STRATEGIC OPERATIONS MANAGEMENT

Strategic Operations Management

Strategic Operations Management

Introduction

The operations strategy of a company is focused to assist the overall business strategy to achieve organizational objectives profitably. Effective operation strategies enable businesses to manage its resources efficiently in the delivery of products and services. A company requires strategic management of its business operations so that the focus of the entire organization remains in-line with the corporate objectives. The company sets mission and vision for the organization. The analysis of external environment provides valuable insights for the business operations. They provide assessment of the competitiveness of the firm. The comparison of cost, marketing promotions, sourcing strategies, target markets and business operations facilitate the organizations to develop appropriate strategies to harness the opportunities in the market and avoid the threats. The organizations carry out internal analysis to evaluate their competitive advantage. The internal audit enables a firm to evaluate its strengths as compared to the competitors and identify its weaknesses. The strengths are harnessed and grown while the weaknesses are reduced to achieve higher performance. The direction provided by the business strategy enables the management to tailor their operations strategy to meet the organizational goals. A cost leadership strategy at business level can shape the operations strategy to reduce cost of operations. Reduction in inventory in supply chain, bringing outsourced high cost manufacturing in house or outsourcing in house operations can be possible strategies of operations which link the business strategy to the operations strategy. We will be reviewing the strategic operations management of the De'Longhi S.p.A. We will critically assess the linkages between the operations strategy and the business strategy of DeLonghi. We will critically evaluate the issues regarding the layout, process type and use of technologies in the company. We will assess the effectiveness with which the organization is exploiting the value and chain and servicing the quality required by the market.

Discussion

De'Longhi S.p.A, an Overview

De'Longhi is an Italy-based company that manufactures and distributes household electrical appliances and goods. The company has operations in Italy, the US, the UK, Canada, Europe and Mexico.

Historical Perspective

Dating back to one hundred years of since its inception as a workshop of craftsman, 1950 saw the becoming of De'Longhi into a small company. In 1970's the company launched De'Longhi brand name products in the market. During 1980's, the company initiated its acquisition programme in a variety of household appliance sectors. The numerous house hold appliances included Supercalor in 1979; Elba in 1986; Radiators in 1986; Ariagel in 1987;Vetrella in 1989 and Simac Micromax in 1995. The company acquired Kenwood Group in 2001. In 2005, De'Longhi transferred its home system and professional wall air conditioning units in its subsidiary Climaveneta Home System. In the following year, the company opened a new plant in China.

De'Longhi, through its subsidiary De'Longhi Professional, acquired 83.3% stake in RC Lux, the RC Group's parent company, in 2006. In the same year, the company sold Elba Spa, a company active in the production and commercialization of cooking appliances including built-in table-top ovens, built-in ovens and ...