STRATEGIC OPERATIONS “DE'LONGHI”

Strategic Operations “De'Longhi”



Contents

Introduction4

Discussion5

De'Longhi: The Business & Operational Strategy Link8

Operational Strategy8

Business Strategy9

Value Chain Network: Supply Chain and Global Logistics11

Global Logistics: Third Party “Agents”12

Supply Chain Network: Global Synergy13

Work Design: Layout, Process Type & Technologies13

Organizational Value Chain: Influence on Organizational Functions14

De'Longhi: Main Processes15

Cross Functional Teams16

Iconic Product Features: Durability, Design & Usability16

Conclusion17

References18

Executive Summary

De'Longhi is a world renowned brand, famous for its high tech kitchen ware and home appliances. The core strength of the company lies in its ability to successfully implement the operational strategy based on technology and innovation (Badri et Al, pp. 160). The company has managed to differentiate itself from the world wide competitors by following this operational strategy, and the brand De'Longhi, is regarded as a high quality product manufacturer. The operational strategy of the company allows it to successfully implement the business strategy; of branding itself as a high quality premium brand. This paper will critically analyze the link between both of the strategies, and how this allows the company to achieve a sustainable competitive advantage in the industry.

Strategic Operations “De'Longhi”

Introduction

The contemporary business environment can be identified as a highly competitive and global entity. The organizations have to contend with the growing pressures of the global markets, where countless organizations pose the competitive threat and the growing demands of the consumers; causes the companies to face numerous challenges (Bagozzi & Phillips, pp. 480),. This is the reason why only a few companies are able to cope with the fierce competition available in the industry and achieve sustainable growth, while the majority of the other companies are not able to deal with these challenges, and often face the threat of failure. Due to the ease of entrance in to the industry, there is a huge number of start up and entrepreneurial ventures that are formed on a worldwide basis. However the success of these companies is finally based on their ability to critic ally analyze the industry and form a strategic business strategy (Bou-Llusar et Al, pp. 20). This strategy should be the reference point for the majority of the decisions, and it should provide a guideline for the formation of the organizational policies. Hence the long term success of the company is dependent on its ability to adequately analyze the overall environment and form a comprehensive business strategy. This business strategy should be adequately supported by the operational strategy; otherwise the company is at a risk of facing severe consequences. In the current business environment, companies can no longer afford to implement strategies, which are ineffective and result in the inefficient use of the organizational resources. Hence the company has to ensure that its operational strategy plays the role of supporting the overall business strategy.

The operational success in the industry can only be achieved if the organizations manage to make the necessary internal changes, so that it can manage to capitalize on the opportunities present in the industry. The management has to realize that the formulation of a business strategy is not their only function, ...