Operation Strategy within an Organization
Operation strategy has been defined as “the development of a long term plan for using the major resources of the firm for a high degree of culpability between these resources and the firm’s long term corporate strategy.” (Davis, 2007) Operation strategy is a very important function for any organization. Operation strategy is the link that brings all of an organizations processes and value chains together. As a result the value chain will expand pass the walls of the organization, which includes suppliers and customers. What is operation strategy across the organization? So, what priorities are used within the operation strategy? How will the operation strategy add value for the customer? What trends affect operation strategy decisions?
In order to achieve operation strategy across the organization, the company has to continue to bring in cross functional interaction as a necessity. Corporate strategy views the organization as a system of unified parts, each working in association with all others to accomplish the desired goals. (Krajewski, 2007) Then, there is operation strategy that is a supporter of corporate strategy that requires the close relationship within the useful areas. Operation strategy will specify the overall service or manufacturing strategy and involves a blueprint of decisions that will involve the processes, systems and actions of that firm. Operation strategies involve the design of new processes or the redesign of existing ones. (Krajewski, 2007) So what competitive priorities are used in operation strategies?
Competitive priorities are the key to developing an efficient operations strategy with an understanding of how to build or add value for customers. Value is added through the competitive priorities that are selected to support a given strategy. Value is one of the most important factors that customer look for, in any...