Operational strategy is a plan of action implemented by a firm that describes how they will employ their resources the production of a product or service. It is a necessary element for a business and supports the firm’s corporate strategy. It involves refining and specifying a company’s business strategy and developing strategic initiatives and operational plans, aiming at enabling our clients to successfully implement overall strategy for their business.
An operations strategy for a business is the company’s plan for how the business will operate to achieve a set of goals. Compare it to a machine; the machine is used to achieve a certain purpose or function, but all components of the machines must operate correctly and in conjunction with each other for the machine to work successfully. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process. An operations strategy in a business is essentially the same thing. It defines how different components of the business will work together to achieve success. Companies define operations strategies differently, based on the management style and needs of the company.
Various methods may be used to attain the necessary stage of operational strategy analysis such as:
- Value proposition and value chain analysis,
- Activity Based Costing,
- Business performance diagnostic, etc.
- Performance measurement methods and techniques, etc.