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XYZ Company is the fifth biggest player in the global motorcycle market. The company is known for manufacturing heavyweight motorcycles. For example, the company focused
XYZ Company is the fifth biggest player in the global motorcycle market. The company is known for manufacturing heavyweight motorcycles. For example, the company focused on motorcycle enthusiasts, especially those who are interested in the chopper biking culture. However, as its mission statement now indicates, the company now offers more products. The mission statement shows the companys aims and approaches to develop its business. Also, the companys vision statement emphasizes leadership in stakeholder management. Its vision statement is as follows: XYZ Company is an action-oriented, international company, a leader in its commitment to continuously improve mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, government, and society). Our company believes the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities. XYZ Companys operations management (OM) ensures that the company maintains effective and efficient business activities to support resilience and competitiveness. Companys managers must determine the best options for the 10 strategic decision areas of operations management. These 10 decisions cover the key business areas that involve suitable operations management approaches. To optimize the productivity of its facilities, the company continues to develop its operations management practices to suit evolving business needs. For instance, motorcycle designs are regularly tested to determine satisfaction of customers expectations and regulatory requirements. XYZ Companys motorcycles are known for their unique and handcrafted designs. In this strategic decision area of operations management, the companys objective is to support its brand image based on available resources. This brand image emphasizes motorcycles quality and high-end chopper design. The company aims to maximize output quality that matches the companys brand image and customers expectations. The company has strict requirements for suppliers to ensure high quality motorcycles. The strategic decision always involves high quality and new technologies. Optimal production process is an objective in this decision area. At XYZ Company, operations managers automate processes for maximum efficiency in producing motorcycles and related products. Also, the companys production facilities address demand and cost considerations in the global market. Most of Companys authorized dealers are located in town and city centers. Many of these dealers are involved in deciding the location of the dealerships. Thus, Companys operations management addresses this strategic decision area through partially decentralized decision-making for dealership locations. In addition, the locations of the companys warehouses are based on the locations of authorized dealers to optimize the transportation efficiency of motorcycles and related products. For company-owned facilities like motorcycle production buildings, the companys operations management approach for this decision area involves traditional models adjusted to suit the facilitys purpose. Also, a standardized set of layout design requirements are implemented for authorized companys dealerships. The company maintains a Supplier Diversity policy and ensures optimal productivity and capacity of its supply chain based on the availability of a wide variety of suppliers. Operations managers focus on inventory adequacy and timeliness. The company addresses these concerns through automated inventory monitoring in company-owned facilities. The company also has an online system for orders and requests involving authorized dealers. It has streamlined schedules for its business activities. It addresses such concern through automated schedules for the supply chain and orders involving authorized motorcycle dealers. Traditional operations management approaches are also used for scheduling employees activities at companys offices. The companys motorcycle production processes are standardized with redundancy measures. For example, the company coordinates the activities of production facilities, which minimize stock-outs by supporting each other during demand peaks. The company also has maintenance teams for buildings and equipment.
Questions:
1. What are the 10 strategic decisions in Operations Management? Briefly explain each.
2. Discuss how XYZ Company addresses each of these 10 strategic decisions?
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