CH 2.ppt - Chapter-II Operations Strategy for Competitive...

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Operations Strategy forCompetitive Advantage1Chapter-II
Introduction2Business organizations craft their strategies inlight of the prevailingenvironmental realities.Before conducting the SWOT analysis, however,they have to really know what theirstrategicintentsare (mission, vision, and objectives).Thereasonwhytheyfirstscantheenvironmental variablesand thendefinetheirstrategic intentsis to craft an appropriatestrategy; a strategy that can help them realizethe strategic intents given the environmentalconstraints and opportunities.
Defining the Strategic Intentsand Strategies3MissionThe mission states why a firm exists.Mission statements provide boundaries andfocus for organizations and the concept aroundwhich the firm can rely.It also clarifies and inculcates one with thenature of a business an organization runs, thetype of products it produces, and the needs itfills.
Mission cont…4Onceanorganization’smissionhasbeendecided, each functional area within the firmdetermines its supporting mission.VisionVisioning is visualizing things in mind and thisisone of the most important things in one’s life.ObjectivesBusiness mission and company directions havetobedefinedintermsofperformancestandards, something by which the business’sprogress can be measured, evaluated and rated.
Objectives cont…5Objectives can be:a)Short-termb)Medium-term andc)Long-termOra)Financialandb)BusinessBusiness objectives measure how the business performsrelative to its rivals and include:Leadership in technologyOvertaking rivals’ customersJoining to foreign marketsImproving qualityDelivering better post-sales services
Strategy6Thamson and Strickland define strategy as apattern ofactions and business approachesmanagers employto please customers, build attractive market position,and achieve organizational objectives.A company‘s actual strategy is partly planned andpartly reactive to changing situations.UnrealizedstrategyActualStrategyEmergentstrategyRealizedStrategyIntendedStrategy
Cont…7If you think of goals as destinations, thenstrategies are the road maps for reaching thedestinations.Strategies provide focus for decision-making.organizations have overall strategies calledorganization strategies.The functional strategies should support theoverall strategies of the organization.
Strategies for CompetitiveAdvantage1.

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