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  • Essay / Literature: Operational Strategy - 1299

    Operational StrategyBefore moving on to the definition of operational strategy, the concept of operations management must first be described.Operations management: is the management of all processes and activities undertaken in a business to produce the deliverable good or services. It plays an important role in the business environment because it manages the inputs of the processing organization into the processed products or services according to James (2011, pp. 8). These processes exist in all departments of the company such as (HRM, Marketing, manufacturing, finance, etc.) Diagram 1.James (2011, pp. 8) and (Lewis and Slack, 2007, pp. 25) describe the Enterprise operational management resources fall into two main categories that produce goods deliverable to consumers: transformative resources and transformed resources (see Figure 1); Transform resources such as facilities (e.g. equipment, hardware and buildings), Personnel which includes all people who play a role in operational processes. Transformed remedies are defined into three main types; 1) Materials that can be converted physically (e.g. manufacturing), property such as retail, etc., 2) Information that can be converted by property such as location (e.g. telecommunications) or storage (libraries), 3) Customers that can be physically transformed such as (hotels, airlines, hospitals, etc.). A company can transform these remedies and outperform its competitors if it offers greater value to customers at a lower cost or comparable value to its competitors. The difference between organizations will be the strategy adopted to carry out the hundreds of activities required to create, produce and deliver these goods to consumers at relatively low cost. (Porter, 1996, p. 62)...... middle of paper ...... positive advantage: compete through manufacturing. Wiley New York, 8.James, T. 2011. Operational Strategy. Ted James & Ventus Publishing Aps.Johnson, G., Scholes, K., Johnson, G., & Whittington, R. 2011. Exploring Strategy. 8th ed. Harlow: Financial Times Prentice Hall. Lee, H.L., Padmanabhan, V., and Whang, S. 1997. Information distortion in a supply chain: the bullwhip effect. Management science, 43 (4), pp. 546-556. Lewis, M. and Slack, N. 2007. Operations Management. 5th ed. London: Prentice Hall. Porter, ME 1996. Operational effectiveness is not a strategy. Harvard Business Review, p. 61-77. Skinner, W. 1969. Skinner, W. 1969. Manufacturing-Missing Link in Business Strategy. Harvard Business Review, 47 (3): 136-145. Revista Base (Administracçao e Contabilidade) da UNISINOS, 5 (1). Skinner, W. 1974. The targeted factory. Harvard Business Review, p... 113-121.