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Main topic
Understanding
the Business
Environment
Developing the
Operations
Strategy
Implementing
the Operations
Strategy
Percentage of
exam
25%
45%
30%
Content Outline
I. Understanding the Business Environment
Operations strategy must be integrated with the business strategy of the firm, reflecting the external
environment, as well as organizational priorities and philosophies. The operations strategy
development process must capture and assimilate that information to provide context for alignment
with business strategy. Operations strategy development must consider the following business
environmental factors:
A. Globalization/Location Issues: Understand and evaluate strategic issues arising from global
perspectives.
B. Information Evaluation and Prioritization: This section addresses identification and
evaluation (including prioritization) of key information from environmental scanning.
C. Sustainability: Understand the importance and implications of the three parts of
sustainability (economic, environmental and social) to the organization, stakeholders, and
supply chain.
II. Developing the Operations Strategy
The operations strategy development process must align with the business strategy and reflect the
analysis of the business environment. This includes the processes of identifying, evaluating and
choosing among alternatives in the context of the business strategy. Understand the significance of
the following factors in developing the operations strategy:
A. Performance Objectives/Goals: Choose how success is determined.
B. Product/Service Design: Matching firm capabilities and processes to market needs and
product life cycles.
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