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These plans involve innovative thinking, diversification of products, and improvement in technology as well as widening the market share…
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Download file to see previous pages Despite this, it is difficult to align the strategic map of the business with the corporate strategy that defines the operations of the organization. Corporate strategy, on the other hand, is the improvisation of the organizational working efficiency towards the attainment of the strategic plan through the elimination of waste and production at lowest possible costs (Demeester, De Meyer & Grahovac, 2014).
The operational resources are critical in the attainment of the operational strategy. These resources include the tangible and intangible resources, the operational processes and capabilities. The tangible resources consist of the equipment, materials, facilities and human resource that perform the practical work. The intangible resources, on the other hand are the skills, market relationships and knowledge that determine the quality of production. The operational processes combine the intangible and tangible resources to formulate a coordinated framework of the production procedure (Hill & Cuthbertson, 2011).
The first challenge that the organization encounters in the alignment of operation strategy to the corporate strategy is the agreement on the model of operation. A company can be integrated like McDonalds’s, Holding Company like Tyco International or an Allied Company like the Unilever Company. This choice of operating model defines the relationship of the business and the amount of investments allocated to the company. It is important to understand the operating model because it involves the allocation of funds to various business entities. In the process that the senior management decides to implement the corporate strategy, competitors will launch a model that capitalizes on the company’s large investment in efficiency improvement (Boyer And Lewis, 2002). This may amount to sever losses in the company.
More often, it is a challenge to map the business strategy to the functional alignment because of the ...Download file to see next pagesRead More
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