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Summary MNO3701- What this Strategy and what is Operations Strategy
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What this Strategy and what is Operations Strategy
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MNO 3701 Production & Ops ManagementChapter 3
What this strategy and what is operations strategy?
Strategic decisions usually mean those decisions which:
Are widespread in their effect on the organization to which the strategy refers
Define the position of the organization related to its environment
Move the organization closer to its long-term goals
Strategy is more than a single decision, it is the total pattern of decisions and actions that influence the
long term direction of the business.
Operations strategy
Operation strategy concerns the pattern of strategic decisions and actions which set the role, objectives
and activities of the Operation
Operations is not the same as operational
Operations are the resources’ that create products and services. Operational is the opposite of
strategic, meaning day-to-day and detailed.
It also convenient to distinguish between the content and process of operation strategy.
The content of operation strategy is the specific decisions and actions which set the operations role,
objectives and activities.
The process of operation strategy is the method that is used to make the specific content decisions
Between them, four perspectives emerge:
Operation strategy is a top down reflection of what the whole group of business wants to do
Operations strategy is a bottom up the activity where operations improvements cumulatively build
strategy.
Operation strategy involves translating market requirements into operations decisions
Operating strategy involves exploiting the capabilities of operations resources in chosen markets
In strategy formulation, the content school focuses on what the overall strategy of the business or
organization should be.
The process school, is concerned with how the strategy was formulated
The process is also generally referred to as ‘formulating’
Schellenberg – the focus of strategic management in the past has been almost entirely on strategy
formulation, strategy implementation has been ignored
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, While the impact of gritty formulating strategies should not be dismissed, this by itself is an insufficient
condition for success.
The strategy must be accomplished before the organizations full potential can be realized.
The contents School perspective focuses on what the implementation is, or on the specific design for
the implementation. The design is the vehicle through which the strategy is translated into reality.
The design can further be seen as the physical reflection of the formulated strategy.
The three most commonly identified tools for implementation are as follows:
The organization or configuration will formal structure
The administrative systems and processes sector is by Jude, rewards and information systems
The leadership characteristics which include top level leadership, interpersonal behavior,
participation and commitment
The process school Perspective is concerned with how the strategy is implemented. It concerns:
The cognitive process of the individuals involved
The social and organizational processes which constrain the choice of structure
The political processes through which power is used to improve the implementation
Organisational behaviour is relevant here. Organisational behaviour refers to:
resistance to change
Management by objectives
Personality characteristics
This process is generally referred to as implementing
It may also be worth considering applying the reasoning behind such an analysis to production and
operations strategies.
The top down perspective
A large corporation will need a strategy to position itself in its global, economic, political and social
environment.
This will consist of decisions about what types of business the group wants to be in, where it wants to
operate and how to allocate its cash.
These decisions are part of the corporate strategy.
The business strategy guides the business in relation to its customers, markets and competitors.
Within the business, functional strategies need to consider what part each functions should play in
contributing to the strategic objectives of the business.
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