Decision Analysis

1. RL5.2.1 Operations Management, BITS Pilani
BITS Pilani
Pilani Campus
Operations Management
Live Lecture 4-5
Strategy

2. RL5.2.1 Operations Management, BITS Pilani
Module Objectives
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• Dissect mission statements and link them to strategies.
• Dissect overriding operations strategy of a given organization
and infer its performance against its strategy.
• Interpret global strategic options and analyze their respective
business models.

3. RL5.2.1 Operations Management, BITS Pilani
Chapter Overview
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4. RL5.2.1 Operations Management, BITS Pilani
Mission – The Purpose of Existence
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https://www.youtube.com/watch?v=JYkgPXt8vOA
We are in the business of preserving and improving human life.
All of our actions must be measured by our success in achieving
this goal.
Merck & Co., Internal Management Guide, 1989
We try to remember that medicine is for the patient. It is not for profits. The profits
follow, and if we have remembered that, they have never failed to appear. The better
we have remembered it, the larger they have been.
George Merck II, 1950

5. RL5.2.1 Operations Management, BITS Pilani
6 Principles of Strategic Positioning
http://mintne.ws/1AmkWDZ
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1. Start with the right goal – Superior long-term return on
investment. Do not set your goal on volume, market share or
perceived investor desires.
2. Strategy must aim at delivering value proposition that are
unique.
3. The unique value must reflect on the entire value chain.
4. Be prepared for a trade-off to focus. A Jack-of-all is not the
approach.
5. Align the functional objectives to organization strategy.
6. Stay focused on the goal for a sustainable period of time.

6. RL5.2.1 Operations Management, BITS Pilani
Post Class Hours
• M2.8 What strategy is not
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7. RL5.2.1 Operations Management, BITS Pilani
WILe
Interview your organization’s leadership team on the
organization’s mission and strategy – Map it against the six
principles of strategic positioning – Is it confused with
operational effectiveness? What is your value proposition? Does
this distinction percolate across the value chain? Does your
organization consider trade-offs positively? How does this
strategy translate into functional objectives? Do you see a
conflict between organizational and functional strategies?
Between the strategic direction and a market opportunity, what
does your organization pick? Share the results with your
instructor.
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8. RL5.2.1 Operations Management, BITS Pilani
References
• Jay Heizer., Operations Management, Pearson Education 9th
Ed., 2009
• Mike Michalowicz., The Toilet Paper Entrepreneur, HarperCo
Books., 2008
• Harvard Business Review – What is strategy? – Michael Porter,
1996 issue - https://hbr.org/1996/11/what-is-strategy
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9. RL5.2.1 Operations Management, BITS Pilani
END OF LECTURE