Some business firms with a modest and humble beginning make it to the top in a very short span of time. How do you think this is possible? They have a clear strategic vision that guarantees success. Success does not come that easy. You have to have real focus backed up by solid strategies for such resounding success. A strategy is a comprehensive plan of action that sets critical direction and guides the allocation of resources to achieve long-term organizational objectives. Some people formulate strategies and follow suit, some flow along with the stream of situations and react accordingly, rather than merely plotting strategies. Mere strategizing is not enough, you have to look into the actual situation and how it would affect your operations. Learn Sales Hacking Essential sales skills, sales strategies and sales techniques to sell just about anything! Let us have a clear understanding on the reasons for formulating a strategy Business has gone global for many reasons, including reactive ones like, international competition, customer demands and trade barriers, and proactive ones like seeking economies of scale, new international markets, resource access and cost savings. After the liberalization, globalization and privatization processes activated in full swing, many firms have come to the limelight in the international market scenario, which has provided them with a solid head start. Companies have to respond to both changes in the external environment and emerging opportunities. An opportunity not well utilized is an opportunity lost. Rational planning is called for to meet international expansion through workable strategies. International corporate strategy is purely based on the intentions of your firm, the objectives that stem out from your vision and can be materialized by scanning the environment for threats and opportunities, assessing the internal strengths and weaknesses of the firm, considering alternative international entry strategies and firming up on the workable ones. List down the answers to the following questions and you may arrive at a reasonable conclusion on your company’s market standing.  Strengths  What are your advantages?What is the activity that you specialize in?What is your uniqueness that differentiates you from your competitors? Your own viewpoint and that of the people you deal with is necessary. It is important to be honest and realistic. This exercise helps you and your team to understand the mission and purpose.  Weaknesses  What is done badly?What could be done better?What should be avoided?What causes problems or complaints? To identify the unpleasant truths as quick as possible is the notion of this exercise. Ascertain Your Priorities After ascertaining the priorities, the strategic management process is carried out with well laid plans, executed by professional strategists followed by implementation of control and evaluation procedures. Any corporate firms go for strategic alliances, that may include, acquisitions, mergers, joint ventures, strategic partnerships, cartel agreements and so on to survive in the international market as well as to exploit the opportunities available in the global market with the available potential resources put to optimal...

Game theory and strategy What is Game Theory: Set of concepts designed for decision making in situations of competition and conflict under specified rules. The prisoner’s dilemma: The prisoner’s dilemma is a canonical example of a game, analyzed in game theory that explains why two individuals might not cooperate, even if it appears that it is in their best interest to do so; Albert W. Tucker formalized the game with prison sentence payoffs and gave it the “prisoner’s dilemma” name.   To solve many practical problems that are encountered in economic, military or other disciplines, one has to deal with situations in which there are two or more conflicting parties striving for the same objective and the outcome of each action of one party depends solely on the opposite parties choice of a course of action. As we all know only one horse can win the race ultimately and the other parties only can prolong the race or see to that they make every possible move to delay the opponent’s success. So, what’s this game theory all about? This is a special mathematical method that was evolved mainly to analyze conflict situations where the number of competitors is finite, each participant has a definite set of actions to choose and there is a conflict of interest between the competitors. So it helped the participants to reach a decision that would put them in the winning post. This theory has spilled its implications on business situations where success is the motto and conflict and competition the order of the day. Only the best among the best survive. Darwin’s theory, “Survival of the fittest” applies not only to biological organisms but also to business organizations which are also abuzz with activity. Chance Moves: Games like chess, checkers are played according to a definite set of rules laid down and these game patterns has inspired business persons to introduce strategies in business, where the concentration is mainly focused on the chance moves that defeats the opponent. Big business corporates mainly concentrate on the strengths and weaknesses of their competitors to have an edge over them. A real game is controlled and regulated by the statutory rules to be followed but a business game involves lot of killer instincts and intuitions combined with rational thinking and logic. Optimal Strategy: The first party always puts himself in the shoes of the other party and tries to perceive how the other party would react in a particular situation. Although the aim is to win, choosing the optimal strategy is what matters. It will at least keep you in bay. Precise solutions can be arrived at if you plan your game fittingly. The anticipation and thrill that is involved in a strategic game is matchless. We witness a lot of firms imitating what the leader of the market does. The risk is borne solely by the firm introducing the change and the firm takes the major share of profit as it is the pioneer and if it loses the next strategic move is planned for.     For a company with sound financial position, the chance move is worth giving a try, head or tail doesn’t matter. The stalkers are benefited by the waiting period during which they come to know of the pros and cons of the strategy employed by the leader. Games are played in the true spirit of sportsmanship, but a business faces cut throat competition. There is no space for any courtesy or liberal approach. If you are quick enough to pick the pulse of the people by gauging their preferences, analyzing the market conditions and employing timely strategies you will at...

The management of conversion or transformation process which accepts inputs and delivers usable goods and services is what is called “operations management.” The inputs may be in the form of, capital, material, labor, technology, information, machines etc. The process takes place in an effective and efficient manner through operations planning, design, management and control. Don’t forget to download the 3 page Project Planner Printable at the end of this post 👇🏻 Absolutely Free Earlier it was called, production or manufacturing management. Since operation is a general term in a productive environment whose output may be goods or services, the term operations management has become more appropriate. The Aim of a Good Operational Management Would be High level of productivityCompetitive cost and qualityTimely deliveryProducing goods as per the requirements of the consumer, that is customer oriented.Flexibility and responsiveness in the production of goods and services Production or operation in the three important sectors of an economy, namely, agriculture, industry and service, creates national wealth and serves as an index for the growth of that economy. One has to understand the link between operations management and other functional areas to appreciate its scope. The goals of the operations strategy has to necessarily be in tandem with the overall corporate strategy to accomplish the goals of a firm. Scope of Operations Management From marketing department, cues regarding customer preference and market segmentation in terms of product, price and volume are supplied to the production department, based on which the production planning is concluded. From Research and development comes the product design and process technology. Human resource is an integral part of production process and also a crucial input. Man power planning by the human resource department plays a major role in recruiting, selecting, training, evaluating and empowering labor force. Operations Strategy The great diversity in products and services available in the market should be taken into consideration before deciding on your operations strategy. At one end we have custom made products that are designed and manufactured to suit the specific needs of the consumers. For instance, custom made shoes, shirts, suits, furniture etc. Here the emphasis is on quality and delivery where the customer is not very much bothered about the price. At the other end manufacturers go for highly standardized products that are available “off the shelf.” Say, home appliances, detergents, soaps etc., here the product differentiation is very minimal and the focus is on competitive pricing as the material is available in plenty. Economy of Scale A customized product would require a manufacturing set up that can handle a wide variety of general products. The sequence of operations for each product would vary in the manufacturing system making a customized product. So, a process oriented manufacturing system is designed, where similar facilities doing similar operations are grouped together and departmentalized. Standardized products go for a product focused manufacturing system, to reduce the “through put” time as large volumes are required. To be cost effective, each product should have a dedicated line of production to take advantage of the “economy of scale.” Intermediate types of products also find their place in the market and they are produced in a production layout that has a mix of product and process orientation. Here a whole range of products and services are created for the benefit of the customers. In a long term basis, manufacturers should aim to develop new technology, environmentally viable products, increase R and D activity, update skills of work force and managers and focus on development of new products, process and innovations....

Significance of Operations Management: Business firms need to formulate brilliant operations strategies in order to survive in the market for long. Focus on finance and marketing alone is not sufficient to compete in the global market. The emergence of innovative products and processes from leading companies in different parts of the world is a clear-cut evidence to prove the significance of operations function. Operations management is gaining importance, thanks to public awareness on quality and its applicability in service operations too. Advent of Industrial Revolution: Until the advent of machinery, each and every nation was dependent on agriculture, which was the prime economic activity. After the industrial revolution of the eighteenth century, mechanization in a large scale converted agricultural economy to an industrial economy. Slowly scientific principles were introduced into production activities to make it more systematic and thus “Production Management” evolved. Now service operations have also gained momentum and since the concepts and techniques of production management are applicable to service operations too, it is rightly called as “Operations Management.” Operations management functions at three different levels. Strategic levelTactical levelOperational level Strategic level: At the strategic level, the operations manager must have a long term vision, as to shape up the company’s success in the light of strategic decisions taken, with the approval of the top management. His area of concern would be, New product developmentNew process developmentProduct re-designProcess re-designProcess layoutProduct layoutFacility locationAggregate capacity planningPlanning co-ordination with finance and marketing departments Tactical level: At the tactical level, the operations manager is concerned about the planning and scheduling operations of the desired output. His area of concern would be: Designing a suitable inventory systemPlan for the work force and train them effectivelyQuality control systemMaintenance andReliability assurance system. Operational level: At the operational level, the job of the operations manager is to accomplish the “set targets”, by performing various coordinating and controlling functions. His area of concern would be: Ordering materials at the right timeScheduling productionScheduling workers as per production requirementControlling quality of goods and services producedFollow up of various schedules for proper implementationMaintaining and updating equipment and system reliabilityOn the job skill development of workers, etc. These functions are by no means exhaustive, but only indicative. The process of planning and control operations is not done in water tight compartments, but are interactive and integrative feeding on one another and also aligned in line with the overall corporate objectives. The strategies are evolved for the purpose of efficient utilization of the available resources as well as to predict the changes in the external business environment that calls for suitable action to limit their impact on the goals of the organization, in terms of cost, quality and...

Locational Attributes for a Plant Layout The location of an industrial plant plays a vital role in determining its success. Management should weigh the pros and cons of the location in terms of cost and revenue as each location might influence these variables in different proportions. Let us try to understand the need for a new facility location. Entrepreneurs interested in starting a new business venture or a small-scale enterprise has to look out for appropriate location for plant installation. Manufacturers who plan to expand their product range needs additional plant capacity Multinational corporations trying to establish their markets through subsidiaries Obsolete plants have to be shut down and new location has to be identified. The location attributes described below are fundamental in the decision to locate an industry. Although for particular firms some are more important than others, a significant shortfall in an area’s ability to provide even one of these may greatly reduce the attractiveness of that site. Labor The management will be interested in such locations where there is adequate supply of labor. Some operations need skilled labor and some unskilled. The cost of labor is an important factor to be considered as it influences labor productivity. However, low labor cost is not necessarily an advantage, if the workers are poorly educated and trained. The management has to be mentally prepared to pay for skilled labor who have the training and experience needed for the planned operation. Energy resources Electricity and water are major energy resources needed for production activities. For example, a textile mill needs to have round the clock power supply, for continuous production and a dyeing plant is in need of copious water supply. These industries will be on the look out for a location that has abundant energy resources available at low cost. Transportation The industry has to be located near the market so that the produce can quickly reach the market making the transportation costs minimum. Domestic trade heavily relies upon road transport as there are numerous service providers and there is well-developed infrastructure connecting even the remotest of locations. International trade takes place through either airways or waterways. In places like Kerala, inland waterways help in transporting merchandise within the domains of the territory. Raw materials availability Many businesses depend on materials of various types such as unprocessed raw materials for use in manufacturing and finished goods for inventory, in wholesale and retail establishments. The availability and cost, including transportation costs of these materials are critical location factors. Other Factors Other factors that influence location decisions are government regulations, climate and environmental quality of an area, soil texture, and attitudes of state and local governments’ etc. The economic viability of a project is undoubtedly enhanced by appropriate location. The location should also conform to environmental protection laws to maintain the ecobalance of that particular habitat. Organizations are expected to dispose of with the effluents in a systematic manner and this has to be kept in mind while choosing a location. The GEMBA Walk: A gemba (and sometimes genba) walk is the term used to describe personal observation of work – where the work is happening. The original Japanese term comes from gembutsu, which means “real thing.” It also sometimes refers to the “real...