Operations Management Topics Essay Example | Topics and Well Written Essays - 2250 words

Operations Management Topics - Essay Example Each function of the company then derives their separate strategy to support the firm's values and vision and the operations that are needed to support that strategy help develop the operational strategy. Making it easy, the operations strategy helps to specify how a particular firm will employ its operational activities to support the business strategy. Customers are the most valuable aspect in the supply chain. They are the one through which we are able to generate revenues from. They are the one who are needed to be pleased by the products and services that companies put forward in order for those companies to prosper in the long run. Therefore, it is one of the core values to satisfy the needs and wants of the customers in order to fulfill the main purpose of the organization. If a customer views your product being one of those on which he or she does not have to spend much money or there is a substitute present in the market, it becomes necessary for the organization to improve on cost-effectiveness and reduce the price of the product in order to lure in the customer to your product. Price/cost strategy is usually used in this case however; this strategy can only be employed if the firm is able to mass produce or is ready to accept a lower profit margin in order to grasp the market share. In the operations strategy framework, fulfillment of customer needs top the chart. All the new and existing products are manufactured keeping in mind the needs of the customers. One tremendous example is of Wal-Mart. Wal-Mart has a reputation in the eyes of the customer as being the best retailer chain as they are able to supply the products with the lowest prices by accepting a smaller profit margin. Their tremendous volume helps them make up even more than before. Another very important factor that plays an important role is the competitiveness of a firm. They are based on the elements of the operations on which they need to excel in order to gain competitiveness in the environment over a certain aspect. b) Competitors: Competitors are a part of the general macro environment for any firm and their decisions and strategies have a major impact on the different strategies that are being followed in the particular firm. Competitors are one of the major threats to a business and by knowing valuable information about how your competitors are functioning in the market, you might be able to compete with them on fair basis. in order to provide your product or service at a much better price, one needs to examine how the competitors are working, focus on their positives and try not to copy their negatives and develop a strategy in such a way that is counteracts their competitors strategy and helps you to achieve competitiveness. When it comes to developing an operational strategy, price or cost effectiveness comes into place. A firm