Operations strategy principles and practice pdf
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- Operations Strategy. Principles and Practice. Jan A. Van Mieghem
- Operations and Process Management: Principles and Practice for Strategic Impact
- Conceptual Framework for the Strategic Management: A Literature Review—Descriptive
- Operations Strategy. Principles and Practice. Jan A. Van Mieghem
Operations Strategy. Principles and Practice. Jan A. Van Mieghem
The objective of this work is to review the literature of the main concepts that lead to determining the strategic approach, creation of strategies, organizational structures, strategy formulation, and strategic evaluation as a guide for the organizational management, taking into account the effects produced by the different types of strategies on the performance of organizations.
In this article, the systemic literature review method was used to synthesize the result of multiple investigations and scientific literature.
The process of reading and analysis of the literature was carried out through digital search engines with keywords in areas related to the strategic management. This research reveals the lack of scientific literature containing important theoretical concepts that serve the strategists as a guide in the creation, formulation, and evaluation of strategies.
This review contributes to the existing literature by examining the impact of the strategic management on the organizational performance. Through time, its meaning has been evolving, being applied to other human activities and, in particular, to business strategies.
One of the main problems for their business strategists is the understanding of the competitive environment and the interpretation of the effects of the competition in a business [ 4 ]; in consequence for the research studies the time to strengthen again the study of the categories and the competition in the investigation of the strategic management SM has come. The concept of strategy over time has been addressed by several authors. One of them is Chandler [ 5 ], who proposes that the strategy is the definition of the long-term goals and objectives of a company, the adoptions of actions, and the allocation of necessary resources for the achievement of the objectives.
For Andrews [ 6 ], the strategy is the model of the objectives, policies, purposes, goals, and plans to achieve them addressed in such a way that they define in which business the company is or will be. According to Porter [ 7 ], the strategy is to select the set of activities in which a company stands out to establish a sustainable difference in the market; the differentiation arises of the activities chosen and how they are the carried out.
On the contrary, Farjoun [ 8 ] considers that the mechanistic perspective is limited and makes a contribution from a dynamic and organic view. The new ideas of natural and social sciences state that the strategic processes are not only rationalist models of unitary actors but also give importance to the complexity of the soft variables and take into account the messy side of reality.
It maintains that while the mechanistic perspective for the formulation of strategies is discrete, directional, and differentiated, the organic perspective is dynamic, uncertain, interactive, and integrating.
Initially as a complement to the study of the strategies from the mechanistic perspective, researchers as [ 5 — 7 , 9 ] consider that strategies are static, reductionist, and synchronic with only one occurrence in time. Contemporaneously, a new wave of research studies was born that approach to the study of the theory of behavior and organization [ 10 — 16 ], and these authors point out that the strategy is a coalignment or an adaptive coordination of various states and trajectories.
According to Chiavenato [ 17 ], there are four fundamental elements in the strategy which together make a whole. The mission is the answer to the question what is the organization for. The business to which the organization is dedicated is defined, the needs that are covered with its products and services, the market in which the company is developed, as well as the public image of the company or organization.
The vision is the answer to the question what do we want the organization to be in the next years. The future situation that the company wants to have is defined and described. The purpose of the vision is to guide, control, and encourage the organization as a whole in order to achieve the desirable state of the organization. The values define the set of principles, beliefs, and rules that regulate the management of the organization.
Global objectives indicate the results that are wanted to be achieved in a specific period of time. These elements constitute the institutional philosophy and the support of the organizational culture [ 18 ]. The basic objective of the definition of corporate values is to have a reference framework that inspires and regulates the life of the organization. The review of literature of the current study is divided into four sections.
In Section 1 , a review is made in the time of the definition of strategy. Section 2 describes the methodology used. Section 3 defines and describes the strategic approaches. Section 4 describes the general characteristics for the creation of the main strategies and defines the importance of the organizational structures for the definition of the strategies. Section 5 defines the concept of formulation of strategies through the strategic planning and its classification.
Finally, Section 7 concludes the study. A systematic review of literature has been carried out as appropriate methodology, in order to produce a reliable knowledge inventory, according to what is proposed by [ 19 ]. Several authors have used systematic review of literature to carry out their research, for example, Crossan and Apaydin [ 20 ] proposed to synthesize several perspectives through an integral multidimensional framework on organizational innovation; Peres and Fogliatto [ 21 ] showed the current state of the integration of the methods of selection of variables for the multivariate statistical process control; Nguyen et al.
For this research, the searching process is limited to published literature, including books, conference proceedings, and literature obtained from electronic sources, mainly databases of scientific data. The keywords used are industrial organizations, organizational behavior, strategic administration SA , strategic approaches, and strategic evaluation.
The articles reviewed are in the area of organizational structures, SM, management control, and strategic planning. This research covered the review of 5, publications from which 69 books, 7 conference articles, and journals made major contributions.
The literature review corresponds to the period from January to June Each of the articles reviewed was classified according to the subject of its content Table 1 , taking into account the different criteria of each authors. With the aim of linking and tracking the investigations Table 2 shows the number of publications per journal, and Table 3 shows the number of publications by country and the affiliations of universities by country of each author. In the last decades, a quite freely reference has been made to the concept of strategy.
Therefore, there is not a unique point of view to define them. Thus, there are several generic approaches that manage to reflect different answers about what the strategy is good for and how to reach it; these approaches are implicit in two main strategies and were proposed in [ 25 ]. It is responsible for conceiving the global direction of the organization. The classic approach of the strategic formulation is based on the rational methods of planning, resource allocation, and profitability.
For Chandler [ 5 ], the structure follows the strategy. If the strategic plan is defined, the appropriate structure arises easily. According to Ansoff [ 26 ], this approach places great confidence in the hierarchy or scorecard and trusts in the intelligence and ability of the leaders to adopt strategies that maximize long-term benefits; the control and knowledge are competence of the executive director.
This approach requires a transformational leadership, considered as the most effective way of leadership in all the array of models; this comprises four types of behaviors: intellectual stimulation, motivation, commitment, and effort, that culminate in better performance [ 27 ]. Porter [ 28 ] indicates that the process of a competitive strategy is the development of the wide formula of how a company is going to compete, which must be their objectives mission or objective and which policies will be needed to carry out those goals.
According to Sloan [ 29 ], for the classic approach, the progress and stability of the business depends largely on the development or creation of strategies. The importance of each specialization of the strategy is recognized, stating that it should be independent of the execution policies. The evolutionary approach raises the inability to generate strategies from inside; according to [ 30 , 31 ], this approach proposes that the organizations are drifting of the changes of the external environment and depends on the magnitude of it, that is the market which defines the strategy, being this in charge of guaranteeing the minimal or maximum benefits.
According to Freeman and Hannan [ 32 ], the organizational selection processes favor them and the organizations that can change the strategy and the structure as their environment change.
The successful strategies only emerge as the process of natural selection offering its judgment. In this approach, the role of the top management is null and nevertheless are fundamental in the identification of the threats. Following this approach, Peters and Waterman [ 33 ] state that the keys of excellence have to do with focusing on people, clients, and action. The eight principles for the excellence, proposed by these authors, allow any manager to make a diagnosis and evaluate its performance.
These state that the application of these principles give the necessary clues for managers to convert their companies in organizations of excellence both in operation as in results. In the same way, supported on the evolutionary approach, Williamson [ 34 ] states that the strategy in the classic sense of rational planning oriented to the future is often irrelevant; this assertion is supported by Gotcheva et al.
The systemic approach gives the capacity to the organizations of planning and acting effectively in their environments, it is relativistic. According to Granovetter [ 36 ] following the approach about the social incorporation of the economic activity, the systemic vision proposes the objectives of the strategy to be designed depending on the context of the social system in which it is developed, understanding that the strategies must be sensitive to the sociologic environment of the organizations which guides the strategy are particularities of a concrete sociological environment.
According to Granovetter [ 37 ], a central principle of the systemic theory is to observe the decision makers as complex individuals, whose decisions are not based exclusively on economical conceptions, and understand the interrelation of the multiple variables of the society and its effect with the environment.
Following the systemic approach, Whitley [ 38 ] states that a central principle of the economic sociology is that culture and the regulatory institutions help to constitute the nature of the economic actors and guide their actions, thus affecting the economic results.
According to Clegg et al. Cyert and March [ 40 ] visualize the organizations as a system of rational adaptation that responses to a variety of external and internal restrictions when reaching decisions. Theorists of the strategies based on the resources as [ 41 ] state that the managers owe their strategies to competitive advantages of the organizations and the market processes, insisting on the informal learning and the personal vision [ 42 ].
The members of the organizations negotiate among them to arrive to define a set of objectives more or less acceptable of all, that is, the strategy is the product of a political commitment [ 43 ] and not of a calculation to obtain the maximum benefits [ 44 ].
There is a multiple interest in formation of coalitions to take care of the interests of the organizations. Following with this approach, Hamel and Prahalad [ 45 ] defend that the best competitive advantage of a company is its vision of the future; they claim that organizations must search and strengthen the most developed competitive advantages that are difficult to emulate by the competitors.
At the same time, Weick [ 46 ] sees the organizations as a system that selects wrong information of its environment, stating that in the future the organizations evolve when they obtain knowledge outside themselves and their surroundings. It is the complement of the general strategy. Its application corresponds to the leader or director. At directive level, this strategy is used as a mean to perform various functions, serving as support in decision making and carry out coordination processes and communication of goals or the strategic purpose.
According to Galbreath [ 48 ], any business strategy must incorporate in an effective way the concept of corporate social responsibility CSR. According to Bento et al. Lee et al. SM implies the formulation and implementation of the main objectives and initiatives adopted by the senior managers of a company, in relation to owners, based on the consideration of the resources, and an evaluation of the external and internal environment in which the organization competes [ 53 ].
Thus, it should have at least five attributes to be a business strategy [ 54 ]: 1 be measurable, 2 clarity in the objectives, 3 resource consumption, 4 assignment of responsible, and 5 that it can be checked. Companies now focus more on exploitation of external resources such as customers, rather than internal efficiency, to gain new competitive advantages.
The adequacy of the strategies can be defined from various approaches, each of which reflects different indicators; these indicators are based on the profit impact of market strategy PIMS structure in order to define the strategic potential Table 4. According to Peppard and Ward [ 57 ], any organizational strategy must define where the company wants to be in the future and evaluate objectively where it is now to decide how to get there; taking into account the options, alternatives, available resources, and the needed changes.
A company achieves a superior profitability in its industry when achieving higher prices or lower costs than its competitors; this is achieved through the operative effectiveness or the strategic positioning [ 58 ]. For Rumelt [ 59 ], a good strategy is a coherent set of analysis, concepts, policies, arguments, and actions that give responses to a high-risk challenge. The strategies based on the costs have been considered among the generic forms of strategic positioning [ 60 , 61 ].
According to Reitzig and Maciejovsky [ 62 ], the creation of a strategy is not only a task for the executives; on the contrary, the definition of the business approaches and new measures to initiate, involve all the hierarchy levels of the organization head of business unit, heads of products, heads of functional areas within a business or division, administrators, and supervisors.
The academics and professionals are more and more interested in the concept of sustainability integrated measure of the economic, social, and environmental performance [ 63 ]. For Iazzolino and Laise [ 64 ], the strategies must be socially sustainable, creating value not only for the shareholder but also for the other interested, for the employees.
According to Radomska [ 65 ], the sustainability issues in the strategies are becoming a natural element of the business policies, and their actions are important for the business of the company and for the financial result, as to cost reduction, cleaner production, gas reduction, and so on [ 66 ].
For supply change management, the sustainability is an important issue, creating a new age of business thinking and a source of competitive advantage [ 67 , 68 ]. According to Nikulin and Becker [ 70 ], in order to analyze the situation in which a company is found, the most commonly used is the SWOT analysis, which allows to determine strengths and opportunities of the company as well as the weaknesses and threats that the market offers in the scope of its business.
According to Hill et al. For Hussein et al. For Norashikin and Ishak [ 74 ], an organization with organizational learning culture improves significantly the competitive advantages, allowing to survive in a competitive world [ 75 ]; in the same way it provides improvements in the performance of the companies supported by the concept of transactional organizational learning, and this mechanism allows the organizations to keep the knowledge and transmit it to specialists for the generation or rethink of new rules [ 76 ].
Power and D. Waddell and D. Coghlan[ 77 , 78 ] analyzed the relation between self-managed work and the organizational learning capacity as indicators of performance in the improvement of the innovative capacities of the companies.
Operations and Process Management: Principles and Practice for Strategic Impact
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Conceptual Framework for the Strategic Management: A Literature Review—Descriptive
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The objective of this work is to review the literature of the main concepts that lead to determining the strategic approach, creation of strategies, organizational structures, strategy formulation, and strategic evaluation as a guide for the organizational management, taking into account the effects produced by the different types of strategies on the performance of organizations. In this article, the systemic literature review method was used to synthesize the result of multiple investigations and scientific literature. The process of reading and analysis of the literature was carried out through digital search engines with keywords in areas related to the strategic management. This research reveals the lack of scientific literature containing important theoretical concepts that serve the strategists as a guide in the creation, formulation, and evaluation of strategies. This review contributes to the existing literature by examining the impact of the strategic management on the organizational performance.
Operations Strategy. Principles and Practice. Jan A. Van Mieghem
Iravani pdf. Summary: Discover how to apply engineering thinking and data analytics to business operations This comprehensive textbook shows readers how to develop their engineering thinking and analytics to support making strategic and tactical decisions in managing and control of operations systems and supply chains. The book is created in a modular fashion so that sections and chapters can stand alone and be used within operations courses across the spectrum.
Van Mieghem. Nopartofthisbookmaybereproducedinanyformbyany electronic or mechanical means including photocopying, recording, or information storage and retrieval without permission in writing from the publisher. Business Logistics. MI