Among the characteristics of a company that shape corporate and therefore manufacturing strategy are its dominant orientation (market or product), pattern of diversification (product, market, or process), attitude toward growth (acceptance of low growth rate), and choice between competitive strategies (high profit margins versus high output volumes). Once the basic attitudes or priorities are established, […]
Manufacturing organizations tend to attract the attention of general managers the way airlines do: one only notices them when they’re late, when ticket prices rise, or when there’s a crash. When they are operating smoothly, they are almost invisible. But manufacturing is getting increasing attention from business managers who, only a few years ago, were preoccupied with marketing or financial matters.
A version of this article appeared in the January 1978 issue of Harvard Business Review. Read more on Operations and supply chain management or related topic ProductionRobert H. Hayes is the Philip Caldwell Professor of Business Administration, emeritus, at the Harvard Business School.
Mr. Schmenner is a research associate of the Harvard-MIT Joint Center for Urban Studies and is now, under a grant from the U.S. Department of Housing and Urban Development, engaged in research on the plant location decision making of the Fortune “500” companies during the 1970s. His most recent HBR article is “Before You Build a Big Factory”(July–August 1976).