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According to dictionary.net 2010, the term operations management means ‘the maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers'. The process of operations management plays one of the most important roles in many successful organizations and any type of industry in the global market. Operations management has a wide range of high abilities to organize and oversee all parts of the transformation process in manufactory. It focuses on the entire system that starts from the first element which is inputs such as the using of appropriate resources to fit the quality and profit of commodities, factory workers and machines. The second element is conversion process. This process can change figures or add new value to the inputs such as a design for products or designing system. The designing system is one of the most important parts that can create a higher price.
This function has to understand the contemporary trend of customer, and it can increase a large purchasing decision of clients <http://www.referenceforbusiness.com/small/Op-Qu/Operations-Management.html>, and the last element in this process is outputs. The outputs can create the benefit for the organizations when the value of the outputs is higher than the inputs which are goods and service. The operations management carefully maintains and improves an efficient supervision and qualities of strategy for long term goals. The responsibilities of operations management also involve in many major functions in manufacturer including implementing marketing plan, product design and financial system <http://www.cup.cam.ac.uk/us/catalogue/catalogue.asp?isbn=9780521700771&ss=exc>. Moreover, they have to interact with each other in all processes to achieve the identical goal which is benefits of business.
However, all of these elements cannot be successful if firms or companies do not have decisional maker who is called an operations manager. The roles of the operation manager implicate in all the operations functions in the company. They direct to manage operation of production, planning, designing, strategies and controlling of subsystems. Moreover, they also make decisions and exchange some opinions with other managers such as marketing managers, financial managers and etc to drive the business goals<http://www.docstoc.com/docs/19924731/Role-Of-Operation-Manager>. According to management. about 2010, the definition of operation manager is ‘responsible for the operations of the company'.
Aspects of operation manager are a profitable component in the goals of firms. They can apply new strategies into efficient goods and service to increase the profit of companies. For example, they can create new concepts and provide modern technologies to increase the qualities of products. Moreover, they also have the abilities to responds customer demand immediately and develop customer service. In the modern world, the roles of operation management are becoming more important thereby causing the higher competitive in the global market. The dramatic increase in competitive among industries requires them to originate new strategies to beat out other competitors.
The terms of operations strategy is that ‘strategy specifying how the firm will employ its production capabilities to support its corporate strategy'<http://www.allbusiness.com/glossaries/operations-strategy/4943650-1.html'>. The duties of strategic operations can divide into four steps. The first step is that the operations management should know what business they are in, and they can analyze a whole image of companies. The second step is that the operations management is an immense function to precisely understand strengths and weaknesses of the organizations and their competitive environments. The third step is order winners and order qualifiers. The order winners are the goods or service that has the highest orders in the global market, and the order qualifiers are the goods or service that renovate it to be more attractive for customer purchases<1980 cennus of hoursing>, and the last step is that the operations management can create new strategies to compete with other companies to achieve the goals < OM 5 editions>. Moreover, the strategic operation also gives the five performance objectives to compete with competitors. First is quality of products and service.
Second is speed for customer satisfied, for example when the customers faced up problems with products or service. A decisive solution of customer service has to depend on strategic operations or operations manager http://proquest.umi.com/pqdweb?index=9&did=1634859771&SrchMode=1&sid=4&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1274462019&clientId=124004 . Third is dependability which means that the customers can trust the companies which can provide good products and excellent service at any time<Üretim 1> Fourth is flexibility and cost <http://www.cengage.co.uk/barnes/students/sample_ch/ch2.pdf>. The operations management also has duties to implement the strategy successfully, support strategy and improve strategy for the future. In addition, if some companies do not have the good quality of operations management and let it drift by themselves, the companies will face up many troubles in the entire system, and it could direct affect the long term goals. For instance, if personnel of electric factory can not provide enough electricians for the production, the process will slow down and impact to the others <http://newboatbuilders.com/pages/prod_ops.html>. Therefore, the connection between strategic operations and operations management is the fundament of main key success in many prosperous corporations in the world. For example, Wal-Mart stores which are a famous retail company in the global market. Wal-Mart stores are the most powerful discount department stores of the United States. They can be divided into four sections which are Wal-Mart stores, Sam's Club which is a low cost warehouse club, super centers and neighborhood markets<http://walmartstores.com/AboutUs/7603.aspx>. Wal-Mart stores provide a wide range of goods and service to the customers such as apparel, jewelry, electronics, furniture, household production, health and beauty, toy and also include a pharmacy department and a digital processing center as well <http://www.walmart.com/>. Sam Walton, who established the first Wal-Mart Company in the early 1960, created the good purpose for his customer lives.
Sam Walton said that a price is one of the most important reasons for their customer purchase, so Wal-Mart tried to apply the five performance objectives into their strategies. They provided the good quality of merchandise at the lowest price to respond their customer satisfaction, and they also offer a flexible customer services<http://walmartstores.com/AboutUs/8123.aspx>. As a slogan of Wal-Mart ‘saving people money so they can live better'<http://walmartstores.com/>, and this is one of reasons that why Wal-Mart became a leader of retail industry. The achievement of Wal-Mart was attributed to the strongest operations strategies which were unique and different from other competitors http://www.thetawer.com/wiki/images/8/8c/Why_Business_Models_Matter.pdf(7). First, at the beginning in the planning process, Sam Walton had two plans to thrive his company. Locations were the first step. He planned to locate the stores away from his competitors such as the country sides or small towns. He thought the customers would like to shop at home, if the stores provided the lowest price but same quality as in the cities.
The second was the step to expand the stores in domestic and other countries such as Mexico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom<http://www.xbzhu.cn/jlq/UpFile/UpAttachment/2009-4/20094985328.pdf.>, and maintained their strategies to dominate rivals such as Kmart. The third is the greatest operations management of Wal-Mart which is a culture. Sam Walton created a unique culture for his organization. He believed that the respect of customer service, partnership and community involvement can build a good relationship, and it can lead business to successhttp://walmartstores.com/AboutUs/295.aspx. Moreover, he also originated other plans such as open door which means that everyone in an organization including employees is a family. They can share opinions or suggestions to solve problems or create great ideas for the company. Another plan is 10 foot rule which is one of the remarkable secret of Wal-Mart strategy. This means that all of Wal-Mart employees have been practiced to smile and greeting customers within 10 steps distance.
Nowadays, Wal-Mart stores are still using these strategies of Sam Walton. Both in the domestic and national countries, which have Wal-Mart stores, use the same common purposes which are good quality and lowest price. Mike Duke, who is the president and chief executive officer of Wal-Mart, is maintaining everything to drive and support strategies for a long term advantagehttp://walmartstores.com/AboutUs/285.aspx. Even in the fast pace world, He believed that the efficient management team and strategies of Wal-Mart can reinforce the organization that will face up the fluctuant situations in the future http://walmartstores.com/sites/AnnualReport/2009/letter.html . Moreover, apart of all successful strategies, Wal-Mart Corporation also promotes itself in a good image. For instance, there are many schemes that Wal-Mart constantly returns wealth to societies such as fighting hunger together which is the awareness of community issues to help poor people in America or Empowering Women to Develop New Skills which is the opportunities that increase higher educations and training of women in Peru, Bangladesh, and India. As the result of Wal-Mart operations, the high abilities of Wal-Mart Company to operate the entire process from inputs such as planning process or training programs into outputs such as customer loyalty enable the organization to increase the competitive advantage and become the most powerful retail industry in the world.