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O P E R A T IO N S

STRATEGY
U NIT- 2

Pawan Bhatta
OVERVIEW

I N TRO DU CTI O N
O P E R ATI O N S STR ATE G Y AC R O SS T HE
O RGAN I Z ATI O N
DE V E LO P I NG A CU STO M E R- DRIV E N
O P E RATI O N S STRATE GY
INTRODUCTION

Operations strategy is the development of a long-term plan


for using the major resources of the firm for a high degree
of compatibility between these resources and the firms
long-term corporate strategy.
According to Slack and Lewis,
Operations strategy is the total pattern of decisions which shape
the long- term capabilities of any type of operations and their
contribution to the overall strategy.
O P E R A T IO N S S T R A T E G Y A C R O S S T H E
ORGANIZATION
Used in various disciplines of an organization.
1.Engineering: Design Products and processes needed to produce them.
2.Finance: Performs financial analysis of alternative products or
services and flow strategies.
3.Management Information Systems: Designs the system that provides
market data and competitor information in the global environment.
4.Marketing: Determines the products and services the firm has the
capability toproduce.
5.Operations: Determines the best flow strategies and manages the
processes that produce the products or services to achieve the firm's
market strategy.
DEVELOPING A CUSTOMER-DRIVEN
OPERATIONS STRATEGY

Operational strategies should include customer-driven


approaches to meet the needs and desires of a target
market.
To do so, a company must develop strategies that evaluate
and adapt to changing environments, continuously enhance
core competencies and develop new strengths on an ongoing
basis.
P r o c e s s of c u s t o m e r - d r i v e n O p e r a t i o n
Strategy

F u n c t i o n a l Strategies
Corporate Strategy
M a r ke t Analysis

fig: customer-driven operation strategy


P R O C E S S O F C U S T O M E R - D R IV E N
OPERATION STRATEGY
MarketAnalysis:
- Segmentation
-Need Assessments
-External factors
Corporate Strategy: Competitive Priorities
-Missions - Cost
- Quality
- Goals
- Time
-Distinctive competencies. - Flexibility
Functional AreaStrategies:
-Finance Capabilities
- Current
-Marketing
- Needed
-Operations - Plans
-Others
P R O C E S S O F C U S T O M E R - D R IV E N
OPERATION STRATEGY
SUMMARY

1. Operation strategy is the long term plan which shapes the


operation capabilities according to the available resources
and their contribution to corporate strategy.

2. Operation strategy is used in every field and discipline over


an organization like engineering, finance, marketing etc.

3. Customer driven operation strategy starts from the analysis


of target market and ends up developing proper capabilities
of a firm that can contribute to formulate proper corporate
strategy.
Thank you