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Chapter 3 Operations strategy 65
Figure 3.3 The four perspectives on operations strategy
Top-down
Bottom-up
Market requirements
Operations resource
capabilities
Perspectives on operations strategy
Different authors have slightly different views and definitions of operations strategy. Between
them, four ‘perspectives’ emerge: 3
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Operation strategy is a top-down reflection of what the whole group or business wants to do.
Operations strategy is a bottom-up activity where operations improvements cumulatively
build strategy.
Operations strategy involves translating market requirements into operations decisions.
Operations strategy involves exploiting the capabilities of operations resources in chosen
markets.
None of these four perspectives alone gives the full picture of what operations strategy is. But
together they provide some idea of the pressures which go to form the content of operations
strategy. We will treat each in turn (see Figure 3.3).
The ‘top-down’ and ‘bottom-up’ perspectives
Corporate strategy
Business strategy
Top-down strategies
A large corporation will need a strategy to position itself in its global, economic, political
and social environment. This will consist of decisions about what types of business the group
wants to be in, what parts of the world it wants to operate in, how to allocate its cash between
its various businesses, and so on. Decisions such as these form the corporate strategy of the
corporation. Each business unit within the corporate group will also need to put together
its own business strategy which sets out its individual mission and objectives. This business
strategy guides the business in relation to its customers, markets and competitors, and also the