ABSTRACT
Strategy is at the heart of any business, whether it is a manufacturer, service provider, or not-for-profit organisation. If the organisation exists, it must have a purpose. If it has a purpose, it must have a strategy which outlines how it plans to achieve it.
The opening perspective discusses airlines and their need to stay competitive.
The chapter then starts with a brief trace through the modern history of operations management. We define several terminologies and concepts, including operations management, customer, transformation process, product, service, strategy, core competence, value, servitisation, and the service package.
Business strategy defines and links the functional strategies for new product development, operations, marketing, and finance. This provides the basis for developing these functional strategies and prepares each function for achieving the goals and vision of the organisation.
Operations management and supply chain management play a strategically important role in the ultimate performance of the organisation. We discuss strategic capability, core competence, and competitive capability with specific reference to competing on cost, quality, delivery, flexibility, and service. These quantifiable dimensions have an enormous impact on an organisation’s performance.
We link operations strategy with business strategy and distinguish between structural, infrastructural, and integration decisions in operations.
