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Edie, South Africa
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Operations Strategy versus Business Strategy
What are the the differences between the operations strategy and the business strategy? And what do they have in common? Thanks for your replies.
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Sam Hwambo. BA Hons. Bus Stud (Open), Zimbabwe
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Operations Strategy versus Business Strategy Operations strategy relates to the day-to-day running of the business and is short term in nature.
The business strategy is the overall business vision looking further ahead, giving direction as to where the business wants to be say, in the next five years or so.
The operations strategy is controlled by the business strategy.
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Rajeev Kumar, India
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Operation versus Business Strategy There is no clear demarcation between operation and business strategy. However the business strategy is more holistic and affects the business in long term, while the operation strategy helps company to serve its customers in a better way. Operation strategy also helps to improve the bottom line of the company.
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KOVIT SKULSANGJUNTR
Management Consultant, Thailand
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Operation Strategy and Business Strategy Operation is what you do to achieve business results. Operation strategy is mainly considering your internal available resouces and supply, whilst the business strategy is mainly / also considering external demands.
The operation strategy shall be planned to answer the question: what are the requirement for the business?
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Kroon, South Africa
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Operations - versus Business Strategy Although the business strategy and operation strategy form an integrated whole, they both require a different set of skill and focus.
- The business strategy deals with the future and the decisions we need to make today to manage a volitile and unpredicted future. These decisions relate to your market and how it will grow and change. It deals with how your competitors will respond and what are you going to do to counter this. It deals with complex issues such as the impact of environmental changes or "new order" questions, Tofler asked several years ago.
- An operational strategy will take these decisions and implement them in your operation! If we can get our people to understand and implement our strategic decisions faster than our competitors, we will survive!
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Robert
Consultant, United States
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Operations versus Business Strategy Business strategy is the bigger picture plan looking ahead for "WHAT" your company should do and be; Operations strategy is "HOW" it will be governed and measured, how it is unique, how it will create value in it's market... The shorter term plans for what's needed.
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Prof. Alkis S. Magdalinos, Greece
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Operations versus Business Strategy Kroon from South Africa has given the best description.
Although we rarely talk about "operations strategy" but simply "operations" we need to understand that in the sequence vision-mission-planning-operations the last element means actually executing our planning.
The next element is control and evaluation; this gives us the basis for developing our new plan adapting is to new conditions both internal and external..
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Prof. Alkis S. Magdalinos, Greece
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Operations and Business Strategy Tomas, your answer is OK. To put it more simply, "strategy" refers generally to business. When we talk about "operations" we mean "execution" of a business plan" which implements a business plan. All the best.
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Dr Gary Jones, Australia
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Operation is Part of Business Strategy A link that seems to be missing here is that strategic management is carried out to obtain the corporations strategy. It is the implementation of the strategic foresight of the organisation (plan or policy). Operations and business strategy require management to prioritize strategy initiatives and introduce innovative strategies (real time/operations) to enable the organisation to realise its long term strategies by obtaining the corporations goal - its mission.
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Prof. Alkis S. Magdalinos, Greece
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Operations Strategy versus Business Straegy If I am reading Gary Jones' comment correctly, he is not saying that operations is part of business strategy; he is saying, correctly, that it is its implementation.
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Dr Gary Jones, Australia
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Control and Evaluation of Strategy Whatever title you give strategy, it is imperative that you have a measurement of its success. Without measurement you have no control over strategy implementation and/or its contribution to the successful attainment of strategic initiatives and plans. Measurement systems such as the Balanced Scorecard need to be implemented otherwise strategy will remain just that - what we will do and not what we are doing and have achieved.
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Prof. Alkis S. Magdalinos, Greece
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Control and Evaluation Strategy Yes, but you have to take all elements of managerial actions in a logical sequence, otherwise you risk confusing concepts and the different individuals who are responsible foe each activity and action. Naturally, it all ends up with control, evaluation, adaptations to shanges in the company and the environment and corrections..
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Dr Gary Jones, Australia
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Control and Evaluation Strategy Yes I agree - it is consistent with my initial entry in this forum. Strategic management is the prioritization of strategic actions and initiatives. Logic only follows when informed information about actions taken is provided by an information system such as the Balanced Scorecard - then a decision matrix can be established. "strategy is just an idea unless implemented, implementation success is a result of measurement" - a line from my thesis.
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Steven Cofrancesco, USA
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Operations versus Business Strategy This is an interesting thread, and I hope I can contribute:
There are considered to be three (or possibly four) levels of all organizations: corporate, business, operations (the fourth could be functional).
Operation strategy or business strategy are usually referring to those specific levels of an organization. Corporate strategy, the highest level, refers to the overarching strategy of the organization.
Business strategy usually entails development of activities that achieve their objectives (which are linked to the overarching corporate strategy). So, for example, the organization's board identifies a specific strategy they want to pursue, and the business level (the CEO and other top managers) develop specific strategies that can achieve the objectives necessary to meet the overall corporate strategy. The operational level is the one that actually performs or implements the objectives identified by the business level. However, they might develop their own "strategies" to do this.
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Dr Gary Jones, Australia
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Operations versus Business Strategy Steven good answer. Corporate strategy is strategic planning (rationalist paradigm). The business strategy as defined by yourself is the processualist paradigm. And the operation level is a hybrid of processualist/evolutionist paradigms.
Having said that, even when we identify these different types of strategy and implementation processes, the objective is success. Which can only be done through constant measurement.
We then need to look at whether strategy is a bottom up or a top down process! - its actually a two way flow - no versus.
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Steven Cofrancesco, USA
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Operations and Business Strategy should be Bidirectional Thanks for your response, Gary. I think you are absolutely correct, that strategy formulation is not only top down or bottom up, but rather bidirectional; I might even go further by saying that it is ...
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Dr Gary Jones, Australia
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Operations versus Business Strategy Steven its very difficult to get out ideas out in so few words. But I will have a go. By definition if the long term strategic planning (rationalist paradigm) is developed by boards CEO and senior man...
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Steven Cofrancesco, USA
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Operations versus Business Strategy Gary, I'm not sure I'm understanding your main point: are you saying that because any corporate or business strategy requires implementation, which therefore intrinsically requires the participation/i...
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Joseph Pangilinan
Turnaround Manager, Philippines
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Operations versus Business Strategy Strategy, at any level, has to do with the efforts of a company to win & to keep winning in the marketplace, i.e. to gain & sustain competitive advantage. Steven is right:
- Corporate strategy refers...
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Dr Gary Jones, Australia
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Operations versus Business Strategy Steven. Different words - same meanings. Strategic planning relies on its strategic processes to encompass the power and efficiency required to meet the external market, it is a prescriptive school of...
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Steven Cofrancesco, USA
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Operations versus Business Strategy Thanks for your input, Joseph. I think you make a good point about alignment of strategies across levels.
Gary, I understand your point now; thanks for clarifying. Forgive me, but operational strateg...
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Dr Gary Jones, Australia
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Operations versus Business Strategy Steven. Best way for me to sum up what I am saying is refer you to an article by Henry Mintzberg and Joseph Lampel 'Reflecting on the Strategy Process' this article asks the question 'and why must the...
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Joseph Pangilinan
Turnaround Manager, Philippines
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Strategic Health of the Goose, not Just Golden Eggs What is the point of doubling sales, if you end up with half your sales and/or production force?
Strategic management (planning, organizing, leading, and controlling) at whatever level done (corporat...
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Steven Cofrancesco, USA
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Operations versus Business Strategy Thanks once again, Gary. I think one more point deserves attention: now I see that you are talking about the strategy process as a whole (the formulation, selection, implementation, monitoring, and ev...
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Dr Gary Jones, Australia
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Operations versus Strategy Hi Steven and all that are watching us butt heads. You are exactly right. There is an inception point to every subunit of strategy. This is strategic management.
Strategic management is generally see...
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Jaap de Jonge
Editor, Netherlands
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Ambiguous Terms.. Steven, Gary, unfortunately there is no common and agreed definition of the terms 'strategy', 'strategic management' and 'strategic planning':
- The various schools of thought on strategic management...
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Steven Cofrancesco, USA
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Operations versus Business Strategy Thanks once again, Gary; I think it's been a beneficial discussion.
The Editor also makes a very accurate point about no agreed upon definitions. However, that's exactly the purpose of such discussi...
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Nasir Awan
Strategist, Saudi Arabia
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Business Strategy versus Operations Strategy In fact once the business strategy is well set than the next steps are execution and integration in the whole operations.
Getting the business strategy rightly executed is done through fine tuning al...
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Jose R Paz Barahona
Professor, Costa Rica
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Strategic Planning Going to Lower Levels In the practical day to day reality, I don´t feel that strategic planning must always go top and down, back and forth, sometime it must be set up and comunicated, and then you order your resources and...
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Lesley Govender
South Africa
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Business Strategy versus Operations Strategy Both are intertwined. However there is an hierarchy to eventually achieving results. Whilst business strategies are competitor / mandate related, operations strategies are more hands-on and about what...
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Ajai Dayal, India
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Operations Strategy versus Business Strategy The "operations strategy" is traditionally / normally referred to as "operations planning and control".
It has a time horizon of approx 1 year. Compare this against of a business strategy which has a...
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Prof. Alkis S. Magdalinos, Greece
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Operations Strategy versus Business Straegy Dear Ajal, you are quite right. A long period of time is far more difficult to extrapolate than a short period, since the chances of extreme changes are greatly exaggerated; let alone the fact that in...
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Joe N.Cavada
Management Consultant, Philippines
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Strategy: Business and Operations @Robert : I agree business strategy focuses on WHAT, while operations strategy focuses on the HOW.
Being strategy, both are long-term.
The former deals with goals, objectives, structures, mileston...
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rio-roshi merit
Student (University), Nigeria
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Operations Strategy versus Business Strategy - Operations strategy takes into consideration only the day-day activities.
- The operations strategy acts on the foundation made already/available by the business strategy.
- The business strategy...
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Moses Mutethia Muriungi
Strategy Consultant, Kenya
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Who is Dealing with Operations Strategy versus Business Strategy? I like these scholarly managerial contributions from all of you, and I concur that business strategy focuses on the bigger picture pointing to the direction and ultimate strategic intent, while the op...
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Moodley, United States
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Operations Strategy versus Business Strategy Business strategy is when a Mark Zuckerberg decides to design a new generational social network website for millions around the world; operations strategy is to call it face Facebook, and decided thro...
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Steven Delport
Consultant, South Africa
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Three Levels of Strategy Depending on the type of organisation there will be three or two levels of strategy - corporate, business and functional.
- Corporate strategy - if a large, diversified corporation, the corporate str...
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Alan Kennedy, Canada
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Operations versus Business Strategy If we accept Henri Fayol's observation, in General and Industrial Management, 1916, that there are strategies common to all organizations, we can see that all organizations follow one or more of the f...
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Bernhard Keim
Business Consultant, Germany
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Business Strategy versus Operations Strategy Operations Strategy is about HOW to go,
Business Strategy is about WHERE to go.
Operations refers to the machine you are running, Business is what it has been built for....
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Thomas Solomon
Student (University), Nigeria
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Response to Sams Reaction @Sam Hwambo. BA Hons. Bus Stud (Open) what you take to be business strategy is not, but rather an organisation vision statement. Whereas a business strategy is the step by step process or procedures a...
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Ajai Dayal, India
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Operations Strategy versus Business Strategy Business Strategy is
1. Choosing an empty space to conquer when there is no competition
2. Choosing specific direction /parameter where it can outperform competitors in the eyes of customer if the b...
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Andrew Blaine
Business Consultant, South Africa
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Business Strategy versus Operations Strategy - an Oxymoron? If the business strategy is to compete with the operational strategy in a business the result must be failure.
Business strategy and operational strategy must work together in harmony for a business ...
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mattwatson
Business Consultant
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Operations Strategy versus Business Strategy Basically Operation strategy is a small side of Business strategy. A business strategy should be planned quite early when starting a business. The operation strategy is dealing with how the several st...
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Andrew Blaine
Business Consultant, South Africa
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The Good Ship Strategy Assume, for an instant, that the business is a ship. The overall determination of destination and functioning of the ship is the responsibility of the Captain. However, the ship needs to function to a...
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K.Narayana Moorthy
HR Consultant, India
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Operations Versus Business Strategies Operations Strategy is typically dealing with: cycle time; working capital; customer service; cost; process activities; technology; skills and knowledge; assets and facilities, performance management;...
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rajiv gupta
Business Consultant, India
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Understanding Operations versus Business Strategies A simple analogy is to equate business strategy with 'doing the right things', which is usually in the context of customer segment(s)/market selection and corresponding product definition for that cus...
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Bernhard Keim
Business Consultant, Germany
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Doing the Right Things Right The business strategy handles the "raison d'ętre" of a business. It focuses on the business model, the market conditions etc.
The operational strategy focuses on the things and measures to make the b...
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