Do you ever wonder how companies like McDonald’s and Starbucks achieve operational excellence and business success? The answer lies in their process strategies! In this article, we will examine the secrets behind the various process strategies used by high-flying companies and see why it’s such an essential aspect of a successful business.
🔝 Top 5 Process Strategy Examples
- Toyota Production System Operation Management
- ADNOC Gas Processing Strategy
- Process Management in Firms with Quality Systems
- Business Process Re-Engineering and the Quality Improvement
- Business Process Management and Mapping
✅ What is a Process Strategy?
A process strategy is the documentation and establishment of procedures a company installs to achieve its pre-set goals or objectives. Although there are some procedures that an organization can automate, the process strategy is evident in every department of a successful organization, be it in operations management or customer service.
What Is the Objective of a Process Strategy?
The process strategy of an organization is used to convert resources into services and goods. The goal is to develop processes for creating products or services that meet target clients‘ needs within specific cost and managerial constraints. Therefore, an organization’s process strategy comes in handy in defining its long-term efficiency and flexibility of production as well as the involved cost.
What Are the 4 Process Strategies?
There are 4 main types of process strategies that you should know about:
|⚪ The process focus strategy||This strategy mainly focuses on producing low-volume but high-variety products in “job shops”.|
|⚪ The repetitive focus strategy||This strategy relies on repetitive modules, especially in assembly lines. This strategy is less flexible compared to the process focus strategy.|
|⚪ The product focus strategy||This is the opposite of the process focus model. It targets producing high-volume and low-variety products.|
|⚪ The mass customization strategy||This model involves the use of mass customization to rapidly produce low-cost goods and services to meet unique customer desires.|
✍️ How Do You Create a Process Strategy?
Creating a process strategy builds on the already established business strategy. It can be divided into the following six basic steps:
- Creation of the business process map.
This stage requires the evaluation of a business using STEEPLE analysis, mission statement, and SWOT analysis. Further refinement will be needed along the way.
- Drawing a customer interaction diagram.
Businesses in the service-focused industry need to study the clients’ processes and determine how they interact with the company’s processes. Running a comprehensive KANO analysis will help determine the most important relationships.
- Creating a process-relationship diagram.
This step involves mapping out the input-output relationships between the primary processes of the organization that define its strategic position.
- Creating a process-objective matrix.
To do this, you need to list the strategic objectives and develop a matrix that maps the goals with the processes. It also includes objectives related to customer interactions.
- Outlining objectives for resources and potentials.
Here, it’s necessary to define the tangibles and the intangibles needed to drive the processes effectively.
- Develop an implementation program.
This last step involves assigning objectives to departments and teams. It’s best to do it where it is possible to achieve the goals with incremental changes.
🔥 An Organization’s Process Strategy: Examples
Check out the following examples of process strategies and why they are successful:
Process Strategy of Tesla
Tesla’s long-term objective was to become the largest car company on the planet, but this required targeting the lower-end customer segment. It changed when Tesla created the world’s most luxurious car, the Tesla Roadster. Now, it is the most valued car company on the planet. The strategy and related decisions worked because Tesla focused on identifying and addressing its products’ main challenges.
Process Strategy of Starbucks
Starbucks provides a prime example of effective strategy implementation through its capacity optimization and process structuring techniques. By anticipating and adapting to changes in demand, Starbucks can maintain operational efficiency and provide premium coffee and services to its customers. All this contributes to the company’s overall success.
McDonald’s Process Strategy
3 critical aspects of McDonald’s process strategy help it maintain a competitive edge in the market:
- maximizing the market,
- focusing on the core menu,
- optimizing digital technology.
The strategy works because it supports and helps advance the company’s core mission. It also helps the company to bring out its competitive advantage in the market.
The Process Strategy of Toyota
In 1973, the US’s largest auto market share (82%) was held by the “Big Three”: GM, Ford, and Chrysler. Today, they only have 50%, following the entry of Toyota. The process strategy of Toyota is to manufacture highly effective cars but at a lower cost through production and continuous improvement. The plan worked because Toyota studied the competitors and blended their best approaches with its strengths.
Process Strategy of Airbnb
Airbnb used the scaling approach by narrowing down the challenges standing in the way of their company. Through a comprehensive review and analysis of their listings, they established that their number of clients was low because of poor presentation. So, they invested in high-value photography and content. Ultimately, their clients and profits doubled and then tripled.
Other companies with great process strategies include:
To learn more about process strategies, check out the examples below!
📝 Process Strategy Research Paper Examples
- Veeco Services Inc.: Supply Chain ManagementThe problems and weaknesses of the market strategy has been explained and further recommendation put forward on how capacity can be increased in the supply chain.
- Process Design for Riordan ManufacturingThe process design for the Riordan manufacturing is useful in knowing the operations advantage and the different processes involved in the manufacturing of electric fans.
- Business Process Management in Hotel EscargoUsing process management and process mapping, the present paper provides recommendations on how to improve both systems and the way the new-improved system benefits Hotel Escargo.
- Marketing of Services in Industry Sector: General ElectricsThis article will explain why the product dichotomy in marketing theory is no longer sustainable, how services are not different and how marketers just need to look beyond ‘goods’.
- Merging Compaq-Digital Process AnalysisIn this work, the author examines the case of the merger of Compaq with digital equipment, analyzes the problems and requirements of the process, approaches to the integration.
- About Business Process Management and Research That Studies ItThis study examines various aspects of business process management, and also discusses some of the studies devoted to this issue.
- Company ABC: Management Case StudyCompany ABC is part of a large multi-national American Organization that assembles transmission for the North American Truck market.
- Implementing Process ManagementThe paper discusses the idea of process management, its implementation, and the issues that arise during the implementation within an organization.
- Continuous Process Improvement: DMAIC Improvement CycleThe DMAIC process is additionally successfully used to identify the primary sources of variation that result in the quality problem being faced by the company.
- Process and Location Strategy McDonald'sThe paper describes what process strategy is applied in McDonald's, where the organization's headquarters is, and are there any benefits located there.