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Lecture 1 and 2: Understanding The Corporate Environment

This document provides an overview of corporate strategy and supply chain management. It discusses [1] understanding the corporate environment and shifting from a project view to a strategic need for projects. [2] It outlines the importance of supply chain for projects and organizations. [3] Finally, it examines the key elements of supply chain strategy in organizations, including identifying the main variables that impact supply chains.

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Ahad Nazir
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17 views

Lecture 1 and 2: Understanding The Corporate Environment

This document provides an overview of corporate strategy and supply chain management. It discusses [1] understanding the corporate environment and shifting from a project view to a strategic need for projects. [2] It outlines the importance of supply chain for projects and organizations. [3] Finally, it examines the key elements of supply chain strategy in organizations, including identifying the main variables that impact supply chains.

Uploaded by

Ahad Nazir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Lecture 1 and 2:

Understanding the
corporate
AHAD NAZIR
Introduction to the class and the facilitator.

Understanding the corporate environment

Shifting the standalone project point of view to a more strategic need for
projects.

Formulation of strategy
Agenda
Importance of supply chain for projects and organization

What is supply chain?

Elements of supply chain strategy in organizations

Identification of main variables in the supply chain (Quality, Availability, Cost,


and Customer Service and responsiveness)
Corporate Strategy
Main Strategy item

Competitive
All firms want to
advantage (CA) CA can be gained
gain competitive
can be gained via via differentiation
advantage
cost reduction
Strategic Positioning of a firm
Technological
Differentiation strategy Focus strategy Stuck in the middle
leadership
• Centered on • Investing in • There are two • When a firm chooses
enhancing the particular variants of this to pursue multiple
perceived value of a technologies early on strategy strategies and does
company’s products • This includes • Cost focus applies not excel at any of
or services relative to preemptively buying cost leadership them
other firms’ offerings assets valuable to • Differentiation focus • The firm may still be
• Potential outcome the new technology apply differentiation profitable but may
that customers will and making it costly to niche markets not outperform its
pay more for customers to rivals
switch to substitute
products
Supply Chain Management

Aims at coordinating the Both downstream towards Linked together with cross-
processes of all supply chain customers & upstream towards company strategies and
members suppliers processes
Purchasing and Supply
Management processes and operations Ensure that an
organization can obtain products and services that it requires

Cost-effectiveness

Key to managing a firm’s integration into the supply chain.


Profit
Traditional View: 10%

Cost breakdown of
a manufactured
good Supply Chain Cost
20%
Effort spent for supply chain activities
are invisible to the customers Manufacturing Cost
45%

Marketing Cost
25%

Profit Supply Chain Cost Marketing Cost Manufacturing Cost


Magnitude of Supply Chain
Management

Compaq estimates it lost $0.5 B to $1 B in sales in 1995 because laptops


were not available when and where needed

P&G (Proctor & Gamble) estimates it saved retail customers $65 M (in 18
months) by collaboration resulting in a better match of supply and demand
Top 25 Supply
Chains
Elements of Supply Chain Strategy in
Organizations
Analyze Identify
the Strengths
Organization’s and
resources weaknesses

Develop the
Identify the
Organization’s Formulate Implement Evaluate
Organization’s
Vision
mission and strategies strategies results
objectives

Identify
Analyze
Opportunities
the
And
environment
threats
Supply chain
strategy
Objectives of Supply chain management

QUALITY AVAILABILITY COST CUSTOMER SERVICE


AND RESPONSIVENESS
Objectives continued
Examples
Main questions answered by Supply
strategy
What type of
How many supply relationship to have
How many suppliers to
market segments to buy with your suppliers
buy from?
from? (arms length or
collaborative)?

Which operational
What type of contract
procurement strategies
to have?
to pursue?
Thank
you

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