A Sustainable Competitive Advantage Essay

operations Management is a key fortune in the achiever of any rm. The casebook  start puffs ten critical aras to focus on for Operational Managersmany rms comport positive these one or two of these atomic number 18as into a competitive advantage. One rm, Anhueser-Busch/InBev has successfully collective all ten areas of focus and highly-developed them into a legacy of timberland and a sustain adequate competitive advantage. This focus on Operations Managemnt has place to Ab/ InBevs reputation for prime(prenominal), and their continued dominance as a spherical brewery. institution of GoodsThe jut of greats/services denes a rm, and learns them up for success (or failure) in the market. In order to see a superior product, rms must rst perceive their node what their needs and requirements are. Anheuser-Busch/InBev has focused on developing a diverse portfolio of global brands to satisfy a myriad of client needs a few of their more recently-developed beers are a ctually establish on customer suggestions and recipes. The AB/ InBev portfolio ranges from low-cost products such(prenominal) as Busch (which focuses on a costleadership strategy), dapple domestic brands such as budweiser and Bud Light are a twinge to be reckoned with in the North American markets. Other brands such as Hoeegarden and Leffe bring up to craft beer consumers as hearty as global markets (a diverseiation strategy). By customizing products to several(a) consumer tastes, they are able to obtain greater market share worldwide.AB/InBevs original beer, Budweiser, was developed in the 1800s by the callers founder, 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 perpetration to feeling and consistency console exist in the company today, which contri preciselyes to the boilers suit sustainability of the company.Managing QualityAs mentioned above, AB/InBev makes undisputable to incorporate feeling into their individual productsby meticulously managing their supply chain, they are able to control the boilers suit quality of scuttle exactlyt as well as their products. Their commitment to tradition is the basis for their commitment to quality many of the ingredients they use dapple create from raw stuff todays beer come from the identical lineage as the ingredients Adolphus Busch used backrest in the 1800s. Since AB/InBev directly owns the farms where the hops, sieve and barley are grown, by ensuring the quality of the ingredients, they ensure quality and consistency in from individually one plenitude of beer.AB/InBev offers quality to consumers by offering an extensive line of productsthey improved 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, thereof ensuring that each indivi dual bottle tastes as good as the last.Process and Capacity DesignBy principal(prenominal)taining a process-focused strategy, AB/InBev has created a sustainable competitive advantagetheir queer lineup of products all revolve well-nigh the same quality ingredients. Fewer inputs (hops, rice, barley, etc.) all distill down to a assortment of quality products that AB/InBev uses to meet their customer inquires. This high volume, low variety product method allows for the efciency need to produce the atomic pile quantities of product that AB/InBev demands.A frank visit to the AB/InBev brewery creates a easy picture of their commitment to the product-focused strategytheir facilities are designed specically to accommodate the variety of products they shed created. This specicity and simplicity lead to humble variable cost per unit, higher equipment utilization, and overall easier fruit planning.Although switching production lines mingled with products can be a buffa lo chip of a hassle, the specialization of labor reduces lead time and setup costs for each production melt down.Location systemThe main supply of AB/InBev are before long located in St. Louis, Missouri, where they were originally constituted in the early 1800s. Although the merger between AnheuserBusch and InBev in 2008 could have easily meant that headquarters would be relocated, moving production elsewhere would have been incredibly 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 merchant vessels/treatment costs of the various inputs, but also the campus that AB/InBev currently occupies is directly owned outright by the companyattempting to build a new production facility would have been a signi cant outlay of capital.The brewery in St. Louis is really a well-known landmark within the city, but it is not the only brewery that AB/InBev ow ns and operates. Because the demand for AB/InBev products is so widespread, the brewery operates 12 different brewing and bottling plants throughout the United States. These locations military service 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 alone(p) products, layout strategy is incredibly important in keeping the company competitiveefcient and effective use of space ensures that things continue to chair smoothly.At the brewery in St. Louis, a yoke of different layouts can be seen. Silos at the entrance to the campus store the various ingredients needed to brew the beers, while outlying buildings two-baser as ofce space and retentiveness of other components (such as bottles, cans, labels, etc.). By development a warehousing/storage layout for certain items, things that are used mo st ordinarily 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 a product-oriented layoutfor example, trumpery bottles for Bud Light are decease through one set of lines, while cans of Bud Light are run through a separate set of lines.