Strategy refers to the pattern of integrating an institution’s goals, regulations, and actions into a collective section. A well-generated strategy depending on its weaknesses and strengths, changes in the environment, and liable steps by a witty opponent, assist in collecting and assigning resources in an organization. For a competitive strategy to work, there is a need to place it into an operation. This is a clear indication of an existing relationship between a strategy and operations within an organization. Therefore, there exists a strong relationship between the strategies and operations in a firm.
The 7FE framework has 4 main phases of the strategic formulation. The first stage entails defining the objectives and goals for the entire organization. For instance, Coca-Cola’s company objectives and goals have been defined as accessible, affordable, and acceptable. The process of designing strategies entails operations starting from deliberate to emergent, just as in the UK Mcdonald’s burger chain. The series of operations applied to formulate the competitive strategy aims at positioning the enterprise to a point where it can maximize the capability values making it different from its competitors. The available generic strategies include focus, overall leadership costs, and differentiation.
The second phase provides the business review relating to the business environment. Effective strategic management entails widespread decisions which define the organization’s position relative to its environmental setup. Therefore, environmental analysis is the interpretation and assessment steps of information relating to the forces of the surrounding gathered through scanning. Aspects that need attention include monitoring the sources, identifying the significant changes, evaluating the effects, and predicting the trend.
Furthermore, the operations performed analyses profitability through customer segment process, product costing, and the strength, weakness, opportunities, and threats (SWOT) management tools. Effective management is intertwined with proper operation practices, therefore, helping the organization achieve its long-term goals. For instance, strategic management incorporates process and content where they require a set of operations adhering to formulated procedures striving to change the organization’s appearance in the future.
The third phase is a recap of the second one because it incorporates the objectives’ purpose into business and functional units. The purpose creates an interface between the operational, tactical, and strategic decisions. The underlying relationship between them arises from both the bottom-up and top-down approaches applied in shaping the strategy’s formulation. The business managers formulate and decide on particular objectives to be fulfilled.
The process of strategy generation is essential in building the operation, which will feed the information into both the operational and functional stages. The operations for fulfilling a balanced scorecard require the use of financial aspects for a traditional measure of accounts, customer issues relating to clients, and internal business steps for quality measurement. The use of a balanced scorecard requires a relationship between phases for the identification of key factors for success, articulation of long-term vision, and defining the critical steps. For example, a balanced scorecard fails to omit the unique aids and the management difficulties possessing their views.
The fourth phase converts the plans identified in the third section into detailed programs and budgets for use in the company. The adoption of operations by companies requires knowledge as the instrumental aspect in ensuring their success in meeting objectives. The findings are taken back to the second section for use in the future. The changes require efficiency in the involved operations in redesigning the existing strategies using top-quality management and making integration for a plan-do-check-analysis and making a proposal for a creative continuous management strategy. The changes form a strong foundation producing purpose and insight for the strategic formulation process through operation incorporation.
In conclusion, the relationship between strategy and operations creates a strong process for formulating decisions in running an organization. Operations provide a link for essential components applicable in the process of strategy formulation. Furthermore, operations require designers to take thorough steps within the detailed levels of decision-making. An effective strategy aims at managing an organization’s operational sections to compete with other institutions’ complexity. There is an effective competitive functional advantage if operations have been optimally utilized.