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Unit 1: Operations Strategy

The document discusses operations strategy and its importance. It provides 3 key points: 1. Operations strategy provides a plan for using organizational resources to support business strategy and specifies policies for competing in the marketplace. 2. Developing an operations strategy involves determining competitive priorities like cost, quality, time, and flexibility based on the business strategy. 3. An operations strategy supports business strategy across the organization and defines the design and management of operations functions.

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82 views11 pages

Unit 1: Operations Strategy

The document discusses operations strategy and its importance. It provides 3 key points: 1. Operations strategy provides a plan for using organizational resources to support business strategy and specifies policies for competing in the marketplace. 2. Developing an operations strategy involves determining competitive priorities like cost, quality, time, and flexibility based on the business strategy. 3. An operations strategy supports business strategy across the organization and defines the design and management of operations functions.

Uploaded by

shubham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Unit 1

Operations Strategy

1
The Role of Operations Strategy

 Provide a plan that makes best use of resources


which;
 Specifies the policies and plans for using organizational
resources
 Supports Business Strategy as shown on next slide

2
Business/Functional Strategy

3
Importance of Operations Strategy

 Companies often do not understand the differences


between operational efficiency and strategy
 Operational efficiency is performing tasks well, even better
than competitors
 Strategy is a plan for competing in the marketplace
 Operations strategy is to ensure all tasks performed
are the right tasks

4
Developing a Business Strategy

 A business strategy is developed after taking into


many factors and following some strategic decisions
such as;
 What business is the company in (mission)
 Analyzing and understanding the market (environmental
scanning)
 Identifying the companies strengths (core competencies)

5
Three Inputs to a Business Strategy

6
Examples from Strategies

 Mission: Dell Computer- “to be the most


successful computer company in the world”
 Environmental Scanning: political trends, social
trends, economic trends, market place trends, global
trends
 Core Competencies: strength of workers, modern
facilities, market understanding, best technologies,
financial know-how, logistics

7
Developing an Operations Strategy

 Operations Strategy is a plan for the design and


management of operations functions
 Operation Strategy developed after the business
strategy
 Operations Strategy focuses on specific capabilities
which give it a competitive edge – competitive
priorities.

8
Operations Strategy – Designing the
Operations Function

9
Competitive Priorities- The Edge

 Four Important Operations Questions: Will you


compete on –
Cost?
Quality?
Time?
Flexibility?
 All of the above? Some? Tradeoffs?

10
Operations Strategy Across
the Organization
 Business strategy defines long-term plan
 Operations strategy support the business strategy
 Marketing strategy needs to fully understand
operations capability
 Financial plans in effect support operations activities.

11

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