Production/Operation concerns when implementing strategies
In the growing global competition, the productivity is the key for the survival of any business organization. Among different functions in an organization, production/operations function is a vital function which does the job of value addition to product/service, respectively. Maximizing the value addition automatically results in productivity improvement. This can be done starting from the stage of product development and concentrating on various other intermediate tasks and finally through implementation of proper quality control system and maintenance of equipments. This amounts to tackling the management issues in each and every sub system of production/operation function. Production/operations function is that part of an organization which is concerned with the transformation of a range of inputs into required outputs (product/services) having the required quality level. Production and Operation are major factors which are taken in consideration when implementing strategy of an organization. Strategy begins with goals, which naturally follow from an entity’s mission. But for practical purposes goals cannot stand in isolation. They are informed by an repetitive sensing of the external environment and the organization’s internal capabilities.
Implementing Business Strategies
Business strategizing is much more than visioning, planning and forecasting. In this modern age of changing economies rapidly, all substantive issue of strategy have been redefined as issue of implementation. Nowadays business strategy of an organization is more focused between the internal capabilities of the company and its external environment. “The modern subject of business strategy is a set of analytic techniques for understanding better, and so influencing, a company’s position in its actual and potential marketplace”. Production/Operation management is the process which combines and transforms various resources used in the Production/Operation subsystem of an organization into value added product/services in a controlled manner as per the policies of an organization. Production system is consist of input and output. Inputs are resources required for the manufacture of a product or service. Outputs are direct outcome (actual product or service) or indirect outcome (taxes, wages, salaries) of a production system. When it comes to operations, organization concern more on cost, quality of product, reliability and atmosphere at work. Organizations do change there strategies due to current PESTEL (Political, Economical, Social, Technological, Environmental and Legal) factors.
PESTEL factors effect in Production/Operation implementation in Strategy.
Political factor refers to the government policies, current government system in the country, political stability. This is a major factor for implementing strategy in an organization. Political factor can create advantages and opportunities for an organization.
This factor refers to economical situation. All organizations are affected by current national and international economical situation. This could be current exchange and inflation rate, economical growth, current interest rate.
Social factor affects our attitude, interest and opinion. This factor affect a lot when we implement strategy. It tends to increase production of a business due to some social reasons. Like in Christmas times, people buy more gifts and decoration stuff. Organizations should follow current social factors to be on track. Change in social behaviour also affects on operations as staff’s tendency to work.
New technologies can create new products and affect on operations. As new technology comes in it helps in development of a product and all over changes to the operations of an company. Technology can reduce cost of a product and helps in improving...
References: • David, F R. (2005) Strategic Management: concepts and cases. 10th Ed. Prentice hall: Pearson education.
• Chary, S N. (2009) Production & Operation management: 4th Ed. New Delhi: Tata McGraw-Hill.
• Oxford university press. (2007) Gillespie: Foundations of Economics - Additional chapter on Business Strategy. [Online] http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm. Last accessed on 10/04/2010.
• Griffiths, M. SWOT analysis of Pizza Hut. [Online]. Available: http://www.ypant.co.uk/dept/Business_Studies/Library/A2_work/SWOT%20analysis%20of%20pizza%20hut.pdf. Last accessed on 10/04/2010.
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