MASTERS OF BUSINESS ADMINISTRATION

IN ISM

Teklemariam Mulaw Aweke

MBAISMR/322/22
Operational Management

Tekle
[Email address]
 1. Define and Discuss operational management

Operational management refers to the planning, organizing, coordinating, and controlling of

resources within an organization in order to effectively and efficiently achieve its goals and
objectives. It involves overseeing day-to-day activities, such as production, inventory
management, quality control, and process improvement, to ensure that the organization runs
smoothly and optimally.
Operational management is essential for companies to remain competitive in today's fast-paced
business environment. By effectively managing their operational processes, companies can
minimize costs, maximize productivity, and deliver high-quality products and services to
customers(Chase et al., 2001) .
Furthermore, operational management plays a critical role in improving the overall performance
and profitability of an organization(Heizer et al., 2020). By continuously analyzing and
optimizing operational processes, companies can identify areas for improvement and implement
strategies to enhance efficiency and effectiveness.
In conclusion, operational management is a fundamental aspect of running a successful
organization. It encompasses a wide range of activities aimed at ensuring that resources are
utilized effectively and that the organization is able to achieve its objectives in a timely manner.
Reference: Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations management for
competitive advantage. McGraw-Hill/Irwin.
Heizer, J., & Render, B. (2017). Operations management: Sustainability and supply chain
management. Pearson
 2. How operational management does differs from strategic management.
Make a comparative analysis
Operational management is focuses on the day-to-day activities and tasks that are essential for
the successful execution of business operations. It involves overseeing and coordinating various
processes and resources to ensure that business goals are met efficiently and effectively. In
contrast, strategic management involves long-term planning and decision-making aimed at
setting overall goals and objectives for an organization. Strategic management is concerned with
identifying opportunities, assessing risks, and developing strategies to achieve sustainable
competitive advantage in the market(Chase et al., 2001).
There are several key differences between operational management and strategic management.
Operational management deals with the implementation of strategies and plans that have been
developed by the strategic management team. It focuses on short-term goals and objectives, such
as managing resources, improving efficiency, and ensuring quality control(Jones, 2010).
Strategic management, on the other hand, involves setting direction, determining the
organization's mission and vision, and aligning resources and capabilities to achieve long-term
organizational goals. Strategic management is more concerned with the big picture and making
decisions that will shape the future of the organization (Jones, 2010). In conclusion, while
operational management is crucial for the day-to-day operations of a business, strategic
management is essential for ensuring long-term success and sustainability.
Reference: Jones, G. R. (2010). Organizational theory, design, and change. Upper Saddle River,
N.J: Prentice Hall.
Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations management for competitive
advantage. McGraw-Hill/Irwin.