June 29, 2023

Operations Strategy - Nigel Slack et al. - Operations Management Book - 7th Edition

 

Nigel Slack et al. - Operations Management Book - 7th Edition

Chapter 3   Operations strategy 68

 Introduction 68

 What is strategy and what is operations strategy? 70 

 The ‘top-down’ and ‘bottom-up’ perspectives 73 

 The market requirements and operations resources perspectives 77 

 How can an operations strategy be put together? 86 

 Summary answers to key questions 89

 Case study: Long Ridge Gliding Club 91

 Problems and applications 92

 Selected further reading 93

 Useful websites 93





 Introduction 68





 What is strategy and what is operations strategy? 70 


p70

 WHAT IS STRATEGY AND WHAT IS OPERATIONS STRATEGY? 

 Linguistically,  the word 'strategy" derives from 

the Greek word ‘ strategos ’ meaning ‘leading an army’. 


Both military and business strategy can be described in similar ways, and include 

some of the following: 

● Setting broad objectives that direct an enterprise towards its overall goal (long-term objectives). 

● Planning the path (in general rather than specific terms) that will achieve these goals. 

● Dealing with the total picture rather than individual activities. 

● Focus on long-term results and not on distractions of day-to-day activities. 


 Here, by strategic decisions, we mean those decisions which are widespread in their effect on 

the organization to which the strategy refers, define the position of the organization relative 

to its environment, and move the organization closer to its long-term goals. 


But ‘strategy’ is more than a single decision; it is the total pattern of the decisions and actions that influence 

the long-term direction of the business. 


Observation of  the total pattern of decisions gives an indication of the actual strategic behaviour.

 The ‘top-down’ and ‘bottom-up’ perspectives 73 

 The market requirements and operations resources perspectives 77 

P 77

Market-requirements-based strategies 

 No operation that continually fails to serve its markets adequately is likely to survive in the long term. Based on what markets require, operations has to aim at the right priority between its performance objectives (quality, speed, dependability, flexibility and cost).

P 77

Qualifying objectives and Order-winning objectives


Qualifying factors  are those aspects of competitiveness where the operation’s performance has to be above a particular level just to be considered by the customer. Performance below this ‘qualifying’ level of performance will possibly disqualify the company from being considered for choice by many customers.


Order-winning factors are those things which directly and significantly contribute to winning business. They are regarded by customers as key reasons for purchasing the product or service. Raising performance in an order-winning factor will either result in more business or improve the chances of gaining more business once the product offer is in the choice sets of customers.




 How can an operations strategy be put together? 86 

The four stage model given by the authors divides the process of operations strategy  into formulation, implementation, monitoring and control. 


Implementation of Operations Strategy


Managing Internal Organization and Operations for Better Strategy Execution - Review Notes

https://nraomtr.blogspot.com/2013/05/internal-organization-and-operations.html




 Summary answers to key questions 89

 Case study: Long Ridge Gliding Club 91

 Problems and applications 92

 Selected further reading 93

 Useful websites 93




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