Chapter 1, Problem 43AP

Summary Introduction

To explain:The meaning of production and operations strategy; the common and uncommon elements between the productionand operation strategy and marketing and financial strategy.

Introduction: The production and operations strategy are a specified business strategy designed for allocation purpose of resources. In other words, to make the production process work effectively and simultaneously to minimize production costs so far as possible, these strategies are made.

Marketing and financial strategies are also important strategies a company uses to earn maximum revenue within a budget.

Explanation of Solution

The common elements found between production and operations strategy; and marketing and financial strategies are:-

1. Evaluation of future: Production and operations strategy and marketing and financial strategies both evaluate and predict the future market of the company’s product.
2. Resource allocation: Both the strategies can allocate the funds rationally in respective areas.
3. Minimization of production costs: Both the strategies should operate aiming to minimize production costs so far as possible.
4. Efficient execution for maximum revenue: Both the strategies must operate wisely and efficiently so that the company’s revenue increases continuously.

The elements found as different between production and operations strategy; and marketing and financial strategies are:

1. Work field: The former involves six elements which is positioning of the system of production; focus on manufacturing and service facilities; development of product or service and its design; choice of technology and system development; resource allocation to strategic alternatives and facility planning. However, the later strategies are used for purpose of growing demand in the market and at the same time saving funds.
2. Target: The former strategies target the supply side, while the later strategies demand side of the company along with its financial part.