Revise Porter's (1996) Statement

This article will firstly revise Porter's (1996) statement, and then show the reasons for my disagreement.

Porter (1996) argues that OE is not strategy. He defines OE as "performing similar activities better" than competitors whilst strategy, or market positioning, means performing "different activities" or "similar activities in different ways (Porter, 1996)." While OE is about improvement of existing processes, strategy can be regarded as rather fundamental factor for what business the company is engaged in and how uniquely the businesses are operated. Consequently, it seems to be to some extent valid to claim that there is difference between OE and strategy.

On the other hand, there are different interpretations of the term strategy, and it can be seen one of them virtually corresponds operations effectiveness. The term strategy has a variety of aspects and Porter's argument deals with only limited points. Mintzberg (1992) indicates that strategy refer to "pattern" of actions which is delivered as a result of corporate plans, and emergent events and decision-makings. In other words, strategy can be also regarded as the actual process of business practices.

Similarly, the term "operations" refers to both "(1) the operations function that produces the products and services for the organization, and (2) all the things any function within the company actually does to deliver what is expected of it" (Course handbook, 2008). This indicates that operations mean not only the production but also all the process of all the areas in company's activities which actually deliver their products and service. Having looked at these aspects of strategy and operations, it is apparent that strategy as a pattern of actions can be interpreted as how the firms operate all the processes of their businesses, or in other words, effective operations.

To sum up, while Porter's statement is considerably valid, it is also apparent that all the strategies are realized through the firms' actual operations which also can be regarded as strategic patterns. Consequently, operational (not production) effectiveness creates and realizes corporate strategies.

References

Mintzberg, H (1992) "Five Ps for Strategy" in "The Strategy Process" edited by Mintzberg, H. et al., Prentice-Hall International Editions, Englewood Cliffs NJ.

Porter, M. (1996) "What Is Strategy?," Harvard Business Review 1996 November, Harvard Business School Press, MA