1. “Operations can make or break a business”. For an organization, operations include all the activities necessary for the fulfillment of customer requests, not just manufacture, also marketing, HRM, accounting, etc (Slack, Chambers and Johnston 2007, p5). Through operations, business provide products and service by changing inputs to outputs. Operations excellence is fundamental to strategic success. And according to Skinner (1969), operations management (OM) can contribute to better company performance like reduced cost, increased revenue, etc. As a kind of understanding, whether a company has good operation strategies and management is one important factor that can “make” or “break” a business.
Operations strategy (OS) can guide the
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Also with the big opening, customer may have higher expectation on T5. In contrast, the opening of T3 was quietly with little publicity, the manager knew that under-promise and over-deliver rule would help create customer loyalty. Secondly, the management of baggage system was different. With similar human resources, T5 staff was not trained enough to deal with baggage handling,which created a lot of problems. Also, there were technic problem with the baggage system. What about T3? The company tested the system many times to ensure the usability. The resource was used effectively on important issues, unlike T5. In this competition, T3 won fair and square. This example proved again the operations can “make” or “break” a business.
To sum up, the success of a business happens for a reason. Operations should be planned and managed well in the consideration of its own resources and the market requirements.
The following text will compare the operations strategy of two airlines, Easyjet and KLM. Easyjet is a typical low cost carrier(LCC) business and KLM is a full-service company(FSC). The comparison is in four perspectives: Top down, Bottom up, Operations resources and Market requirements.
1) Top down
As two for-profit companies in aviation industry, the corporate strategies of Easyjet and KLM are more or less the same:expand the enterprise, to be the