A business's overall strategy must be supported by cohesive strategies from all its functional departments, including operations, marketing, and finance, ensuring they work in unison rather than in isolation.
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so let's consider the relationship
between the businesses overall strategy
and the various functions strategies or
the Department's strategies [Music]
operations is one of the main functions
or Departments of a business and there
are other functions such as in in a
simple case marketing and finance and
typically several others customer
service or r d for example
as we set about planning our operation
strategy we must take time to consider
that it works together with the overall
strategy and with the other functions
who will be making their own strategies too
too
so marketing will have its own strategy
and finance will have its own strategy
but it must not be its own strategy
they've got to work together to
cohesively support the overall business strategy
strategy
consider this example in the operation
strategy you've decided that we're going
to be making a top quality product and
the cost is not so important it will be
the best quality there is and that's
what we make
now that's great but not if marketing
for example are not on the same page
their promotion their location their
pricing of the product must work
together with what is being made in operations
operations
imagine another business where the
finance department has committed to a
very tight return on Capital employed
roce or are we return on investment
criteria Roi
where only the maximum Return of the
amount of money invested is acceptable
many businesses are very tight on their
Investments but that couldn't work if we
had an operational strategy that was
built around offering instant delivery
of a huge catalog of finished Parts
because we hold an enormous inventory of
finished goods which represents money
tied up and would lead to a poorer
return on Capital employed or Roi
so the takeaway from this area is that
operation strategy is just one of the
many functions in a business and that
all have to come together into the
business strategy
and as the various functions form their
own strategies they must be made
together with the other functions to
form a cohesive business strategy [Applause]
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