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TRAdE-Offs – ARE THEy inEviTAblE?  73

                               Figure 2.10  market requirements, operations resources and strategic reconciliation
                               at vW over 70 years

                                              Operations            Strategic             Market
                                               resources           reconciliation       requirements

                                    1946–51  Building up                                   Emerging,
                                  Implementing  capacity and                 Simple       any working
                                                                             design
                                    strategy  capability                                     vehicle


                                    1952–58  Systemisation                                 Maturing,
                                  Continuity of  of resources        Standardised        simple robust
                                                                       design
                                    strategy  and processes                                  vehicle

                                             Minor                                            More
                                    1959–64
                                  Minor change  reconfiguration  New 1500                 sophisticated
                                  and continuity  for new    model                       performance,
                                             model                                           quality

                                                                                           Uncertain
                                    1965–70  Fragmented              Multiple
                                  Searching for  acquisition of       new                 rejection of
                                  viable strategy  new resources     designs            VW traditional
                                                                                            products

                                                                                           Clarifying
                                    1971–75  Adapt best              Defined
                                   Emergent  practices from          range               around style,
                                                                                          quality and
                                    strategy  enlarged group
                                                                                             variety
                                    1976–89
                                   Continuing  Accommodate       Product                Segmentation
                                   with minor  new models       development         around performance,
                                                                  paths
                                                                                       style and variety
                                             and acquisitions
                                    changes
                                             Drastic
                                    1990–96  reconfiguration                Design for     Increasingly
                                  Major change  to increase                 low-cost      competitive
                                    (internal)  e“ciency,                  manufacture   around price
                                             reduce costs

                                             Continuous
                                   1997–2000  process               Common               Branding with
                                  Implementing  improvement          product             price, quality
                                    strategy  and cost              platforms               and style
                                             reduction


                                  2001–present  Lean process                              Increasingly
                                  Implementing  improvement and        Modular            competitive
                                    global   more low-cost             design            around price
                                    strategy  locations                                 and innovation











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