STRATEGIC OPERATIONS MANAGEMENT “Critically discuss a contemporary issue in strategic operations management”

STRATEGIC OPERATIONS MANAGEMENT 

“Critically discuss a contemporary issue in strategic operations management”

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Introduction

The assessment provides a guiding light on the main topic – “Contemporary Issues in Strategic Operations Management” - Strategic management is a very important field in context of management as in the industries or organizations it mainly involves various principles in order to ensure the effectiveness of useful resources especially for the purpose of achieving goals and objectives within organizations. Strategic management mainly involves proper determining of vision, values, and mission by the proper development of proper policies. The strategic operational management in the context of organizational management has become one of the major aspects which mainly links with the utilisation of human resources, technology development, improvement in performance, R&D (research and development), controlling and planning of different activities, etc. The strategic planning within any organization is important also for the proper management of people, materials, and capitals. The study in the context of strategic operations management provides the views on the operational processes, techniques, and planning within the context of service industries and manufacturing industries. Also, it explores the proper relation within the strategy, design, control, planning, marketing, procurement, human resources, and other contextual interactions which are mainly involved with the management of strategic operational activities. The study in addition to this provides a proper understanding on the skills and abilities within the context of strategic operational management tools and techniques.

In the view of Thomé et al. (2016), in the modern times as the industries have become more digitalised the issues within the operational strategic management has become one of the key concerns mainly in terms of supply chain management and operations management. For achieving sustainability within organizations, industries have to become more competitive and thus they have to alter their pathway in terms of making innovation and creation within their products by the development of strategies and different processes. As there are countless issues recently encountering strategic operational management the main purpose of this assessment in critically evaluate and discuss on the contemporary issues which is associated with Strategic Operations Management.

For the proper understanding of the main topic, the assessment will first focus on providing proper definitions in the context of management, operations management, operations strategy, and strategic operations management. The assessment then focuses on providing importance to strategic operations management. In Unison, the discussion on this topic will further move towards the industrial review in which the proper issues within the context of strategic operations will be highlighted. The study then provides the review on the case studies Contemporary Inventory Management Techniques, Contemporary Theory of Management, and Contemporary problems related to crisis management of organizations. The study will then structure the brief knowledge on the drivers and applications of strategic operations with the limitations. Further, the study propose the theories of management within the context of organizations. At last, study provides the guiding light on strategic operations tools and techniques.

The manufacturing and services industries in the recent time are experiencing heavy competition within themselves and thus this leading to more focus on the development of new strategies and proper management of their activities. The strategic operations occur in both the industries as well as in all the organizations or companies worldwide for the purpose of fulfilling needs of customers, fulfilling importance of stakeholders expectations and mainly outperforming the competitors within the different industries. Operations within the industries as well as within individuals are mainly defined as the performing of resources within the multiple process. And as there is continuous disturbance within the competitive markets and environment, the industries have become more focused on their operational capabilities in order to increase the performance in the organizations in terms of flexibility, quality, deliver speed, and cost of products. Whereas, strategic operations management is the key term which is mainly defined as the continuous process in order to manage the resources for proper planning, controlling, designing, and performing all the operations for producing or manufacturing different services and products within the industries. On the other hand, operational management within organizations is a process in which the inputs are mainly transfers into outputs by the supportive functions.

Literature review

Industry review

The main concept of this report is to know about the issues of contemporary strategic management. The contemporary issues in strategic management encompass both approaches of traditions that play the role to think with strategies for current development areas of service and manufacturing. In these industries, the concept of strategic management could be related to marketing strategies as well as international technology of marketing. There are some contemporary issues of management includes leadership, communication, trust, management, productive conflict, hiring, retention, accountability and sales. In modern times the operational activities and supply chain activities are becoming key challenges for managing the operational activity of business in order to manage the designing of job, management of materials, facilities management, capacity management as well as management of quality. In the contemporary issues of the operation management identification includes operation management, strategy and sustainability that are being coherent in order to develop the effective strategy to provide smoothen to its business process. The effective techniques of operation management are also played an important role to provide adaptability and flexibility to the operational process of the business. These techniques are related to building the team, rapid improvement, development of involvement of employees, know the competitions, organize the resources, invest in HR capabilities as well as maintain the equipment management activities. In the contemporary issues of the operation management strategy, the planning activities are also played a crucial role in both service and manufacturing industries in order to fulfill the demand of the customers and meet the expectations of the stakeholders. The planning phase of the operational activity could be related to scheduling, designing and management of materials, facilities, capacity and quality. Apart from this, the control system of operational activity is also played an important role to track the activities of individuals and groups in order to achieve the objectives of the business. From the quantitative perspective the operational management helps the company to gain the information of contemporary issues in strategic operation which could be related to using the quantitative techniques in areas of decision making, information models, statistics, computer simulation and others.

Case studies

Contemporary Inventory Management Techniques

According to Aro-Gordon and Gupte, (2016) by analyzing the case study of contemporary inventory management techniques in the conceptual investigation. They both provided information about the importance of reducing the wastage of material in order to manage the operational activity of the business. The main purpose of this article is to reduce the wastage of material to provide efficiency in the manufacturing product process, efficiency in cost management and achieving the effective result of the business. The main purpose of both writers Aro-Gordon and Gupte is to highlight the concept of contemporary issue management in operation process. They both provided clear information in their article that improves in the strategy of corporate business is beneficial for minimizing the wastage as well as handling the cost of the production. In this article, the author wanted to know about how the continuous program of training and development sessions are played the important role in order to develop the effective skills of professionals in employees for performing the task of the company in effective way. The authors found that training session or programs of the employees are beneficial for increasing the contribution of them in developing the innovation as well as future research of the company. They also found that this strategy is also worked for the company to manage the satisfaction level of customers, cost-effectiveness maintenance, service delivery, software development application as well as management of warehouse. The key message of this article is to manage the wastage activities in operational production process that provide the advantages to the company to operate its management activities of operational process with minimizing the impact of contemporary issues. In this article the authors used qualitative and quantitative methods of research for gaining accurate and useful information on the contemporary issues in operation management. The challenges which the author faced in this article were management of inventory techniques, process and also maintain the progress of socio-economy to provide the strength to its economic conditions.

Contemporary Theory of Management

As per Rana, Ali and Saha (2016), the study of contemporary theory of management is based on contextually quantitative, system and contingency approaches. These theories are played an important role to understand the issues of management and also improve them by developing effective strategies for the business. The main purpose of this article is to develop effective action against the organization issues, system, process, cultural environment as well as social matter. Further, these authors of the article were also wanted to develop the strategies for innovation and marketing that play the role to make its operational business activities attractive. In this article, the authors wanted to know about the system approach, management theory and contingency theories. The authors found that management theory is known as the collection of ideas that use to manage the activities of operation process. This theory guides the company about how it is important to motivate its employees in order to perform the task of the business in effective manner (Runfola et al. 2017). On the other hand, the system theory helps the company to develop the interaction between internal and external environment of the business. The systematic approach of this theory provides information about the elements of market and their impact on the profitability amount of the business. The contingency theory suggests the company the appropriate management style that helps the business to develop effective leaders that provide guidance to employees about in which direction they do their work and help to company for achieving its organizational goals. Apart from this the article also found that these all theories are essential for the company to know about the modern approaches, strategies of managerial decisions and contingency plan to provide efficiency to its operational activity of the business. In this article, the author used the study of qualitative and descriptive methodology where the entire information of study was collected from secondary based data. Further, this article also involves the other data which was gathered by other books, articles, conferences paper, newspaper and online review. The challenges which the authors were faced in their research were interconnection system of organization, interrelation activity between internal and external environment, complexity to handle the problem of contemporary issues by following many theories.

Contemporary problems related to crisis management of organizations

According to Kuzmanova (2016), the paper discussed the important issues which are needed to be addressed to crisis management of the organization. The main focus area of this article is to continue monitoring the business environment, analyze the crisis of the organization, innovation simulation development and expansion of possibilities in relation to shortening the time in order to respond, scares resources and maximum use of internal capabilities of the organization. Crisis management is also played an important role in continuously developing the learning to compete with changing demands of the customers and strategies of the market competitors. In this article, the author wants to know about the complexities of crisis management for identifying the strategies to provide the continuous flow to its operational activities. In this article, the author found that crisis management is not only useful for managing the risk of the operational activity but also useful for taking the effective decision of identification of the available resources, development of innovative technology, development of skills, organizing the program of training and usage of material with minimizing the waste of the materials. The author believed this after managing the crisis the organization can provide satisfaction to stakeholders by meeting their expectations. The key message of this article is to develop the crisis, manage the situation of crisis and adopt the activities of change management to deal with the market competitors and fulfil the demand of the customers and business stakeholders. In this article for gaining the applicable information of this concept the author used the qualitative methodology and also strategize the activity of operation forecast to treat the information of crisis management in effective way. Apart from this, the article found that most effective challenges which were faced by the author to conduct the study of contemporary problems in crisis management (Bergh et al. 2016). These are related to continuous monitoring of the activities of market environment, analysis of management activity of crisis, development of innovation in order to strengthen the operational activity, development of possibility of scarce resources and shortening the time in response towards the strategy’s development.

Drivers/Applications/Limitations

The author Albert and Grzeda (2015) in the aspect of industries and organizations the business is affected by the operations in management. The industry if want to operate smoothly or to grow their business, or satisfy the needs of customers or operations management at their workplace. The strategic operations management mainly involved proper organizing, planning and supervising in terms of manufacturing and production. The limitation in the operations management leads to inefficiency and ineffectiveness in the resources and also in meeting the requirements of the customers. In proper essence, strategic operations management mainly highlights the proper link within the value and process in different industries. With the increase of customers’ demands and customers’ expectations the strategic operations management has become of the most critical factor in order to deliver the best for the organization and provide better profitability and effectiveness. The adequate and effective operations bring more accuracy and accountability that allows the successful delivery of services and goods and suggest that strategic operations management act as the core and the prime function for all the successful organizations. But as implementing the operations management in the phase it also aids to create different facilities which possess some challenges in the organization which are faced by them in daily working (Harrison et al. 2017). The field of strategic operations management is quite is difficult task and thus it mainly requires the proper understanding of business delivery and business process in order to deliver the best implication. There are several limitations which are identified by Hashemi-Petroodi et al. (2020) with the strategic operations management and for the purpose of final implementation in the strategic process it is required to be properly addressed. Globalization which is mainly defined as the continuous process for organizations to interact with different customers, companies, people, and government on national and international scale. This mainly creates a possible barrier in terms of SOM as it creates reduction in trade barriers, better advancement in the technology, and many more. The major benefit that globalization possess is mainly in terms of interactions with different people and companies globally to reach on the international scale. In this context, the organizations mainly find themselves in the facing different competitions not just from the source country but also from the countries all over the world. And for properly maintaining their competitive advantages they have to keep up to date with software technologies and modern trends in terms of strategic operations management so that they can increase their production.

From the views of Walker et al. (2015), Sustainability has become one of the major concepts in terms of Strategic Operations Management as the industries and organizations are amending their ways on their management and their working operations. The literature has guided towards the views that for the sustainability of betterment in future the organizations are required to face the challenges and have to counter them by the adoption of proper strategic operation within their management as SOM is core function in all organizations. When discussion of sustainability is there in the contrast of all the organization the three main pillars come to play which are economic, environmental, and social. Thus, for the betterment of the organizations they have to well-aware of the possible outcomes which each pillar suggests and be facilitate when implementing the practices of strategic operations management. Other authors Drnevich, Mahoney and Shendel (2020) in favour of this debate provided their views in context of strategic operations management in which they suggested that consistency and communication effectiveness is another limitation which is required to be addressed properly. The major drawback that organizations possess is in terms of the effective communication is not able to communicate with the internal as well as external stakeholders. Thus, if the strategic operations in terms of communication is effectively placed within the organizations it provides better transparency for facilitating more and provides better room for production. SOM as the core functions boosts the compatibility and operations by easing the management in the simpler possible action. Effective communication is one of the critical tools for facilitating operations and efficiency in the areas of SOM for example, forecasting, planning, and implementing strategic planning process in final phase.

Interventions – application to practice

In the provided views of Hitt, Xu and Carnes (2016), every business has faced issues in relation to identify the contemporary issues of the operational management to operate the business, develop the growth of the business, satisfy the demand of the customer and gain benefits in order to develop the strong strategies and planning of the operational management. The management of the operational activities is based on development of the planning, organizing and controlling that are applicable in both services and manufacturing industries (Renwick et al. 2016). By increasing the expectation of the customers from the business and provide more accurate and accountable information to the business the service and manufacturing industries can easily deliver their products and services. The most effective contemporary challenges which are affected the operational management activity of business are globalization, sustainability, effective communication and ethical conduct. For competing with these challenges, the company needs to be concentrated on creating schedules in order to balance the delivery performance and efficiency in the production. Further, this is also required for the company to give concentration on maximizing the output, demand of reducing the inventory, provide wider visibility to the company capabilities and take the decision in relation to effective data-driven.

Explore the relationship within value chain between strategy, marketing, design, control, human resource, procurement

Value chain between strategy

The author Ivanov, Tsipoulanidis and Schönberger (2017) provided their views in terms of intervention of contemporary issues in relation to operational management, this is required for the company to focus on developing the relationship between the strategy of value chain, design, marketing, procurement, control as well as human resources. Further value chain analysis is known as the strategic tool that is used to analyse the activities of internal firm. The main goals of the value chain analysis are to recognize which activities are most valuable for the firm and also play a crucial role in order to gain competitive advantages from the competitors. The value chain analysis framework has covered all activities of strategy, marketing, control, marketing, procurement and human resource. The primary activities include selling, marketing as well as sales support activities that help the company to develop effective production to produce the goods and services of the business. The primary activities are best activities to support the operational activities of business. Inbound logistics refers to the term of suppliers which also includes the activities of storing, receiving and disseminating the points. The operational activity helps the company to convert the input into the final output by eliminating the contemporary issues of sustainability, ethical conduct, effective communication as well as system design. An effective strategy of marketing and sales is also played an important role to inform the buyers about their products and services and also influence their buying behavior. The main purpose behind this the company wants to make the buyers understand its product quality and design that useful for them to sell its higher quantity of the products to customers. The services of the products could be related to serving the best products with high quality which provides the advantage to attract many customers for its business.

Relationship within value chain between strategy, marketing, design, control, human resource, procurement

In the views of Saberi et al. (2019), secondary activities of the value chain strategy are also beneficial to provide support to the marketing, control, procurement, human resource as well as design techniques of the business. The procurement helps the company to inherit the inputs of various resources of the firm. On the other hand, the relationship between value chain analysis with human resource management helps the company to involve the activities of recruitment, selection, improving, training, compensating as well as dismissing personal. The department of technical help the company to manage the hardware, software, equipment, process, design and control the process of operational activity to convert the input into effective output. In the secondary activities, the infrastructure of the business is also beneficial for the company to provide strength to its many departments such as legal, accounts, regulative, planning & executing, finance, government relation, general management as well as quality management (May et al. 2015). Therefore, these all activities are helpful for the company to focus on its operation management activities by resolving all issues which are occurred during the production process of the business. The value chain analysis is beneficial for both industries such as manufacturing and services where the main purpose of this model is to meet the requirements of the business.

Development of ability and skills in strategic operational management tools and techniques

From the views of Sahin and Matta (2015), operation management in the field of the business mainly concerned with the administration activity of the business practices in order to maximize the organization efficiency. The activities of the organization management are based on organizing, planning and overseen the process of the organization to construct an effective process to balance revenues, cost and achieve the highest possible profit from them. The operation management activities are also related to ensuring the activities in relation to development of the organization task. These tasks are based on the labour, technology and materials output to manage the activities of the company in effective manner. After analysing the concept of contemporary issues in operational management activity it provides information about the development of ability and skills in relation to product design, forecasting, management of supply chain, delivery management, ability to develop the organization ability, coordination, people skills and tech-savvy. These skills and capabilities are also played the important role in order to develop effective tools and techniques of operational management for competing with market competitors and attract maximum customers for the business. The most popular theories of operational management could be related to six sigma and lean management theories that useful for the company to manage the activities of operational management. These activities are also helpful for the company to provide smooth running to business process. The theories are mainly used to build team, engage the customers, maintain the workflow, know the competitions, organize the resources as well as invest in HR capabilities (Henri, Boiral and Roy, 2016). These activities are also helped the company maintain the equipment management activity in order to produce effective production to compete with the competitors. The effective production of goods and services are also played an important role to attract the maximum customers as well as retain the existing customers in the business. In the operational management activity, the operation manager of the company is needed to be focused on activities of planning and processing which result is, helps the company to set the direction of its operations and also provides the information of this to its employees. The benefits of this the employees will know about how they can work in the organization by following the set of guidelines.

Organization ability

This refers to the ability of operation manager where the main role of the manager is to focus on different projects of the company without getting any kind of distraction in the business activities (Ahammad, Glaister and Gomes, 2020). Apart from this, the operation manager should be based on development of the execution, planning and monitoring of projects that provide good skills to the operation manager for increasing their efficiency in the production as well as help to the workers for saving their time during the production process of the business. The organization capability helps to the company for meeting with the requirement of customers and produce the effective manufacturing process of the products as per their demand. The strategy helps to the company to set an appropriate strategy of operational management that play the role to produce the effective products with resolving the issues of contemporary. The strategic management technique also provides the benefits to the company in order to improve its cost efficiency, quality of the products, skills of employees and identification of available resources (Longoni, Luzzini and Guerci, 2018). On the other word, these activities are played the crucial role to provide the continuity to the operational process.

Coordination

The development of the coordination is based on how the workers of the company manage the activity of coordination by knowing the integration skills of activities, resources and time that are also useful for the company to ensure the proper use of resources for achieving the targets of the company in effective manner (Monczka et al. 2015). The coordination skill is also beneficial for individuals to deal with obstacles, interruptions and crises which are creating barriers to provide continuity to the business process of the company.

People skills

During studying the concept of contemporary issues in order to manage the operational activity of the company, the people of the company can easily develop the skills of operation management. These skills could be related to leadership, understanding the concept, ability to develop the production plan and also understanding all legal requirements of the business. These skills are also beneficial for the employees to know how to deal and treat the stakeholders and employees of the business (Lasserre, 2017). The effective skills of the individual have also helped the company to develop good relationships with the members of stakeholders and staff of the organization.

Tech-savvy

In the rapidly changing environment of the business, the operational manager of the company should be designed strategies for gaining advantages in areas of tech compliance as well as efficiency (Prakash, Soni and Rathore, 2017). The modern organization is nowadays become increasingly tech department in relation to gain competitive advantages from the market. When the operation manager of the company is focusing on adopting the innovation in order to develop an effective production system of operational activity help the company for competing with market competitors as well as gain the attraction of the customers towards the business.

Theory maps across in practice

In the context of sustainable operations management, the emergence of synthesis and development of problem has mainly involved with the strategic operations decisions. And thus in the literature of Cachon, Girotra and Netessine (2020) stated that for the knowledge based economics the theory of knowledge management plays a vital role. The proper management of knowledge is mainly defined as the key ingredient within the context of strategic operational management in order to ensure proper sustainability within the competitive market. Knowledge management is one of the vital drivers of organizational management and is also a critical tool for competitiveness, survival, and profitability of the operations management. For the purpose of applying theory map in the process or practice of strategic management the importance must have been paid to the three major components of knowledge management which are processes, people, and technology. For achieving the higher success and for the suitability of the operations in industries they have to make continuous focus on connecting with the group of people, adapting latest technology, and improving their processes by the leverage of knowledge management. The proper management of knowledge have generally considered to be in the interest of the management circles and business with the capability and ability to deliver the best strategic operations with the results of profitability, capacity enhancement, and achieving competitiveness (Richter et al. 2015). The knowledge management is promoted to be necessary and important for the organizational management and survival for achieving competitive in modern market. Knowledge management mainly helps to provide the proper framework within the strategic operations management for better structuring, designing, and processing of the manufacturing and service industries. Industries in the context of mapping across organisational practice mainly require proper capacity of retaining, developing, utilizing, and organising their management and employees with their capabilities and abilities to remain at top front and having an edge over the competitors. But in the process of theory mapping within the industries they have faced several implications and difficulties which are mainly required to be properly monitored and controlled while implementing the strategic decision of knowledge management in the context of industries. The industries which are not successful in managing the transferring their knowledge are synthesis with the problems within their different range of activities. But on the other hand, the industries which have developed proper implemented strategic operations decision can perform better and innovate in the modern market by eliminating the issues of strategic operations management.

The author Bagheri (2016) has provided their views in the context of operations management that successful industries must understood that for the purpose of implementing the strategic decisions they have to manage their knowledge and develop a proper strategic plan for the accomplishment of their objectives and thus they have to devote their time and effort in this. This is mainly because Knowledge management is derived as the key driver for the industries as well as organization and also it is one of the most critical or importance resource for the prosperity and survival of services and manufacturing industries. The main importance and attention for the better acquisition of knowledge management is mainly provided in the literature in which the implementation of strategic decisions is required for managing the changes in environment because of higher competitions, ageing of knowledge, increasing competition of globalization, process innovations, competition via buyers’ market, and dynamics of process and innovation (Gomes, Barnes and Mahmood, 2016).

The aim of developing the theory in area of lean methodology is to reduce the risk of damaging the resourcing by following the core competency theory. The core competency theory of operational management is proposed by the group of industry where the market analysis, identification of market requirement, investigation of competitor’s strategy, and demand of the customers is well identified in order to improve the process of operational activity. This theory advantages are it helped to the company to develop an effective strategy of operation activity and develop the skills of employees for meeting the expectation of customers as well as stakeholders (Wheelen et al. 2017). Apart from this, the core competencies theory is also related to the development of effective strategies that play a role to achieve competitive advantages in the workplace. The competency theory covers many areas such as critical thinking, written communication, teamwork, leadership, career management and professionalism. These activities are useful for the company to produce effective system of operational management with resolving many issues of contemporary. The issues of the contemporary in relation to operational management are related to the management of overheads, performance monitoring, cyber silk, uncertainty, feedback listening as well as responses towards the market strategy of competitors (Bromiley and Rau, 2016).

Conclusion

In concluding the aforementioned study evaluation it has been demonstrated that there is proper understanding of significant volume which the literatures has provided in context of contemporary issues in strategic operations management. The study provided the proper findings and suggestions in terms of operations management with in-line with the corporate and operational strategy which mainly provides a better operational process and planning of the organizations in order to create cohesion by the effective coordination and better utilization of useful resources. The research also suggests that there has been a proper shift of operations concept in terms of knowledge management which mainly helps the industries to make progress. The study in the context of industry review concludes that there are mainly two major issues which are required to be addressed by the manufacturing and service industries which are mainly meeting the demands of customers and second is fulfilling the stakeholder’s demand. In this context the role of Strategic operations management becomes crucial and key factor for industries as well as organizations Furthermore, within this context there are three major drives of strategic operations management which are suggested from the study which are globalization, effective communication, and sustainability which if managed properly help the organization to rise and shine. The research in this context creates proper awareness in the strategic operations management and drives these three functions as the three major limitations within the organizational process which are required to be encountered for the final implementation of strategic process in the planning phase. The research renders the importance of value chain strategies which are mainly helpful for organizations in order to focus on their strategic operations management by resolving the issues which mainly occurs in the context of production and manufacturing process. The research suggested that value chain analysis is the deemed vital factor for industries such as manufacturing and services in which the main purpose of this model is to meet the business requirements and counter the management of strategic operations. Furthermore, study provides the use of theories in practices for which mainly provides a base in the system, contingency approach, and contextually quantitative which act as one of the best possible measures in terms of operations and management in the organizational context. The study also suggests the importance of knowledge management as the tool which provides the proper base in performing different range of activities. The knowledge management in the context of strategic operations management resolves the problems which are mainly situated in the implementation of operational decisions and also its helps in proper controlling and monitoring of strategic decisions. At last, the study provides the guiding light on the topic of strategic operations management tools and techniques which is mainly based on planning and organizing of organizational process in terms of balancing revenues and cost. After the proper analysis on the issues in terms of strategic operations management it has been observed that there are operations management techniques and tools which plays deemed vital role for competing in the global market and for the purpose of attracting more customers. The tools and techniques are supply chain management, co-ordination, delivery management, people skills, teach savvy, etc. Overall, the study proposes the strategic operations management issues has a strong link in demotivating organizations and industries. Thus, for the purpose of this study, organizations are required to strongly link their management process with the strategic operations.

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