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  lOMoAR cPSD| 58097008
1. Operation —--> organization mission ←→ strategy 
( differentiation, responsiveness, cost leadership ) = chap 2  
There are 3 primary strategies for operations managers ( cost leadership, differentiation and 
response) to achieve a sustainable competitive advantage. Give explanation of these strategies 
and suitable examples in the Vietnamese context  1. Cost Leadership: 
Cost leadership strategy aims to achieve the lowest operational costs in the industry, allowing 
a company to offer products or services at competitive prices. This strategy involves 
streamlining operations, optimizing the supply chain, and reducing expenses to drive down 
costs. By offering lower prices, companies can attract price-sensitive customers and gain a  competitive edge. 
-Example: Highlands Coffee is a well-known F&B brand in Vietnam that has implemented a 
cost leadership strategy. They focus on offering high-quality coffee products at affordable 
prices. Highlands Coffee has established strong relationships with coffee bean suppliers, 
allowing them to secure competitive prices for their raw materials. They also emphasize 
operational efficiency by optimizing their store layouts, managing inventory effectively, and 
implementing cost-saving measures in their supply chain. 
-Example in Vietnamese context: VietJet Air is a notable example of a brand in Vietnam that 
has adopted a cost leadership strategy. VietJet Air is a low-cost carrier that offers affordable air 
travel within Vietnam and other countries in the region. The airline has implemented various 
cost-saving measures, such as operating a single aircraft type to reduce maintenance and 
training costs and utilizing online platforms for ticket sales, reducing distribution costs.  2. Differentiation: 
Differentiation strategy involves creating unique and distinctive products, services, or 
experiences that set a company apart from its competitors. This strategy aims to build customer 
loyalty and command premium prices by offering something unique and valuable to customers. 
-Example: Trung Nguyen Coffee is an example of an F&B brand in Vietnam that has 
successfully implemented a differentiation strategy. They focus on producing and serving high-
quality Vietnamese coffee with a unique flavor profile. Trung Nguyen Coffee differentiates 
itself by offering a wide range of coffee blends, including special blends made from specific 
regions in Vietnam. They also emphasize the cultural aspect of coffee consumption and provide 
customers with an immersive coffee experience through their coffeehouses. 
-Example: M.O.I Cosmetics is a Vietnamese beauty brand that has successfully implemented 
a differentiation strategy. M.O.I Cosmetics focuses on producing natural and organic skincare 
products, positioning themselves as providers of clean and sustainable beauty options. They 
differentiate themselves by using high-quality, ethically sourced ingredients, and avoiding 
harmful chemicals. M.O.I Cosmetics emphasizes their commitment to environmentally 
friendly practices and offers a range of products that appeal to consumers seeking natural and 
eco-friendly beauty solutions.      lOMoAR cPSD| 58097008 3. Response: 
The response strategy emphasizes flexibility and responsiveness to meet customer needs 
quickly and effectively. This strategy involves developing agile operations that can adapt to 
changing market conditions and customer demands. Quick response times, efficient supply 
chain management, and effective customer service are crucial elements of a response strategy. 
-Example: Pizza 4P's is a notable F&B brand in Vietnam that has implemented a response 
strategy. They are a pizza restaurant chain that focuses on using high-quality ingredients and 
unique flavor combinations. Pizza 4P's emphasizes responsiveness by constantly innovating 
and introducing new pizza flavors based on customer feedback and preferences. They also 
prioritize customer service by offering personalized dining experiences and engaging with 
customers through social media platforms. 
-Example: SkinFood Vietnam is a notable beauty and skincare brand that has implemented a 
response strategy. SkinFood Vietnam focuses on keeping up with the latest beauty trends and 
launching products that address specific customer needs. They actively engage with customers 
through social media platforms, seeking feedback and incorporating customer insights into 
their product development and marketing strategies. SkinFood Vietnam's responsiveness 
allows them to introduce new products and adapt their offerings to meet the evolving demands  of their target market. 
-Example: Viettel Post, the logistics division of Viettel Group, provides efficient and reliable 
delivery services, which demonstrates schedule reliability. Viettel Post ensures precise and fast 
delivery throughout Vietnam by running a nationally network of delivery vehicles and 
distribution centers. Viettel Post maintains a high degree of schedule reliability by putting in 
place cutting-edge tracking technologies and streamlining delivery routes. This reduces delays 
and gives clients trust in their logistical skills. 
-Example: GHN is a top logistics service provider that provides e-commerce companies with 
fast and reliable delivery options. GHN's adaptability is demonstrated by its capacity to scale 
operations by adding more delivery staff and streamlining delivery routes at busy times, such 
as online shopping festivals or promotional campaigns. Because of its flexibility, GHN can 
fulfill client expectations and guarantee on-time delivery even in times of peak demand. 
⇒ These examples demonstrate how different brands in Vietnam have adopted various 
operations management strategies to achieve sustainable competitive advantage. It is 
important for companies to align their chosen strategy with their target market, brand 
positioning, and operational capabilities to effectively differentiate themselves and gain a 
competitive edge in the industry. 
2. Three essential functions of organization? 
(MARKETING, FINANCING, OPERATION)- (chap 1)  
Marketing: The marketing function is responsible for identifying customer needs and wants, 
creating awareness and demand for products or services, and promoting and delivering them      lOMoAR cPSD| 58097008
to the target market. It involves activities such as market research, product development, 
pricing, advertising, sales, and customer relationship management. The marketing function 
aims to understand customer preferences, communicate the value of the organization's 
offerings, and establish and maintain customer relationships. 
Finance: The finance function deals with managing the organization's financial resources and 
ensuring their effective utilization. It involves activities such as financial planning, budgeting, 
accounting, financial reporting, and risk management. The finance function aims to optimize 
the organization's financial performance, maintain financial stability, manage cash flow, 
allocate resources efficiently, and provide financial insights for decision-making. 
Operations/Production: Operations: Whether the outputs are commodities or services, the 
operations function is in charge of creating, overseeing, and improving the systems and 
procedures that convert inputs into outputs. It includes tasks like process improvement, supply 
chain management, inventory control, quality assurance, and production planning. The 
operations department seeks to maximize productivity, cut costs, provide value to consumers, 
and assure the efficient and effective production or delivery of goods or services. 
=> An organization's performance and ability to operate depend on these three tasks. While 
operations ensure the effective execution of procedures to supply goods or services, finance 
oversees the financial resources required to support corporate activities. Marketing creates 
consumer demand and drives revenue. Organizations may attain their goals, meet client 
demands, and sustain a competitive edge in the market by efficiently handling these  fundamental activities. 
3. How to globally help operations reduce cost: labor cost, taxes, tariffs ? chap 2  
Labor Cost Savings: Labor costs can vary significantly between countries due to differences 
in wages, benefits, and regulatory requirements. Many countries have lower average wages 
compared to developed nations. Moving operations to a location with lower labor costs can 
result in substantial savings, especially for labor-intensive industries. 
Tax Advantages: Many countries offer tax incentives, exemptions, or lower corporate tax rates 
to attract foreign investment. By establishing international operations in jurisdictions with 
favorable tax regimes, companies can reduce their overall tax burden and increase profitability. 
Tariff Reduction: : Free trade agreements (FTAs), World Trade Organization (WTO), North 
American Free Trade Agreement (NAFTA) can eliminate or significantly reduce tariffs on 
imported materials or exported goods. By producing goods or sourcing materials locally in 
target markets, companies can avoid or minimize tariff costs, improving competitiveness and  profitability.      lOMoAR cPSD| 58097008
4. Risk of outsourcing, What internal issues must managers address when 
outsourcing? 1 example in real life of outsourcing (Chap2) 
Outsourcing can bring several benefits to organizations, such as cost savings, access to 
specialized expertise, and increased flexibility. However, it also carries certain risks and 
challenges that managers need to address. Some of the internal issues that managers must 
consider when outsourcing include:   
1. Loss of Control: Managers may find it difficult to keep control over the activities that 
are outsourced when specific services or processes are outsourced. This may give rise 
to worries about maintaining the appropriate standard of customer service, complying 
to norms and laws, and quality control. To reduce the danger of losing control, managers 
must set clear goals, provide performance criteria, and create efficient lines of 
communication with the outsourcing partner. 
2. Data Security: Sharing private or sensitive information with third parties is a common 
element of outsourcing. Risks to data security, and intellectual property protection, and 
confidentiality violations may arise from this. Managers are responsible for making 
sure that the proper data protection policies, security procedures, and confidentiality 
agreements are in place to preserve the company's valuable information and reduce the  possibility of data breaches. 
3. Changes in Employment Levels: Outsourcing certain functions or processes may lead 
to changes in employment levels within the organization. This could involve 
downsizing or restructuring existing teams or departments. Managers must carefully 
plan and manage the workforce transition, ensuring proper communication, providing 
necessary support to affected employees, and complying with labour laws and  regulations. 
4. Changes in Facilities: Outsourcing may require adjustments to existing facilities. For 
example, if manufacturing processes are outsourced, managers may need to repurpose 
or downsize production facilities. Similarly, if customer support functions are 
outsourced, managers may need to reorganize office spaces. Managers should assess 
the impact on facilities, plan for any necessary modifications or reallocations, and 
ensure a smooth transition without disrupting operations. 
5. Vastly Expanded Logistics Issues: Outsourcing often introduces new logistics 
challenges that managers must address. This includes issues related to transportation, 
insurance, tariffs, customs, and timing. For instance, when outsourcing production to a 
different country, managers need to consider transportation costs, customs regulations, 
and potential delays associated with international shipments. They may   
also need to navigate insurance and tariff requirements to ensure the smooth movement 
of goods and mitigate any potential financial risks.      lOMoAR cPSD| 58097008
An example of outsourcing in real life is the fashion industry's practice of outsourcing 
garment production to overseas manufacturers. Many fashion brands outsource their 
manufacturing processes to countries with lower labour costs, such as China, Bangladesh, or 
Vietnam. This allows them to take advantage of cost savings while focusing on design, 
marketing, and brand management. 
An example of outsourcing in real life is  the ways that several firms outsource their IT. 
Businesses frequently contract with specialist IT service providers to handle their software 
development, IT infrastructure management, and technical support needs. Through this 
approach, companies may use the proficiency of outside IT specialists, save overhead expenses, 
and concentrate on their primary business functions. External issues:    
6. Financial Attractiveness: It is important for managers to evaluate the financial 
feasibility of outsourcing by considering many elements, including labor expenses, tax 
benefits, exchange rates stability. To make sure that the financial benefits of outsourcing 
outweigh the risks and expenses involved, they should carefully analyze the 
outsourcing arrangement's long-term financial sustainability and do a cost-benefit  analysis. 
7. People Skills and Availability: When it comes to the outsourced activities, managers 
must determine whether there is a sufficient supply of skilled workers at the outsourcing 
destination and evaluate their experience, knowledge, and abilities. To guarantee a 
smooth working relationship with the outsourcing partner, they should also take into 
account aspects like language proficiency, fit with culture, and the capacity to operate  well in cross-cultural teams. 
8. General Business Environment: An important factor in the success of outsourcing is 
the overall business climate in the outsourced destination. Political stability, legal and 
regulatory frameworks, intellectual property protection, infrastructural quality, and 
convenience of conducting business are all important considerations for managers. An 
advantageous business environment lowers risks and offers a strong base for outsourced  collaboration. 
9. Political Backlash: Outsourcing can attract political attention and public scrutiny, 
especially when it involves offshoring jobs to other countries. Managers must be aware 
of the potential for political backlash, protectionist policies, or changing regulations 
that could impact the outsourcing arrangement. They should stay informed about 
political developments, engage in proactive communication, and develop contingency 
plans to mitigate any negative consequences.   
4. . Explain how improving quality can lead to reduced costs?   Example = chap 6  
Reduced Rework and Scrap: Higher quality products are less likely to have defects or errors, 
resulting in fewer instances of rework or scrapping of defective parts or products. This directly 
reduces costs associated with labor, materials, and disposal.      lOMoAR cPSD| 58097008
Lower Warranty and Liability Costs: Products manufactured with higher quality standards 
are less likely to fail prematurely or have defects, leading to fewer warranty claims and liability 
issues. This results in reduced costs associated with warranty repairs, replacements, and legal  liabilities. 
Increased Efficiency: Improving quality often involves optimizing production processes to 
minimize errors and defects. Streamlining processes reduces the time and resources required 
for production, leading to higher throughput, reduced cycle times, and lower energy 
consumption. This efficiency improvement translates into cost savings across various aspects  of production. 
Enhanced Supplier Relationships: Investing in quality can foster better relationships with 
suppliers who provide reliable, defect-free materials and components. As a result, companies 
may negotiate better terms, bulk discounts, and reduced inspection requirements, leading to  cost savings in procurement. 
Improved Customer Satisfaction and Loyalty: Higher quality products lead to greater 
customer satisfaction and loyalty. Satisfied customers are less likely to return products due to 
defects or failures, reducing costs associated with returns, replacements, and customer service. 
Additionally, loyal customers are more likely to make repeat purchases and recommend 
products to others, reducing marketing and customer acquisition costs. 
Reduced Inspection and Testing Costs: As product quality improves, there is less need for 
extensive inspection and testing processes to identify defects. This reduces the time and 
resources required for quality control activities, resulting in cost savings in terms of labor,  equipment, and materials. 
Prevention of Costly Errors: Improving quality often involves implementing preventive 
measures to identify and address potential issues before they escalate. By detecting and 
resolving problems early in the production process, companies can avoid costly errors, delays, 
and disruptions that would otherwise result in additional expenses. 
Overall, investing in quality not only reduces the direct costs associated with defects and errors 
but also contributes to increased efficiency, customer satisfaction, and supplier relationships, 
leading to broader cost savings across the entire value chain. 
Manufacturing Industry - Electronics Company: 
Example: An electronics manufacturing company in Vietnam produces smartphones and 
tablets for export markets. Initially, the company faced challenges with product defects, leading 
to high rates of rework and scrap, increased warranty claims, and strained relationships with  customers and suppliers. 
Improvements Implemented: 
Implemented stringent quality control measures at each stage of the production process.      lOMoAR cPSD| 58097008
Invested in employee training programs to enhance skills and awareness of quality standards. 
Enhanced supplier relationships by providing feedback and collaborating on quality  improvement initiatives. 
Cost Reduction Outcomes: 
Reduced rework and scrap costs by 25% due to fewer defects and errors in the manufacturing  process. 
Decreased warranty claims by 30%, resulting in significant savings in warranty repair  expenses. 
Improved customer satisfaction and loyalty, leading to increased repeat purchases and reduced  marketing costs. 
Textile Industry - Garment Manufacturing Company: 
Example: A garment manufacturing company in Vietnam produces clothing for international 
fashion brands. The company struggled with quality issues such as stitching defects, fabric 
flaws, and sizing inconsistencies, leading to high levels of rejections and returns.  Improvements Implemented: 
Implemented comprehensive quality control procedures, including pre-production inspections  and in-line quality checks. 
Collaborated with suppliers to source higher quality fabrics and materials. 
Implemented employee training programs to improve skills and attention to detail.  Cost Reduction Outcomes: 
Reduced rejections and returns by 20% through improved product quality and consistency. 
Negotiated better terms with fabric suppliers, resulting in cost savings on raw materials. 
Enhanced brand reputation and customer satisfaction, leading to reduced marketing expenses  and increased sales. 
Food Industry - Agricultural Processing Company: 
Example: An agricultural processing company in Vietnam exports canned fruits and vegetables 
to international markets. The company faced challenges with quality control issues such as 
inconsistent product quality, packaging defects, and food safety concerns.  Improvements Implemented: 
Implemented Hazard Analysis and Critical Control Points (HACCP) and other food safety  management systems. 
Upgraded processing equipment and facilities to meet international quality standards. 
Enhanced employee training on food safety practices and quality control procedures.  Cost Reduction Outcomes: 
Reduced product recalls and rejections by 30% due to improved food safety and quality  assurance measures.      lOMoAR cPSD| 58097008
Enhanced competitiveness in international markets, leading to increased export sales and  revenue. 
Strengthened relationships with distributors and retailers, resulting in reduced marketing and  distribution costs. 
These examples illustrate how companies in Vietnam can achieve cost reductions by 
investing in quality improvements across various industries, leading to enhanced 
competitiveness, customer satisfaction, and long-term profitability. 9. Four considerations 
for a goods capacity decision - chap 7  
When making capacity decisions for goods production, there are several key considerations to 
keep in mind. These considerations help ensure that the chosen capacity level aligns with the 
organization's goals and market dynamics. Here are 4 important considerations:   
1. Forecast Demand Accurately: Accurate demand forecasting is essential for 
determining the appropriate capacity level. Organizations should gather and analyze 
data, market trends, customer insights, and other relevant factors to project future 
demand. By understanding the expected demand patterns, businesses can avoid 
overcapacity or undercapacity situations, optimize resource allocation, and minimize  production costs. 
2. Match Technology Increments and Sales Volume: Capacity decisions should align 
with both anticipated sales volume and technological advancements. Organizations 
need to assess their production technology and evaluate whether it can support the 
projected sales volume. It is important to consider factors such as production efficiency, 
scalability, and flexibility. Matching technology increments to sales volume ensures 
that the capacity level remains aligned with market demands while leveraging 
technological advancements to improve productivity and cost-efficiency. 
3. Find the Optimum Operating Size: Determining the optimum operating size involves 
striking a balance between economies of scale and resource utilization. Operating at the 
right capacity level allows organizations to benefit from economies of scale, such as 
reduced per-unit costs and improved efficiency. However, going beyond the optimal 
capacity can result in diminishing returns and increased costs. By analyzing cost 
structures, production capabilities, and market conditions, organizations can identify 
the capacity level that maximizes operational efficiency and minimizes costs. 
4. Build for Change: Flexibility and adaptability are crucial considerations in capacity 
decisions. The business environment is dynamic, and market conditions can change 
rapidly. Organizations should design their capacity plans with the ability to 
accommodate future changes in demand, technology, and business strategies. This may 
involve adopting scalable production systems, investing in modular equipment, or 
implementing agile manufacturing processes. By building for change,     
organizations can respond effectively to shifting market dynamics and avoid the need 
for major capacity adjustments in the future.      lOMoAR cPSD| 58097008
Overall, considering accurate demand forecasting, aligning technology and sales volume, 
finding the optimum operating size, and building for change are critical considerations in 
making capacity decisions for goods production. These considerations help organizations 
optimize resource allocation, improve operational efficiency, and minimize costs, ultimately 
enhancing their competitiveness in the market.        lOMoAR cPSD| 58097008  
Dưới đây là một số ví dụ về quyết định sản xuất của Toyota và Honda:   
1. Lựa chọn công nghệ sản xuất: Cả Toyota và Honda đã đầu tư vào công nghệ sản xuất 
tiên tiến để nâng cao hiệu suất và chất lượng sản phẩm. Ví dụ, Toyota đã phát triển công 
nghệ Toyota Production System (TPS), một hệ thống sản xuất linh hoạt và hiệu quả. 
Honda cũng đã áp dụng công nghệ robot hóa và tự động hóa trong quá trình sản xuất  xe của mình. 
2. Quyết định về quy mô sản xuất: Toyota và Honda phải đưa ra quyết định về quy mô 
sản xuất để đáp ứng nhu cầu thị trường. Ví dụ, khi Toyota quyết định ra mắt một mẫu 
xe mới, họ phải xác định quy mô sản xuất hàng nghìn hoặc hàng chục nghìn chiếc mỗi 
tháng để đáp ứng nhu cầu của khách hàng trên toàn cầu. 
3. Quản lý nguồn lực: Cả Toyota và Honda phải quản lý nguồn lực như lao động, nguyên 
liệu và vật liệu một cách hiệu quả. Ví dụ, họ phải đảm bảo rằng có đủ nhân lực chất 
lượng cao để vận hành các dây chuyền sản xuất và đủ nguyên liệu để duy trì quá trình  sản xuất liên tục. 
4. Tối ưu hóa quy trình sản xuất: Cả Toyota và Honda chú trọng vào việc tối ưu hóa quy 
trình sản xuất để đạt được hiệu quả cao và chất lượng tốt nhất. Ví dụ, họ sử dụng các 
nguyên lý Lean Manufacturing để giảm lãng phí, tăng cường sự linh hoạt và cải tiến  quy trình sản xuất. 
5. Chiến lược sản xuất toàn cầu: Cả Toyota và Honda có mạng lưới sản xuất toàn cầu để 
phục vụ các thị trường khác nhau. Ví dụ, Toyota đã mở các nhà máy sản xuất ở nhiều 
quốc gia trên thế giới, bao gồm Nhật Bản, Mỹ, Trung Quốc và các nước châu Âu.        lOMoAR cPSD| 58097008  
Honda cũng có các nhà máy sản xuất ở nhiều quốc gia như Nhật Bản, Mỹ, Canada và  Thái Lan. 
Những quyết định này giúp Toyota và Honda duy trì xuất sắc trong việc sản xuất ô tô, đáp ứng 
nhu cầu của khách hàng và duy trì cạnh tranh trong ngành công nghiệp ô tô toàn cầu   
1. Production Decision (Quyết định sản xuất):  Toyota: 
Ví dụ về quyết định sản xuất của Toyota là sự đầu tư vào công nghệ sản xuất hybrid và xe điện. 
Toyota đã đưa ra quyết định sản xuất hàng loạt các mẫu xe hybrid như Toyota Prius và xe điện 
như Toyota Mirai. Điều này phản ánh cam kết của Toyota trong việc phát triển các giải pháp 
vận hành xanh hơn và thân thiện với môi trường.  Honda: 
Honda cũng đã đưa ra quyết định sản xuất liên quan đến công nghệ xanh. Ví dụ, Honda đã phát 
triển và sản xuất xe điện Honda Clarity và Honda e. Đây là các mẫu xe điện tiên tiến nhằm 
giảm khí thải và tiêu thụ năng lượng.   
2. Organizational Focus (Sự tập trung của tổ chức):  Toyota: 
Toyota tập trung vào sự liên kết và tương tác giữa các phần tử trong tổ chức. Họ thúc đẩy môi 
trường làm việc đội nhóm, khuyến khích sự sáng tạo và đề cao sự chia sẻ thông tin. Toyota sử 
dụng các công cụ như Hội thảo Kaizen và Hội thảo chất lượng để nâng cao hiệu suất và sự hợp  tác trong tổ chức.  Honda: 
Honda tạo ra một môi trường làm việc năng động và cởi mở, khuyến khích sự đa dạng và sáng 
tạo. Họ đặt sự tập trung vào vai trò của cá nhân và khuyến khích nhân viên tham gia vào quyết 
định và cải tiến quy trình. Honda cũng có chương trình đào tạo liên tục để phát triển năng lực 
và kỹ năng của nhân viên.   
3. Customer Focus (Sự quan tâm đến khách hàng):  Toyota: 
Toyota luôn đặt khách hàng là trung tâm trong mọi quyết định và hoạt động của mình. Họ tiếp 
tục nghiên cứu và phát triển các công nghệ mới để cung cấp những sản phẩm an toàn, chất 
lượng và tiết kiệm nhiên liệu cho khách hàng. Toyota cũng tạo ra một môi trường dịch vụ 
chuyên nghiệp và đáp ứng nhanh chóng đối với các yêu cầu và phản hồi từ khách hàng.  Honda: 
Honda cũng chú trọng đến sự hài lòng của khách hàng. Họ tập trung vào việc cung cấp các sản 
phẩm chất lượng cao và dịch vụ hậu mãi tốt. Một ví dụ là chương trình Honda Care, một dịch 
vụ hậu mãi mở rộng bao gồm bảo hành mở rộng, dịch vụ đường dài và dịch vụ cứu hộ để đảm 
bảo sự hài lòng và tin tưởng của khách hàng.