INTRODUCTION
Most of the retail stores are experiencing a lot of loses in this time, especially in
the midst of pandemic. Many retail stores chose to stop their transactions and
negotiations because of minimal flow of income in reason most of the people didn’t want
to go outside and go to physical store to buy their necessities. In behalf of that, some of
the retail store still continue their business although they can not get their target market
and income just continue in livelihood or there is no other way to get another job. Lot of
factors
An operational strategy is a series of decisions made by a company about its
product production and distribution. Each step toward manufacturing or delivering a
product can be thought of as an operation, and the operations strategy encompasses all
decisions made in relation to an operational strategy is a series of decisions made by a
company about its product production and distribution. Each step toward manufacturing
or delivering a product can be thought of as an operation, and the operations strategy
encompasses all decisions made in relation to these numerous activities. The
operations strategy of a company works in unison with its overall business strategy,
assisting the company in achieving long-term objectives and increasing market
competitiveness. These numerous activities. The operations strategy of a company
works in unison with its overall business strategy, assisting the company in achieving
long-term objectives and increasing market competitiveness.
Businesses that manufacture goods and services frequently rely on a system that
maximizes the efficiency of their resources, people, and processes. Many firms place a
high importance on ensuring that the system operates efficiently and in accordance with
the organization's overall objectives. Having an operations strategy in place can aid in
the planning of procedures and tasks, as well as aligning them with your organization's
wider goals. In this post, we'll go over what an operations strategy is, as well as the
advantages of having one and some critical success elements.
THEORITICAL FRAMEWORK
This theoretical framework was created by reviewing various theories to
implement the decisions passed down by whoever is formulating business strategy. Although
implementing business strategy top-down is one important role of operations strategy, it is
only one of four elements that must be present if any operations strategy is to be effective.
These elements are illustrated in the figure below.
The four elements of operations strategy (From Nigel Slack (2017) The
Operations Advantage, Kogan Page.)
Top-Down: Operations must directly reflect the business’ overall strategy
Operations is one of many functions that must be in sync with corporate strategy
and pull in the same direction. It will not be an easy task to create an operations
strategy from a business strategy. All the uncertainties and conflicts that are buried
within most business strategies will be uncovered and must be resolved during the
translation from business to operations strategy. Broad brushstrokes are used to depict
business strategies. They can lead the company in the right direction, but they can't
spell out every detail; that's where functional strategies come in. The general thrust of
business strategy should be translated into what it means for the operation's resources
and procedures through operations strategy. Is there an obvious link between the two?
Outside-In: Operations must provide a position for the business in its markets
Operations is the market's supplier. It should assist in establishing and
maintaining its targeted market position by providing service, innovation, and cost levels
that outperform, or at the very least keep up with, competitors. 'How well do our
operations help the business compete in its markets?' is the crucial question to ask.
'The problem is that the concepts, language, and (to a degree) philosophy used to
assist marketers comprehend markets aren't always beneficial in guiding operations. As
a result, market demand descriptions frequently require 'translation' before they can be
beneficial to operations. The relationship between markets and the operations that
support them isn't just about markets telling operations how to act. Customers will, at
the very least, behave.
Bottom-Up: Operations must get strategic advantage by learning from daily
experience
Senior management does not make all choices with long-term strategic
implications. Important ideas might come from seemingly innocuous tasks carried out
within operations. A company might proceed in a specific strategic direction because
their ongoing operational experience of servicing consumers convinces them that it is
the right thing to do, and then a general consensus forms, frequently from the
operational level of the company. Allowing strategic ideas to arise from a company's
operational level isn't about abdicating responsibility; it's about accepting that brilliant
ideas can come from individuals on the front lines. It would be a breach of duty if one
did not make every effort to support good ideas from everyday life. Every action, choice,
and transaction is a step in the right direction.
Inside-Out: Operations must develop the strategic capabilities of its resources
and processes
'What can your operation accomplish that your competitors can't?' is the
important question here. 'In other words, how might one's operations contribute to the
company's strengths in a unique way?' For far too many businesses, the answer is no.
Even if a company's operation lacks any distinctive qualities, it should strive to acquire
some sort of benefit from its resources and processes. As a result, two additional
concerns arise: what resources and methods should be contributing to the development
of capabilities? Also, how do the decisions made inside the operation contribute to the
development and maintenance of these capabilities? Try using the VRIO framework's
four queries as a starting point.
