Operational Strategy

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Course Title: Value Chain Management

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Student ID : 10005322

Greenwich ID: id805

Assignment title:
Explain how operations strategy is influenced by customer and business prospective and where in a standard value chain you would expect to see your chosen topic addressed

Contents

Operations strategy3

INTRODUCTION3

OPERATIONS STRATEGY6

OPERATIONS STRATEGY PROCESS8

Easy Jet Case Study11

OPERATIONS STRATEGY: CONTENT18

Conclusion21

References23

Operations strategy

Explain how operations strategy is influenced by customer and business prospective and where in a standard value chain you would expect to see your chosen topic addressed.

INTRODUCTION
Every organization’s operations strategies are concerned with getting things done; ie producing merchandise for customers. However, most people believe that operations management is only concerned with short-term, day-to-day issues. In essence, all business organisations are concerned with how their business will survive and prosper in future. In contemporary terms, most business strategies are recognised with a plan as part of or a set of intentions that will set theirr long-term directions of their actions that are needed to ensure future organisational success. Thus, no matter how strong their plan is or how noble their intentions, are, any organisation’s strategy can only become a meaningful reality, in practice, if it’s operationally instigated. Every organisation’s operations are equally important because most organisational activity comprises the day-to-day activities within the operations function. It’s the process of daily actions of operations, when considered in their totality that constitute the organisation’s long-term strategic direction. The relationship between an organisation’s strategy and the operations involved is a key determinant of its ability to achieve long-term success or even survival. Organisational improvement is only likely to result if short-term operations activities are consistent with long-term strategies and hence, make a contribution to competitive advantage. The relationship between corporate operations and the other business functions is similarly important. The objective of the operations function is to produce goods and services required by customers whilst managing resources efficiently. This can then lead to conflicts within an organisation. Conflicts between operations and selling functions are likely to centre on the marketing aspect to ensure that operations concentrate on satisfying customers. Whilst this may seem enduring, marketing will usually want operations to suit customer needs under usual circumstances. Therefore, this is likely to lead to demands to produce bigger volumes, more varieties, better quality, a faster response, and so on, all of which are likely to lead to less efficient operations. Conflicts within the operations, the accounting and finance functions, on the other hand, are likely to centre on the desire of accounting and finance to want operations to manage resources as efficiently as possible. This will pull operations in exactly the opposite direction of that desired by marketing. Conflicts within operations and the human resource management function are likely to centre on issues of recruitment, selection, training, management and the reward of those employed within operations. For example, operational managers may want to vary organisation-wide policies in order to meet local needs; a move likely to be resisted by human resource managers. The operations function lies at the heart of any organisation and interacts with all the other functions. As such, achieving agreement about what decision areas lie within the remit of operations, and what should be the basis of decision-making within operations is an essential part of ensuring the consistency of action over time necessary for a...
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