Get to know the operating strategy that is effective in business development
The operating strategy is a commitment to all planned activities or those within the company’s current scope. The activity that will be carried out here utilizes all existing resources and conducts the process of obtaining the Demia to reach Distinctive Competence and the purpose of the company’s operations.
The general understanding shows that the operating strategy is needed in the company long before carrying out the operational process. Without a commitment to a plan that has been prepared, it will certainly be an impossibility to achieve the company’s operational objectives.
Understanding of operational strategies according to experts
Besides the general understanding of the above, some of these experts also describe the notion of operating strategies in business development.
1. Anderson et.al (1984)
Operational strategies are a long-term vision, consisting of mission, goals, policies and distinctive competence companies.
2. Hill (1989)
Strategy is a way that emphasizes related matters, with manufacturing and marketing activities. All of them aim to develop a corporate perspective through agency.
3. Skinner (1978)
Strategy is a philosophy related to tools to achieve goals.
4. Hayes and Wheel Wright (1978)
The strategy means all existing activities within the company’s scope, including allocating all resources owned by the company.
The useful indicator forms an understanding of the operating strategy
From exposure above, it can be concluded that the understanding of the operating strategy has several indicators that are able to form an operational strategy. What are the indicators? Here are:
- Commitment to activities in the company scope
- Current and planned conditions
- The transformation process, namely organizational activities that can change input into an added value
- Distinctive Competence, the specific ability that exists in the company to produce added value through the transformation process and contains the purpose of the overall company.
The formulation of the operating strategy is clearly seen very referring and closely related to business unit strategies and corporate strategies. According to Taylor, Richardson and Gordon (1985), companies that are able to develop these linkages are very potential to become a successful and profitable company.
Typical Operational Strategy Planning
In practice, the operating strategy can be grouped into several parts, each of which has its own role in developing business. The following are grouping distinctive operational planners
Production Plans (Production Plans), namely planning a direct association with the methods and technologies needed at work.
Financial Plans are planning associated with funds used and needed for operational activities / activities.
Facility Planning (Facilities Plans) is planning associated with facilities and work layouts needed to support work assignments.
Marketing Planning (Marketing Plans) is planning related to sales and distribution of products both goods and services.
Human resource planning
Human Resource Planning (Human Resource Plans) is planning related to recruitment, selection and placement of people in various jobs.
Preparation of operating strategies to develop business
The preparation of operating strategies must be carried out in accordance with the condition of the company, so that the specified objectives can be achieved easier. Well Here is a way to develop an operational strategy as a basis for the preparation of work plans.
1. Operation strategy as a basis for preparing work plans
There are two steps you can do to develop an operational strategy as a basic benchmark in preparing a work plan, namely to carry out a profitable development approach, a swot approach, system approach, and planning gap approach.
- Profitable development approach
Namely an effort to develop a work program that has the potential to bring many profits and profits in large numbers. Favorable recreats can realize a very profitable balance between corporate environments and available suggestions.
- SWOT approach
SWOT or Strenghts, Weaknesses, Opportunities, and Threats or better known as strength, weakness, opportunities and threats.
The SWOT approach is a form of a company approach that must be balanced with the strength possessed, what weaknesses exist, see the opportunity in front of the MTA and the company must also understand threats, disorders, challenges and obstacles that might confront in the future.
- System Approach
This approach includes a shortist that focuses on the definition of a system that is then developed to form a strategic plan.
- Planning Gap Approach
The planning gap approach will begin with traditionally thinking in planning, then it is developed again with more advanced, dynamic and productive thinking.
The target is the final result obtained from operational activities. The target is also the depiction of things that want to be realized through the operating strategy taken to achieve the company’s goals (as a measurable target).
In practice, the target is the result of being significantly achieved in a more measurable formulation, specific in a period of one year.
Here the formulation of operating strategies must be in accordance with product specifications, markets and marketing, technology and organizational resources.
3. Achievement of strategies
Performance indicators in a company are firmly and caulitative that describe the achievement level of a set goal or objectives. Work indicators must be something that can be done, measured and used to be the basis of assessment or to see a good level of performance at the planning, implementation, and advanced stage after activity.
Work indicators can also be a source of convincing if performance day by day from the company shows the progress of the frame of achieving the objectives and targets that have been set. Without work indicators, the company will find it difficult to assess the work unit (cleanliness or unit).
The above stages must be carried out and continuously with each other, so that goals or objectives will be easier to be achieved.
In the process of operating strategy management, the company also needs to compare results obtained and the level of achievement of goals. This process also includes the evaluation stage, and includes four main things, namely:
- Set the target of work targets, tolerance limits for targets, standards, strategies and operational plans.
- Adlip the position that is directly related to the target of a certain period of time. If the result is beyond that limit, then repair action is needed.
- Analyze irregularities at the stipulated tolerance limit.
- Implement modification if needed.
Effect of operating strategies on business development
After understanding the meaning and procedures for preparing strategies to achieve the target, it is clearly seen how the influence of the operating strategy on business development.
When the drafting strategy is well done and offset by implementing the appropriate planning, the company’s target or target will be more easily achieved. In contrast to companies that do not have operating strategy planning. The whole activity will not be well coordinated. As a result, the achievement of the target will be difficult to achieve.
In the final stage, the evaluation process, the company can also modify or few changes in the established operating strategy. Of course modification only need to be done if it is feasible and must, in order to achieve the company’s target.
Financial statements also affect the operating strategy
Planning the operating strategy is inseparable from financial data that matches the reality of the company. Without factual financial data, of course you can make plans and operational strategies for your business. Make financial statements based on real transaction data and minimal errors.
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