to get the product
or how would we able to take the uh take the customer's preferences and how could we able to deliver
the product that's on what we call product and service design okay next is on what we call cost a cost of
the cost of an organization's output is a key variable that affects pricing decisions and profits when we
discuss about cost a customer organization's output is a key variable that affects pricing decisions and
profits cost is the expenses that you incur introducing the product oh new expenses the product cost
okay in producing the product now is your own basis for your home for you to create your own price in
order for me to make make decisions in how much will i offer this product for sale that's price that can
invite of course like a price to determining the price so cost reductions efforts are generally ongoing in
business organizations yes they try to find a way that they may be cost effective in terms of producing a
product factor they try to get raw materials that are cheap and so that it will that is a cost reduction
production cost okay okay productivity is an important determinant of cost organizations with higher
productivity rates than their competitors have a competitive cost advantage company may outsource a
portion of its operation to achieve lower cost higher productivity or better quality so productivity
mathematician productivity there are two options delivery of the product so that's one factor okay next
is what we call location location can be an important terms of cost inconvenience for customers okay so
location new inputs can result in lower input costs location near markets can result in lower
transportation costs and quicker delivery times convenient location is particularly important to create a
sector so there are instances and there are instances that location has been a big factor in terms of the
delivery of the products and in terms of producing the products number one when you try to produce a
product you always proceed to it and find out that the location the location of your raw materials are
near to your near to the business organization that can lower your transportation indiana raw materials
outside of their location in in terms of costing masma baba and the delivery of the product is more
faster okay what else for example you [Music] [Music] that caters to caters to the need of jelly visitors in
illinois [Music] to keep its freshness so that they can make they still maintain the quality now they can
still maintain the quality of the product okay then third one is quality refers to materials workmanship
design and service consumers judge quality in terms of how well they think a product or service will
satisfy its intended purposes then a new factor so you know in an opinion as part of what we call
competition the quality itself okay then quick response the engineers have been at the quick response
creation has been adding agility same also with flexibility agility agility how fast can you able to change
or how fast can you able to uh respond to totally certain changes about the quickest that that's how
you're able to stay competitive then the next one is what we call inventory management and inventory
management can be a competitive advantage by effectively matching supplies of goods with demand
amendments available available the availability of your stocks in your own in your own business
organization in your own business now do these certain products are still in demand to the market is if
this business or if these products are not already intended for the market they put it on that is one
strategy that is one strategy also to gain complications or compare to gain competitive advantage of stay
competitive to the other market [Music] involves coordinating internal and external operations to
achieve timely and cost effective delivery of goods throughout the system and identifying an identifying
number of suppliers where and how can be able to deliver that certain materials to your business
organizations at a certain time how fast can they deliver and the cost-effective delivery in cost-effective
deliberations of personal transportation service okay how a service might involve after sale activities
because customers perceive as value added such as deliveries and app warranty work and technical
support example when you always try to buy in appliances [Music] to change the product as uh uh as
that as that certain component of the product is destroyed or got used up that is what we call our
service after sale activities human service quality can be a key differentiator and it's one of that's often
sustainable moreover business rated highly by the customers for service quality tend to be more
profitable and grow faster than business that are not traded highly in service qualities when they try to
check the uh check the uh business organizations uh in terms of how they're able to how they're able to
deliver the product okay giving you nothing online shops okay this certain person is legit okay [Music]
that you trust that certain business business organization so when they when they rate them high no the
new managers and workers okay because they are the people at the heart and soul of an organization
and if they are competent and motivated they can provide a distinct competitive edge by their skills and
ideas that they create so it's unfactored managers and workers especially young workers do they will
they consider the business organizations as an institution for them to um that they an institution for
them that he can be able to develop a trust for the organizations okay so those are the different
influences on the operations function on how they could be able to stay competitive so um again i really
if you have any questions for this certain topic just comment it in the comment section of our week four
so that we could make and we could reinforce them uh we could reinforce them we could i could
explain them in our following meetings in our following meetings in our next meetings so that uh must
tabulation uh explain flow on delivery of our delivery of destruction okay now we go to why some
organizations fail so nothing to consider nothing okay why is some organizations okay so organizations
fail or perform poorly for a variety of reasons being aware of those reasons can help managers avoid
making the similar mistakes so number one is you neglecting operations strategy okay what uh what are
those steps you are going to do in order to attain a certain mission or attain a certain objective okay
then next um failing to take advantage of strengths and opportunities okay so if you have the certain
instruments and opportunities they do not try to consider in terms they do not take advantage that that
is strength within the organizations and those business opportunities okay later on we'll be trying to
discuss in this stated topic putting too much emphasis on short-term financial performance the expense
of research and development for focus short-term performance in profit within six months again again
profitable within one year but we should focus on a long-term human cycle for months i mean you know
a long-term financial performance you will be able to conduct certain research and development what is
existing they cannot be able and they cannot cope up with the competition that is existing in the market
okay uh facing too much emphasis on product and service design and not enough on process designing
improvement but for and they focus too much on the service they offer they do not focus on how they
can able to improve their certain process how to be able to improve that their their services for example
uh [Music] okay [Music] neglecting investment in capital and human resources in terms of you are
investing in human resources you need to you need to let your workers improve also but how can you
able to improve your workers we let them you let them experience training to different uh aspects of
mode of learning our member strategy in terms of delivering that service okay investments in capital um
in the in investigation a way to your product are my increasing profitability and more productivity in
business number six failing to establish good internal communications and cooperation among different
functional areas suppose absolutely business organizations that might cause failure to your business
market okay [Music] [Music] that that might consider to fail again [Music] working environment and
working environment you know that made that real effect that will affect the business organization then
second failing to consider records wasn't customer once and that's the very basic in business
organizations you first try to identify or consider so so so it says here the key to successfully competing is
to determine what customers want and then directing efforts toward meeting uh or even exceeding
customer expectations okay so okay so two basic issues must be addressed okay what are those what do
the customers want which items on the proceeding list of the resources you complete are important to
customers identifying one another and then the second is what is the best way to satisfy those ones so
operations must work with marketing function to obtain information on the relative importance of the
various items which major customer for target market understanding competitive issues can help
managers develop successful strategies and concepts since marketing will be able we'll go to the
grassroot level to identify then at this certain point they will try to give the certain information to
operations so that they will know what are those products that needed uh that we need to produce
then for us to be able to create a strategy in the uh develop a successful strategy for us to be able to
satisfy our customers so that's how can we can able to help our business organizations not to fail so
that's the very basic concept okay so now we go to our next topic mission and strategies okay so um
identifying what is our nation so it says here missions vary from organization to organization depending
on the nature of their business a mission statement serves as the basis for organizational goals which
provide more detail and describe the scope of the mission so for a business organization the mission
statement should answer the question what business are we in and we see organizations missions that
isn't for existing is its existence it is expressed in its mission statement so the mission and goals often
relate to how an organization wants to be perceived by general public and by its employees suppliers
and customers how can we satisfy them those are uh those can be a basis for your uh mission statement
in terms of your uh organization's mission okay in your in developing your own mission so in goals goals
serve as a foundation for the development of organizational strategies this in turn provide the basis for
strategies and tactics of the functional units of the organization okay so it can be what are your
objectives what do you want to attain can be what can you enable to what do you want to attain in your
business okay so in terms of mission and your goals your strategist nominees what are those activities
and for you to attain your organizational goals so attrition has been an organizational strategy a
organizational strategy so the things that you need to do to attain your goal and for you to deliver your
own mission to the community okay so these three now these three goes hand in hand your mission
your goal and your strategy okay in different aspects in different concepts it can be admission your
objectives your goals and objectives and your strategies so uh this should be um in conceptualizing your
organization's mission for your mission statement your basis would be at the young your basis uh basic
question would be what business are we in okay so we need to focus on these three basic business
strategies number one low cost responsiveness and your differentiation from other competitors okay so
low cost how can you be cost efficient okay um how can you response how how agile are you to respond
to these certain demands of this certain business or other certain customers and your differentiation
from these competitors so responsiveness relates to the ability to respond to changing humans simple
establishing agility then the differentiation is differentiation can relate to product or service features
quality reputation or customer service some organizations focus on single strategy while others employ
a combination of strategies so um what are other forms of activities or service features that you can
attain or you can develop in order to deliver these certain products and these are delivered a certain
type of services for you to be able to satisfy your customers okay so that's what we call differentiation in
other attention at our in in our first arbitration variability okay variations and generating differentiation
okay um what are other what are those different types of variations or differentiation variations that
you need to do simply by engineering strategy okay so that's one of the focus business strategies okay
so in strategies uh we have a note here it says here if you think of goals as destination then strategies
are the road maps for reaching the destinations we wanna minute details that we need to do for us to
be able to attain our goals so strategies um provide focus for decision making generally speaking
organizations have overall strategies called organizational strategies which relate to the entire
organization they also have functional strategies which relate to each of the functional areas of the
organization for example business organization what are the different what are the three functions that
we have operations our marketing end and the finance if we combine if we did if we have the different
functional strategy we have the functional strategy of operation we have the functional strategy of
marketing and another functional strategy of finance and we combine all those certain strategies of
those three strategies of the functional strategies we can develop in what we call organizational strategy
the combination of the three functional strategies in the functional strategy should support the overall
strategies of the organization just as the organizations that we should support the goals and mission of
the organization okay they're different um aspect in developing your own strategy may run whereby the
upper management the third means the goals the goals and your objectives now of the organization
then from from the certain goals and goals objectives and the mission of the organization you develop
your own strategy that's how we'll be able to strategize okay so that is what we want strategies okay so
activities the concept of activities strategies is involved in attaining our certain goals and objectives now
tactics tactics are the methods and actions used to accomplish strategy they are more specific than
strategies and they provide guidance and direction for carrying out apple operations which need the
most specific and detailed plans and decision making in an organization in that nothing to produce a
product that this certain uh discerning that these certain customers needed in order for them to be
satisfied for them to be satisfied okay that's what we want you might think of tactics as the how to part
of the process how to reach the destination following the strategy and operations and stuff while doing
part of the process okay much of this manual deal with tactical operations it should be apparent that the
overall relationship that exists from mission down to actual operations is identify your mission for your
organizational goals from your organizational goals to your functional goals but from doing functional
goals your difference functions confidence strategies marketing strategies operation strategies many
different tactics for example operations strategies for us to be able to have more to be functional for
example acquiring or procurement of equipment way to produce more product that is tactics to produce
more products that's being productive and to be more effective for them to be more productive that is
the difference between strategic and what we call tactical okay so here are some examples of different
strategies an organization might choose from number one low cost okay skill based strategies use of
capitalism intensive methods to achieve high volume and low unit costs high output volume and the
universe pano earnings skill based strategies focus on innovation to create new products and services
next is flexible operations okay flexible operations for example in this certain concept and operations
okay high quality service focus on various aspects of service okay and sustainability so these are the
different strategies that we have in our in our uh that can be uh that can be integrated to our uh
organization some okay now from this okay from these strategies a new new management for you to be
able to attain locals that is considered considered nothing tactics that is the example of strategy and
tactics okay some organizations will combine two or more of these or other approaches in their strategy
however unless they are careful there is losing focus and not achieving advantage in any category no
strategy mo can be organizations in order for you to achieve a higher impact or higher input or output to
your business organization generally speaking strategy formulation takes into account the way
organizations compete and a particular organization's assessment of its strengths and weakness in order
to take advantage of its core competencies this is special attributes or abilities possessed by an
organization that give what we call competitive advantage or competitive age so what are those core
competencies core competencies cost quality time and flexibility okay so you can in your own strategy in
your own strategy okay trading my focus on cost and quality for example low cost high quality or high
cost or high quality can be time and flexibility strategy okay so business organization based their
competencies on the following to be competitive also okay says here marketing in operations work
closely too much cons customer needs with operations capabilities competitor competencies are
important for several reasons for example if a competitor is able to apply high quality products it may be
necessary to meet that high quality as image line okay for example i don't the focus is a high quality
manga products example um oppo is how in terms of service in terms of service based on the
responsiveness of quality so that is the focus of what we call strategies and tactics okay so we have just
finished with a business organizations uh basing their activities under four competencies so this is this
end the first part of our video uh i'll be sending you later on the additional topics on strategy
formulation and the other aspect of swot analysis order winners environmental scanning supply chain
strategy sustainability strategy and global strategy once again if there are any questions in our read a
topic in this video please comment it on the comment section and we shall try to answer those
questions in our next meeting okay so good day and god bless