Operations managers have a big responsibility: turning the company's goals into tasks that must be completed in order to provide better, cheaper, or more responsive goods and services. This involves many processes, such as the acquisition of materials, manufacturing, inventory management, delivery, etc. Therefore, the operational strategy focuses on reducing process costs and improving the profits of the entire company. Operational strategies revolve around core business processes, such as production, supply chain, logistics, etc.
They also include additional parameters such as the capacity of production facilities, their location, product lines, acquisitions, etc. Therefore, you may find several operational strategies within the same company. Operational strategies often include additional strategies such as product development, market penetration, customer interaction, supply chain management, etc. Operational strategies work from the middle to the outside to bring clarity and cohesion to the organization's operating model. They generally operate vertically within a single business unit and resolve problems at the boundaries of the business unit.
Dell's just-in-time (JIT) strategy allowed it to operate with the lowest inventory level in the industry. You can't just sell products through different channels without flexibility in systems and operations. The second of the three types of strategy is operational, which focuses on your people and processes. An operational strategy around product development aims to develop attractive products and services that attract a company's customers. Operational strategy involves refining and specifying a company's business strategy and developing strategic initiatives and operational plans aimed at allowing departments and business units to successfully implement the overall business strategy. The operational strategy helps the company to examine and implement effective and efficient systems to achieve corporate objectives.
If you focus on these 7 strategies, your operations will continue to be competitive and efficient now and in the future:
- Product Development
- Market Penetration
- Customer Interaction
- Supply Chain Management
- Inventory Control
- Information Technology
- Business Architecture
