These operational strategies are also reflected in the place element of Microsoft’s marketing mix (4P).ĥ. Thus, Microsoft’s operations management approach in this strategic decision area involves a combination of virtual and physical locations to reach markets and maximize resource accessibility. In addition, the firm adds more distribution channels by increasing the number of its Microsoft Store locations worldwide. For example, the company maintains business partners, such as authorized sellers. However, for hardware products like the Xbox, Microsoft must ensure nearness and accessibility to target markets around the world. The company’s computer software products are easily distributed to target markets through the Internet. In software development and distribution, Microsoft Corporation focuses mainly on human resource productivity within its corporate facilities. Proximity and access to resources, markets and supply chains are considered in this strategic decision area of operations management. On the other hand, for software production, Microsoft’s operations managers streamline process design to reduce errors and increase operational efficiency in correcting software development issues.Ĥ. For example, in computer hardware production, the company automates production capacity allocation to minimize productivity bottlenecks. In Microsoft’s case, operations management relies on extensive automation to optimize capacity and processes. In this strategic decision area, companies focus on resources and standards applicable to production processes. Emphasis on quality supports the aims for helping and empowering customers, as included in Microsoft’s mission statement and vision statement.ģ. These approaches optimize productivity and organizational resilience, given market dynamics. Also, Microsoft heavily invests in research and development to achieve rapid innovation that keeps the business competitive against other technology firms. For example, the company uses feedback systems to collect usage information from customers and integrates such information in the next iteration of computer software products. Microsoft’s approaches to operations management address these operational objectives through continuous improvement and innovation. Operations managers are concerned with satisfying customers’ expectations about product quality in this strategic decision area. The increasing variety of products also reflects Microsoft’s generic competitive strategy and intensive growth strategies.Ģ. This condition increases the significance of operations management in designing goods and services for the company. For example, their operational productivity decision-making processes now include computer hardware and software products, along with Microsoft’s cloud computing services. However, through continuing expansion of the product mix and diversification of the business, the company’s operations managers now make broader strategic decisions. Microsoft Corporation initially focused on software design. This decision area of operations management deals with the strategies and tactics needed to develop profitable products. Microsoft’s Operations Management, 10 Decision Areasġ. Business productivity depends on the effectiveness of operations managers in developing solutions corresponding to these 10 decisions to support Microsoft’s computer hardware and software operations. The 10 strategic decision areas of operations management (OM) are effectively covered in Microsoft’s approaches.
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