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0:00
I'm Shahid Zaki, former CEO of
Philips Pakistan and Visiting
Professor at IBA Karachi,
a business school where
I teach strategy.
0:14
I've noticed that there are
a lot of weaknesses
when it comes to
value chain because
the value chain
differs from one
industry to another.
I'm going to talk
about strategy and how
operations management plays
a role in the organization
and how operation management
is applied through
the value chain for a
delightful customer experience.
That is in short what
I'm going to talk about.
I have focused on
implementation, on execution of
the strategy because everybody
comes up with some
kind of formulation,
but when it comes to applying
strategy through
the value chain,
I think there are a
lot of weaknesses.
0:59
Let me introduce to you
the interesting topic of
strategy because there are
numerous articles written,
but I think it is important
to be aligned on what
strategy is about.
Strategies are a cornerstone
of a company's direction,
so depending on whether it is
a single business or a
multiple businesses,
and in case of
multiple businesses,
we call it corporate strategy.
That means each
business will have
its own business strategy
and then there will
be a corporate strategy
right at the top.
My discussion will focus
on a single business,
but it can be extended to
multiple business units
where the value chain could
be shared depending upon
the resources and capabilities
of the enterprise.
Some of the common
operations are
done in the corporate
level and things
related to business directly are
done in the SBUs or the
strategic business unit.
A good strategy needs to achieve
a competitive advantage.
There are two
generic strategies.
One is of differentiation and
the other is cost leadership
if we talk about
the mass market.
If we talk about
the niche or the focus
segments of the market,
then you could have
also differentiation or
cost leadership depending on
the segment you want to address.
Whatever strategy you
decide to adopt needs to be
implemented religiously in
the operation of the company.
Unless the strategy is
executed in the operation
of the company,
you will not be able to achieve
that competitive advantage
you are looking for.
It is, therefore,
important that the
direction chosen through
this strategy should be applied
in the day-to-day
operations of the company.
The day-to-day operation
involves marketing,
sales, finance,
supply chain, and so on.
