Business and Manufacturing Strategies: a Model for Alignment (Case Study: Iranian Automative Industry)


Department of Industrial Management Karaj Branch, Islamic Azad University Karaj, Iran


Production and operation strategy is one of the functional
level strategies of the organization, which needs to be linked to business
strategy and other functional strategies. Current literature divides
production and operation into two main branches: manufacturing and
service. The role and importance of manufacturing strategy in the successful
performance of organizations was initially emphasized by Wickham
Skinner’s work in 1969. In the following years, various studies
have been conducted in this field, which could be divided into two main
streams: (i) Content studies, which includes research on the reason and
purpose of the subject (i.e. why manufacturing strategy?); (ii) Process
studies that deal with the methodology of formulating manufacturing
strategy (i.e. the know-how of planning manufacturing strategy). In
this paper, after a literature review on various researches on manufacturing
strategy, including its relation to strategies at corporate and
business levels and various models for its formulation, a model has been
developed and introduced to empower the linkage between manufacturing
strategy from one hand and Business and corporate strategy from
the other hand. The developed model then Combined to a decision Table
and align the manufacturing strategy with Business Strategy. To
validate the model developed by the researcher, it was introduced to
experts in the automotive industry of Iran, who supported the model
descriptively and analytically.