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CMA Intermediate · Operations Management and Strategic Management · Introduction to Operations Management

Which statement about the link between corporate strategy and operations strategy is correct?

Operations strategy should be consistent with and support the overall business strategy, with its competitive priorities matched to the target market. It is a long-term functional strategy covering capacity and process choices, and it must be coordinated with marketing and finance.

  1. AOperations strategy is set first and corporate strategy is then adjusted to fit it
  2. BOperations strategy should be consistent with and support the business strategy, and its priorities should fit the target marketCorrect
  3. COperations strategy concerns only daily scheduling and ignores long-term capacity decisions
  4. DOperations strategy is independent of marketing and finance so that it can maximise efficiency alone

Explanation

Operations strategy is a functional strategy that must align with the overall business strategy and the needs of the target market. It covers long-term decisions such as capacity and process choice, not just daily scheduling. Operating in isolation from marketing and finance leads to a mismatch with market needs.

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