Operational Planning and Strategic Management

Jessamy Amic

Posted: December 4, 2018

Table of Contents

strategic management

In business management there are two very distinct management processes to follow to keep the business running efficiently. Follow us as we take a look at the differences between the role of a strategic manager and the functions of operations management.

Strategy versus implementation processes

The role of a strategic manager is difficult to pinpoint. A strategic manager in a business needs to implement a strategic management process which affords the organisation with a vision that ultimately informs the functions of operations management.

So, strategic management is concerned with analysing a long term plan with a specific vision. The role of a strategic manager is to work closely with the company and help them reach their long-term goals. It’s important to note that the role of the strategic manager analyses the market, accounts for trends and plans for potential threats or risks. The strategic manager will then implement the company’s vision through the functions of operations management.  

The role of a strategic manager is holistic while operations management is practical

The role of a strategic manager in a business environment utilises analytical, synthetic and rational decision making processes to create a company vision. They combine these qualities with innovative thinking that focuses out of the conventional box to create long-term company goals. This makes the strategic management process holistic as it focuses on the company from an aerial perspective.

The importance of operations management should however, never be overlooked. Without operations management, strategic management would fail. The functions of operations management work hand in hand with strategic management. Operation managers implement the company’s vision on the ground. They ensure that all processes are optimised for efficiency. They handle staff and company objectives, ensuring company policies are upheld at all times. Operation manager skills are essential as they are the practical tools that keep the company flowing daily.

How do these two types of management affect businesses?

The role of a strategic manager is chiefly concerned with establishing a businesses target market, and how it will go about competing and capturing value in each segment of that market. Therefore the strategic management process can be summed up as an analytical business plan.

The functions of operations management is more practical and hands on. An operation managers skills are implemented to physically run the business daily. Operations managers work with the company’s resources and maintain company policies to achieve goals and keep the company on track.

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