Please enable JavaScript.
Coggle requires JavaScript to display documents.
MARKETING AND OPERATIONS COORDINATION (IKEA (Process design (arranging…
MARKETING AND OPERATIONS COORDINATION
Importance of Strategic Coordination
Translating strategy into compatible, functional goals ensures sales growth does not come at the expense of operational cost
When one function experiences "dominance" it can lead to problems
e.g. If marketing becomes too distant from operations it can lead to unrealistic expectations, complaints and arguments
Areas of conflict between marketing and operations
Diff in way Op & Mkt managers are evaluated and rewarded - Op are cost oriented, Mkt are profit oriented
Inherent complexity - Mkt rely of soft/qualitative data, Op rely on hard/quantified data
Cultural diffs - both managers have diff task orientations and social concerns
Complicating Factors
Need to interact with each other and other functions
Need for cooperation is great for companies undergoing rapid growth
Tech changes increase strain on product demand and process
Difficulty in changing increasingly automated operations
Greater visibility of poor performance from capital costs and constraints
Improving Coordination
The digital marketplace has increased coordination between Operations and Marketing
New roles such as the Marketing Operations Manager facilitate strat development and implementation
Traditional management is being replaces by holistic approaches prioritising:
Speed
Insight
Access
Flexibility
IKEA
Process design
(arranging store layout into smooth effective flow)
Product design
(stylish flat packed products)
Job design
(All staff can contribute to company success)
Supply network design
(Stores of appropriate size in effective areas)
Supply chain management
(arranging for delivery of products to stores)
Capacity Management
(coping with demand fluctuations)
Failure prevention
(maintaining cleanliness and safety of storage areas)
Inventory management
(avoiding running out of products)
Quality management
(Monitoring and enhancing service quality)
Operations Improvement
(Continually examining and improving operations practice)