As the organization for analyses I chose the company I work for. Here is a short description of organization which may be useful for better understanding of outcomes: Airframe is today one of the fastest growing beauty companies selling direct. It is present in 62 countries, of which is the market leader in more than half. It takes the 18th place in the world among cosmetics companies in terms of sales volume. It offers a wide range of high-quality beauty products as well as a unique opportunity to Join sales force and start your own business.
Brief facts about Airframe 1. 3 billion Euros in annual sales approximately 3. 3 million Distributors (Consultants) 7 500 employees 950 products annually, more than 30% of products are new. Global R&D center with more than 100 scientists 5 own production units in Sweden, Poland, China, Russia and India Listed on the Nasdaq OMG Exchange since March 2004 The scope of the evaluation includes: Prepare fundamental data (description of main traits of the Hayes and Wheelwright model) Collect information necessary for analysis. Recommend tools for analysis. Make a clear conclusion about the stage on the model based on analysis.
In the last decade the strategic role of operations has increased, which led to fast improvements in management and methodology. The four-stage model of operations contribution by Hayes and Wheelwright was developing from mid-80-s but has already a classic status in operations management due to its simplicity, visibility. It hypothesizes that companies go through four development stages: Internally Neutral, Externally Neutral, Internally Supportive and Externally Supportive. I found the following diagram of Hayes and Wheelwright (1984) the most pervasive and understandable: This model is a result of historical development with increasing performance levels.
Stages are as a ladder that needs to be ascended for success to be achieved. The most successful organizations will be those whose operations reach the pinnacle of stage 4. The pears of stage name/maim trait are the following: Internally Neutral – Avoid mistakes, Externally Neutral – Benchmark, Internally supportive – creative reaction to Dustless strategy, Externally Supportive – Foundation of business-success And the short name for the model may be “From Indifference to Maturity’. Analysis in order evaluate Airframe’s stage …
Managers have difficulty in assessing the strategic role played by their operations in an internally consistent and coherent manner” (Barnes, D. , Rowboat, F. 2004)) – this phrase proved me in my philistine opinion that it’s difficult to determine a stage where my company is now. It’s rather difficult to do as there’s a lack of simple instruments to make analysis on this question. Suggested below self- diagnosis instrument for internal use is replica of Porter’s 5 competitive forces model and has a lot of shortcakes. I also assume the quality of analysis may be exposed to bout due to incoming information based on my personal assessments or on scared benchmark data.
But it’s a good balance between simplicity and expensiveness of external experts/databases use or complex mathematical models. Source of information:
- My personal reflection as a manager who works in the analyses company.
- Strategic company’s data – mission statements, TOP- management announcements and interviews.
- Managerial data assessment (KIP, presentations. Example – appendix 1).
Extract of main proofs are in Appendix 2 classified under groups above. Proofs like that are used in Strategic stage survey below as answers for each question.