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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

In operations strategy, the set of dimensions on which a firm chooses to excel in order to win customers, such as cost, quality, delivery speed and flexibility, is commonly called:

The dimensions on which a firm chooses to excel, such as cost, quality, delivery speed and flexibility, are called competitive priorities. They guide operations strategy decisions, whereas capacity cushions and layouts are different operational concepts.

  1. ACompetitive prioritiesCorrect
  2. BCapacity cushions
  3. CProcess layouts
  4. DOrder qualifiers only

Explanation

Competitive priorities (cost, quality, time/delivery and flexibility) are the capabilities an operations function emphasises to compete. A capacity cushion is spare capacity, and a process layout is an arrangement of facilities. Order qualifiers are only the minimum standards needed to be considered, not the full set of priorities.

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