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Monday, February 27, 2017

Business Operations Strategy

There is a difference between existing operation and new operation.
If evaluating a company - the operations are analyzed and they might adjust strategies - which could cause operations to change (Losing sales in stores - new strategy for distribution - go online!)

When evaluating opportunity - the strategy must be decided before details of operations can be designed.
Target market - Who
Positioning - How
(Price Strategy - Penetration or Skimming)
(Distribution - Own the channel or contract- push or pull)
(Product - Design features, benefits, and added services)
(Promotions - depending on target market and positioning)

If the basic strategies for these areas are not decided - the new product can't be put into operation.  Once in Operation - then activity is monitored and analyzed - to potentially update strategies - which could change operations.

The definition presented in the article states - "What do we do and why do we do it?"
But for new products/new business - it must be "What are we going to do - and why do it?"

Strategy which most people believe is key to company success - can't happen without details of a plan to implement to reach a strategy.

This is why I say a Strategy dictates the business plan.  
BUT - many people don't separate the Strategic Decisions from the Business Plan. 

In this article - the Organizational Capability is the knowledge assets available to implement a business plan - (people and equipment)
The Resource Architecture is the Competitive Advantage created by using the capabilities within a specific plan to meet company strategies - which are designed to fulfill company vision (Purpose)

The last area - Management systems - covers - do our people do what they are tasked to do?

It think the big difference is the Starting Point - is it an existing operation - or is it something new?
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