Literature: Operation Strategy Essay

1542 words - 6 pages

Operations strategy
Before proceeding to the definition of operation strategy, the concept of operations management is to be described first.
Operations Management: is the management of all processes and activities undertaken in a business in order to produce the deliverable good or services. It has a high role in the business’s environment as it manages the transformation organisation’s inputs in to transformed products or services according to James (2011, pp. 8). These processes are existent in all departments of the business such as (HRM, Marketing, manufacturing, finance, etc.)

Diagram 1.
James (2011, pp. 8) and (Lewis and Slack, 2007, pp. 25) describe the business operational management recourses in to two main categories that produce deliverable goods to consumers –Transforming recourses and Transformed resources (see diagram 1); Transforming recourses such as facilities (e.g. equipment, hardware and buildings), Staff which includes all people who have a role in the operations processes. Transformed recourses are defined in to three main types; 1) Materials which can be converted physically (eg. Manufacturing), ownership such as retail and so on, 2) Information which can be converted by property such as Location (eg. Telecommunications) or storage (Libraries), 3) Customers which can be transformed physically such as (Hotels, airlines, hospitals, etc).
A company can transform these recourses and outperform rivals if it delivers greater value for customers at a lower cost, or comparable value with competitors. The difference between organisations will be the strategy made to perform the hundreds of activities required to create, produce and deliver these goods to consumers with relatively low cost. (Porter, 1996, pp. 62)
Strategy and operations strategy:
Johnson and Scholes et al (2011) define strategy as the scope and direction of the company on the long term plan, an effective strategy would match its current recourses efficiently with continues changing environment, markets and consumers’ satisfaction, in order to meet stakeholders anticipations.
Operations strategy: The foundation theory of operation strategy was defined by (Skinner, 1969), he viewed the manufacturing strategy as the alignment towards business goals in which is manifested in the designing process of products. This concise with Hayes and Wheelwright’s (1984) theory which describe operations strategy as a consistent pattern in decision making in an organisation. In addition, they explain the strategic role of operations differs from being a liability to becoming a proactive partaker in business strategy making. Anderson and Cleveland (1989) emphasised greatly on Skinner’s broad theories and described operations strategy as the long range plan for operations function. In recent theories, Brennan explains operations strategy as: “The development of long term-plan for using the major resources of the firm for high degree of compatibility between these resources and the...

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