Group Presentation

1. GROUP 2
PRESENTATION

2. THE OBJECTIVES AND STRATEGIES OF OPERATION
MANAGEMENT
• LEARNING OBJECTIVES
• At the end of this unit , you are expected to be able to:
• 1.

3. STAGES IN THE DEVELOPMENT OF
OPERATIONS STRATEGY
• Strategy is a long term planning that helps the organization to achieve its goals or
aims .It can be also
• be define as the plans or actions taken by an organization to achieve its goa 1.
Environmental Analysis
• Analyze internal and external factors that impact operations.
• Consider market trends, competition, technological advancements, and regulatory
changes.
• Conduct SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
• 2. Business Strategy Alignment
Ensure that operations strategy supports the overall corporate strategy.
Identify competitive priorities (cost, quality, flexibility, speed, innovation,
sustainability).

4. GROUP 2
• 3. Defining Operational Objectives
• Set clear, measurable goals for efficiency, productivity, and customer satisfaction.
• Focus on key performance indicators (KPIs) such as lead time, cost reduction, and defect
rates.
• 4. Formulating the Operations Strategy
• Develop a strategy for key areas like supply chain, process design, capacity planning, and
technology adoption.
• Decide on outsourcing vs. in-house production.
• Implement Lean, Six Sigma, or Agile methodologies for process improvement.
• 5. Implementation and Execution
• Allocate resources (labor, technology, capital) effectively.
• Establish workflow processes and performance measurement systems.
• Train employees and ensure change
• management

5. OPERATIONAL STRATEGIES AT DIFFERENT
LEVELS OF THE BUSINESS
• 1 . Corporate Level : This level focuses on the overall organization and it’s mission . The operation strategies at this
level include:
• * Diversification: Expanding into new markets or industries to reduce risk and increase revenue streams.
• * Mergers and Acquisitions: Combining with other companies to gain market share, access new technologies, or
achieve economies of scale.
• * Strategic Alliances: Partnering with other businesses to share resources, expertise, or markets.
• 2 . Business Unit Level : This level focuses on specific units or departments in the organization. The operation
strategies at this level includes :
• * Cost Leadership: Focusing on minimizing costs to offer the lowest prices in the market.
• * Differentiation: Offering unique products or services that are perceived as superior to competitors.
• * Focus: Concentrating on a specific niche market or customer segment.

6. GROUP 2
* Supply Chain Management: Optimizing the flow of goods and services from suppliers
to customers.
• * Human Resource Management: Attracting, developing, and retaining talented
employees.
• * Marketing: Developing effective marketing campaigns to reach target customers.
WHEELWRIGHT AND HAYE’S 4 STAGES MODEL.
• This model was developed in the year 1984.
• It was developed to provide framework for evaluating the strategic contribution of
organization operations functions. Thus accessing how they are contributing to the
competitive market and also identify areas that they are improving.
• KEY POINTS
• 1. Identify the stages of progression
• 2. Understanding the operations impact
• 3.Benchmarking against competitors

7. GROUP 2
•
FIRST STAGE
INTERNAL NEUTRALITY: On this stage the organization focus on fixing the critical problems and achieving a
basic level of performance to avoid a negative impact of on the business strategy rather than contributing
competitive advantage
SECOND STAGE
EXTERNAL NEUTRALITY: On this stage the organization is focused on achieving industrial standards and
matching the performance of their major rivals or competitors.
Their aim to be good as their rivals rather than getting upper hand over them.
Internally Supportive
At this stage, operations move beyond industry standards and contribute to competitive advantage by
enhancing
flexibility, efficiency, and responsiveness. The company invests in lean practices, process optimization, and
automation to improve productivity. Operational decisions directly support the company’s goals. And this
help to enhance customer satisfaction and market responsiveness. To improve efficiency and reduce cost
Externally Supportive
At this stage, operations are a source of competitive advantage and shape business strategy rather than
just supporting it. Operations are designed to differentiate the company, whether through ultra-fast
delivery, sustainability. Build Long-Term Sustainability and Industry Leadership, expand market share and
increase profitability.

8. GROUP 2
• Top-down strategies
• Top-down strategies are formulated and implemented by the upper management and then
cascaded down the organizational hierarchy. Here are some top-down strategies:
• # 1. Goal-Setting Theory
• Set clear, achievable goals and objectives for the organization, and cascade them down to
individual employees.
• # 2. Management by Objectives (MBO)
• Set specific, measurable objectives for each department or team, and regularly review progress.
• # 3. Strategic Planning
• Develop a comprehensive strategic plan I0ONthat outlines the organization's mission, vision, and
objectives.
• # 4. Budgeting and Resource Allocation
• Allocate resources and budget based on strategic priorities, and ensure alignment with
organizational goals.

9. GROUP 2
• 5. Performance Management
• Establish clear performance metrics and evaluation criteria, and hold employees accountable for
achieving strategic objectives.
• # 6. Centralized Decision-Making
• Make key decisions at the top level, and communicate them down to employees.
• # 7. Standardization
• Implement standardized processes and procedures to ensure consistency and efficiency.
• # 8. Hierarchical Structure
• Organize the company into a hierarchical structure, with clear lines of authority and communication.
• # 9. Top-Down Communication
• Communicate strategic objectives, goals, and expectations from top-level management to employees.
• # 10. Monitoring and Control
• Establish systems to monitor and control performance, and take corrective action

10. GROUP 2
• : THE BOTTOM UP STRATEGY
• The bottom-up approach encourages greater buy-in from team members because
everyone is given the opportunity to influence decisions regardless of seniority. It also
facilitates better relationships between colleagues by offering members of all seniority levels
an equal opportunity to influence project outcomes.
• Here are some key features of a bottom-up strategy:
Employee empowerment: In a bottom-up strategy, front-line employees often have more
decision-making power and are encouraged to innovate and improve processes.
Communication: Information in a bottom-up strategy flows from the operational level to the
executive level. Employees share their insights and observations; management uses this
information to
make strategic decisions.
Implementation: With bottom-up strategies, implementing new initiatives often begins at the
operational level and expands throughout the organization. This can result in high levels of
buy-in and adoption, as employees feel ownership of the ideas and changes.
Flexibility and Adaptability: Bottom-up strategies can be highly adaptable and flexible. They
allow for quick adjustments based on feedback from operations and can result in ongoing
improvements and modifications to operations and strategy

11. GROUP 2
• Order Qualifying
• The basic criteria a company must fulfill to qualify into
• the order process , where customers decides the criteria.
• When we talk about order qualifiers
• They are the necessary attributes that a product must
• Possess for it to be entered into competition
• Order qualifying objectives are the minimum requirement a company must meet to be
considered a viable competitor in a marketing. They are also the minimum product
requirements that customers must consider before making purchases.
• Purpose
• 1. To enter or remain in a specific market segment
• 2. To be considered a viable option by customers
• 3. To compete with other companies.
• Importance
• Order qualifiers are essential for a company to be considered by consumers and to compete in
the market. :

12. GROUP 2