Operation …show more content…
The improvement of operation strategy depends on the development of the market and resource competences over the periods (Kennerly, 2003). The Market changes influence the improvement of the specific product/services life cycle. The life cycle involves four stages: introduction; growth; maturity; decline. Maintaining the operations´ strategic dimensions identical during all four stages of the product life cycle can be problematic, as the requirement of the market also change too (Slack, 2008). This is because the organizations develop their current operation strategy, regarding the market vicissitudes. The importance of pervious competitive priorities will decline, since the new market requirements (Slack, 2008: Kennerly, …show more content…
They reformed its operations resources and performance objectives, in accordance with the development of the market. They simply started of with a basic combination of speed and dependability. As they competition increased, Volkswagen develop variation of models, and concentrated on flexibility, while trying to maintain a low price. The overall organizational profit declined, as they struggled with maintaining minimum price, while producing a wader range of high quality models (Slack, 2008). Volkswagen managed to increase its market position by developing its current strategic reconciliation to basic types of models, and competes with its low priced strategy. The changes of Volkswagens performance objectives, is based on the development of requirements of the market. It is important to note that all competitive priorities are not identically important, and organizations cannot expect to develop all four dimensions at the same time (Slack, 2008: Skinner, 1969). For organization to successful, organization needs to make a “trade-off” between the performance