Overriding strategy
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This document contains lecture notes from an Operations Management class at BITS Pilani. The lecture discusses strategies and strategic positioning. It defines mission statements and how they should link to organizational strategies. It outlines six principles of strategic positioning such as starting with the goal of superior long-term returns, delivering unique value propositions, and aligning functional objectives with organizational strategy. Students are assigned to interview leadership about their organization's mission, strategy, and whether it follows the six strategic positioning principles.
Overriding strategy
- 1. RL5.2.1 Operations Management, BITS Pilani BITS Pilani Pilani Campus Operations Management Live Lecture 4-5 Strategy
- 2. RL5.2.1 Operations Management, BITS Pilani Module Objectives 2 • 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.
- 3. RL5.2.1 Operations Management, BITS Pilani Chapter Overview 3
- 4. RL5.2.1 Operations Management, BITS Pilani Mission – The Purpose of Existence 4 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
- 5. RL5.2.1 Operations Management, BITS Pilani 6 Principles of Strategic Positioning http://mintne.ws/1AmkWDZ 5 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.
- 6. RL5.2.1 Operations Management, BITS Pilani Post Class Hours • M2.8 What strategy is not 6
- 7. RL5.2.1 Operations Management, BITS Pilani 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. 7
- 8. RL5.2.1 Operations Management, BITS Pilani 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 8
- 9. RL5.2.1 Operations Management, BITS Pilani END OF LECTURE