Question

whats the relationship between capabilities (core competencies) and operations, explain & use examples from fast food chain(industry)

Answer 1

The organisational capabilities or the core competencies could ne defined the firm specific sets of the routines, processes and skills which are developed as the company and the resources are operating and performing their operations in the organisation effectively and efficiently. Thus, we can see that these two concepts are directly related with one another and support each one of them. In the operations management system, how detailed and specific an operation would be, the same operation would demand skills and capabilities from the employees to perform and make the operation successful. Thus, as the capabilities of the employee increases and he performs the job effectively, the quality and the success rate of the operational job also increases making it a direct and positive relationship.

For example in the fast food industry like BurgerKing or Wendy's, one has to be very specific about the operations of the company. They have to make sure the retails and sales of the company are effectively managed, the financial operations are efficient, the resources and the demands are well forecasted and worked on to achieve the best integrative team work. This would require the employees to be skilled in their demand estimation job so that the resources and the supply could be maintained as per the same demand. The skills of knowledge, decision making and accurate information about the market would then become the core competencies of a company like Macdonalds making its way better than any other companies and thus these core capabilities would make competitively perform well and thus operations to be of quality as well to achieve sustainability.