A Sustainable Competitive Advantage Essay

operations Management is a key component in the triumph of whatever rm. The textbookoutlines ten critical beas to focus on for Operational Managersmany rms have developed these one or two of these areas into a competitive advantage. atomic number 53 rm, Anhueser-Busch/InBev has successfully incorporated all ten areas of focus and developed them into a legacy of quality and a sustainable competitive advantage. This focus on Operations Managemnt has decease to Ab/ InBevs reputation for quality, and their continued dominance as a global brewery.Design of GoodsThe design of goods/services denes a rm, and specialises them up for success (or failure) inthe market. In order to design a superior product, rms must rst understand their customer what their needs and requirements are. Anheuser-Busch/InBev has focused on developing a divers(prenominal) portfolio of global brands to satisfy a myriad of customer needs a few of their more recently-developed beers are actually based on custome r suggestions and recipes. The AB/ InBev portfolio ranges from low-cost products such as Busch (which focuses on a costleadership strategy), while domestic brands such as Budweiser and Bud Light are a force to be reckoned with in the North American markets. Other brands such as Hoeegarden and Leffe appeal to craft beer consumers as well as global markets (a differentiation strategy). By customizing products to non-homogeneous consumer tastes, they are able to obtain greater market share worldwide.AB/InBevs original beer, Budweiser, was developed in the 1800s by the companysfounder, Adolphus Busch set out to create a beer that balanced avor and refreshment something that everyone could enjoy. This understanding of customer needs, combined with a commitment to quality and consistency still exist in the company today, which contributes to the overall sustainability of the company.Managing QualityAs mentioned above, AB/InBev makes sure to incorporate quality into their soulfulnesspro ductsby meticulously managing their supply chain, they are able to halt the overall quality of input as well as their products. Their commitment to tradition is the basis for their commitment to quality many of the ingredients they use while brew todays beer come from the same lineage as the ingredients Adolphus Busch used back in the 1800s. Since AB/InBev directly owns the farms where the hops, rice and barley are grown, by ensuring the quality of the ingredients, they ensure quality and consistency in each batch of beer.AB/InBev offers quality to consumers by offering an extensive line of productstheyimproved on their Lime-o-Rita line by offering additional avors. There is manufacturing based quality in their productseach batch of Budweiser is brewed to the same standards as the last, thus ensuring that each individual bottle tastes as good as the last.Process and Capacity DesignBy maintaining a process-focused strategy, AB/InBev has created a sustainablecompetitive advantagethei r queer lineup of products all revolve around the same quality ingredients. Fewer inputs (hops, rice, barley, etc.) all distill down to a variety of quality products that AB/InBev uses to fit out their customer demands. This high volume, low variety end product method allows for the efciency needed to produce the mass quantities of product that AB/InBev demands.A simple visit to the AB/InBev brewery creates a clear picture of their commitment to theproduct-focused strategytheir facilities are designed specically to accommodate the variety of products they have created. This specicity and simplicity lead to lower inconstant costs per unit, higher equipment utilization, and overall easier production planning.Although switchingproduction lines between products can be a bit of a hassle, the specialization of labor reduces lead time and setup costs for each production run.Location StrategyThe main headquarters of AB/InBev are currently located in St. Louis, Missouri, wherethey were in the beginning established in the early 1800s. Although the merger between AnheuserBusch and InBev in 2008 could have easily meant thatheadquarters would be relocated, moving production elsewhere would have been implausibly costly. Because of the companys long-standing residence in the Midwest, many suppliers are also located in the Midwest. Relocating the brewery would have not only increased shipping/treatment costs of the heterogeneous inputs, but also the campus that AB/InBev currently occupies is now owned outright by the companyattempting to build a new production facility would have been a signicant outlay of capital.The brewery in St. Louis is certainly a well-known landmark within the city, but it is notthe only brewery that AB/InBev owns and operates. Because the demand for AB/InBev products is so widespread, the brewery operates 12 different brewing and bottling plants by means ofout the United States. These locations help ensure the freshness and overall quality of the product delivered to various markets nationwide, as well as help reduce the costs of moving product from manufacturer to distributer.Layout StrategyBecause AB/InBev offers almost 200 unique products, layout strategy is incrediblyimportant in keeping the company competitiveefcient and effective use of position ensures that things continue to run smoothly.At the brewery in St. Louis, a equalise of different layouts can be seen. Silos at theentrance to the campus store the various ingredients needed to brew the beers, while outlying buildings double as ofce space and storage of other components (such as bottles, cans, labels, etc.). By using a warehousing/storage layout for certain items, things that are used most commonly during production are close by, thus saving on shipping and handling costs.The beer that is brewed in St. Louis is bottled on-site. The bottling lines follow aproduct-oriented layoutfor example, glass bottles for Bud Light are run through one set of lines, whil e cans of Bud Light are run through a separate set of lines.