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.
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- Fall '19