Q: howdo interpret operational effectiveness vs. strategic positioning graph. Pleaseelaborate each other dimensions of the graph and clearly explain of the natureand direction of graph This above graph is of operationaleffectiveness verses strategic positioning that interpret that when anorganization wanted to produce the product efficiently, so then we have to decreasethe cost per unit produced on the output by utilizing the maximum resources andgiving the better version of our product which is called the operational effectiveness and weachieve the operational effectiveness byTQM that will produce equal quality of product in specific limit of time by thehelp of technologies that will make the graph outwards and so as result wedecrease the cost we try to maintain the quality and this will give the valueto our customers which is call product frontierand hence we make a long term image in the minds of the customers by usingdifferent strategies and position itself.

Natureand dimension of the graph: The above graph is outwarddirection with the curve and it is also not shifting upward or downwarddirection The reason behind its outward direction isthat we are constantly producing the product more cost effectively that willincrease our productivity and hence we had an outward direction of the graphbut this graph is not shifting because the money we are saving in theoperational effectiveness is utilized in the new upcoming technology andmanagerial methods due to this the curve is not expanding and itwill not shift. · Graph is in curve notin a straight line:The speciality of the graph isthat it is in the curve form not a straight line and the graph is decliningfrom high value to low cost because we are using the cost to install newtechnology which we have saved in effective producing of goods and hence thechange in technology is rapid that we need money at uncertain situations due towhich we had curve in graph.· Dimensions:The graph shows that our cost inthe early stage of the curve is high because at that time we are not focusingon cost effective products but later on the graph decline when we perfectlyutilize our resources and minimize our cost by introducing new ways to use lessmoney The other main dimension of thisgraph is that in the early stage of graph we produce less but we focus on thequality due we give more value to the customers by giving the same old productwithout errors and this will increase our profit and hence we see in the graphthat curve will decline due to which we have we give less value to the non-pricebuyer because organization focuses on the volume of their production of sameproduct not on the quality.But at the middle of the curve weachieve the product frontier at which we use the new ways of technology, skillsetc, and at this point we give more and more value we are wishing to give toour customers and this stage is known as product frontier and at this level wedon’t need any improvement