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Strategic Operational Management Development

Paper Type: Free Essay Subject: Business Strategy
Wordcount: 4373 words Published: 23rd Sep 2019

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Table of Contents



Qa). Key issues of the strategy formulation and implementation and its impact in ANZ

Qb). Key issues of the decision-making in regards to quality management and  Human Resource Management & Job Design


Q2a). Porter’s Competitive Five Forces model as an approach for strategic management practice

Q2b). Porter’s five forces in regards to P&G

Q2c). Porter’s Value Chain model as an approach for strategic management practice

Q2d). Porter’s Value Chain model in IKEA Group


Q3a). Phases of strategic management practice and its relationship to the operational management of Xero Ltd

Q3b). Evaluating the strategy formulation phase of strategic management practice and its relationship to the operational management Xero ltd

Q3c). Strategy implementation phase of strategic management practice and its relationship to the operational management of Zero ltd

Q3d). Strategy evaluation phase of strategic management practice and its relationship to the operational management of Zero ltd




The paper intends to present the dynamics of strategic operational management in regards to different companies context. The paper has analyzed different key issues that relates to strategy formulation and implementation in organizational context to realize better performance and gain effective competitive advantage. Thus, main aim of the paper is to critically evaluate each dimension of strategic operation management and its related insights to meet the objectives of the paper.   

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Qa). Key issues of the strategy formulation and implementation and its impact in ANZ Bank

Strategy formulation and implementation is the crucial part of organizational strategy management as these have role-plays to analyze the current resources and capabilities along with the external environment factors that can affect the organizational performance. Strategy implementation determines that appropriate leadership, management and related process are available to imply the formulated strategy in the operation management to accomplish the organizational aspirations in the proper manner (Slack & Brandon-Jones, 2018). The strategic management practices mainly involves, action items, alignment, assumptions, benchmarking, long term visions change control, change management and other managerial accounts.  

Key issues in strategy formulation: Strategy formulation has different stages that infers goal setting analysis, strategy formulation and implementation. In the stages identified challenges are lack of identifying potential people to set the goals, rejection of low probability opportunities, common mistakes in selecting the practices (Ansoff, et al. 2018). Apart from that, ineffective communication in the strategy formulation is the most common issue that ANZ faces in the operation management. These challenges have significant effect in the further strategic practices that may pose threat and cause hindrance to the organizational strategic management.         

Key issues in strategy implementation: Strategy implementation ensures that adequate resources are allocated in the accomplishment of organizational formulated strategy. Besides, it helps in monitoring and evaluating the performance growth of the implemented strategy to underpin the efficacy of the implied strategies efficacy in realizing the goals in a proper manner. The identified key issues in the strategy implementation mainly underpin the uncertain changes that occur in the internal and external platforms. In regards to the ANZ banks, the political turbulence can be taken as one of the crucial reasons in implying the strategies (Hitt & Duane Ireland, 2017). Additionally, back off of the supporters who supported the strategy during the implementation process, changes in economic regulations and guideline policies, underestimating the budget allocation are the key issues that the bank faces in implying the strategy in the strategy management.      

Impact of the strategic management practices of Australian and New Zealand Banking Group Limited (ANZ):

ANZ bank is one of the listed bank of New Zealand and deals with huge customer base and the identified key issues in the strategy formulation and implementation can affect the organizational strategic management practices in the crucial manner. Changing banking environment, regulations, ineffective communication can affect the entire formulation process as these variables contributed in the strategy formulation in the prominent order. Additionally, strategy implementation of the formulated strategy causes accomplishing the organizational aspiration through the effective decision-making in further approaches if the organization. Ineffective strategy management can affect and disrupt the general forces that cost high to the entire corporation (Meyer, Neck & Meeks, 2017). Apart from that, it hinders the promotion of organizational facilitating variables and forces that creates the strategic management practices and its related objectives. Thus, these issues can cause organizational failure.     

Qb). Key issues of the decision-making in regards to quality management and Human Resource Management & Job Design

Organizational quality management is categorized as one of the important steps that requires efficacy to accomplish organizational prerequisites along with the human resource management (HRM) and job designing. Operational management involves decision-making process in different aspects of organization. New Zealand Motor Corporation is the automotive company that deals with different challenges in regards to quality management and HRM practices.

Identified key issues in quality management:

In the globalized business field and emerging business means, managing culture is the most prominent issue in managing quality of the organizational performance (Ross, 2017). Cultural diversity introduces issues like ineffective quality control that affects the business operation management to make decision. Increasing complexity in the business dynamics and supply chain is another issue that affects the decision-making of operation management of the company (Beckford, 2016).     

Identified key issues in HRM and job designing:

HRM is still believed one of the crucial responsibilities of the organization as it deals with different organizational operations such as staffing, job designing and more and that takes part in the decision-making. Compliance with laws and legislations, managing change, developing leadership, workforce training and adapting innovation are the most prominent issues identified here.

Impact of the issues in operation management:

Operational management requires effective decision-making to fulfill organizational objectives, HRM practices, and quality management two deliberate practices that comes under this platform. In this regards, the cultural diversity increases organizational conflicts that affects the organizational productivity in the crucial manner and organizational efficacy suffers due to ineffective productivity (Marchington, et al. 2016). Apart from that, developing proper skills and training the resources with adequate training process sometimes proposes challenges due to ineffective adoption of innovation. Making the resources acquainted with legal constraints and designing the job as per the legislation are difficult (Suarez, Calvo-Mora & Roldán, 2016). Ineffective practices in these aspects makes organizational performance suffer and it affects the organizational productivity in the proper manner.  Thus, it can be stated that, the identified issues in the quality management and HRM practices can pose threat to the decision-making process of operation management of the company that affects the organizational practices entirely. 

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Q2a). Porter’s Competitive Five Forces model as an approach for strategic management practice  

Porter’s five forces is an effective marketing framework used by the marketers for analyzing business strategy development and related insights, developed by Professor Michael Porter (Mathooko & Ogutu, 2015). The framework helps in analyzing the competitive position and strength of the specific organization in the industry along with its further potentials to operate in the market through strategic analysis. It is an approach of strategic management as it helps the managers to better understand the marketing situations to gain advantage of strengths, identifying weaknesses and avoid making mistakes in the business operations (Bratton & Gold, 2017). It has five significant forces that help in analyzing the key objectives of strategic management in the operational field. The five forces are:

  1. Threats of new entrants      
  2. Bargaining power of suppliers
  3. Bargaining power of customers
  4. Threats of substitutes
  5. Competitive rivalry  

Q2b). Porter’s five forces in regards to P&G

In the global consumer goods market, Procter & Gamble is one of the dominant firms and it have maintained the dominance by sustaining the external environmental forces and industrial factors, which can be identified through the Porter’s analysis. According to the case scenario, the intensity of the five forces is as follows:   

  1. Competitive rivalry:  Competitive rivalry is the strongest force amongst the forces as competition in the consumer goods industry is intense. Thus, it is important to prioritize the strategic formulation sop that the company can obtain effective competitive advantage over the rivalry and safeguard the business operations in the prominent manner. In this regards, the strong intensity of this force can be determined through the following objectives: Increasing numbers of firms, variety of firms and low switching costs, which are strong forces to increase intensity of competitive rivalry (Chuchrova, Vilamova & Kozel, 2016).        
  2. Bargaining power of customers: Intensity of these forces comes in the second position as with the case, it can be noted that the bargaining power of the customers or buyers is weak. However, changing and improving the strategic management can help the company in reducing the power more in the further business operations. P&G have noticeable superiority in products, packaging and brand communication and its helps to reduce the intensity of this force.   
  3. Bargaining power of suppliers: Intensity of this force is seemed weak force as the moderate degree of integration, overall level of supply and high population of suppliers are weak forces that decreases the intensity of bargaining powers of P&G suppliers.   
  4. Threats of substitutes: Threats of substitution is a weak force too for P&G as the forces like low switching costs, low availability of the substitute’s products and low variety of substitutes is weak force. Thus, the moderate intensity against P&G can be caused by these factors outlined previously. The negative consequences of consumer’s movement away from the company can be the result of low availability of substitutes.    
  5. Threats of new entrants: Threats of new entrants of P&G need to consider the factors of capital of sales, economics of scales and switching cost. Intensity for this force is moderate for the company.  The factors limit the entry modes of the new entrants and for the new entrants it is difficult to match P&G’s services and products.     

Q2c). Porter’s Value Chain model as an approach for strategic management practice

Porter value chain model is a business management concept that helps in creating value to the operated products and services to its customer to create value in the industry. Apart from that, this helps in increasing higher profitability. This tool mainly focuses on analyzing the customer related systems and activities instead of other departments and categories (Lincoln, I. V., & Andrew, 2018). The focus mainly impacts the cost and profit along with the demonstration of value and loss sources of the organization.       

Q2d). Porter’s Value Chain model in IKEA Group

In regards to the business of IKEA group, the primary activities of can be briefly described to analyze the assistance, the value chain model proposes to it increase the customer related value and increase profitability.

IKEA inbound logistics:  IKEA inbound logistics are related with the purchase of raw material from different suppliers from global locations. It has 1002 suppliers across globe in 51 countries and it is maintained with the help of 42 trading offices. Over 9500 products are available. Thus, value creation with the inbound logistic may infer economic scale and strategic relation with the suppliers.      

IKEA operations: Franchise, property and finance are three different parts of IKEA operations. It has 340 stores in 28 different markets, 40 production units in 10 countries with 19000 of employees. Thus, value creation of the IKEA operations can link with cost benefits and positive implications of operational efficiency in the manufacturing process.  

IKEA outbound logistics: 28 markets, 340 stores, 22 pickup order points in 11 countries, 41 shopping centres, and 38 distribution sites are the outbound logistic of IKEA group. With the huge delivery services and logistics the company can easily create value to its customers.  

IKEA marketing and sales: Online sales channels increase in the profitability with the websites are the significant mediums of value creation amongst its customers. It has 200 million catalogues printed every year.   

IKEA services: Customer services are the most prominent activity of the company and it can create effective value for the organizational profitability.  

(Figure 1: IKEA value chain analysis)

(Source:Lincoln& Andrew, 2018)


Q3a). Phases of strategic management practice and its relationship to the operational management of Xero Ltd

Strategic management is the practice that relates to the organizational operation management in the proper manner (Morden, 2016). The four phases of strategic management practices is briefly discussed.


  • In the Formulation phase the organization tends to choose the most profitable course action for organizational success.
  • Objectives and means of achieving the objectives are set in this phase.
  • Analysis of the related corporate responsibilities are done to support operational management  


  • Strategies are deployed to execute the formulated plan.  
  • Clarification of the roles and responsibilities of the resources
  • Implementation of the appropriate activity measure to provide feedback and outline the areas of change

 Evaluating the results:

  • Providing feedback to make required changes
  • Analysis of the gap
  • Comparison of present state to desired future

Modification and amplification:  

  • Corrections of weaknesses
  • Implementation of the identified strengths
  • Deployment of amplified marketing plan

These phases crucially links with the operational management of the company Xero ltd as effective deployment of the formulated strategy and results supports and contributes to the operational management of the company to fulfill the organizational aspirations effectively (Grant, 2016).

Q3b). Evaluating the strategy formulation phase of strategic management practice and its relationship to the operational management Xero ltd

The stages of strategic formulation of the company involve Set strategic goals, application of the organization and its environment and matching the organization to its environment. In the first step, organizational related goals and prerequisites are set through prioritizing the objectives to obtain certain levels of efficacy (Bryson, 2018). The technological organization, Xero ltd id the telecommunication company that provides cloud-based services to its potential customers and in this aspect it is important to analyze and link the organization and its environment. In the next two steps, analyzing and linking the organization with its environment are done to determine the efficacy of the set goals. These three are the basic stages of strategy formulation of the chosen company of strategic management practices that helps in developing effective framework for the company so that the company can work accordingly to achieve the goals (Bailey, et al. 2018). Each business dimensions are related to each other coefficient as the strategic practices and operation management functions are employed in multiple arrays of the organization Zero ltd.

Q3c). Strategy implementation phase of strategic management practice and its relationship to the operational management of Zero ltd

In the strategy implementation phase of this organization, certain phases takes place that are underpinned in the following points:

  • Establishing the annual objectives for the company
  • Developing and formulating the policies for executing the strategy
  • Resource allocation
  • Actual actions
  • Leading and controlling the performance for supervision and monitoring the growth

With the help of these phases the company establishes the goals and objectives for the company success. However, during the implementation process the company may find out the need of further planning as through the procedures various changes take place. This phase demands participation of the entire organization and in this case the operation management approaches even takes place in the procedure (Karami, 2016). Thus, the phase significantly relates as the implementation of the plan requires planning, managing controlling and involves other operational activities to imply the implementation process effectively.   

Q3d). Strategy evaluation phase of strategic management practice and its relationship to the operational management of Zero ltd

Strategy evaluation phase involves certain steps to evaluate the practices for making further improvements and obtain organizational goals properly. The phases of this stage of strategic management involve certain aspects that are as follows:  

  • Fixing the benchmarks of performances and activities to set target
  • Measuring the performance to observe the growth
  • Analyzing variance
  • Taking corrective actions to make required changes

In accordance with the documented context, it can be evident that each of the phases of strategic management are interrelated with the operational management activities. Functions of operational management are planning, organizing, coordinating and controlling and in the evaluation phase of strategic management operational management plays the most crucial role to facilitate the complexity of the managerial accounts (Tawse, Patrick & Vera, 2018). 


In accordance with the paper it can be stated that, strategic management practices are coefficient related with each of the dimensions of operational management as planning, controlling, organizing are the crucial functions that takes part in the managerial accounts. Thereby the paper has discussed different aspects of Porter’s five forces and value chain model in regards to the respective companies, P&G and IKEA groups. Relationship of the strategic management practices with operational management has been evaluated in the paper.


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