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Strategic Planning

Strategic planning, .from an operations perspective, is typically concerned with the long-range view of how an organization conducts business. As we have seen, strategic planning within the operations function of a manufacturing company is concerned with-addressing such issues as (a) where do we locate our facilities? (b) how big do we make them? (c) when do we build them? and (d) what processes do we adopt to make our
products? I However, a service organization, because it deals directly with its customers, also must strategically evaluate how it will interact with them. Service managers also must recognize that technology can significantly alter the way in which a company does business. For example, most of the major airlines now have home pages on the Internet that provide information about special airfare promotions. As discussed earlier, these special fares that are available only on the Web encourage customers to buy through the website, which is more cost efficient from an operations perspective. By adopting the proper strategy and associated technology, a firm can substantially increase its revenues and market share. Failure to do so can result in losing customers to competitors.

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