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Cost effectiveness in terms of low price relative to that of its competitors Achieving highest efficiency at all operational subsystems To be effective in labour relation and manpower cost control Efficient material utilization and its cost control 6. SWOT analysis - deciding on organisational strategy appropriate to the strengths and weaknesses of the organisation after taking cognisance of the merging opportunities and possible threats to the organisation Strengths Quality Technology Resource availability Flexibility Capacity Skills Cost structure Motivation

Weaknesses Management Systems Industrial Relations Employee age Equipment age

Opportunities New Markets Interest rates Population characteristics Improved communications New Technologies New Products

Threats New competitors RBI Intervention Exchange Rates Competitor’s Plans Govt. Policy changes

Strategy Implementation Implementation means mobilizing employees to translate formulated strategies into concrete action. The steps are: i. ii. iii. iv. v. vi. vii. viii. ix. x.

Establish annual objectives Devise policies Motivate employees Allocate resources Develop a strategy of supportive culture Create an effective organization structure Channel marketing efforts Prepare budgets Develop and utilize information systems and Link employees rewards to organizational performance

ROLE OF OPERATIONS IN STRATEGIC MANAGEMENT-PRODUCTION AND OPERATIONS STRATEGY - ELEMENTS AND COMPETITIVE PRIORITIES PRODUCTION STRATEGY

a. Differentiation Strategy o Being different and superior in some aspect of the business(from competitors) that has value to the customer 

For eg. A wider product range

A functionally superior product(design) 14

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production

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