Strategic Operations ManagementStrategic Operations Management is the management of strategic operations or operations which define business goals and help to achieve business objectives. It involves taking steps to develop plans and procedure which will enable an organization to gain a competitive edge in the market. The net result from strategic operations management is that the company is able to come up with a plan which gives the direction in which the company is heading in the years to come ( for example, the next five years). If strategic management has to be effective, it is very important for a company to assess where their position is, in terms of their profits and their competitors and where they see themselves going because this is the foundation in which strategic management is based.
Another aspect which influences strategic management is the level of realism an organization adopts in understanding their current position and what they want to achieve in the future. For example, a company which has just entered into a competitive market segment such as the IT market, cannot expect to rise to the level of leading organization in the IT market, in say a five year period.
In order to do this they need more time and input for growth and development. Strategic operation management operates on different time scales. A company can undertake short-term strategies, which help it to manage the market situation for the present or it can take-up long term strategies wherein it makes plans ion how to implement future business objectives. Understanding the concept of strategyWhat is the concept of strategy? Strategy is a concept which was adopted from the military and in business strategies (as in the military) help to bridge the gap between what is business policy and business tactics.
That is to say strategy and tactics bridge the gap between ends and means. In short strategy can be described as combination of ideas, insights, experiences, thoughts, memories, perceptions, goals and expertise which all put together guide actions taken to achieve particular ends. It is the course charted by an organization, towards achieving it’s goals. Thus, strategy can be understood as the means for an organization to achieve competitive advantage, by delivering a unique value added product or service to the customer.
This implies that the organization must have a clear and precise view of how to position themselves uniquely in their industry. This can be seen in example such as the way in which Southwest Airlines positions itself in the airline industry and IKEA in furniture retailing. ( Michael Porter, 1996). Strategies have a set of characteristics. Following are some general characteristics attributed to strategies: Strategy is a concept which has been borrowed from the military and adapted for business use.
Strategy defines the means by which an organization can go about attaining their business goals and objectives. Strategy is concerned with business objective and aim can be accomplished and not really what those aims are or ought to be, or how they are established. Strategy is one part of a four-part structure, wherein the first part seeks to meet goals, the second part looks into the strategies for obtaining them and the ways in which resources should be use for that purpose, the third part is about tactics, or the ways in which resources which are deployed are actually used and fourth is about the resources themselves.
Thus strategy and tactics bridge the gap between ends and means. Strategies constantly adapt according to circumstances and they evolve according to what is required to obtain the goals or business objectives.