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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