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WHAT is THE RolE of AlignmEnT?  313
                             the requirements of their market. But, not every business understands its operations
                             capabilities and many may not have any ‘distinctive’ capabilities. And while we have
                             continually stressed the importance of leveraging operations capabilities into the mar-
                             ketplace, this does presuppose that a business has some operations capabilities worth
                             leveraging. The logic of these alternative formulation processes is shown in Figure 9.3.




                           Figure 9.3  align operations resources with market requirements or align market
                           positioning with operations resources capabilities


                                                                                          Market
                                                                                       segmentation



                                                    Operations         Operations
                               Operations            strategy         performance         Market
                               capabilities                                             positioning
                                                   decision areas      objectives



                                                                                        Competitor
                                                                                          activity


                                                                  State market
                              … to enhance     Make strategic    requirements in       Understand
                             core capabilities  operations      terms of operations  markets and define
                               required by                                              competitive
                                market           decisions        performance            position
                                                                   objectives


                              Tangible and
                               intangible
                               resources



                                                                    Operations           Potential
                              Operations          Operations
                              capabilities       performance         strategy             market
                                                                   decision areas       positioning



                              Operations
                               processes


                              Understand        Identify      Make appropriate
                             resources and    performance    strategic operations     … that indicate
                             processes, and     benefits        decisions that      potentially competitive
                              identify core      from           enhance the          market positions
                              capabilities    capabilities      capabilities










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