Business Strategy Vs Operational Strategy

Operational planning doesn t mean you choose between them.

Business strategy vs operational strategy. Operational level strategies are applied to business operations as a whole while functional level strategies are implemented for each department. Kovit skulsangjuntr management consultant thailand. Unlike corporate strategy which focuses on the entire organization comprising of various business units or divisions.

It s the knowing doing gap. Intuitively anyone recognizes the contrast between operational and strategic. As a result there s no shortage of operational effectiveness and strategy examples you can study to understand the concepts better.

Too often in today s companies managers mistake operational effectiveness with strategy. As against the corporate strategy focuses on the business selection in which the company wants to compete in the marketplace. The operating strategy objectives for improvement and action plans are tied directly to the overall business strategy.

But managers who neglect strategic positioning can wind up like a hamster on a wheel running hard while standing still. Strategic positioning and operational effectiveness are familiar principles in the business world. Business strategy is concerned with a particular unit or division.

Most individuals can successfully explain what the operational side of the business does. If you re sighing and thinking great one more thing i have to start doing hold up. Yes no action plans are developed to achieve objectives which will strengthen the company s competitive position and or financial performance.

Many of the management concepts tools and techniques of recent years are operational effectiveness methods. Advantages of operational strategy a major advantage of operational strategy is its focus on competition. A customer strategy closes the gap between your business strategy your operational strategy by putting the customer at the heart of everything you do.