Overriding strategy

RL5.2.1 Operations Management, BITS Pilani

BITS PilaniPilani Campus

Operations Management

Live Lecture 4-5

Strategy


Module Objectives

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• Dissect mission statements and link them to strategies.

• Dissect overriding operations strategy of a given organization

and infer its performance against its strategy.

• Interpret global strategic options and analyze their respective

business models.


Chapter Overview

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Mission – The Purpose of Existence

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https://www.youtube.com/watch?v=JYkgPXt8vOA

We are in the business of preserving and improving human life.

All of our actions must be measured by our success in achieving

this goal.

Merck & Co., Internal Management Guide, 1989

We try to remember that medicine is for the patient. It is not for profits. The profits

follow, and if we have remembered that, they have never failed to appear. The better

we have remembered it, the larger they have been.

George Merck II, 1950


6 Principles of Strategic Positioninghttp://mintne.ws/1AmkWDZ

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1. Start with the right goal – Superior long-term return on

investment. Do not set your goal on volume, market share or

perceived investor desires.

2. Strategy must aim at delivering value proposition that are

unique.

3. The unique value must reflect on the entire value chain.

4. Be prepared for a trade-off to focus. A Jack-of-all is not the

approach.

5. Align the functional objectives to organization strategy.

6. Stay focused on the goal for a sustainable period of time.


Post Class Hours

• M2.8 What strategy is not

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WILe

Interview your organization’s leadership team on the

organization’s mission and strategy – Map it against the six

principles of strategic positioning – Is it confused with

operational effectiveness? What is your value proposition? Does

this distinction percolate across the value chain? Does your

organization consider trade-offs positively? How does this

strategy translate into functional objectives? Do you see a

conflict between organizational and functional strategies?

Between the strategic direction and a market opportunity, what

does your organization pick? Share the results with your

instructor.

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References

• Jay Heizer., Operations Management, Pearson Education 9th

Ed., 2009

• Mike Michalowicz., The Toilet Paper Entrepreneur, HarperCo

Books., 2008

• Harvard Business Review – What is strategy? – Michael Porter,

1996 issue - https://hbr.org/1996/11/what-is-strategy

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END OF LECTURE

Leadership & Management

Overriding strategy