Operations strategy and performance

Running Head: ADVANCED OPERATIONS MANAGEMENT 1
Operations Strategy Perspectives and Performance Tasks with Case Analysis
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OPERATIONS STRATEGY PERSPECTIVES AND PERFORMANCE TASKS WITH CASE ANALYSIS 2
Task One:
Perspectives on operations strategy
To approach this task, I will use fit20 New Zealand to explain the perspectives on operations
strategy. I explain how fit20 uses these perspectives to develop operations strategy.
Fit20 New Zealand profile and position
Fit20 New Zealand is medium sized franchise developed in the Netherlands. The company offers
high intensive strength training programs at their fit20 studios. The franchise provides 20
minutes services per week with a trainer or in the fi20 studios.
Operations Typology
According to Slack et al. (2009, pp.99-22), the 4Vs are as follow:
 Volume
 Variety
 Variation
 Visibility
Volume: Looking at Slack et al. (2009, pp.19-22), operations dimension in terms of volume is
understood through systems and repetition of the processes which lead to operations process
standardization. Although, according to Heizer and Render (2006, p.10) standardization and
automation of tasks is problematic because of variability of customers interaction and demand
for innovative products and uniqueness. They also claim that services are knowledge based thus
is difficult to automate and inventoried. In this regard, in the case of fit20 providing training
services to its clients, is knowledge based, therefore not affected by the volume dimension of
operations. This means that according to Slack et al. (2009, pp.99-22), there is repetition of jobs
in fit20 with less systemization.
Variety: Slack et al. (2009, pp.19-22) explained that variety sees the operations of the company
being flexible for variability of market offers. The cost may be higher than those of standardized
operations as the company try to meet the customers’ needs. In reference to fit20 case study, the
customers’ uniqueness of their services means their operations have high variety as they are
flexible, complex and try to serve the customers’ expectations in terms of both their market
research and trainers’ recruitment. These inevitably add to the unit cost of service provisions.
Variation: this means operations changes in terms of capacity due to the variation in demand for
the service of the company. For instance hiring of more staff to meet the growing demand for

OPERATIONS STRATEGY PERSPECTIVES AND PERFORMANCE TASKS WITH CASE ANALYSIS 3
fitness (Slack et al, 2009, pp.19-22). However Greasley (2008, p.10) illuminate how the service
requirement for simultaneity between the service provider and the environment, lead to variation
in the services performance, as workers make mistakes and are likely to vary their actions on a
day-to-day basis. In this, fit20 witness high variations in demand thus they are continuously
changing capacity. The company staff capacity is over 100 but the company has other contractual
experts in the reserve who are contracted to fill the change in capacity when demand changes.
Visibility: According to Slack et al. (2009, pp.19-22) visibility is show much the customers are
able to experience from the operations’ activities or how much customers are able to see in
operations as exposed by the operation management. The visibility of services is part of its
delivery system where customers are actively engaged. Fit20 has high customer contact which
increase their operations cost.
Operations perspective
Slack and Lewis (2009) define operations strategy as simply how the organizations meet their
objectives. It is what operational changes and adoption process to meet immediate and long-term
objectives. Slack et al. classify strategic decisions into four perspectives, namely: Top-down,
Bottom-up, Market requirement-based and Resource based.
Top-down
-market leadership in
fitness
-innovative training Market requirement
-flexible services
-adaptation to
customers’ needs
Resource-based
-qualified trainers
-advanced studios and
training equipment
-customers’ loyalty
Operations Strategy
Bottom-up
-fit20 learn from home
training services
-online community for

OPERATIONS STRATEGY PERSPECTIVES AND PERFORMANCE TASKS WITH CASE ANALYSIS 4
Top-down perspective: This perspective focuses on the holistic objectives of the whole
organization according to Slack et al. (2009). This strategy is also called corporate strategy
because it is concerned with organization as a whole in terms of the sector it compete. The top-
down perspective of fit20 is to be a market leader in the health and fitness sector and be a highly
ranked fitness training and consultation. To achieve this, the company recruits the best trainers in
the industry to respond to the customers’ needs. The company also offers the best fitness studios
set ups for the customers, and being flexible to fit their time schedules.
Bottom-up Perspective: This Perspective according to Slack et al. is how the company
encounters emerging strategies from the day-to-day experiences in the operation processes. It
shapes the company’s strategic operations. This applies to fit20 where it separates home training
services with in studio training programs. This help in getting the feedback from the both parts of
the program and act accordingly. The perspective has helped the company in recruitment of
trainers in line with the needs of the customers. The company has also launched an online
community network from which they gain information from the customers’ feedbacks from the
experienced of their past training services. The platform has also enabled the company to directly
engage the customers and find out what they need.
Market requirement perspectives: according to Slack et al. the organization tries to fulfill the
needs of its market. Fit20 responds to the market by gathering the clients’ feedbacks and by
providing the top of the art fitness technology and training programs. The company has managed
to be competitive in the market by providing flexible services to the customers and being
adaptive to their needs. The training staffs also work together to share the client experiences and
the required responses.
Resource-based View: Slack et al. argues that resources have significant impact on the operations
strategy success, therefore, resources are inherited, acquired and developed to fit the strategic
operations of the organization. In fit20, trainers must be qualified to deliver the services intended
to the clients. The company being knowledge-based also engages in the capacity building of its
staff with regard to the market trends and responses. It has also invested in state of the art studios
and fitness equipment which feed the expectations of the clients. Over tome the company has
been able to build a pool of customers’ loyalties.
Task Two:
Operations objectives to achieve market requirements
Slacks et al. (2009, p.19-22) explains that a company do things to set things right to avoid
mistakes while satisfying their customers and also giving timely deliveries for less operation
costs. The author gives five performance objectives namely:
 Quality
 Speed