Operation Strategy

In: Business and Management

Submitted By wuyuanyuan
Words 2315
Pages 10
1. “Operations can make or break a business”. For an organization, operations include all the activities necessary for the fulfillment of customer requests, not just manufacture, also marketing, HRM, accounting, etc (Slack, Chambers and Johnston 2007, p5). Through operations, business provide products and service by changing inputs to outputs. Operations excellence is fundamental to strategic success. And according to Skinner (1969), operations management (OM) can contribute to better company performance like reduced cost, increased revenue, etc. As a kind of understanding, whether a company has good operation strategies and management is one important factor that can “make” or “break” a business.

Operations strategy (OS) can guide the whole business progress in the long-term. It is concerned with how the market is changing and what the operation has to do to meet current and future challenges (Slack & Lewis 2011, p7). Motivation behind strategic operations is two-fold: superior class of public utility and profitability (Narayanaswami and Rangaraj 2012, p102). One useful tool in formulating OS is OS matrix. It enables company to consider how resources can be effectively used to affect quality, speed, dependability, flexibility and cost, in order to meet market requirements. One good example to explain the importance of OS/OM is Hagen Style.

Hagen Style is a successful kitchen equipment company in North America and its success owes to its direct marketing operations, along with its efficient distribution system. To Hagen Style, it is a good start that this company developed the appropriate marketing and distribution strategies which fit the market at that time. These OSs are maintained by effective OM. For example, without strict planning and management , the two distributions could be a mess and unable to realize fast delivery. The information system help…...

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