Achieving highest efficiency at all operational subsystems. This objective aims to improve the efficiency of each operational subsystem such that the overall productivity of the organization is improved.
Gearing up the operations subsystems to meet delivery commitments. Meeting committed delivery dates while satisfying demand is considered to be an important factor which will help in improving the image of the organization as well as holding the customers for a longer period. This helps in achieving the objective of the focus strategy.
Flexibility in meeting customers’ demand in terms of change in product design; Very often the design of products/services keep changing because of customers’ taste, technological obsolescence and change in technical requirements where these products/services will be used. Under such situations, the design and development section of the organization should immediately respond to these changes and make available the required design so that* the organization can retain its customers and also attract more customers. This will help in achieving some of the objectives of growth strategies.
Flexibility in production volume to meet changing customers’ demand; In many situations, buyers may cancel a part of their orders because of reduced requirements from their side. But, the supplier organization would have already planned for raw materials. The above change in the order size will force the supplier organization to have surplus stock because of unutilized raw materials corresponding to the partial cancellation of the order. Here, the supplier organization is willing to accept the cancellation of order from the buyer’s side mainly to retain customers. In this process, the organization would build up enormous inventory. This inventory may be utilized for new products, alternate products or new orders of the same product. These exercises will fulfill the objectives of the growth strategy, viz. concentric diversification, and also the objective of simultaneous combination strategy.
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