Strategic Role of Operations in Ecolab’s Corporate Strategy Essay

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Introduction In organization of any type, management should plan its long-term future. Corporate strategy is a management plan, which defines its business activities, prospects and development objectives. It also includes organization’s business strategy as a main choice of means and methods of competition (Griffin, & Pustay, 2005). This may be production of standardized products or delivery-on-order products/service, competition based on lower prices or rapid delivery of products. Corporate strategy provides overall direction, which provides the framework to perform functions throughout the organization. Strategy is a clear vision of the outcomes to be reached, resources necessary to reach those outcomes, and relationships with clients,…show more content…
Operations strategy in relation to corporate strategy serve as (a) implementer, (b) supporter, and also (c) driver (Slack, Chambers, & Johnston 2007). Ecolab’s corporate strategy is referred to as Circle the Customer – Circle the Globe, which in company’s terms means expand the range of products and services being delivered to the existing customer incessantly wherever they execute their business. Ecolab operates within institutional and industrial cleaning and sanitizing industry, which entry barriers are low and easy to be crossed by lots of small rivals. Pace of technological advances sets a risk of new products emergence that can take the company out of the business. Therefore, innovations are critical, and Ecolab is constantly making new acquisitions. The latter helps to raise the barriers, however makes management of operations more complicated. So, the company faces the challenge to control efficiency of its operations thoroughly. What are the Competitive Priorities related to Cost, Quality, Flexibility and Speed? Efficiency is the economic indicator of the outcome, characterized by the ratio of total product value to the total cost of input resources used for its creation. Efficiency may be assessed at various levels and in many different

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