Business Strategy That Drives Operational Capabilities

1211 Words Nov 27th, 2015 5 Pages
1. Companies that often achieve high success rate do so because of the fact that they design their operations to support the company’s business strategy. These firms take the necessary steps to ensure that production operations are suited for the intended target markets. Production Operations can be defined as the special ability that production does well in order to outperform its competition, whether through offering quality, flexibility, low cost, or durable products/services. Toyota Motor Corporation a globally recognized leader in the automotive industries focuses on quality as its operation capability. If the company had focused on low cost instead of quality its operations would have an altogether different look. Two ways that …show more content…
The second area within the company's operation that can change in order to focus on a cost minimization processes is the reduction in advertising. According to an article published on www.businessinsider.com/ in 2013 the company was ranked among the top 12 biggest advertising spenders in the world with $2.09 billion dollars spent on various forms of advertising. Since most of Toyota’s competitors do not have the advertising budget that the currently do a reduction in spending on advertising could prove to have little to no effect on sales as Toyota may be able to divert some of the monies it currently spends on advertising to continue to build and develop the high-quality vehicles that it has been known for ensuring a that they still maximize their profits and market-share.

2. Although FedEx and the U.S. Postal Service compete for many of the same customers both companies business strategy differs in terms of how they attempt to attract new customers. Here are two ways that both companies differ in how they attempt to attract new customers, FedEx continue to differentiate itself from other shipping service providers by making their main focus on being very reliable all but guaranteeing that your package will arrive when they say it will. There are constant upgrades and testing being carried out on their trucks and plane in order to ensure their dependability. Another way in which both companies differ is that the U.S Postal