Business Strategy and Operating Strategy Essay

362 Words2 Pages
Based on this mission statement the firm will formulate its business strategy which is a long-term plan for accomplishing the mission set forth in the mission statement. Each function within the business can then derive its own strategy in support of the firm's overall business strategy (financial strategy, marketing strategy, and operations strategy). Business strategy is often thought of as a plan or set of intentions that will set the long-term direction of the actions that are needed to ensure future organizational success. However, no matter how grand the plan or how noble the intention, an organization’s strategy can only become a meaningful reality, in practice, if it is operationally enacted (Lewis, 2003). Operations strategy is the collective concrete actions chosen, mandated, or stimulated by corporate strategy. It is, of course, implemented within the operations function. This operations strategy binds the various operations decisions and actions into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive priorities chosen and communicated by the corporate or business strategy. In simpler terms, the operations strategy specifies how the firm will employ its operations capabilities to support the business strategy (Lewis, 2003). An appropriate operations strategy is essential to an organization not only as this will determine the extent to which its business strategy can be implemented, but also as its operations can be a source of competitive advantage. Operations strategy has a vertical relationship in the corporate hierarchy with business and corporate strategies, and horizontally with the other functional strategies, most notably with marketing strategy. Operations strategy might come about in a top-down or a bottom-up process with regard to business

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