Category Archives: Chap 14 Operations strategy

When the low cost strategy leaves you nowhere to go – except down

We’ve blogged about budget airlines, hotels and restaurant chains, but not about retail chains.  Right now in the U.K. such low cost retailers are really struggling.  Poundworld has gone into administration, and 99p, Poundstretcher and Poundland are struggling.  This item … Continue reading

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You’ve heard of Ola, Jump, Ofo, Mobike and oBike – of course….

This is an interesting example of how new technology enables the business model to be modified and as a result be very much more profitable.  All of the above are operators of dockless hire bikes, in countries all around the … Continue reading

Posted in Chap 14 Operations strategy, Sector: Transportation | Tagged , , | Leave a comment

Operations Insight: ING – how a bank became agile

Banks are not normally though of as being very flexible or agile.  But Dutch bank ING  decided to transform the way in which it works and model itself on so-called agile organisations such as Spotify, Google, Netflix and Zappos.  The … Continue reading

Posted in Chap 11 Jobs and people, Chap 14 Operations strategy, Sector: Financial Services | Tagged , , , | Leave a comment

Don’t put the digital technology cart before the strategic horse

I’ve blogged a lot about the fourth industrial revolution and the technologies that are transforming the way in which business is done.  And I’ve provided links to a lot of articles like this one from the MITSloan Management Review – … Continue reading

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It’s not about running a shop, it’s about building a community

I grew up in a shop – at least in the flat over the shop my parents ran.  It was a bit like the shop in the TV sitcom ‘Open All Hours’ – except it was four times the size … Continue reading

Posted in Chap 08 Queuing and customers, Chap 14 Operations strategy, Sector: Retail | Tagged , , , | Leave a comment

How Airbnb is developing its business model

In the new edition of our Operations Management textbook we present a new approach to thinking about ‘business models’.   This is proposed by Christensen et al (2016) at Harvard Business School.  It has two “priorities” (what it does and … Continue reading

Posted in Chap 14 Operations strategy, Sector: Hospitality & Tourism | Tagged | 1 Comment

Aston Martin will “be maxing out its production capability” by end of 2018

Aston Martin had been a loss making operation until 2017.  It’s latest financial results report  a pre-tax profit of £87m, compared with a £163m loss in 2016, and revenue increased by 48% to £876m.  This is because its new CEO … Continue reading

Posted in Chap 07 Capacity and demand, Chap 14 Operations strategy, Sector: Manufacturing | Tagged , | Leave a comment

Will “vitality” become the next big idea in management theory?

“How Vital Companies Think, Act and Thrive” is an interesting article from the BCG Henderson Institute.  It caught my eye because of two assertions it makes (based on their research): “…there is a statistically significant relationship between innovation and diversity … Continue reading

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What worries CEOs in 2018?

PwC conduct have conducted a survey of CEOs for the last 20 years.  Their latest study reports on 1,293 CEOs from around the world.  I am going to focus on the “threats’ they identify and the extent to which these … Continue reading

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Sustained cost transformation

All organisations need to manage their costs.  Most will also be striving to minimise these costs.  But there is lots of evidence to show that firms are not in control of their costs as they would like to be, nor … Continue reading

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