0:02 so let's consider the relationship
0:05 between the businesses overall strategy
0:08 and the various functions strategies or
0:11 the Department's strategies [Music]
0:19 operations is one of the main functions
0:22 or Departments of a business and there
0:25 are other functions such as in in a
0:28 simple case marketing and finance and
0:30 typically several others customer
0:33 service or r d for example
0:36 as we set about planning our operation
0:39 strategy we must take time to consider
0:42 that it works together with the overall
0:45 strategy and with the other functions
0:47 who will be making their own strategies too
0:48 too
0:51 so marketing will have its own strategy
0:54 and finance will have its own strategy
0:57 but it must not be its own strategy
1:00 they've got to work together to
1:03 cohesively support the overall business strategy
1:04 strategy
1:07 consider this example in the operation
1:10 strategy you've decided that we're going
1:13 to be making a top quality product and
1:16 the cost is not so important it will be
1:19 the best quality there is and that's
1:20 what we make
1:25 now that's great but not if marketing
1:28 for example are not on the same page
1:31 their promotion their location their
1:33 pricing of the product must work
1:36 together with what is being made in operations
1:38 operations
1:40 imagine another business where the
1:42 finance department has committed to a
1:45 very tight return on Capital employed
1:48 roce or are we return on investment
1:51 criteria Roi
1:54 where only the maximum Return of the
1:57 amount of money invested is acceptable
2:00 many businesses are very tight on their
2:03 Investments but that couldn't work if we
2:05 had an operational strategy that was
2:08 built around offering instant delivery
2:10 of a huge catalog of finished Parts
2:14 because we hold an enormous inventory of
2:16 finished goods which represents money
2:19 tied up and would lead to a poorer
2:24 return on Capital employed or Roi
2:27 so the takeaway from this area is that
2:30 operation strategy is just one of the
2:32 many functions in a business and that
2:35 all have to come together into the
2:37 business strategy
2:40 and as the various functions form their
2:42 own strategies they must be made
2:45 together with the other functions to
2:50 form a cohesive business strategy [Applause]
2:52 [Applause] [Music]
2:53 [Music] [Applause]
2:59 [Applause] [Music]
3:00 [Music] [Applause]
3:02 [Applause] foreign
3:03 foreign [Applause]
3:06 [Applause] [Music]
3:07 [Music] [Applause]
