Good morning, class. Today we are going to talk about operational decisions and how they fit into a business’s overall operations strategy. So, what is an operations strategy? In simple terms, it is a long-term plan that decides how a business manages its production and day-to-day operations to meet its bigger goals. This includes decisions about how products are made, the capacity of production, managing stock, maintaining quality, and more. The ultimate aim is to make sure daily operations support goals like keeping costs low, offering something unique, being fast and flexible, and satisfying customers.
Let’s start with how resources influence operational decisions. First, human resources. The skills, experience, and motivation of employees matter a lot. A company with highly skilled engineers, like Toyota, can use advanced technologies like robotics or CAD systems to improve efficiency. On the other hand, a business that has less skilled labour may stick to simpler or semi-automated methods to keep costs down.
Next, financial resources. How much money a business has affects what it can invest in. A well-funded business can buy advanced machinery or technology to increase output and efficiency. A small bakery, for example, might use just-in-time production to avoid overstocking ingredients because it cannot afford to tie up too much cash in stock.
Marketing resources also play a big role. Marketing teams influence operations by predicting demand and designing products. If a new product is expected to be popular, the operations team must increase production or work extra hours. Apple is a good example. When they launch a new iPhone, their marketing drives production schedules and global supply chains.
Now let’s talk about how technology is changing operations. Information Technology, or IT, helps businesses manage operations more efficiently. Systems like Enterprise Resource Planning track stock in real time, coordinate with suppliers, and manage schedules and staff. Amazon uses advanced IT systems in its warehouses to make sure stock levels are accurate and deliveries are fast.
Artificial Intelligence, or AI, is another game-changer. AI can predict demand, automate tasks, and improve decision-making. For example, AI-powered robots in Tesla factories check quality and help on the production line with precision. AI chatbots also help customer service teams handle enquiries quickly, reducing the need for human staff.
In conclusion, operational decisions are shaped by human, financial, and marketing resources. Businesses must use these resources carefully to stay efficient and competitive. At the same time, IT and AI are transforming how operations are run, making processes faster, more accurate, and more responsive. A strong operations strategy ensures that daily operations align with the overall goals of the business, helping it succeed in today’s fast-changing market.
By the end of this lesson, you should understand what an operations strategy is, how resources influence operational decisions, and how IT and AI are improving efficiency and responsiveness in
