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Tuesday, May 24, 2011

Strategy 6


Continuing from the earlier discussion on operational efficiency and it's relation with the company's strategy; we begin with a hypothetical case at our hand here.

Hari is a road side chat vendor. His daily revenue during the peak seasons could be as much as Rs 9000/-. His shop is pretty famous amongst the office goers as he delivers the ordered chat in just 5 minutes flat. He doesn't really keep his customers waiting, they just love the speed of his catering and the taste that he embeds in all he cooks.
His years of experience has enabled him realize the beauty of parallel processing. At a single point he can prepare as many as 5 different plates simultaneously without mixing the ingredients of the chats. His knack of preparing so many numbers enables him prepare and cater to 5 people in the same time span.

Now that we have this hypothetical case with us, our next question is can we call his ability to parallel process as a strategy? Really not!

Strategy is about where the vendor wants to take his business. Does he want to create a chain of chat shops or does he want to have the nation's largest five star chain. Once he has fixed up no the larger goal to be achieved; he would work at attaining the necessary resources, create a running business and keep adding to the resources and move from strength to strength.
The operational excellence is only a means to the glory that the business man aspires for.

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