INTEGRATING MANUFACTURING STRATEGY WITH BUSINESS STRATEGY

2005 ◽  
pp. 215-242
2015 ◽  
Vol 35 (2) ◽  
pp. 216-245 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano

Purpose – Environmental and social sustainability are becoming key competitive priorities for companies, but the way in which they are integrated in operations strategies remains an open issue. The purpose of this paper is to determine whether established operations strategy configuration models (i.e. price-oriented, market-oriented and capability-oriented models) are modified to include environmental and social priorities and whether different operations strategy configuration models are equally successful in the short and long term. Design/methodology/approach – Analyses were performed using data from the International Manufacturing Strategy Survey (2009), including companies in the assembly industry in 21 different countries. According to previous studies, cluster analysis of competitive priorities and ANOVA analysis of the business strategy and short- and long-term performance were performed. Findings – The results show that traditional operations strategy configuration models are slightly modified. Market-oriented and capability-oriented operations strategies are complemented by environmental and social sustainability priorities. These operations strategies are adopted by companies with a differentiation and innovation business strategy. Moreover, capability-oriented companies, which are the most committed to environmental and social sustainability, perform better in both the short and long term. Practical implications – This research shows to companies that traditional operations strategies focusing on specific competitive priorities (e.g. low price) are being replaced by more holistic strategies that include sustainability priorities. However, environmental and social priorities contribute to competitive advantage when complementing capability-oriented operations strategies. Originality/value – This paper extends operations strategy configuration models highlighting how environmental and social sustainability priorities can be deployed together with traditional competitive operations priorities.


Author(s):  
Balkrishna Eknath Narkhede

Manufacturing is crucial for the robust growth of the economy, for exports and for generating substantial relevant employment. Manufacturing is a force multiplier; it means investment in manufacturing yields four times the effect on Gross Domestic Product (GDP) growth. The core manufacturing sector comprises engineering and construction, industrial manufacturing, materials and commodities, chemicals and plastics, and automotive. In today's era of globalization and competition, business excellence is important, which needs coordination between business and manufacturing strategy. Based on a systematic review of published articles from 1982 to 2012, the present paper proposes and discusses a framework which brings together a set of variables related to the manufacturing strategies and advanced manufacturing technologies and the internal contextual factors driving it. The purpose of this literature review is to investigate the adoption of manufacturing strategies and it is observed that strategic alignment of competitive priorities with business strategy improves the business performance of the manufacturing organizations.


2016 ◽  
Vol 36 (12) ◽  
pp. 1741-1768 ◽  
Author(s):  
Ruggero Golini ◽  
Patricia Deflorin ◽  
Maike Scherrer

Purpose The purpose of this paper is to provide guidance in setting the level of autonomy (i.e. parental control) of plants in a network to enhance operational performance. In particular, the effect of autonomy on performance is analysed directly and indirectly through internal manufacturing network integration (MNI) and external supply chain integration (SCI) as two dimensions of manufacturing network embeddedness. Design/methodology/approach The analysis is based on data from 441 manufacturing plants in 17 countries. Data were gathered during the Sixth International Manufacturing Strategy Survey. Five main constructs were obtained after carrying out a confirmatory factor analysis: plant autonomy, internal MNI, external SCI, efficiency and effectiveness. Direct and indirect relationships among the constructs are tested through a structural equation model. Findings Higher levels of autonomy correlate with higher effectiveness and similar efficiency. However, lower autonomy leads to higher levels of manufacturing network and SCI, which enhance performance. Although not statistically significant, the analysis of the total effects reveals a mildly positive effect of autonomy on effectiveness and negative effect on efficiency, which requires further investigation. Research limitations/implications Further research could include headquarters’ perspectives or additional determinants (e.g. business strategy objectives). Practical implications Managers should set autonomy levels strategically: higher for effectiveness and lower for efficiency. However, lower autonomy can also strengthen internal MNI and external SCI, thus improving operational performance. Originality/value The concept of manufacturing network embeddedness highlights the importance of considering external supply chain and internal MNI in the same framework, as both dimensions can affect operational performance.


2016 ◽  
Vol 7 (2) ◽  
pp. 73-85
Author(s):  
Rosmaini Tasmin ◽  
Josu Takala ◽  
Aliyu Alhaji Abu Bakr ◽  
Daryna Shylina ◽  
Izabela Nizialek ◽  
...  

Abstract The purpose of this paper is to investigate Malaysian furniture industry via Sustainable competitive advantages (SCA) approach. In this case study, sense and respond method and Normalized Scaled Critical Factor Index (NSCFI) are used to specify the distribution of companies’ resources for different criteria and detect the attributes which are critical based on expectation and experience of companies’ employs. Moreover, this study evaluates Malaysian furniture business strategy according to manufacturing strategy in terms of analyzer, prospector and defender. Finally, SCA risk levels are presented to show how much company’s resource allocations support their business strategy. This case study involved four furniture manufacturing companies, in the southern part of Peninsular Malaysia to provide the overall view of their strategies in the perspective of knowledge & technology management, processes & work flows, organizational, and information systems. Hence, the findings of this study presented the preliminary results from these furniture companies in Malaysia, which are involved in sustainable competitive advantage (SCA) studies in terms of expectation and experience, NSCFI, operational strategy triangle of prospector (P), defender (D), and analyzer (A). The result shows that almost all furniture companies are categorized into the Analyzer type strategy and planning to remain being Analyzer in future to come.


2012 ◽  
Vol 2 (7) ◽  
pp. 1-16
Author(s):  
Shellyanne Wilson

Subject area This case study deals specifically with the issue of manufacturing strategy, and business strategy. Study level/applicability The case can be used in a number of course contexts, including undergraduate and MBA programs. The focus is on both business strategy and manufacturing strategy issues. The case can be assigned as an opening vignette, during the initial phases of business strategy, since the case situations and concepts are both simple and clear. It can also be assigned for an in-depth treatment of manufacturing strategy. Case overview The case focuses on Capital Mills Limited (CML), a flour milling company, and concentrates on whether the company should refurbish its two 40-year old flour mills at a cost of US$6 million or if the company should invest US$15 million in the construction and installation of a new, fully-automated “Lights out” flour mill. This decision is viewed as a “make or break” decision for CML, since for the first time in the company's 40 year history will it face significant direct competition, in the form of the impending entry of a second flour milling company. Expected learning outcomes The case has four primary learning objectives, namely to: illustrate the linkages between business level strategy and the functional level, manufacturing strategy; discuss the role of a company's history and internal resource structure in the decision making process; explore how operational issues influence capital expenditure decisions; and explore the perspective of managers in different functions in an organization that is facing a new competitive challenge. Supplementary materials Teaching notes are available – consult your librarian for access.


1995 ◽  
Vol 13 (1) ◽  
pp. 19-33 ◽  
Author(s):  
Fredrik P. Williams ◽  
Derrick E. D'Souza ◽  
Martin E. Rosenfeldt ◽  
Massoud Kassaee

Author(s):  
Balkrishna Eknath Narkhede

Manufacturing is crucial for the robust growth of the economy, for exports and for generating substantial relevant employment. Manufacturing is a force multiplier; it means investment in manufacturing yields four times the effect on Gross Domestic Product (GDP) growth. The core manufacturing sector comprises engineering and construction, industrial manufacturing, materials and commodities, chemicals and plastics, and automotive. In today's era of globalization and competition, business excellence is important, which needs coordination between business and manufacturing strategy. Based on a systematic review of published articles from 1982 to 2012, the present paper proposes and discusses a framework which brings together a set of variables related to the manufacturing strategies and advanced manufacturing technologies and the internal contextual factors driving it. The purpose of this literature review is to investigate the adoption of manufacturing strategies and it is observed that strategic alignment of competitive priorities with business strategy improves the business performance of the manufacturing organizations.


1996 ◽  
Vol 22 (4) ◽  
pp. 597-626 ◽  
Author(s):  
Peter T. Ward ◽  
Deborah J. Bickford ◽  
G. Keong Leong

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