Strategic Operations Issues

In: Business and Management

Submitted By andrewsam
Words 1480
Pages 6
Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Michael Porter, view on 8th April 2014, (
In the long term, the major objective for operations and processes is to provide the business with some form of strategic advantage. This is why the management of business’s processes and operations and its intended overall strategy must be logically connected.
Operations strategy can be defined as a pattern of decisions and actions that shapes the long- term vision, objectives and capabilities of the operation and its contribution to overall strategy.
But strategies are not always easy to identify. This is because of their intangible nature and the length of time taken for them to be realized. Nevertheless operations strategies can be identified by what they should do.
First it should provide a vision for the operation’s resources to contribute to the business as a whole. Secondly it should define the exact means of the operation’s performance objectives. Third it should identify the broad decisions that will help the operations achieve its objectives.
The operations strategy must connect from top (Corporate level) and the bottom (experience learnt) of the business.
Strategic operations must align market requirements with operations resources. Dell is a good example of market-resource alignment.
Operations strategy must set a path for improvement which clearly indicating how the improvement is to take place. This is best addressed by the trade-off between performance objectives in terms of the “efficient frontier” model. (Chapter 2, pg. 34-35).

Executive Summary
The rate at which organisations learn may soon become their only sustainable source of competitive advantage. (Peter Senge.)
We are what we repeatedly do. Excellence, then, is not an…...

Similar Documents

Strategic Issues of Apple

...Strategic Issues Competition and the pace of technological change are the most critical issues currently facing Apple Computer. Its strategic moves into mobile communication devices and portable entertainment downloading places the company in stiff competitive conditions from every angle. New competitors, low-priced rivals, and potential substitute products all threaten to reduce the perceived value of Apple products and the success of its strategy. Apple is also challenged to maintain its core competencies - marketing, innovation, relationship building, and brand management - as it manages a broader range of products and navigates more markets. Its customer base is now more diverse, and new sets of competitors have a wider variety of strengths and strategies. The technology and entertainment industries are constantly and rapidly changing. It is uncertain whether Apple will be able to sustain its brand's reputation for innovative design, continually release technological breakthroughs, and launch new products that will "hit the consumer mark". In addition, the company's suite of products is no longer based on its internally developed hardware and software, but depends upon the ability to secure media content, which has its own competitive forces, dimensions of entertainment value, and proprietary issues. With Apple's success and growth, balancing stakeholder demands has become increasingly difficult. Managing the sometimes-conflicting expectations of customers, investors,......

Words: 279 - Pages: 2

International Strategic Operation

...Appendix 1) There are two major types of entry mode using by MNE (Multinational Enterprise), Equity and Non-Equity modes (Refer to Appendix 2). Equity modes consist of Wholly Owned Subsidiaries – (Greenfield Investment & Acquisition) and Joint Venture that direct owner involvement. Also, Non-Equity modes such as Contractual Agreement-(Licensing & Franchising) and Exporting that keep owner involvement minimum. Different entry consist different system, control, policy and way to doing thing that will be shown below (Lasserre 2008, p. 209) MNE require “High” initial Upfront Cost, commitment, Financial & Managerial and Political Risk Exposure if they are using Greenfield and Acquisition due to desire control over the foreign operation. And, there is “Low” if they are choosing Non-Equity mode like Licensing, Franchising and Exporting. E.g. (BenzInsider 2009) Mercedes-Benz use Greenfield investment in Pune, India that require HQ support substantial cost, commitment and etc compare to Franchising-McDonalds, Franchisee instead of Franchisor (Owner) bare the initial cost, fully commitment and deal with local politic matters. Lastly, JV need medium of commitment, investment and faces medium political risk because collaborate with local partner. Conversely, Exporting consider possibly quick Enter New Market that sell established product through simple documentation, processing and obstacle (GOV.UK 2013). Compare with Greenfield that is slow, time consuming- takes few......

Words: 2585 - Pages: 11

Strategic Operations Management

... Its Oil Servicing Contractor such as Petmam Ventures Ltd (the company I work for). Consequently, the presenter has attempted to relate the assignment to a real scenario. There by relating the assignment to his work. Furthermore, the researcher start by giving the definition of the concepts of Order Qualifiers and Order Winners. “Order winners and order qualifiers are criteria defined by managers within their operation strategy plan to gain competitive advantage in the market” (Encyclopedia of Business, 2nd Ed.) In other words , order qualifier are the sets or laid down criteria the International Organisations Companies (IOC’S) adopts when sourcing for capable service providers or mainly called contractors. This is a practical example of how Shell Petroleum Development Company of Nigeria (SPDC) source for qualified contractors to provide services for their various operations either major/ minor. This example illustrate how Petmam Ventures was pre qualified for a major contract by SPDC Nigeria. The Order of Pre qualification Process include the followings. There was an advert for the provision of Quality Assurance Quality Control Inspection service by SPDC Nigeria. Evaluation of companies documents, policies and site inspection by our clients. Subject vendors to technical bid (with bench......

Words: 594 - Pages: 3

Strategic Issues

...Design, Planning and Implementation Duration: October 2013-February 2014 Assignment: Group Presentation Topic: Strategic Issues in Project Management Date: 30th October, 2013 Group Members: 1. Winnie Munene 2. Philip Abong’o 3. Bernard Tarus 4. Noel Amoit 5. Brian Kenya 6. Sam Kiarie 7. Peter Kabutu Lecturer: Mr A. Bwibo Definition A strategy is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. It can also be defined as the art and science of planning and marshalling resources for their most efficient and effective use. An issue is something that has happened and either threatens or enhances the success of a project. Issue management is the process of recording and handling any event or problem. Some of the issues can be dealt with within the project; however strategic issues may require a change in order to keep the project viable. Therefore, the following are diverse definitions of strategic issues in project management:- A strategic issue in a project is a condition of pressure, either internal or external that will have a significant effect on one or more factors of the project such as its financing ,design, engineering, construction and operation.(MBA knowledge base). Cleland D. (1989) identifies strategic issues as disagreements/conflicts which may have a significant impact on the purpose of a project. He therefore......

Words: 6510 - Pages: 27

Strategic Operations Issues

...Strategic Operation Issues Executive Summary This paper reviews a core process of the Light and Power organisation with a view to seeking opportunity for change in the performance of process against the organisation’s strategic objectives. The organisation is currently not performing to target and improvement is required. By examining the design of a core process of the business and mapping process flow the impact of current design and capacity on outputs is able to be quantified and possible gains that can be made by changing the process design discussed. Investigation supports the premise that changing process design can increase the organisations performance against strategic objectives and set targets. The recommendation is made to pursue process change based on the theories discussed and the benefits the change can bring which will increase the organisations productivity and asset readiness whilst working to reduce costs. This result would increase the organisations performance to target. 1 Strategic Operation Issues Table of Contents Executive Summary ................................................................................................................... 1 The Organisation ........................................................................................................................ 3 Operation Issue .......................................................................................................................... 4 Examining the Process......

Words: 3841 - Pages: 16

Contemporary Issues in Strategic Management

...Contemporary Issues in Strategic Management Group 2. Business Level Strategy: How Firms choose to Achieve Competitive Advantage Purpose Your presentation is based on Lecture 4 and the aim of your presentation is to explain: * Porter’s generic strategy framework in terms of: * How the alternative strategies are achieved * How they position the firm favourably against the five forces in the competitive environment * What are the risks associated with each strategy * Why Porter thought doing both strategies (stuck-in-the-middle) would result in mediocre performance * How firms can achieve both strategies and succeed – a hybrid or integrated strategy. Structure & Content Your presentation should take about 30 minutes but no longer than 45 minutes. The questions which you need to answer in order to structure your presentation are taken from the Review Questions (page 114) at the end of Chapter 4 in your textbook (Ireland et al.). Answer Review Questions: 3, 4 & 5 in your textbook, Ireland et al chapter 4, pg. 114. To start the Tutorial discussion you must close your presentation by answering the question: Argue why Ireland et al (pg.109) think IKEA is pursuing a focused cost leadership strategy. Do you agree with their conclusion? Assessment Criteria See the assessment criteria for the group presentation on Moodle. Note, you will gain additional marks for demonstrating the depth of your understanding of...

Words: 329 - Pages: 2

Implementing Strategies - Management and Operations Issues Ch 07

...IMPLEMENTING STRATEGIES: MANAGEMENT AND OPERATIONS ISSUES CHAPTER OUTLINE | |The Nature of Strategy Implementation | | |Annual Objectives | | |Policies | | |Resource Allocation | | |Managing Conflict | | |Matching Structure with Strategy | | |Restructuring, Reengineering, and E-Engineering | | |Linking Performance and Pay to Strategies | | |Managing Resistance to Change | | |Creating a Strategy-Supportive Culture | | |Production/Operations Concerns When Implementing Strategies......

Words: 6208 - Pages: 25

Contemporary Issues in Strategic Management

...Strategic Management - An Introduction Strategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Strategic management can also be defined as a bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best possible utilization of strengths, minimize the organizational weaknesses, make use of arising opportunities from the business environment and shouldn’t ignore the threats. Strategic management is nothing but planning for both predictable as well as unfeasible contingencies. It is applicable to both small as well as large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain sustainable competitive advantage. It is a way in which strategists set the objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization. It helps us to......

Words: 8446 - Pages: 34

Identifying Strategic Issues

...Identifying Strategic Issues Cherra T. Hampton-Mitchell Benedictine University Abstract Phase four of the Mobilizing for Action through Planning and Partnerships (MAPP) process provides guidance for identifying strategic issues in the target community (National Association of County & City Health Officials, n.d.). According to the National Association of County & City Health Officials (NACCHO), identifying strategic issues reveals what is important within the community (NACCHO, n.d.). By identifying these issues, strategies can be developed to improve community health (NACCHO, n.d.). The purpose of this research is to identify strategic issues in Petersburg, Virginia. Synthesis and Analysis Four MAPP Assessments were conducted during phase three of the MAPP process. The four assessments include the Community Themes and Strengths Assessment, the Local Public Health System Assessment, the Community Health Status Assessment, and the Forces of Change Assessment (NACCHO, n.d.). Each Assessment revealed important information about community health in Petersburg, Virginia and must be analyzed to give a complete picture (NACCHO, n.d.). The Community Themes and Strengths Assessment (CTSA) revealed several important thing about Petersburg. Petersburg, despite being a small city, has a wealth of healthcare resources within city limits and in the surrounding area. There are two organizations that provide......

Words: 1058 - Pages: 5

Strategic Issues with Apple

...b) New Strategic Issues and circumstances – events taking place in February and March 2013 1. Press Release on Greenlight’s Opposition to Apple’s Proxy – February 7, 2013 Greenlight Capital, Inc., an investment management firm and shareholder since 2010, on February 7 announced that it is urging fellow shareholders of Apple to oppose the company’s attempt to amend its corporate charter and vote against Proposal 2 in Apple’s proxy, which eliminate preferred stock from Apple’s charter at the upcoming Annual Meeting of Shareholders on February 27, 2013. (New York – February 7, 2013) ( The February 8, 2013 Los Angeles Times announced that Apple Inc is considering boosting dividends or buying back more stock to appease investors who experienced a sharp drop in the stock price. The company also said that it would consider Greenlight’s proposal to issue some form of preferred stocks. (Apple weighs boost in dividend; The company also is considering a stock buyback to appease shareholders.Los Angeles Times, February 8, 2013 Friday, BUSINESS; Business Desk; Part B; Pg. 1, 617 words, Chris O'Brien ( The news that such plan were under consideration boosted Apples’ stock, which closed on February 11 at $479.93, up $26.31 compared to $453.62 on February 1, 2013. Greenlight’s latest proposal on February 21 was for Apple to issue a new kind of preferred stock called “iPrefs”, and on......

Words: 282 - Pages: 2

Strategic Operations that Kava is so farfrom the company's headquarters, with all of its resources; this distancenot only makes management difficult from afar but also means that Nik as anew employee will have to assume responsibility for things he may not beconversant with yet. The demographics of Kava-5 % ofthe population being under 15 years of age-will require us to tailor ourproduct and service offerings to that age group, but we will also have tomake our presence agreeable to the mix of ethnicities, religions, andlanguages on Kava (" Decisions in Paradise: How To Be, or Not To Be," n.d.,p. A cause and effect diagramcan be used to sort out the main factors in the problem and identify itscauses (Langdon, 2 1, p. 47). 3).Issues As the business scenario indicates, there are a number of issues to beconsidered before we make our decision. 27) suggests, critical thinking can be applied tothe decision-making process by identifying current concerns and theirimpact on performance. To determine what that presence would be and how we would bringit about, we will analyze the information we have, synthesize it, and makerecommendations about what the decision should be (" Decisions in Paradise:How To Be, or Not To Be," n.d., p. This means that building up situationawareness is the most difficult but also one of the most important thingsto do first (Schragen, Eikelboom, van Dongen, & te Brake, 2 5, p. Mankato, MN: Capstone.Schraagen, J.M., Eikelboom, A., van Dongen, K., te Brake, G.......

Words: 762 - Pages: 4

Strategic Financial Issues

...Lighting Group Limited was listed on the ASX and its last annual financial report was issued on 22nd August 2014. Mr. Ian Robinson, the executive chairman and son Glen chief executive officer has an overall growth strategy which includes new products rages and leveraging new technology in lighting to be first to market, enhancing online activities leverage existing capabilities, actively look at acquisitions, support our emerging businesses and generate efficiency gains to ensure continued growth. This report interprets and analyses Beacon Lighting Group Limited performance by comparing year-end financial reports of 2014 over that of 2013 using a diversity of financial ratios. In this report recommendations will also made to alleviate the issues that create an undesirable impact on its performance. Being the Management Accountant of the business I would be using ratio analysis to simplify the financial statement. The five aspects of performance evaluation profitability, efficiency, short-term solvency, long term solvency and market based ratios will be compared in a table showing the results for the year 2014 next to the results for the year 2013. 1. PROFITABILITY: Profitability ratios show a company's overall efficiency and performance. These profitability ratios can be divided into two types; margins and returns. Ratios that show margins represent the firm's ability to translate sales dollars into profits whereas ratios that show returns represent the firm's......

Words: 2958 - Pages: 12

Strategic Issues in Project Management

...Strategic Issues: The Pivotal Process for Strategic Success Thomas E. Ambler Senior Consultant, CSSP, Inc. Tom Ambler REALIZE YOUR POTENTIAL! Is that what you want for yourself and your company? What is your company’s potential? Do you have a vision of it? Yes? That’s why you use Simplified Strategic Planning, isn’t it? In the Simplified Strategic Planning process you build toward your strategy - your vision for the longer term, the course and direction you need to take to maximize your potential. Then, for the short term you make sure that your resources line up and are focused on achieving your vision. Good strategy takes more than just strong desire. Good strategy requires good input and analysis. It also requires good decision-making. That’s what the exercise known as “STRATEGIC ISSUES” is all about. It is a pivotal step in the strategic planning process that deals with answering the “Big Strategic Questions.” Successful identification and resolution of Strategic Issues results from combining both content and process elements, big and small, effectively and smoothly. What is a Strategic Issue? A Strategic Issue is, first of all, an issue - an unresolved question needing a decision or waiting for some clarifying future event. Secondly, it is strategic and has major impact on the course and direction of the business. It probably relates directly to one or more of the fundamental “Three Strategic Questions”: •What are we going to sell? •To whom are we going to sell......

Words: 2955 - Pages: 12

Strategic Management Issues

...STRATEGIC ISSUE MANAGEMENT PRACTICES AT THE KENYA POWER & LIGHTING COMPANY LTD BY BETTY MWENDE KAUMBUTHU A RESEARCH PROJECT PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS OF BUSINESS ADMINISTRATION DEGREE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI NOVEMBER 2013 DECLARATION This research project is my own original work and has not been presented for a degree in any other University or Institution of higher learning. SIGNED ………………………………………… DATE ………………….. BETTY MWENDE KAUMBUTHU D61/71576/2008 This research project has been submitted for Examination with my approval as University Supervisor. SIGNED: ………………………………………… DATE: ……………………. MR. JEREMIAH KAGWE Lecturer School of Business University of Nairobi ii DEDICATION This study is dedicated to my parents and friends who bring me immense source of joy and fulfilment. iii ACKNOWLEDGEMENTS I am deeply indebted to Mr. Jeremiah Kagwe for his guidance, patience and insightful input from the commencement of this project to its completion. I wish also to express my appreciation to the School of Business, MBA lecturers without whose enormous contribution in class sessions, this work would have not been possible. I am also grateful to my entire family members. Their encouragement, patience and understanding were attributes without which I would not have successfully completed the project. I have also received support and motivation from several fellow MBA students during class sessions, group......

Words: 14718 - Pages: 59

Mcdonald Operation Strategic Analysis

...------------------------------------------------- Operation strategy and management course work McDonald’s management report March 10, 2015 student number: 100086944 Words: 2631 March 10, 2015 student number: 100086944 Words: 2631 Contents 1. Abstract 2 2. Introduction 3 3. Background information: 4 4. McDonald’s operation strategy: 5 5. Supply network: 5 6. Operation management: 7 7. Theory and practise: 10 8. Wastes and solutions: 13 9. Conclusion: 15 10. Reference list 16 1. Abstract McDonald’s is the largest chain of global foodservice retailer, their global operation strategy calls “plan to win” which means focus on improving existing food and service rather than overextension. Therefore, there are 3 factors need be concerned: supply chain management, operation management and potential waste of operation. Firstly, the objectives of supply chain management are that: control the quality of suppliers, ensure the logistic work efficiently, and monitor the information flow between each process, hence to make customers satisfied with our food. Secondly, we analyse the process of producing a Big Mac meal, then we found that, due to the high volume of production and low variation in demand, McDonald’s order qualifying factors are low price and quick service. Moreover, to attract more customers, the order winning factors are better quality with valued price of food and higher flexibility of choice. And managers also need to ensure all......

Words: 3320 - Pages: 14