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Ch2 operations strategy
- 1. Alex Hill andTerry Hill
- 2. Learning objectives •Understand LEVELS of strategy within business • Distinguish between day-to-day and strategic ROLES • Identify how different levels of strategy INTERFACE with each other • Appreciate importance of understanding MARKETS • Understand different strategic APPROACHES • DEVELOP and IMPLEMENT an operations strategy
- 3. Lecture outline •INTRODUCTION • What is STRATEGY? • LEVELS of strategy within a business • DEVELOPING a strategy • IMPLEMENTING a strategy • Critical REFLECTIONS • SUMMARY
- 4. What is strategy? DIRECTION WHAT to do
- 5. What is strategy? DIRECTION WHAT to do IMPLEMENTATION HOW to do it
- 7. > KEY IDEA Operations strategy concerns developing the CAPABILITIES of an organisation to reflect the NEEDS of its customers and markets
- 8. Levels of strategy CORPORATE
- 9. Levels of strategy CORPORATE BUSINESS UNIT
- 10. FUNCTIONAL Levels of strategy CORPORATE BUSINESS UNIT
- 11. •Where to INVESTor DIVEST • SALES REVENUE priorities Levels of strategy Corporate DIRECTION OF TOTAL BUSINESS IMPLEMENTATION Allocation of investment FUNDS
- 12. Levels of sBtursainteesgsyunit DIRECTION OF BUSINESS UNIT •MARKETS in which it competes •Where to GROW its business • Nature of COMPETITION • Relevant COMPETITIVE CRITERIA IMPLEMENTATION •WHICH functional tasks to invest in • HOW to invest in these tasks
- 13. DIRECTION OF FUNCTION Support COMPETITIVE DIMENSIONS within a market for which it is solely or partly RESPONSIBLE Levels of Fsutrnactteiognyal IMPLEMENTATION • Meeting competitive REQUIREMENTS • Selecting APPROACHES to attain improvement goals • Implement the PLAN
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- 19. > KEY IDEA Understanding MARKETS is the FIRST step in strategy development
- 20. Developing a sUtnrdaetresgtayndingcustomer requirements QUALIFIERS Get and keep a service or product on a customer’s SHORTLIST ORDER-WINNERS WIN you the order once you are on the shortlist
- 21. > KEY IDEA Understanding CUSTOMER requirements: • AVOID general descriptions • IDENTIFY and WEIGHT order-winners and qualifiers
- 22. Developing a sUtnrdaetresgtayndingcustomer requirements Le Mans (1971) Modern Times (1936) Dinner Rush (2000) Pit stop Factory Restaurant
- 24. Developing a sOtpreartaetgioynsprocess Operations process Pit stop Factory Restaurant TRANSFORMED resources Materials Informatio n Customer s TRANSFORMIN G resources Facilities Staff OUTPUTS Goods Services
- 25. Developing a sUtnrdaetresgtayndingcustomer requirements Key market requirements Pit stop Factory Restaurant ORDER-WINNERS QUALIFIERS
- 26. Developing a strategy •What is the OPERATIONS process? •What are the key MARKET requirements?
- 27. Developing a sOtpreartaetgioynsprocess Operations process Pit stop Factory Restaurant TRANSFORMED resources Materials Information Customers TRANSFORMING resources Facilities Staff OUTPUTS Goods Services
- 28. Operations process Pitstop Factory Restaurant TRANSFORMED resources Materials Information Customers TRANSFORMING resources Facilities Staff OUTPUTS Goods Services • Car • Rain tyres • Raw material • Pit stop • Mechanics • Spanners • Car with • rain tyres • Factory • Production line • Operator • Spanner • Widget • Raw material • Order details • Customer • Restaurant • Kitchen • Equipment • Chef • Waiter • Food • Drink • Service Developing a sOtpreartaetgioyns process
- 29. Developing a sUtnrdaetresgtayndingcustomer requirements Key market requirements Pit stop Factory Restaurant ORDER-WINNERS • Delivery speed • Price • Product design • Service design QUALIFIERS • Delivery reliability • Quality conformance • Price • Quality conformance • Quality conformance • Delivery reliability • Price
- 30. Developing a sUtnrdaetresgtayndingcustomer requirements
- 31. > KEY IDEA Understanding CUSTOMER requirements: • AVOID general descriptions • IDENTIFY and WEIGHT order-winners and qualifiers
- 35. Developing a sThtreapterogcyess of strategy development Alternative APPROACHES • TOP-DOWN vs BOTTOM-UP •MARKET-DRIVEN vs MARKET-DRIVING
- 36. Developing a sTotrpa-tdeogwynapproach CORPORATE BUSINESS UNIT FUNCTIONAL
- 37. Developing a sBtortatotemg-yupapproach Consolidated into formal STRATEGY EMERGING sense of what strategy should be Day-to-day EXPERIENCES and LEARNING
- 38. Developing a sMtararkteetg-leydorientation MARKET MARKET DRIVES OPERATIONS OPERATION S
- 39. Developing a sMtararkteetg-dyrivingorientation MARKET OPERATION OPERATIONS DRIVES MARKET S
- 40. Developing a sAtltrearnteagtivyeapproaches Aspect Prison Camp Restaurant Strategic OBJECTIVES STRATEGY for meeting these objectives PROCESS of developing and implementing strategy
- 41. Developing a sAtltrearnteagtivyeapproaches •What are their strategic OBJECTIVES? •What is their STRATEGY to achieve these objectives? •What APPROACH has been used to develop and implement this strategy?
- 42. Developing a sAtltrearnteagtivyeapproaches Aspect Prison Camp Restaurant Strategic OBJECTIVES STRATEGY for meeting these objectives PROCESS of developing and implementing strategy
- 43. Aspect Prison CampRestaurant Strategic OBJECTIVES • ESCAPE from the camp • Get 250 men out • Make MONEY • Produce GOOD FOOD STRATEGY for meeting these objectives • Create SMOKE SCREEN • DIG 3 TUNNELS • PRIMO • Market-driving • Resource-based • CRISTIANO • Market-driven • Market-led PROCESS of developing and implementing strategy • TOP-DOWN • PLANNED • BOTTOM UP • EMERGENT Developing a sAtltrearnteagtivye approaches
- 44. Critical reflections •Operations helps gain FIRST sale whilst also securing the SECOND sale • MARKET or marketing-led? • Moving to a BUSINESS-LEVEL strategic debate
- 45. Summar y •What is STRATEGY? – Direction and Implementation • LEVELS of strategy – Corporate - Business - Functional • Strategy DEVELOPMENT – Understand market – Develop capability to support or drive market • Market REQUIREMENTS – Order-winners and Qualifiers • APPROACH to developing strategy – Top down vs Bottom up – Market-led vs Resource-based
- 46. CASE FOR TUTORIAL APPLE
Editor's Notes
- #34 At this point you could illustrate strategy development using clips from three classic films Le Mans (1971) directed by Lee H. Katzin, starring Steve McQueen - stratgey developed in a pitstop Modern Times (1936) directed by and starring Charlie Chaplin - strategy used in factory Dinner rush (2000) directed by Bob Giraldi, starring Danny Aiello - strategy in a restaurant setting
- #35 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #38 A recap of the operations process is valuable at this point
- #39 This table can be used to frame a discussion, or printed for students to fill in during the clips
- #40 This table can be used to frame a discussion, or printed for students to fill in during the clips
- #41 [play the clips from Le Mans, Modern Times and Dinner Rush] While students are watching the clips, ask them to think about the questions shown above
- #67 At this point you could use clips from two films to demonstrate approaches to developing a strategy in two different settings: The Great Escape (1963) directed by John Sturges, starring Steve Mcqueen Big Night (1996) directed by Campbell Scott and Stanley Tucci, starring Tony Shalhoub and Stanley Tucci
- #70 This table can be used as the framework for class discussion and/or printed as a handout for students to fill in while watching the clips
- #71 Ask students to think about the three points above while watching the clip from each film
- #78 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #79 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #80 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #81 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #82 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #83 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #84 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #85 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #86 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #87 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #88 Pull out points above through discussion… Make MONEY Produce GOOD FOOD
- #89 Pull out points above through discussion… Make MONEY Produce GOOD FOOD