Imporatance of Strategic Operations Management

Topics: Management, Strategic management, Strategic planning Pages: 5 (1308 words) Published: September 30, 2012
There is a very famous saying by Benjamin Franklin, “If you fail to plan, you are planning to fail”. Strategic Operations Management acts on this by giving the organization a sense of direction, motivation and unity among people in working towards the overall mission and vision.

In this paper, the aim will be to find out if strategic operations management is important for an organizations overall development. The answer can be a “yes” or a “no” depending on how one perceives the issue and understands it. To draw to a conclusion on this, it is better to first briefly outline the various topics that I will be attempting to cover. Firstly, I will discuss in short about Operations Management and then strategy and finally how strategy fits into operations management to achieve the organizations overall goals.

Operations Management:
Operations are jobs or tasks which may constitute of many elements and sub elements. Slack et al (2008) states that operations management stands for those activities that are to produce and to deliver those products and services. In short, all activities that happen on a day to day basis can be classified as operations management. Operations Management is a process where inputs like manpower, equipment etc are converted to outputs which deliver value and satisfaction to the customers.

The main objectives of operations management can be categorized into Customer Utilization and Resource Utilization. (Kumar,A & Suresh,N. 2009). They stated that the main aim of any organization would be to have happy customers. Hence, achieving customer satisfaction is the key objective of any operation management. The 3 main factors in determining customer satisfaction are price, quality and time.

The second main objective is resource utilization. An efficient operations management system would be able to manage their resources usefully by causing the minimal damage to protect the sustainability of the environment.

It should be mentioned that knowledge economy is an important challenge for operations management. There should be flexible and easy to change strategies in knowledge intense era and companies (Hayes, 2002).

Johnson and Scholes (2008) define strategy as follows:

“Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations”.

Strategy helps individuals look ahead and plan will in advance for the future. It helps them to create a plan and analyze the step that needs to be taken to improve their businesses. It determines the best possible resources needed and the main stakeholders involved in order to achieve their ultimate goal and work towards it. There are 3 different levels of strategy:

Corporate Strategy: often defined in an organization Mission statement. Identifies where the organization wants to be in the long run. Business Strategy: How a business should operate in the commercial market. Operational Strategy: explain how each part of the organization should work in order to achieve the corporate strategy and business strategy.

Strategic Operations Management:
Now, since we have aware of operations management and strategy, it is pretty simple to figure out the meaning of strategic operations management. It involves the development of operational level strategies to achieve the overall strategy of the organization. In other words, it is the steps taken to achieve the journey destination that is in mind.

Therefore, prior to taking the steps, it is important to examine the ‘fit’ of each step(s) that is going to be taken with the realization of the journey destination and ensure that right resources are deployed effectively to achieve the destination in shortest possible time, money, resources utilization enhancing the sustainability of the community as well as...
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