Production Management System of Garmetn Manufacturing Company

Operation Strategy
Mohammed Shamsul Karim
Associate Professor
Department of Business Administration
International Islamic University Chittagong
Topics:
  1. Concept of Operation Strategy
  2. Operation Strategy Formulation
  3. Competitive Priorities and Their Role in Operation Strategy Development
  4. Selecting Competitive Priorities
  5. Types of Operation Strategies

  Concept of Operation Strategy

  Operation strategy is taken to implement the firm’s broad policies and plans to support the long-term corporate competitive strategy of the firm.

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  Operation Strategy Formulation:

  Four Steps for Strategy Formulation
    • Defining a primary task
        – What is the firm in the business of doing?
    • Assessing core competencies
        – What does the firm do better than anyone else?
    • Determining order winners and order qualifiers
        – What wins the order?
        – What qualifies an item to be considered for purchase?
    • Positioning the firm
        – How will the firm compete?

  Core Competencies
  The unique resources and strength that an organization’s management considers when formulating strategy.
    ■ Collective knowledge and skills an organization has that distinguish it from the competition.
    ■ Typically center on an organization’s ability to integrate a variety of specific technologies and skills in the development of new products and services.
    ■ Building blocks of core capabilities.
    ■ Are the bases on which new outputs are developed.
    ■ Better to think of organization in terms of its portfolio of core competencies than as a portfolio of products.
    ■ Identifying and developing core competencies is one of top management’s most important roles.
    ■ Organization practices and business processes

  Examples of Core Competencies
    ■ Sony - miniaturization
    ■ 3M- knowledge of substrates, coatings and adhesives
    ■ Black and Decker -... [continues]

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