Learning Objectives

1. Learning Objectives • To learn the methods that a firm might employ to successfully achieve each of the four building blocks of competitive advantage

2. Achieving Superior Efficiency • Economies of scale • Learning effects • The experience curve • Flexible manufacturing& mass customization • Marketing • Materials management & JIT

3. Achieving Superior Efficiency (cont) • R & D Strategy • Human resource strategy - Hiring strategy - Employee training - Self-management teams - Pay for performance • Information systems • Infrastructure

4. Achieving Superior Quality: Attaining superior reliability • Build organizational commitment to quality • Create quality leaders • Focus on the customer • Identify processes and the source of defects • Find ways to measure quality • Set goals and create incentives

5. Achieving Superior Quality: Implementing TQM • Solicit input from employees • Build long-term relationships with suppliers • Design for ease of manufacture • Break down barriers between functions

6. Achieving Superior Innovation • High failure rates - Uncertainty - Poor commercialization - Poor positioning strategy - Technological myopia - Being slow to market

7. Achieving Superior Innovation (cont) • Building competencies in innovation - Skills in basic and applied research - Project selection and management - Cross-functional integration - Product development teams - Partly parallel development processes - Learn from experience

8. Achieving Superior Customer Responsiveness • Focusing on the customer - Demonstrating leadership - Shaping employee attitudes - Bringing customers into the company • Satisfying customers’ needs - Customization - Response time