Operations Strategy

Simple Definition for Beginners:

Operations strategy refers to the plan and approach a business uses to organize and manage its operational processes to achieve specific goals and objectives.

Common Use Example:

A retail company’s operations strategy includes inventory management, supply chain optimization, and customer service enhancements to improve efficiency and profitability.

Technical Definition for Professionals:

Operations strategy is the set of decisions and actions that define how an organization will structure and manage its operations to support its overall business strategy and objectives. It involves making choices about production methods, resource allocation, technology adoption, supply chain management, quality control, and process improvement. The goal of operations strategy is to align operational capabilities with business goals, optimize processes to achieve competitive advantage, and meet customer demands effectively. Key elements of operations strategy include capacity planning, cost management, flexibility, innovation, sustainability, and continuous improvement initiatives such as Lean, Six Sigma, and Total Quality Management (TQM).