Cost Control, Quality, and Productivity Each summer, the Harbour Report (www.oliverwyman.com/index.html) rates the productivity of the major automakers, including the “Detroit BigThree,” Toyota, Honda, and many other brands. The report is closely watched as a barometer of thefuture profitability of the firms. However, some have argued that the productivity reports are insufficient. For example, a company can temporarily raise its productivity by laying off or “buying out”employees. Also, some would argue that the focus on productivity fails to draw attention to otherkey strategic factors such as quality, design, and customer service. For example, the J.D. Powerorganization (www.jdpower.com/autos) rates the initial quality of many new cars.Required What do you think are the priorities for the auto companies: quality, productivity, customerservice, design, or some other key strategic success factor? Briefly explain your answer.
Cost Control, Quality, and Productivity Each summer, the Harbour Report (www.oliverwyman
.com/index.html) rates the productivity of the major automakers, including the “Detroit Big
Three,” Toyota, Honda, and many other brands. The report is closely watched as a barometer of the
future profitability of the firms. However, some have argued that the productivity reports are insufficient. For example, a company can temporarily raise its productivity by laying off or “buying out”
employees. Also, some would argue that the focus on productivity fails to draw attention to other
key strategic factors such as quality, design, and customer service. For example, the J.D. Power
organization (www.jdpower.com/autos) rates the initial quality of many new cars.
Required What do you think are the priorities for the auto companies: quality, productivity, customer
service, design, or some other key strategic success factor? Briefly explain your answer.
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