Tag Archives: economies of scale

Carillion: an operations management perspective

Much has been, and will be, said about the collapse of Carillion, the UK’s second largest construction company and major provider of facilities management services to both the public and private sectors.  In this blog, I aim to specifically to … Continue reading

Posted in Chap 01 Introduction, Sector: Construction, Sector: Public Services & Charities | Tagged , , , , | 1 Comment

Disrupting an entire industry – from the heart

This 35 minute video shows Jay Rogers, CEO and Co-Founder of Local Motors talking about his operations.  In it he discusses how his company is reinventing the automative industry.   At the heart of this are co-creation, micro-manufacturing and the … Continue reading

Posted in Chap 03 Processes and life cycles, Chap 10 Processes and technology, Sector: Manufacturing | Tagged , , , , | Leave a comment

Low cost airlines – the story of Goldilocks

There has been a lot in the media recently about low cost airlines – with the demise of Monarch and the cancelling of thousands of flights by Ryanair.  For me this illustrates how getting your strategy “just right” is incredibly … Continue reading

Posted in Chap 14 Operations strategy, Sector: Hospitality & Tourism | Tagged , , | Leave a comment

Shared services – where we were in 2015

We blogged a few weeks ago about shared service at BAESystems, so it was interesting to come across this article summarising research into this phenomenon written by Herbert and Oshri (2015), two academics specialising in this field.  They conducted a … Continue reading

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Shared services at BAESystems

BAESystems is the UK’s largest defence and security company, employing 39,000 people.  It has four main operational divisions – maritime, regional aircraft, military air & information, and applied intelligence (cyber operations).  To support these, the company has a fifth division … Continue reading

Posted in Chap 14 Operations strategy, Sector: Manufacturing | Tagged , , | Leave a comment

Category management jargon – the relevance of finger space

As I explained recently, looking at the jargon used by any group of professionals provides great insight into how they manage their operations.  So I was interested to see this glossary of terms used in category management.  Many of these terms … Continue reading

Posted in Chap 06 Materials and inventory, Sector: Retail | Tagged , , , | Leave a comment

Burger & Lobster chain failing growth stage of SFLC?

I’ve always been a fan of the ‘service firm life cycle’ (SFLC) despite the fact that it is judged to be old-fashioned and too simplistic by some experts.  I remain a fan because time and time again the concept and … Continue reading

Posted in Chap 03 Processes and life cycles, Sector: Hospitality & Tourism | Tagged , , | Leave a comment

How economies of scale lower costs

One of the earliest ways in which it was possible to achieve cost leadership was to create economies of scale.  This meant firms needed to become big and have large production volumes. This is because, in general, as the volume of production goes up, … Continue reading

Posted in Chap 14 Operations strategy, Operations Management | Tagged , | Leave a comment

How small national airlines can create economies of scale – by copying hotel brands

Interesting interview with Peter Davies, former CEO of Air Malta, analysing how small national flag carriers in Europe can compete with low cost carriers and international airlines.  These national carriers are outcompeted on price on their short haul routes by … Continue reading

Posted in Chap 14 Operations strategy, Sector: Hospitality & Tourism | Tagged , , | Leave a comment

So what are the big supermarket brands order winners – if not price and quality?

Lovely (?) article in The Guardian by Joanna Blythman, author of Shopped, who basically says I told you so…  Her book, published ten years ago, was a major indictment of the large supermarket chains.  In her view they had “closed … Continue reading

Posted in Chap 02 Winning Customers, Sector: Retail | Tagged , , , , | Leave a comment