ASSIGNMENT NO 3 om.docx - ASSIGNMENT NO 3 MARYYAM MEHMOOD...

ASSIGNMENT NO 3
MARYYAM MEHMOOD
REGISTRATION NO: 7858-FMS/MBA/S-18
SUMMARY OF CHAPTER NO 2 OPERATIONS STRATEGY
SUBMITTED TO:
SIR SHEIKH NASEER UL HAQ
Operations strategy

Operations strategy is the process of making decisions regarding the operations
function of an organization on the basis of input from its allover strategy.
It is important for every organization to get the answers of questions?
 What to do?
 How to do
 what should organization do to create competitive advantage for itself for
long time?
Organizations are of two types
1) Manufacturing
2) Services
Must have a strategy so they can produce goods at low price and provide
customized services
Operations strategy is to set up a clock wise operation system where an operation
of any management runs smoothly. like if you are travelling with creem or uber till
the time your booking get finish they have every instructional tracking information
by this kind of start to finish setup is known as operations strategy.
2.1 The relevance of operations strategy
Aligning the resources and activities in the organization to deliver those products
and services
Key challenges faced by an organization
 Pricing pressures
 Lead-time reduction
 Proliferation of variety
Due to globalization, manufacturing goods and services must be according to the
needs of customers. Organizations cannot ignore customers demands and cost
cutting as market is over crowded with competitors organizations face pricing
pressures and promises to provide quick delivery and greater options in products at
lower cost to win customer orders. The quality and variety is important in a product
so an organization should practice better cost management process in delivery and
in providing services.
2.2 The strategy- formulation process
Strategy formulation is the process of determining and establishing the goals, mission and
objectives of an organization, and identifying the appropriate and best courses or plans of action
among all available alternative strategies to achieve them.

The process of strategy formulation basically involves six main steps .
1. Identify Your Strategic Position
2. Gather People and Information
3. Perform a SWOT Analysis
4. Formulate a Strategic Plan
5. Execute Your Strategic Plan
. Constantly Monitor Performance
THE STRATEGY FORMULATION PROCESS

STEPS
STEP 1: Understand the competitive market dynamics
Market dynamics are forces that will impact prices and the behaviors of producers and
consumers. In a market, these forces create pricing signals which result from the fluctuation of
supply and demand for a given product or services
One of the best examples to study competitive dynamics is the current smartphone industry
where the life cycle of products have become very less and each competitor is pushed to take
competitive actions in response to others or become irrelevant in the market place.