Define tactical cloud and differentiate it from the
strategic horizon. A/ The Tactical Cloud (TC) is the operational-level decision making process that takes place within the operational divisions of the firm in a way that does not concern itself with long-term strategy. An example of this is a decision on generic product pricing. This is done by a role called the Operations Manager. On the other hand, the Strategic Horizon (SH) is the hypothetical place where the major, long-term decisions, called Strategic Decisions, are made. These are made with little initial regard for the operations of the business as the focus is strategic or long term. The person making such a decision is called the Strategic Manager.
Q2. What is meant by the Strategic Breadth and the
Strategic Width? Give examples. A/ The Strategic Breadth is part of the Strategic Horizon. It describes the level of diversification of a business as a result of the firms strategy. An example of this would be a company that manufactures cars that also starts to manufacture aircraft. The Strategic Width has the same meaning as the Strategic Breadth (as opposed to the Strategic Length which is different). Q3. List and explain Porters Five Forces Model for Ford Motor Company in Australia. A/ Ford is in a situation where the competitive advantage for the firm is much lower than in the early to mid-2000s given the large number of imported cars into Australia. Its PFFM reads as: 1. Rivalry among established firms is high because many companies sell cars in Australia, and this is coupled with a large number of imported cars. 2. Threat of new entrants is high because any car manufacturer can sell cars in Australia by importing them. 3. Threat of substitute products is high because of an increase in public transport and the user of scooters and motorcycles. 4. Bargaining power of buyers is high given the many price and quality options available to buyers in the Australian market. 5. Bargaining power of suppliers is high (labour) due to the high labour costs and these resources being vital for production. Q4. Give an example of an internal and external resource for a firm and explain how it affects the Strategic Choice of the firm. A/ The location of a firm, such as its proximity to shipping ports or other types of access to transit and transport hubs is an example of an external resource that can make the firm more competitive. An example of an internal resource is the staff who work at the firm. If those staff are well-trained, competent and loyal, the firm is more competitive.
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation