Operational that interpret that when an organization wanted

Operational effectiveness verses strategic positioning

 This above graph is of operational
effectiveness verses strategic positioning that interpret that when an
organization wanted to produce the product efficiently, so then we have to decrease
the cost per unit produced on the output by utilizing the maximum resources and
giving the better version of our product which is called the operational effectiveness and we
achieve the operational effectiveness  by
TQM that will produce equal quality of product in specific limit of time by the
help of technologies that will make the graph outwards and so as result we
decrease the cost we try to maintain the quality and this will give the value
to our customers which is call product frontier
and hence we make a long term image in the minds of the customers by using
different strategies and position itself.

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and dimension of the graph:  

The above graph is outward
direction with the curve and it is also not shifting upward or downward

 The reason behind its outward direction is
that we are constantly producing the product more cost effectively that will
increase our productivity and hence we had an outward direction of the graph
but this graph is not shifting because the money we are saving in the
operational effectiveness is utilized in the new upcoming technology and
managerial methods due to this the curve is not expanding and it
will not shift.

Graph is in curve not
in a straight line:

The speciality of the graph is
that it is in the curve form not a straight line and the graph is declining
from high value to low cost because we are using the cost to install new
technology which we have saved in effective producing of goods and hence the
change in technology is rapid that we need money at uncertain situations due to
which we had curve in graph.


The graph shows that our cost in
the early stage of the curve is high because at that time we are not focusing
on cost effective products but later on the graph decline when we perfectly
utilize our resources and minimize our cost by introducing new ways to use less

The other main dimension of this
graph is that in the early stage of graph we produce less but we focus on the
quality due we give more value to the customers by giving the same old product
without errors and this will increase our profit and hence we see in the graph
that curve will decline due to which we have we give less value to the non-price
buyer because organization focuses on the volume of their production of same
product not on the quality.

But at the middle of the curve we
achieve the product frontier at which we use the new ways of technology, skills
etc, and at this point we give more and more value we are wishing to give to
our customers and this stage is known as product frontier and at this level we
don’t need any improvement