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Block 1, Session 10
Marketing and Operations (Integration of strategies…
Block 1, Session 10
Marketing and Operations
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Challenges
Areas of conflict
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Cultural differences - task orientation, social concerns
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In businesses where an existing strategy works well it can be difficult to make changes to adapt to changing market conditions. First, staff do not always see the need to change. Second, disrupting the existing model will almost always reduce performance in the short term and managers are often unwilling to accept that. (Often pay is linked to existing profitability and so long-term plans that create short-term profit falls are disliked).
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Relationship
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Companies have become more market focused, operations managers have complained that companies are becoming marketing-led and not market-led
market-led company the focus is on understanding the degree of fit between the market and the company’s capabilities
Theories fit
origins of operations management theory comes from manufacturing - influnced theroy development over time
Modern technology is creating many new non-manufacturing business opportunities and service is becoming more digital rather than based purely around high customer contact services - need for more service-orientated theories
One final issue is that not all organisations have a marketing function that looks for opportunities and ways to exploit gaps in market provision - public sector
Marketing theory has largely adapted to some service environments well, and this does create some lack of fit with operations theory. Digital marketing is still an emerging concept but needs to be even more integration of marketing and operations activities (and theory) in a digital market environment.