GLOBALIZATION AND BMGT25 – OPERATIONS

PRODUCTION
MANAGEMENT

RONALD ARBOLEDA

STRATEGY CAVITE STATE UNIVERSITY

LEARNING OBJECTIVES
After the completion of the chapter, students will be able to:
1. Integrate the importance of formulating a mission in developing an effective
strategy
2. Explain the strategic operations management decisions and the issues affecting
the strategies
3. Describe the process of implementing the strategies
MISSION AND STRATEGIES
A strategic plan starts with a clearly defined business mission.

Mintzberg defines a mission as follows:

“A mission describes the organization's basic function in society, in terms of the
products and services it produces for its customers”.
FACTORS AFFECTING MISSION
Philosophy and
Values

Environment Profitability

MISSION

Customer Public Image

BENEFIT TO
SOCIETY
A CLEAR BUSINESS MISSION SHOULD
HAVE EACH OF THE FOLLOWING
ELEMENTS
PURPOSE
“Why the business
exists”

STRATEGY &
VALUES
SCOPE
“What management
“What business and
believes in”
how”
STANDARDS &
BEHAVIORS
“The rules that guide
how the business
operates”
WHAT SHOULD A GOOD
MISSION CONTAIN?
PURPOSE
Why does the business exist?
Is it to create wealth for shareholders?
Does it exist to satisfy the needs of all stakeholders (including employees, and
society at large?)
WHAT SHOULD A GOOD
MISSION CONTAIN?
A STRATEGY AND STRATEGIC SCOPE
A mission statement provides the commercial logic for the business and so defines
two things:
 The products or services it offers (and therefore its competitive position)
 The competences through which it tries to succeed and its method of competing
A business’ strategic scope defines the boundaries of its operations. These are set by
management. For example, these boundaries may be set in terms of geography,
market, business method, product etc. The decisions management make about
strategic scope define the nature of the business.
WHAT SHOULD A GOOD
MISSION CONTAIN?
POLICIES AND STANDARDS OF BEHAVIOR
A mission needs to be translated into everyday actions. For example, if the business
mission includes delivering “outstanding customer service”, then policies and
standards should be created and monitored that test delivery.
WHAT SHOULD A GOOD
MISSION CONTAIN?
VALUES AND CULTURE
The values of a business are the basic, often un-stated, beliefs of the people who
work in the business. These would include:
• Business principles (e.g. social policy, commitments to customers)
• Loyalty and commitment (e.g. are employees inspired to sacrifice their personal
goals for the good of the business as a whole? And does the business
demonstrate a high level of commitment and loyalty to its staff?)
• Guidance on expected behavior – a strong sense of mission helps create a work
environment where there is a common purpose
EXAMPLE: CVSU MISSION
STATEMENT
Cavite State University shall provide excellent
equitable and relevant educational opportunities in
the arts, sciences and technology through quality
instruction and responsive research and development
activities.
It shall produce professional, skilled and morally
upright individuals for global competitiveness
EXAMPLE: CVSU MISSION
STATEMENT STRATEGY AND
STRATEGIC SCOPE

Cavite State University shall provide excellent

equitable and relevant educational opportunities in
the arts, sciences and technology through quality
instruction and responsive research and development
activities. POLICIES AND STANDARDS OF BEHAVIOR

It shall produce professional, skilled and morally

upright individuals for global competitiveness
PURPOSE
VISION → MISSION →
STRATEGIES → GOALS →
OBJECTIVES
VISION is a big picture what you want to achieve

MISSION is a general statement of how you will achieve your vision. 

STRATEGIES are a series of ways of using the mission to achieve the vision.

GOALS are statements of what needs to be accomplished to implement the strategy.

OBJECTIVES are specific actions and timelines for achieving the goal.
GOALS SHOULD BE…
OPERATIONS DECISIONS
Operational decisions or Operating decisions are decisions made to manage day to
day business. Any firm which is into any kind of business is faced with
100 decisions they have to take in a day. These will be as mundane as refilling the
water cooler, to as stressful as fulfilling a customers order within minutes.

An operational decision structure may be illustrated as shown below:

LEVEL OF OPERATIONS
DECISIONS
Strategic decisions
Decisions that set the direction for the entire company; they are broad in
scope and long-term in nature.

Tactical Decisions
Decisions that are specific and short-term in nature and are bound by strategic
decisions.
Short-term decisions that focus on specific departments and tasks.
DIFFERENCE BETWEEN STRATEGIC
AND TACTICAL DECISIONS

Tactical decisions focus on more specific day-to-day issues, such as the quantities and
timing of specific resources. Strategic decisions are made first and determine the direction
of tactical decisions, which are made more frequently and routinely. Therefore, we have to
start with strategic decisions and then move on to tactical decisions.
Tactical decisions must be aligned with strategic decisions because they are the key to the
company's effectiveness in the long run. Tactical decisions provide feedback to strategic
decisions, which can be modified accordingly.
OPERATIONS STRATEGY
ISSUES
Without consistent alignment of operations and strategy, business will face problems
executing the core mission of the organization.

Key Areas to be taken into consideration in Operations Strategy Issues:

 Strategy Development
 Communication
 Resources
 On-going Assessment
KEY AREAS TO BE TAKEN INTO
CONSIDERATION IN OPERATIONS
STRATEGY ISSUES
STRATEGY DEVELOPMENT
Problems arise when those most familiar with operations -- such as line staff and operations
managers -- are not involved in any way with the development of company strategy.
Strategy development must also focus on the long-term goals of the company -- addressing only
short-term concerns is problematic and doesn't consider the overall mission of the business.

COMMUNICATION
Even if an operational strategy exists, it is useless if staff are unaware of the company approach.
Failing to understand the operational strategy and how each of the pieces fits together to carry out
that strategy can lead to a lack of communication and cooperation between divisions. 
Simply communicating the strategy is not enough -- employees must understand the details. Check
understanding on a regular basis through staff meetings and open discussion of the strategy.
KEY AREAS TO BE TAKEN INTO
CONSIDERATION IN OPERATIONS
STRATEGY ISSUES
RESOURCES
One significant problem with operational strategy is the lack of available resources to implement the
strategy.
In this context, "resources" does not necessarily mean supplies or funding, although it can be both those
things. People are the most critical resource essential for successful execution. Failure to recruit and
retain qualified workers will result in a significant hardship for the organization.

ON-GOING ASSESSMENT
Follow up to ensure the execution is taking place as planned. Seek input from staff at all levels and
throughout various divisions of the company.
Continuous assessment and follow-up is essential to maintain a competitive advantage. Frequently
adjust the operational strategy in response to significant internal and external opportunities and threats.
STRATEGY IMPLEMENTATION

Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the
long-term goals of the organization. It converts the opted strategy into the moves and actions of the
organization to achieve the objectives.

Process of Strategy Implementation

1. Building an organization, that possess the capability to put the strategies into action successfully.
2. Supplying resources, in sufficient quantity, to strategy-essential activities.
3. Developing policies which encourage strategy.
4. Such policies and programs are employed which helps in continuous improvement.
5. Combining the reward structure, for achieving the results.
6. Using strategic leadership.
IDENTIFYING CRITICAL SUCCESS
FACTORS (CSF)
Identifying Critical Success Factors enable you to track and measure your progress
toward achieving strategic goals - and, ultimately, to fulfilling your organization's
mission.
It also provide a common point of reference so that everyone knows exactly what's
most important, ensuring that tasks and projects are aligned across teams and
departments.
The CSF is also known as Key Results Areas, or KRAs was first developed by D.
Ronald Daniel.
Key Result Areas (KRAs) refers to a short list of overall goals that guide how an
individual does their job, or general achievement and progress goals for an
organization or one of its divisions.
 FOUR (4) TYPES OF CSF

1. Industry factors result from the specific characteristics of your industry. These

are the things that you must do to remain competitive within your sector. For
example, a tech start-up might identify innovation as a CSF.

2. Environmental factors result from macro-environmental influences on your

organization: the business climate, the economy, your competitors, and
technological advancements, for example. A PESTLE Analysis can help you to
understand environmental factors better.
P – political T – technological
E – economic L – legal
S – social E – environmental
 FOUR (4) TYPES OF CSF

3. Strategic factors result from the specific competitive strategy that your

organization follows. This could include the way your organization chooses to
position and market itself, and whether it's a high-volume, low-cost producer, or a
low-volume, high-cost one.

4. Temporal factors result from the organization's internal changes and growth and
are usually short-lived. Specific barriers, challenges, directions, and influences
will determine these CSFs. For example, a rapidly expanding business might
have a CSF of increasing its international sales.
 SIX STEPS TO IDENTIFY AND
DEVELOP YOUR CSFS
1. Establish your organization's mission and strategic goals
2. For each strategic goal, ask, "Success in what area of business or project activity
is essential to achieve this goal?"
3. Evaluate your list of candidate CSFs to identify the ones that are truly essential
for achieving the goals – these are your Critical Success Factors.
4. Work out how to monitor and measure each of the CSFs.
5. Clearly communicate the CSFs to those responsible for delivering them and to
rest of the business.
6. Continually monitor and reassess your CSFs to make sure that you stay on track
toward your goals.
 BUILDING AND STAFFING
THE ORGANIZATION
Staffing is the process of hiring eligible candidates in the organization or company for
specific positions. In management, the meaning of staffing is an operation of
recruiting the employees by evaluating their skills, knowledge and then offering them
specific job roles accordingly. 
Human resource is one of the greatest for every organization because in any
organization all other resources like- money, material, machine etc. can be utilized
effectively and efficiently by the positive efforts of human resource.
Therefore it is very important that each and every person should get right position in
the organization so as to get the right job, according to their ability, talent, aptitude,
and specializations so that it will help the organization to achieve the pre-set goals in
the proper way by the 100% contribution of manpower. 
 FUNCTIONS OF STAFFING
1. To obtain qualified personnel for different jobs position in the organization.
2. Maximize productivity and increase performance.
3. Promote the optimum utilization of human resource through various aspects
4. Increase job satisfaction and morale of the workers through recruitment of the
right person
5. Helps to ensure better utilization of human resource
6. To ensure continuity and growth of the organization, through development
managers
 CHARACTERISTICS OF
STAFFING
• People-Centered. Staffing can broadly view as people-centered function and
therefore it is relevant for all types of organization. 
• Responsibility of Manager. Staffing is the basic function of management which
involves that the manager is continuously engaged in performing the staffing
function. They are actively associated with the recruitment, selection, training, and
appraisal of his subordinates.
• Human Skills. Staffing function is mainly concerned with different types of training
and development of human resource and therefore the managers should use human
relation skill in providing guidance and training to the subordinates. 
• Continuous Function. Staffing function is to be performed continuously which is
equally important for a new and well-established organization. There has to be
recruitment, selection, and training of personnel.
 BUILDING AND STAFFING
STRATEGY
1. Determine your business goals
2. Establish your current people landscape
3. Analyze people patterns
4. Identify staffing and people needs
5. Create a future staffing projection
6. Develop a strong employer brand and workplace culture
7. Review the plan regularly
 HOMEWORK
1. Look for any existing company MISSION STATEMENT. Dissect and identify
the: a. Purpose, b. Strategy and Strategic Scope, c. Policies and Standards of
Behavior, d. Values and Culture
2. What is your GOAL in life? Then give 3 Strategic decisions and the possible
Tactical decisions to achieve them.
3. What are your CSF in achieving the above stated goals and how are you going to
implement/do that? What will be your resources? And timeline
GOAL:
Strategic Tactical CSF/KRAs Resources Timeline
Decision Decision
1.
2.
RESOURCES

https://www.flexrule.com/archives/what-are-operational-decisions/
https://smallbusiness.chron.com/operational-strategy-problems-
34248.html#:~:text=One%20significant%20problem%20with
%20operational,resources%20to%20implement%20the%20strategy.&text=People
%20are%20the%20most%20critical,significant%20hardship%20for%20the
%20organization
https://businessjargons.com/strategy-implementation.html
https://www.mindtools.com/pages/article/newLDR_80.htm
https://www.toppr.com/guides/business-studies/staffing/introduction-to-staffing-and-
its-meaning/