OPERATIONS

STRATEGY
 Consists of the combination of competitive
moves and business approaches used by
managers to run the company
WHAT IS
STRATEGY?
Management’s “game plan” to
Attract and Stake out a Achieve
Compete Grow the
please market targeted
successfully business
customers position objectives
 Art & science of formulating, implementing,
STRATEGIC and evaluating, cross-functional decisions
MANAGEMENT that enable an organization to achieve its
– DEFINED
objectives
 IT IS THE METHODS THAT COMPANY USE TO
REACH THEIR OBJECTIVES.
WHAT IS
OPERATION
STRATEGIES BY DEVELOPING OPERATIONAL STRATEGIES
A COMPAY CAN EXAMINE AND IMPLEMENT
EFFECTIVE AND EFFICIENT SYSTEMS.
Case Study on Novel Food’s Operations
Strategy:
Competitiveness at stake
ABOUT NOVEL FOODS

1 2 3 4 5 6

IT WAS FIRST THEY COST IN 4 YEARS OF A BOWL OF THEY ARE NOW THEY ALSO
ESTABLISHED AT LESS THAN SPAN HE HAS RICE AND A PROVIDING STARTED
HYDERABAD HALF THE 20 OUTLETS IN BOWL OF MORE THAN PROVIDING
PRICES OF HYDERABAD DAAL AND 35000 RICE FOOD FOR
FOOD AS AND 30 MORE VEGETABLES BOWL PER DAY. MIDDLE CLASS
COMPARES TO OUTLET IN FOR RS 3 ONLY. PEOPLE.
OTHERS OTHE PLACES.
WHAT TYPES OF STRATEGIES ARE USED BY
ORGANIZATIONS?
Questions addressed by different strategic level:
Corporate strategy
• In what industries and markets should we compete?
Business strategy
• How are we going to compete for customers in this industry and market?
Functional strategy
• How can we best utilize resources to implement our business strategy?
 Corporate strategy

Customer-driven strategy

FIVE CORE
OPERATIONAL Core Competencies
STRATEGIES
Competitive Priorities

Product and Service department

 The use of the Helps in Helps in Helps in

IMPORTANCE operations
function or
determining the
location, size and
type of facilities.
determining the
worker skills and
talents required.
Procurement.

strategy is to
OF support the
overall business
OPERATIONS strategy:

STRATEGY
The technology How product &
and processes to service quality will
be used. be controlled.
 LEVELS OF STRATEGY-MAKING
IN A DIVERSIFIED COMPANY

Corporate-
Level Corporate
Managers Strategy
Two-Way Influence
Business-
Level Business Strategies
Managers Two-Way Influence

Functional
Functional Strategies
Managers
Two-Way Influence

Operating
Operating Strategies
Managers
 Cost or Price Make the Product or Deliver the Service Cheap

Quality Make a Great Product or Deliver a Great Service

Delivery Speed Make the Product or Deliver the Service Quickly

COMPETITIVE Delivery Reliability Deliver It When Promised

DIMENSIONS
Coping with Changes in Demand Change Its Volume

Flexibility and New Product Change It

Introduction Speed

Other Product-Specific Criteria Support It

 OPERATIONS STRATEGY

Strategy Process Example

Customer Needs More Products

Corporate Strategy Increase Org. Size

Operations Strategy Increase Production Capacity

Decisions on Processes
and Infrastructure Build New Factory
DEVELOPING AN OPERATIONS STRATEGY
Corporate
Objectives
Functional Areas
Business Plan
Operations
Marketing
Marketing Plan Business Strategies Financing/Accounting
Research & Dev.
Budget Strengths and Weaknesses Human Capital
Operations
Objectives
Production Plan

Other Plan
Operation Strategies

Long-range Decisions about

Products, Processes and Facilities
Position the Production System
Focus of Factories or Service Facilities
Product / Service Design and Development
Allocation of Resources to Alternatives
Facility Planning : Capacity, Location and Layout
 CONCLUSION

DEVELOPING CORE COMPETITIVE PRODUCT AND SERVICE

COMPETENCIES ADVANTAGE DEVELOPMENT