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Chapter 3 GLOBAL COMPETITIVENESS

Chapter 3 GLOBAL COMPETITIVENESS. TQM Organizations. Recognize the Technology Paradox Create A Climate for Innovation Create High Quality Goals & Services. Technology Paradox. The quality/cost dilemma Wrong: As quality increases, the cost of production also increases Right:

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Chapter 3 GLOBAL COMPETITIVENESS

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  1. Chapter 3 GLOBAL COMPETITIVENESS

  2. TQM Organizations • Recognize the Technology Paradox • Create A Climate for Innovation • Create High Quality Goals & Services

  3. Technology Paradox The quality/cost dilemma Wrong: As quality increases, the cost of production also increases Right: quality and costs are inversely related

  4. Creating a Climate for Innovation • create corporate databases to link experts in diverse technologies • take advantage of Experts from outside the company • encourage Scientists to present innovations to peers • create visions by looking to the future • Benchmark competitors • create a wide array of products that cannot quickly be copied by the competition

  5. “Quality Pays Off” • Auto manufacturing • U.S. automakers have continued to increase their quality • Asian services • Asian airliners and hotels are top ranking internationally • Aircraft manufacturing • Major manufacturers are delivering high quality and cost effective products worldwide

  6. New Paradigm Organizations World Class (continuous improvement to become and sustain being the best) Learning (keeping ahead of change) Organizational Development Total Quality (Adaptive) 1985 1990 1995 2000

  7. Learning Organizations • “learn how to learn” • anticipate change and discover new ways of creating products and services • Openness • encourage and anticipate, rather than accept change • Creativity • promote risk taking • encourage personal flexibility • Self-Efficacy • Enhance confidence that employees have the personal resources needed to accomplish specific tasks within the organization

  8. Examples of learning organizations • anticipate change • General Electric • Sony • Kodak • openness • whirlpool • creativity • Sony • Chrysler • efficacy • IBM

  9. World-Class Organizations (WCO’s) • Enterprises that are able to compete with anybody, anywhere, anytime, anyway (the so-called “4 Any’s”.

  10. Customer Based Continuous Improvement Flexible or Virtual Organizations Creative Human Resource Management Egalitarian Climate Technological Support World Class Organizations

  11. World Class Organizations • Hewlett-Packard • Honda • Xerox • Ritz Carlton • Wal-mart • Southwest airlines • Ford

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