Strategy is creating fit among organization’s activities. As a whole, organization finds its competitive value by positioning and integrating Fit Into all its activities. Operation effectiveness and strategy works differently but co-relate with one another to work towards the same company goal – profitability. Yet many organizations are caught up in improving their operational effectiveness or seeking fast and easy growth: that they have forgotten the “value” that they can offer to their clients; that unique difference that they can preserve allowing them to stand up against the rest.
Operational effectiveness is doing the same routine that the industry is doing yet be able to perform better. This would means that by optimizing the same resources, they can leverage on advanced technology, employee skill upgrade or incentive to bring result delivery to the next high level. While cost and profit is the key drive of an costs. C x For example, In the past, call centre agents are tasked to handle all Inquiries after languages selection, and these would mean huge overhead, new facilities and many more.
But now, with the implementing of advanced technology they are able to shift inquiries to self help services and transferring only complicated enquiries to available agents. However, this service standard has been mimicked globally. That is why it is self- explanatory that operation effective alone is not sufficient. Once you set a standard out there, industry players benchmark themselves against it and raised their bar of efficiency. With no unique value, the other differentiator would be cost leading to lean profit.
But when an organization coupled efficiency and a wise strategy; it will be able to withstand competition and create Its own share of market segment. It Is done by issuing what the market want and coming up with new Innovative satellites or idea: normally based on a bold assumption and market statistics, tools or research information from consultancy firm. Organizations can strategically position themselves in either one of the three position mentioned below. And though they seem similar, it is essential to know that they all require different activities.
I. Varieties positioning is providing a certain products or services whereby features or values are different from others. It can serve a huge base of market share but it is not able to fulfill all the needs the consumers. . Therefore, there is also needs based positioning. As It Is named, it simply refers to catering to specific needs of the consumer. But catering alone to needs Is Insufficient; the satellites leading to those needs must also differ as a differentiator. 3.
Another positioning would be access, although the needs or products could be the same as previous, this group requires different set of activities basing on geography or scale. Different, therefore trade-offs is required for an organization to focus and forego the other value. Otherwise with no clear sense of direction, it will again lead to self extinction. And because everything matters in an organization, credit cannot be given solely to a single process or department.
That is because every activity yearn a chain effect. What an activity does, co relate on the effect of another activity. If a poor performance occurs from an activity, it will bring down the performance of others. Due to the complexity, it is almost impossible for competitor to mimic every single process. And because they are not able to imitate it as a whole, they are not able to benefit as a whole and will lack behind, promoting further succeed for the organization who has implemented the right fit.
They are three types of fits that an organization can match to reduce cost or create differentiation: 1. Simple Consistency – This would means to align all activities according to the organization strategy. 2. Reinforcing – This would means to have one activity to reinforce another activities, generating better results due to the initial activities. 3. Optimization of effort – This refers to the coordination and information exchange across all activities to eliminate double effort, redundancy and a seamless integration across the organization.
If there is no fit among activities, there is no distinctive strategy and little sustainability In summary, an organization will need to have a sound strategy and operation efficiency to suffice success. And to be consistent in its own unique positioning, organization should look into opening larger markets by globalization allowing new spaces for growth rather than broadening domestically. It is also essential for the organization to do align its strategy from time to time should there be any changes in the industry.
And it is crucial to be reminded that if there is any change in the tragedy, a new position will be identified, tradeoffs and fits need to be found to complement the new position. Lecturer Additional Discussion Note: Note to self: the above essay has more or less captured the points but do read up additional notes from lecturer and also study on essay above. Its competitive value by positioning and integrating Fit into all its activities. Seeking fast and easy growth; that they have forgotten the “value” that they can offer For example, in the past, call centre agents are tasked to handle all inquiries after withstand competition and create its own share of market segment. It is done by issuing what the market want and coming up with new innovative activities or idea; normally based on a bold assumption and market statistics, tools or research Therefore, there is also needs based positioning.
As it is named, it simply refers to catering to specific needs of the consumer. But catering alone to needs is insufficient; the activities leading to those needs must also differ as a differentiator. 3. Another positioning would be access, although the needs or products could be the same as It is not possible to excel in more than one position because their activities are to work towards the same company goal – profitability.