Operations Strategy bridges the gap between the strategic plan directed by executives and the emergent strategy that occurs through the many decisions of managers and employees. The goal of operations strategy is to optimize operations' resources to best fulfill the strategic objectives of the firm. There are two central elements to an effective operations strategy. The first element provides the long-term objectives for operations in support of company strategy and answers the question, "What do we have to do?" The second offers a plan to meet those objectives and answers the follow-up question, "How are we going to do it?" A resource-based operations strategy framework offers a way to evaluate operations strategy by looking at the resources that influence a firm's ability to create and deliver its primary offerings. There are 5 categories of resources: Physical Resources; Human Resources; Intellectual Property, Software, and Methods; Ecosystem Resources; and Financial Resources. In the framework each category is described in terms of the resources and their uses, the way they are integrated with one another into systems, and the plans for future development. Strategic alignment is the level to which the complete operating system is able to implement the company's strategy.

Senior management at P&G has put a strong emphasis on using data to make "better, smarter, real-time business decisions." The Global Business Services (GBS) organization has developed tools, systems and processes to provide managers throughout P&G with direct access to up-to-date data and advanced analytics. In addition, GBS has embedded analysts within the business units to work alongside leaders and managers in driving real-time information-based decision making. Equipped with the tools provided by GBS, Alan Torres, vice-president of North America Fabric Care, must finalize the forecast for P&G's laundry detergent sales. Results for the two months since introducing concentrated powder laundry detergent in select retailers saw a surprising jump in sales of over 10%, but would the trend continue as the concentrated detergents were introduced across North America?

In 2011, Microsoft's Server & Tools Business (STB) was large, fast growing and highly profitable on the strength of traditional packaged product lines led by the Windows Server operating system. Even as the current packaged business was performing exceptionally well, Microsoft's leadership understood that cloud based solutions would become more prevalent in the future. As the newly appointed President of STB, Satya Nadella had to find a balance between managing the current packaged business and building the cloud offering.

Supplement for case 613031. Update on progress of Microsoft's Server & Tools Business through July 2011. Satya Nadella and his team explore whether or not to support Linux on Windows Azure.

Supplement for case 613031. Update on progress of Microsoft's Server & Tools Business through August 2012. Pleased with the Windows Azure product, Satya Nadella must decide how to attract customers to the cloud based platform.