This chapter explains the role and development of business strategy.

It also explains the role and development of the operations strategy and how the operations and business strategy are interrelated. Next, the chapter describes the competitive priorities, the strategic role of technology, and finally, productivity. Global strategy as defined in business terms is an organization's strategic guide to globalization. A sound global strategy should address these questions: what must be (versus what is) the extent of market presence in the world's major markets? How to build the necessary global presence? What must be the optimal locations around the world for the various value chain activities? How to run global presence into global competitive advantage? The tremendous growth of international trade over the past several decades has been both a primary cause and effect of globalization. The volume of world trade increased twentyseven fold from $296 billion in 1950 to $8 trillion in 2005. These are the reason of globalization .Rapid globalization began after the fall of Communism. One of the reasons for globalization is open, free markets. In the 80s Structural Adjustment Programs forced many Third World countries that formerly had protectionist economies to open themselves up the foreign investment and trade.This led not only to economic globalization but also political and cultural globalization. In the post Cold War era, the US was left as the world's only superpower, and was therefore able to assert itself (or establish hegemonic control) over certain countries to greater or lesser extents. The prevalence the free trade agreements like NAFTA and economic unions like the EU led to higher rates of transmission of money and ideas. Also, in the industrialized world, the growing cost of manufacturing (especially with regards to labour) has led many companies to create branch plants of less affluent economies. Those are just some of the basics. Companies are going to less developing companies or other other countries where the wage rate is less. Companies should locate where they have easy access to the resources. Company should provide better product and service in order to satisfy their customers. Objective and subjective characteristics of goods and services like On-time deliveries, Cultural variables, Improved customer service Interacting with foreign customers and suppliers can lead to new opportunities. Every new day gives you a chance to move your business forward from your present situation. There will always be things that you can improve and do better, such as You can improve your business by increasing your profits, reducing losses, getting more customers, expanding the markets, becoming more visible in the community, going public or a number of other items deemed desirable. You should aim to develop a culture of good business ethics in your workplace. It should instill in your people a set of moral guidelines and expectations that they can follow when making business decisions and taking action. Vision and mission is the integral part for the existence of an organization where Mission statements tell an organization where it is going. The Strategy tells the organization how to get there. There are five major steps for a company to follow when developing a strategy:

Assess its competitors and market. Set goals and strategies based on the company's competitive position.

Reassess each strategy annually or quarterly (i.e. regularly) to determine how it has been implemented. Reassess each strategy to determine whether it has succeeded or needs replacement by a new strategy to meet changed circumstances. These include new technology, new competitors, a new economic environment, or a new social, financial, or political environment. Evaluate and control the business and the industries in which the company is involved. Strategy is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy is important because the resources available to achieve these goals are usually limited. These are the strategies for competitive advantage Differentiation, Cost leadership .These are ten strategic operation management decisions 1. Goods and service design 2. Quality 3. Process and capacity design 4. Location 5. Layout design 6. Human Resources and Job Design 7. Supply Chain Management 8. Inventory management 9. Scheduling 10. Maintenance A SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Great strategy doesnt often come from one great idea. Its more likely that a highly-developed plan will emerge as an outcome of dedication to a strategy development process. Following a time-tested process will produce valuable information for good decision making, which is the cornerstone of great strategy. Dont get me wrong, it helps tremendously to have great ideas, but great ideas after thoughtful analysis will produce significantly better outcome. Effective use of resources, whether domestic or international, is the responsibility of the professional manager, and professional managers are among the few in our society who can achieve this performance. The challenge is great, and the rewards to the manager and to society substantial.

CONCLUSION:
A business strategy is developed after the companys mission, an understanding of the market (environmental scanning) and the core competencies of the company have been

identified. The mission involves the determination of what business to be in, who the customers will be and how the companys beliefs will define the business. Environmental scanning includes an examination of the current market trends in the market, economy, and political environment and in society, resulting in an identification of opportunities and threats. Finally, core competencies are the strengths of the company. The company should match its strengths to its business strategy. The operations strategy is formulated by first determining the competitive priorities of the firm. Then, these priorities are translated into production requirements related to the structure and infrastructure of the firm. The structure involves the decisions related to the design of the production process, while the infrastructure involves decisions related to the planning and control of the operation. Productivity measures how well we turn our inputs into outputs. For example, can one automobile manufacturer produce more cars of the same size per factory employee? Productivity is important because it determines our cost structure. The role of operations strategy is to provide a plan for the best usage of resources in order to reach the objectives set in the corporate strategy. These resources include employees, machines, technology and information. These technologies improve products, processes, and coordination. Effective use of emerging technologies can give a firm a competitive advantage. As competitive approach is a strategic decision, so is the use of technology.