Search This Blog

Showing posts with label business planning strategy. Show all posts
Showing posts with label business planning strategy. Show all posts

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?
Today's Top Picks for Our Readers:
Recommended by Recommended by NetLine

Featured Post

Johns Hopkins Aramco Healthcare Business Case Study

Business Case:   Johns Hopkins Aramco Healthcare    Operations Management Report   Table of Content...

Translate