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STRATEGY Chapter Two McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LO2–1: Know what a sustainable business strategy is and how it relates to operations and supply chain management. LO2–2: Define operations and supply chain strategy. LO2–3: Explain how operations and supply chain strategies are implemented. L
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STRATEGY
Chapter Two
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO2–1: Know what a sustainable business strategy is
and how it relates to operations and supply chain
management.
LO2–2: Define operations and supply chain strategy.
LO2–3: Explain how operations and supply chain
strategies are implemented.
LO2–4: Understand why strategies have implications
relative to business risk.
LO2–5: Evaluate productivity in operations and supply
chain management.
2-2
Cliff Bar
2-3
Company Aspirations Beyond Making a
Profit
Cliff Bar’s Aspirations (an example)
1. Sustaining our Planet—Keep our impact on the planet
small, even as we grow.
2. Sustaining our Community—Be good neighbors. Give
back to the community.
3. Sustaining our People— Create an environment where
people can live life to the fullest, even from 9 to 5.
4. Sustaining our Business—Grow slower, grow better, and
stick around longer.
5. Sustaining our Brands—Make what people actually
need. Never compromise quality.
2-4
Sustainable Strategy
The firm’s strategy describes how it will create and
sustain value for its current shareholders
Shareholders – individuals or companies that legally own
one or more shares of stock in the company
Stakeholders – individuals or organizations who are directly
or indirectly influenced by the actions of the firm
Adding a sustainability requirement means meeting
value goals without compromising the ability of future
generations to meet their own needs
Triple bottom line – evaluating the firm against social,
economic, and environmental criteria
2-5
Triple Bottom Line
2-6
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