Strategic Operations - An introduction

  • Created by: Nimco1
  • Created on: 16-04-19 15:02
Core Purposes of Operations
1. Supporting the organization in its business/ Market, BUT doing so within the drivers and context of Muda Mura Muri (Japanese)
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Muda/ Mura /Muri
Activity that is wasteful and doesn't add value/ Capacity management / Overburden-Excess
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Operations Definition
Concerned with activities which enable an org. (not just one part of it) to transform a range of basic inputs into outputs for the end customer
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Global Strategy Examples
Boeing - sales and supply chain worldwide / Volvo - swedish company purchased by chinese company, Geely - Volvo S40 assembled in Belgium, South Africa and China
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HRM Factors in Ops Mgt
"In short, hiring is the most important aspect of business and yet remains woefully misunderstood" Wall Street Journal, 29th October 2008
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Why is Strategic thinking in the Global Market so required?
Decision must be made between adopting fast evolving tech or waiting for its consolidation - but risk company death from waiting too long
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What is always a goal?
Greater operational efficiency
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"Any customer, in any industry, in any market, wants stuff that is both cheaper and better, and they want it yesterday"
Funky Business: Ridderstrale + Nordstrom 2007, p157
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The sequence of strategy
External Audit --> Internal Audit --> Generating Strategic Options --> Selecting Strategic Options --> Implementing Strategy
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Strategy is important because:
There are rising levels of competition which is becoming more global in nature in many industries - strategies must be in place to act if something happens by chance
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The most key of questions
What business is the firm really in?
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Second Strategic question:
Should a firm outsource its activities? If so, where are how?
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Third Strategic Question:
How can opportunities become quickly exploited and how can capabilities help ward off external threats from new and existing players?
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Strategy is the ultimate responsibility of ...
Senior level managers within the firm
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The strategic communication problem
Can executives articulate their own companies' objective, scope and advantage in a simple statement?
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History of SO
Cost Focus --> Quality Focus --> Customization Focus
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Problem with SO
Senior level management don't understand operations and operations management - due to the change from craft to mass production
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Craft =
Strategy/ Operations
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Mass Production =
Vast amounts of hierarchy between strategy and operations levels (Think triangle pyramid)
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Key Failings with Operations: 1
1. Downgrading the importance of manufacturing/ Operations at societal/ government levels
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Key Failings with Operations: 2
2. Failing to successfully educate in technical/ commercial areas
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Key Failings with Operations: 3
3. Business schools teaching "quick fix" management tools rather than providing a strategic framework
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Key Failings with Operations: 4
4. Failing at national / company level to invest in appropriate management development and training
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Key Failings with Operations: 5
5. Failing at company level to view manufacturing / operations in terms of strategic importance
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Key Failings with Operations: 6
6. Having a view of a business which is governed by short-term financial criteria
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The Manufacturing Problem:
Not considering the impact of outsourcing on the company's ability to innovate (Industrial Commons etc.)
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The need to integrate marketing and operations strategies:
Constant dialogue required - cohesion needs to be in place in terms of / Forecasts - volume vs. capacity constraints / Design Specifications
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Competitive Attributes / Order winning criteria
Price / Product Quality / Process Quality / Delivery Speed / Delivery Reliability / Flexibility / Rapid New Product Innovation
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Examples of competitive priorities
Walmart - Restocks twice a week / Dell - Ships custom built computers in two days
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Operations Strategy at Ryanair
Stripped down service / One technology (planes) / Cheap airport locations / Fast turnaround
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Market requirements of Ryaniar
Low prices / Reliability / Basic Service
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Types of operations strategy
Operations Resources Perspective / Market Requirement Perspective / Top-Down Perspective / Bottom Up Perspective
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Strategic Resonance
A fluid and reactive strategy - Ensures continuous linkages and harmonization between: The market + firm's operations capabilities/ The firm's strategy + its operations capabilities / All functions + all levels within the firms
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Other cards in this set

Card 2


Muda/ Mura /Muri


Activity that is wasteful and doesn't add value/ Capacity management / Overburden-Excess

Card 3


Operations Definition


Preview of the front of card 3

Card 4


Global Strategy Examples


Preview of the front of card 4

Card 5


HRM Factors in Ops Mgt


Preview of the front of card 5
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