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Two Operations Strategies - Flextronics and Ryanair

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Niclas Hammarling

on 25 April 2016

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Transcript of Two Operations Strategies - Flextronics and Ryanair

Two Operations Strategies - Flextronics and Ryanair
Operations Strategy - Ryanair
Operations Strategy - Flextronics
Achieve and Maintain Competitive Advantages
Conclusions
Thank you!
Questions?
What is an operations strategy
Top-down strategy
A reflection of what the whole group or business wants to do
4-stage model
Operations competencies of Flextronics
Different competitive factors
Ryanair
Flextronics
1. Cost
2. Dependability
3, Speed

(Flexibility)
(Quality)
1. Speed
2. Flexibility
3. Dependability
4. Cost
5. Quality
Four operations/business groups
"Culture is a company's only sustainable competitive advantage" - Mike McNamara, CEO
"Air transport is just a
glorified bus operation."
"Impossible is where breakthrough begins"
High Reliability Solutions (HRS)
Medical
Automotive
Defense
Aerospace
High Velocity Solutions (HVS)
Smart phones
Game consoles
PCs
Printers
Industrial and Emerging Industries (IEI)
Household appliances
Industries equipment
Integrated Network Solutions (INS)
Telecommunications infrastructure
Data networking
Connected home
Servers and storage
All designed to fit customer needs!
Existing customers can experiment with new products as well as improve existing ones.
New large customers can feel confident about supplies and deliveries.
New small customers might be given the space to experiment on creative solutions.
Applying models
Hayes and Wheelwright
Innovative
Four perspectives
Hard to apply
Creative
Proactive
Increasing strategic impact
Increasing operations capabilities
Holding the organisation back
As good as competitors
Clearly the best in the industry
Redefine industry expectations
Internally neutral
Externally neutral
Internally supportive
Externally supportive
Stage 1
Stage 2
Stage 3
Stage 4
Correct the worst problems
Adopt best practice
Link strategy with operations
Give an operations advantage
Increasing contribution of operations
Implementing strategy
Supporting strategy
Driving strategy
Cover all perspectives
Top-down perspective
Market requirements perspective
Operations resources perspective
Bottom-up perspective
What operations resources can do
What day-to-day experience suggests operations should do
What the market position requires operations to do
What the business wants the operations to do
Operations strategy
Works best together
Order-winning factors
Order-winning vs. Qualifying factors
Market leader in almost every business in which it operates
Creating value for customers
Provides solutions for customers, often before a challenge is ever realized
Lean operations
Cost management
Logistics solutions
The pattern of strategic decisions and actions.
Set the role
objectives
and activities.
Aggressive approach
as managing style
Michael O'Leary - CEO
Ryanair
Increasing strategic impact
Increasing operations capabilities
Holding the organisation back
As good as competitors
Clearly the best in the industry
Redefine industry expectations
Internally neutral
Externally neutral
Internally supportive
Externally supportive
Stage 1
Stage 2
Stage 3
Stage 4
Correct the worst problems
Adopt best practice
Link strategy with operations
Give an operations advantage
Increasing contribution of operations
Implementing strategy
Supporting strategy
Driving strategy
The impact of strategy
Internally neutral - Holding the organisation back
"The low fares airline"
Polar diagram
Cost
Speed
Dependability
Quality
Flexibility
Ryanair
Flextronics
Introduction
Background information
What is Ryanair?
History
Present
CEO - Michael O'Leary
What is Flextronics?
History
Founded in Silicon Valley 1969 as Flextronics Inc.
Present
Global headquarters in Singapore
CEO - Mike McNamara
“Culture is a company’s only sustainable competitive advantage”.
Reorganised as Flextronics International Ltd, with new base set up in Singapore in 1990
Constant growth through acquisitions.
Offers a range of services to OEMs (Original Equipment Manufacturers)
U.S. headquarters in San Jose, California
30 countries on four continents
200,000 employees
$23.6 billions in net sales as of the fiscal year of 2013. (approx. £14.7 billions)
2nd largest (after Foxconn)
"We start with believing we are a service company, then we have to create value and deliver value and enable the achievement of our customers objectives.”
On customer service: "People say the customer is always right, but you know what - they're not. Sometimes they are wrong and they need to be told so."
On Ryanair passengers: "Do we carry rich people on our flights? Yes, I flew on one this morning and I'm very rich."
Core competence
Lean manufacturing
Less waste
Skilled workforce
Commitment to reach the first time standards required.
Vertical integration
Contract manufacturing
Fewer steps in supply chain
Culture
Making one shop for customers by building CULTURE, the most sustainable competitive advantage
Built industrial park
Operational competence
Low cost region
Shipped directly to end users
Maximize advantage on global scale
Creating value
Irish company.
Founded in 1985.
Europe's only low cost airline.
Operate Boeing aircraft and approx 1600 daily flights.
Externally neutral - As good as competitors
Internally supportive - Clearly the best in the industry
Externally supportive - Redefine industry expectations
Ryanair
- Stage 4
What is the operations strategy of Ryanair, and how does it help to achieve low costs?
How does Flextronic's operations strategy help the company satisfy its customers?
What specific operations competencies must Flextronics have in order to make success of its strategy?
What competitive factors do Ryanair and Flextronics use to achieve their competitive advantage?
Full transcript