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Management Services Winter 2012


The results were then used to prepare a profile of the competitive strategy of the responding business. Figures 1 and 2 (previous page) show a theoretical profile of a firm fully committed to a market- based competitive strategy (Figure 1) compared with a resource-based competitive strategy (Figure 2). The scales of the 15 spokes of each profile


Figure 3. The actual competitive strategy adopted by Company A in our sample


Uniqueness of resource and capabilities


4 Internal


recognition of unique capabilities


New


technology scanning


Organisational learning


Jockeying of


competitive position


Skills and knowledge investment


Commitment to HR development


Generic processes operated


Business


performance 3


Greater emphasis on cost and service


Price a distinct strategic variable


Measurement of innovation and learning


Robustness of operations performance


Skills acquisition and learning


2


Development of unique capabilities


knowledge


Employee tacit


Market signalling


Strategic grouping


Competitive positioning andconduct


1


range from one to five with a rating of five positioned on the circumference of the circular figures.


Figure 3 is an example of the actual profile of one of the organisations from our sample of 21 service firms. It seems to suggest that the firm from which the data derives – Company A – is implementing a predominantly market-based


competitive strategy.


The follow-up questionnaire (the x-axis questionnaire) was then designed to analyse the strategic role that the operations function of a business was currently fulfilling. In a similar manner to that previously described, 15 ‘observable elements’ of the strategic role that the operations function can perform were used to assess the commitment of the strategic operations management to investing in each of the 15 operational performance characteristics. Also, as before, a five-point scale was the means for reporting the respondent’s assessment of the perceived competitive strength of each operation’s characteristic. Figure 4 shows the results obtained from Company A, indicating that its operations are adopting a predominately supportive strategic role. It also shows where further development of this role could enhance its contribution to corporate competitiveness.


Figure 4. The Actual Strategic Role of Operations of Company A


Pay and conditions


Equipment and process technology supplier partnerships


State of the art operations a strategic goal


Continuous improvement practices training provided


Technological leadership sought


Competitors attempt to poach operations personnel


Formal reporting and learning practices employed for operations management


Operational trade-offs recognised in


performance priorities


Customer needs determine


operational priorities


Use of consultants for operations strategy/policy matters


Similarity of operations practices and equipment to those of competitors


Process design primarily determined by R&D not operations


Operations technologies and equipment selection based upon generic rather than specialized use


Operations recognised as a competitive weapon


Operations capabilities aligned with business strategy


Analysing strategic management consistency The points reported on each completed y-axis questionnaire were totalised and a profile of the view of competitive strategy adopted by each firm was plotted, as shown in Figure 3.


The interpretation of the profile of the view taken by each of the businesses participating in this research was as follows; a questionnaire points count of between 15 and 39 (15 is the minimum total that could be gained) and a competitive profile without a discernible bias towards either of those shown in Figures 1 and 2, was considered to be seeking improved operational effectiveness as its strategy to increase its competitiveness (Porter, 1996).


A profile similar to that


Auditing


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