This document discusses levels of strategy within businesses and how to develop an operations strategy. It covers key points such as the different levels of strategy from corporate to business unit to functional, understanding customer requirements through order-winners and qualifiers, and different approaches to developing strategy such as top-down vs bottom-up and market-driven vs market-driving. The document uses examples like a pit stop, factory, and restaurant to illustrate operations processes and strategic objectives.
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
11. •Where to INVEST or
DIVEST
• SALES REVENUE
priorities
Levels of
strategy
Corporate
DIRECTION OF TOTAL BUSINESS
IMPLEMENTATION
Allocation of investment FUNDS
12. Levels of
sBtursainteesgsy unit
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
19. > KEY IDEA
Understanding MARKETS is the FIRST
step in strategy development
20. Developing a
sUtnrdaetresgtaynding customer
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
sUtnrdaetresgtaynding customer
requirements
Le
Mans
(1971)
Modern
Times
(1936)
Dinner
Rush
(2000)
Pit stop Factory Restaurant
23.
24. Developing a
sOtpreartaetgioyns process
Operations process Pit stop Factory Restaurant
TRANSFORMED
resources
Materials
Informatio
n
Customer
s
TRANSFORMIN
G resources
Facilities
Staff
OUTPUTS
Goods
Services
26. Developing a
strategy
•What is the OPERATIONS process?
•What are the key MARKET
requirements?
27. Developing a
sOtpreartaetgioyns process
Operations process Pit stop Factory Restaurant
TRANSFORMED
resources
Materials
Information
Customers
TRANSFORMING
resources
Facilities
Staff
OUTPUTS
Goods
Services
28. Operations process Pit stop 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
37. Developing a
sBtortatotemg-yup approach
Consolidated into formal STRATEGY
EMERGING sense of what strategy
should be
Day-to-day EXPERIENCES and
LEARNING
40. Developing a
sAtltrearnteagtivye approaches
Aspect Prison Camp Restaurant
Strategic
OBJECTIVES
STRATEGY for
meeting these
objectives
PROCESS of
developing and
implementing
strategy
41. Developing a
sAtltrearnteagtivye approaches
•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
sAtltrearnteagtivye approaches
Aspect Prison Camp Restaurant
Strategic
OBJECTIVES
STRATEGY for
meeting these
objectives
PROCESS of
developing and
implementing
strategy
43. Aspect Prison Camp Restaurant
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
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
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
A recap of the operations process is valuable at this point
This table can be used to frame a discussion, or printed for students to fill in during the clips
This table can be used to frame a discussion, or printed for students to fill in during the clips
[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
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
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
Ask students to think about the three points above while watching the clip from each film
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD