Strategic Role of Operations in Ecolab’s Corporate Strategy


In organization of any type, management should plan its long-term future. Corporate strategy is a management plan, which defines its business activities, prospects and development objectives. It also includes organization’s business strategy as a main choice of means and methods of competition (Griffin, & Pustay, 2005). This may be production of standardized products or delivery-on-order products/service, competition based on lower prices or rapid delivery of products. Corporate strategy provides overall direction, which provides the framework to perform functions throughout the organization.
Strategy is a clear vision of the outcomes to be reached, resources necessary to reach those outcomes, and relationships with clients, competitors and other participants of the external environment. Operations strategy, as the main part of corporate strategy has to develop common policies and plans for the most efficient use of company resources.

What is the Strategic role of Operations within the corporate strategy?

Operations constitute essential part of activities in the value chain (O'Shaughnessy, 1997). In the 60s – 70s of the last century in Japan and in the United States a keen interest to operations arouse, since there was an understanding that firm’s operational processes can be a source of competitive advantage. “If a manufacturing company is to be successful, the manufacturing function must be supportive in the achievement of appropriate competitive priorities” (Säfsten, & Winroth, 2002, p.91).
Effectiveness and efficiency of operations management is entirely dependent on the correct choice of operating strategy. If the operating function has no clear, coherent and achievable objectives, there is no doubt that it w...

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