Professional Documents
Culture Documents
Operations Strategy
OPERATIONS STRATEGY
Definition of a strategy
or
OPERATIONS STRATEGY
3 LEVELS OF STRATEGY
Corporate
Strategy
Business
Level Strategy
Functional
Strategies
Corporate
Head Office
Company A
Company
Sales
Marketing
Marketing
R&D
Finance
Production
HR
Sales
R&D
OPERATIONS STRATEGY
Corporate
Strategy
Business
Level Strategy
Pharma
Functional
Strategies
Sales
Pesticides
Marketing
Chemicals
Finance
Plastics
R&D
Various
HR
OPERATIONS STRATEGY
Levels of strategic decision making
Level
Corporate
Strategy
[3-5 years
ahead]
Influences on
decision making
Environment:
Market, political &
social
Company
ownership:
Values, ethics
OPERATIONS STRATEGY
Corporate Strategy
Often is not obvious to participants that an
organization has a corporate strategy
OPERATIONS STRATEGY
The Terminology of Strategy
Term
Mission
Definition
Overriding purpose in line
with the values or
expectations of stakeholders
A personal
example
Be healthy and fit
Vision or
Describes aspirations for the
strategic intent future, without specifying the
means that will be used to
achieve those desired ends
of the organization
Goal
Objective
Lose 10 Kg by 1
September and run
marathon in 2006
OPERATIONS STRATEGY
The Terminology of Strategy
Term
Definition
A personal example
Core
competences
Resources, processes
or skills which provide
competitive advantage
Proximity to a fitness
centre, supportive family
and friends and past
experience of successful
diet
Strategies
Associate with a
collaborative network (e.g.
join running club), exercise
regularly, compete in
marathons locally, stick to
appropriate diet
OPERATIONS STRATEGY
Term
Definition
A personal example
Strategic
architecture
Combination of
Specific exercise and diet
resources, processes and regime, appropriate training
competences to put
facilities, etc.
strategy into effect
Control
OPERATIONS STRATEGY
Product feature
/performance
Customization
Rapid Innovation
Volume Flexibility
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OPERATIONS STRATEGY
QUESTION
Match the following order winners with the products or
services from the list
order winners
Products/services
1. Low Price
a. IKEA
2. Product feature
/performance
b. Rolex
c. UPS
d. Domino Pizza
e. PCs
f. Easy Jet
7. Volume Flexibility
g. Tailor
h. Toyota
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OPERATIONS STRATEGY
f. Easy Jet
b. Rolex
h. Toyota
h. TOYOTA
5. Customization
g. Tailor
6. Rapid Innovation
e. PCs
7. Volume Flexibility
a. IKEA
d. Domino Pizza,
c. UPS
12
OPERATIONS STRATEGY
Contents of an operations strategy
Success
factors
Low price
Wide variety
Quality
Delivery
Fast response
Reliability
Super
market
Fast Telephone
food services
Petrol
On-line
Financial
stations shopping services
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OPERATIONS STRATEGY
14
15
OPERATIONS STRATEGY
Performance
Objective 1
Performance
Objective 2
Performance
Objective 1
Performance
Objective 2
OPERATIONS STRATEGY
16
OPERATIONS STRATEGY
17
OPERATIONS STRATEGY
Order winners?
They are the criteria that differentiates the products and
services of one firm from another.
18
OPERATIONS STRATEGY
Service Breakthroughs
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OPERATIONS STRATEGY
2-7
20
21
OPERATIONS STRATEGY
Availability
Right
type of food
Low cost
of service
Perceived value for money
Cleanliness
Easy Jet
Availability
Value
University
2-7
OW
Speed
speed
for money
Dependability
Reliability
Range
Reputation
Convenience
of courses
Reputation
Accessibility
Accessibility
Cost
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OPERATIONS STRATEGY
Stage
Volume
Order qualifiers
Competitive
priority
Order winners
Customers
Competitors:
Typical
products
slow
rapid
slow
reputation
Price, range
quality
dependability
availability
quality speed
cost
dependability
cost
early adopters
bulk of market
laggards
increasing
many
declining
Product
characteristics
capability
novelty
innovators
few
decline
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END