Production Strategy:

Business strategy is like a long range game plan of an organization, providing a road map to the attainment of the corporate mission which is set of unique long range goals.

Assessment of global business conditions and weaknesses of company's business units lead to the development of the business strategy. Production strategies are derived from corporate mission and business as illustrated in Figure.

Distinctive competencies or weaknesses means great competitive advantages or disadvantages in capturing market, which can include automated production technology, skilled workforce, talented sales force, etc.

Production strategy refers to a long range game plan for the company's production and provides a road map to the attainment of business strategy. Production strategy includes the issues of new product development, new production facilities and new production technology. The scope of production strategy may be well grasped by understanding the competitive priorities which are summarized in Table. The combination of these priorities, appropriate for each of product or service is determined by the business strategy. Setting of these priorities is followed by the determination of needed production system to provide these priorities for the product or service.

Figure Development of Production Strategy