Business Strategy and Operations Management Report

This report delves into the core concepts of managing operations and business strategy, emphasizing the crucial role of supply chain management. It explores how businesses can leverage their expertise to achieve objectives, focusing on the integration of business strategy with supply chain strategy. The report highlights the importance of effective communication and cost reduction within supply chains, using Subway as a case study. Key factors in developing supply chain strategies are examined, including location and transportation decisions, product types, inventory regulation, and distribution strategies. The report also addresses organizational challenges and emphasizes the shift from cost-centric to customer-oriented and strategic supply chains, providing a comprehensive overview of the subject.

Running head: MANAGING OPERATION
MANAGING OPERATION
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1MANAGING OPERATION
Business strategy engages leveraging the fundamental expertise and competencies of the
organization in order to accomplish increased level purpose and objective. Successful business
strategy incorporates the systematic as well as decision making procedures related to the
products such as products and services, when to offer business cycles and further where to offer
services like markets and segments considered as a competitive strategy (Christopher 2016).
While the concept on business strategy comprises the generic direction that an organization
aspires to progress, the supply chain strategy further comprises the definite functioning of the
organization along with the extensive supply chain in order to accomplish specific supply chain
goal and objective (Roh, Hong and Min 2014). Most of the organizations comprise of business
strategy, but are improbable to have explicitly outlined a supply chain strategy. An effective
business strategy must further be implemented and is characteristically executed through the
operational mechanisms of the organizations. Supply chain strategy further concentrates on
motivating operational expenditures as well as maximising the level of productivity. For
instance, organizations may prefer to select strategy that is directed at the distributor or supplier
management as an approach to sustain its level of competitiveness (Stadtler 2015). Subway has
been integrating its supply chain factors through guaranteeing that there exists a direct and
effective communication association between the suppliers, distributors, restaurants and
consumers. Subway will further seek to reduce the cost of expenditure through massive
purchasing in a way that the organization’s negotiation power will elevate further allowing the
chain to purchase ingredients at reasonable prices. Furthermore, by providing distinctive
objective, the organization keeps the prospect of the strategy and is further able to develop
strategic or tactical approaches in order to attain these goals.

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It has been noted that most organizations develop supply chain strategy following the
business strategy has been explicitly defined. However, such approach can further deliver certain
principles and values whereby it does not underpin the combination into the functioning of
business strategy development of well-established supply chain framework options that could
further considerably enhance the business strategies and plans (Slack 2015). Companies along
with its organizational culture are recognized to play significant role in progressing and further
executing an effective business strategy. There are certain widespread organizational challenges
existing in various companies such as deficiency or lack of ownership whereby several supply
chain procedures as well as value forces do not comprise of any proprietor in the conventional
sense, organizational focus whereby few managers are considered to be operative or process
oriented and further unable to comprehend the compound drivers framework of value levers
(Qrunfleh and Tarafdar 2014). Furthermore, it has been noted that supply chains have developed
from a cost centric to a customer oriented and at present to a strategic focus whereby the need to
review strategically in relation to supply chain has shown immense significance.
There are several factors which are required to be reviewed while developing an effective
supply chain strategy namely location and transportation decisions, product type, inventory
regulation decisions as well as supply chain integration and development strategies.
 Location and Transportation decision making- Geographic regions of production
factories, warehouses along with distribution entities are regarded as significant factors in
influencing the functioning of supply chain strategy (Seuring 2013). However, these
factors further influence the cost and revenue along with the level of services.
 Product Type- Another factor that is decisive to the entire supply chain strategy
management process depends on the product types. It is important to note that supply

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chain management related to concrete end products will vary from liquefied end
products.
 Inventory Regulation or Control- Inventories or supplies are regarded as the most vital
part of SCM and further exist in the form of raw materials, semi-finished products or
refined products (Roh, Hong and Min 2014). However, effective inventory management
as well as regulation is immensely critical as further determines the expenditure of
production and thus generates the level of profitability.
 Distribution Strategies and Planning- Another factor that is Distribution strategy is
considered as immensely crucial as its is recognized for dealing with the associations and
the network between the distributors or suppliers as well as the warehouse executives
(Slack 2015). Subway further benefits from the rate of economies of level and further
sustain the position in order to supply products to its customers at low cost or reasonable
rates in the process of receiving profits from additional revenues.
 Furthermore, supply chain management concentrates on enhancing the level of
distribution approaches in order to optimize the process related to supply chain
management as a whole.
 Supply chain integration- The process of SCM further requires to incorporate possible
information that are accessible in one structure in order to productively monitor the
development (Qrunfleh and Tarafdar 2014).

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References
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Qrunfleh, S. and Tarafdar, M., 2014. Supply chain information systems strategy: Impacts on
supply chain performance and firm performance. International Journal of Production
Economics, 147, pp.340-350.
Roh, J., Hong, P. and Min, H., 2014. Implementation of a responsive supply chain strategy in
global complexity: The case of manufacturing firms. International Journal of Production
Economics, 147, pp.198-210.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems, 54(4), pp.1513-1520.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.