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  1. How must an operations strategy integrate with marketing and accounting?

To create goods and services all organizations perform three functions. These functions are the necessary ingredients not only for production but also for an organization’s survival. They are: Marketing, which generates the demand or at least takes the order for a product or service. Production or operations, which creates the product. Finance or accounting, which tracks how well the organization is doing, pays the bills, and collects the money. Therefore, Operation is an integral part of whole process. Marketing goals or financial aspects determine the direction of an operations strategy; or vice versa, operations sptrategy peculiarity may affect marketing and financial decisions.

  1. What is meant by competitiveness?

Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country to sell and supply goods and/or services in a given market. Although widely used in economics and business management, the usefulness of the concept, particularly in the context of national competitiveness, is vigorously disputed by economists, such as Paul Krugman. The term may also be applied to markets, where it is used to refer to the extent to which the market structure may be regarded as perfectly competitive. This usage has nothing to do with the extent to which individual firms are "competitive'. Competitive advantage implies the creation of a system that has a unique advantage over

competitors.

  1. For each of the different competitive priorities, describe the unique characteristics of

the market niche with which it is most compatible.

There are various competitive priorities on which companies can compete in the market.

Mainly, companies can compete on differentiation, low cost or response. Differentiation is concerned with providing uniqueness. Differentiation should be thought of as going beyond both physical characteristics and service attributes to encompass everything about the product or service that influences value the customers can derive from it. This may be the convenience of a broad product line, product features or quality, related to the product. Differentiation is even more important in service sector, where one option for its extension could be an experience. The idea of an experience is to engage the customer into the process. Low-cost leadership is achieving maximum value as defined by your customer. A low- cost strategy does not imply low value or low quality. Airline service is a good niche for competing on low cost. The cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience Response is a set of values related to rapid, flexible, and reliable performance.

  1. Describe the difference between order-qualifiers and order-winners. What is the

relationship between the two over time?

The criteria required in the marketplace (and identified by marketing) can be divided into two groups: order qualifiers and order winners. An order qualifier is a characteristic of a product or service that is required in order for the product/service to even be considered by a customer. An order winner is a characteristic that will win the bid or customer's purchase. Therefore, firms must provide the qualifiers in order to get into or stay in a market. To provide qualifiers, they need only to be as good as their competitors. Failure to do so may result in lost sales. However, to provide order winners, firms must be better than their competitors. It is important to note that order qualifiers are not less important than order winners; they are just different. Order winners and qualifiers are both market-specific and time-specific. They work in different combinations in different ways on different markets and with different customers. While, some general trends exist across markets, these may not be stable over time. For example, in the late 1990s delivery speed and product customization were frequent order winners, while product quality and price, which previously were frequent order winners, tended to be order qualifiers. Hence, firms need to develop different strategies to support different marketing needs, and these strategies will change over time. Also, since customers' stated needs do not always reflect their buying habits, Hill recommends that firms study how customers behave, not what they say.

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