The paper 'Operations Strategy, Making Capacity Decisions" is a great example of management coursework. Business and organizations manufacturing products for profit depend on some processes to make their products produced appropriately and delivered within the set time frame. All these processes act as the operation for the business or company. In 2005, Krajewski, Ritzman & Larry defined operations strategy defined as the plan on how an organization intends to allocate resources so as support its infrastructure and production to achieve a set of objectives. While comparing to a machine, one can establish that for a machine to work properly all its components has to operate appropriately and together with other parts to achieve the goal (Krajewski, Ritzman and Larry 34). Operations strategy defines how various components including departments of the organization will alongside each other to realize success (Ward, McCreery, Ritzman and Sharma 1038).
Organization set different operations strategies with regards to management style and the demands of the business. It should be noted that not all organizations will have a department called operations but they must assume the activities of operations since each organization are involved in producing goods or providing services.
The operations manager plays the role of managing resources that are used in these procedures. Employing market-oriented plan to operations, a business makes decisions concerning the markets and about the consumers who are existing in those markets which it aims to target (Holweg and Pil 83). The market position of a business is one where its performance facilitates it to attract consumers to buy its products and/or services in a more effective way compared to other market players. Competitive facets are the way products or services attract orders based on quality, price and speed of delivery.
Operations strategy is a practical approach. Fundamentally, operations strategies are associated with the process of change of inputs into outputs (Krajewski, Ritzman and Larry 47). Therefore such strategies offer the basis for the decisions that work at operations level of an organization. Some of the pinpointing areas in operations strategy are the product design (tangible or intangible), selection of the vendor, selection of proper process for conversion of inputs into outputs, scheduling of production, etc. Even though strategy, as such, is more of taking lasting decisions, operations strategy are more relevant and tactical for daily and even short term decisions.
Some of the long-standing decisions that are on the basis of the operations strategy are facility and location planning, technology selection, decision buying or making, selection of the form of products or services which the organization intends to produce, management-based decisions, etc. (Holweg and Pil 79). There are several alternative processes for formulating operations strategy for a certain business. These will in general need assessment of the market prerequisites (marketing) and resource abilities of the operations (operations).
In 2005 Hill offered an iterative platform that connects the business goals which will present direction of the organization; that describes how the business will compete it its target market and the operations strategy which offers the ability to compete. The framework comprises five steps. These steps are defining corporate goals, determining marketing strategies to fulfill the strategies, assessing how products or services attract orders compared to those of competitors, establishing, the most suitable methods to deliver products and provision of infrastructure needs to support the operations (Hill 37).
Wal-Mart is considered one of the most successful, effective and leading retailers in the history of the U. S (Ward, McCreery, Ritzman and Sharma 1041). Its operations strategy is to utilize low levels of inventory and prices to make faster sales founded on low prices and providing value. Maintaining low levels of inventory enables the organization to maintain prices low for its consumers, including replacing products with new products once inventory is over. This also raises demand.
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