Peroni ‘The two mest important attributes of any operations strategy ae frst that It aligns operations activites with the strategy ofthe whole organization, and second that itgives clear guidance, Here are two examples of very diferent businesses and very different strategies which rronetheless moet both criteria Ryensiris today Europe's largest low-cost airing (LCA) Feiahatever ese canbe said about its strategy, Kt does a error ary la0xot ly. thas grown by ofesng Teictost basic services and has devised an operations rerciegy which sin tine wit Bs market pestion The einlevey of te eiine's operations supports ts ow-cost crit poston, Tumaround time at apors s Kent 10 @ irerimum. This i achieved party because there are no sais o be foaded ont the aircraft and partly throuah trewreved employee productivity. Althe aircraft in the ave Wentical, ging savings trough standardization St pars, maintenance and servicing, It also means lage crsar to a single aircraft supplier and therefore the crporunity to negotiate prices down. Also, because Grr compeny often uses secondary airports landing and service fees are mur the cost of selng its services is red . Fyenair has daveloped its on lov ooking sence. In addition, the da cof the company’s operations ma Gnd refine hese strategic decisions. For exam, Ryansir hanged its baggage handing contractors er Stansted airport in the UK after problems with frisdirenting customers’ luggage. The company's Pov? Grexmomer sevice is also cia’. We patterned Fyanaic Gher Southwest Anes, te most consistently proftabie “cays Michael O'Leary, Ryanair’ Chiel t founder Herb Keller created & rs by flying only ane tYPE ‘smaller airports, providing isoling tickets drecty 0 the lowest fares for our ee {hiow-cost regions, yet lose to all major world markets, Flextronics industial parks can significantly reduce the ‘ost of production, Location Include Gdansk in Poland, Hungary, Guadaleiara in Mexico, Sorocaba in Bazi Flextronics isa global company based in Singapore tht Tee behind such well-known brand names as Nokia and ‘Dol which ae increas using al senices (EMS) companies, such as Flextories, w sign, enginesting, forthe big brand specialize n providing the outsourced fing and logistics operatio manufac rage. tis amongst the biggest of those EMS sunpters ammeter the broadest worldwide capabiies, from desig ther customers’ need for are often sod in a fircaly compettive market ad or responsive and flexible sarvic (lect of ways. ish ing and loos design, manutact 1 in the ttajrslecvorics markets giving them signiteant oaths ebity to move activities tothe most APPT fecation to serve customers. Second, Flex tered integration capabiltes that simpy global Pos tacilties located strategy, Flextronics says it ean c savery of tnished products within 1-2 days Of Ores: Scanned with CamScannerTwo Different Strategies, Two Different Operating Systems employees, number and types of planes, fight length, etc). The impact of these differences is clearly seen when you consider that Delta Jost almost twice as much mo as Southwest earned in 2003. The impact of strategy on a company’s operat ing system and financial performance simply can't be overstated. The following table com- pares Delta Air Lines to Southwest Airlines Their strategic positions are very different, as are their operating systems (number of Southwest Airlines Delta Air Lines a outes Limited service domestic mark ees Strategy Full-service airline serving as many as feasible Generic strategy Differentiation based on route structure Focus on short . leader and frequency of departwes Bo ‘© “Fortress hub” in Atianta with spoke route Plane turn ti structure T3Is only Employees 2003 revenue $133 bllion . “$59 bilion 20083 net income ($773 milion $422 milion (oss) = they spl ai in x sie,” wit Scanned with CamScanner