Importance of Strategic Operations Management

Operation management basically deals in designing and operation of the system, with continuous improvement in the existing system. It is a department that is responsible for monitoring the process in which the company resources are converted into final products. These products can be goods or services. It is simply the core responsibility of the manager’s operations to ensure that the product is produced/ delivered with minimum cost, of high quality and on time. For such a huge operation it is important for the manager to keep in touch with the entire functional department in any organization.

Since its incorporation, KFC has been developed tremendously. The organizational structure of KFC has undergone several changes. In 1986, KFC was a takeover by Pepsi Co. Pepsi Co worked drastically to change KFC in the quick-serve restaurant sector. The style and strategies of Pepsi were entirely different from KFC. Pepsi Co observed that the design strategy of KFC products is very much similar to soft drinks and snack foods. The difference is the division of Products as goods or services. Pepsi Co is also dealing with the Pizza Hut, Bell Taco, etc. Pepsi Co Worldwide Restaurants created an image of quality food at reasonable prices in the restaurant industry.

Presently KFC has operating 4,258 restaurants in 68 countries worldwide. KFC is the biggest chicken restaurant in the world. It is also the third biggest chain that serves quick to the customers in the world. The international expansion of KFC is critical to increasing its profitability and growth due to market saturation in the United States.
At present, the strategy of KFC is to provide fast and friendlier service to customers, with continued high product quality, and cleaner restaurants. The operations team focuses on improving operational efficiencies. Another feature, on which management focus is the elimination of overhead costs. This in result brings high yields for the company. To gain such benefits by the&, the management has eliminated 250 management positions and gave such responsibilities to marketing and franchises.