Page 66 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes Indicative Content
Students need to provide a description of the different possible types of strategic alliance—
from joint ventures to network organizations to informal agreements. Providing some
context to the growing number of alliances in many industries would be helpful.
The debate over the use of alliances, in contrast to other methods of corporate development,
implied by the statement, requires the student to outline the three broad styles/logics of
corporate strategy discussed in the lectures: the Financial Control/Portfolio approach; the
Strategic Control/Linkages approach; and the Strategic Planning/Core Competencies
approach. The key parameters of management style (in terms of planning/control
influence) and differing logics of synergy should be outlined.
Whichever course is taken, the student then needs to draw out the implications of the
approach for alliances. For example, a company relying on a financial control/portfolio
approach will be unlikely to consider a strategic alliance at a corporate level, although a
particular business unit might initiate such an approach. In contrast, a company which
stresses core competencies and the need for learning is likely to consider alliances a key
part of the toolkit of corporate management. The other methods of corporate development
(internal methods and acquisitions and mergers) could be mentioned, as could the different
directions of development.

Students need to demonstrate an understanding of the topic in general, but also evaluate
the statement made by engaging in the argument before coming to a clear conclusion,
whether for or against.

Answers: Self Assessment

1. True 2. False
3. False 4. False
5. False 6. True

7. True 8. False
9. True 10. False
11. 1952 12. Form, Brand
13. Screening 14. DFM
15. CAD

2.19 Further Readings

Books Chase, Richard B., and Eric L. Prentis, Operations Management: A Field Rediscovered,
Journal of Management, 13, no. 2 (October 1987): 351: 366
Hayes, Robert H., Towards a 'New Architecture' for ROM, Production and Operations
Management, 9, no. 2 (Summer 2000) 105-110.
Schonberger, Richard J., World Class Manufacturing: The Next Decade, New York:
The Free Press, 1996.

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