RL5.2.

1 Operations Management, BITS Pilani

BITS Pilani
Pilani Campus

Operations Management
Live Lecture 4-5
Strategy

RL5.2.1 Operations Management, BITS Pilani

Module Objectives
Dissect mission statements and link them to strategies.
Dissect overriding operations strategy of a given organization
and infer its performance against its strategy.
Interpret global strategic options and analyze their respective
business models.

RL5.2.1 Operations Management, BITS Pilani

Chapter Overview

RL5.2.1 Operations Management, BITS Pilani

Mission The Purpose of Existence

https://www.youtube.com/watch?v=JYkgPXt8vOA

We are in the business of preserving and improving human life.

All of our actions must be measured by our success in achieving
this goal.
Merck & Co., Internal Management Guide, 1989
We try to remember that medicine is for the patient. It is not for profits. The profits
follow, and if we have remembered that, they have never failed to appear. The better
we have remembered it, the larger they have been.
George Merck II, 1950

RL5.2.1 Operations Management, BITS Pilani

6 Principles of Strategic Positioning

http://mintne.ws/1AmkWDZ

1. Start with the right goal Superior long-term return on

investment. Do not set your goal on volume, market share or
perceived investor desires.
2. Strategy must aim at delivering value proposition that are
unique.
3. The unique value must reflect on the entire value chain.
4. Be prepared for a trade-off to focus. A Jack-of-all is not the
approach.
5. Align the functional objectives to organization strategy.
6. Stay focused on the goal for a sustainable period of time.
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RL5.2.1 Operations Management, BITS Pilani

Post Class Hours

M2.8 What strategy is not

RL5.2.1 Operations Management, BITS Pilani

WILe
Interview your organizations leadership team on the
organizations mission and strategy Map it against the six
principles of strategic positioning Is it confused with
operational effectiveness? What is your value proposition? Does
this distinction percolate across the value chain? Does your
organization consider trade-offs positively? How does this
strategy translate into functional objectives? Do you see a
conflict between organizational and functional strategies?
Between the strategic direction and a market opportunity, what
does your organization pick? Share the results with your
instructor.
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RL5.2.1 Operations Management, BITS Pilani

References
Jay Heizer., Operations Management, Pearson Education 9th
Ed., 2009
Mike Michalowicz., The Toilet Paper Entrepreneur, HarperCo
Books., 2008
Harvard Business Review What is strategy? Michael Porter,
1996 issue - https://hbr.org/1996/11/what-is-strategy

RL5.2.1 Operations Management, BITS Pilani

END OF LECTURE