Every company in an industry is in a unique situation determined by its history and current competitive strategy. For smaller organisations within an industry dominated by one or two large companies, the actions of the major companies will often produce new and significant problems for their smaller competitors. The information requirements for the smaller companies may involve establishing a new market niche, getting out of a product line completely, or redistributing resources among various product lines. Their strategy is mainly reaction to the larger companies’ strategies, but is important in any business in any market. Imagine only three (3) points are to be rolled out in the first phase.
The pharmaceutical industry is dynamic and competitive. There are four types of companies in the industry (Long, 2012): Brand developers, generic manufacturers, research and development (R&D) and other types. Brand developers are companies that research and develop a drug formula, which is protected by a patent, and sell it while they continue investigating and improving their own products. Generic manufacturers are companies that take advantage of formulas that have lost their patent and
They initiated The Fast Action for Results Program which was designed to quickly address issues that were made known to the managers. It was evident that Novartis’ priorities were aimed toward their HR department. Although this was necessary, Novartis leaders realized there was a gap in their company. They lacked a global HR information system. Although Novartis was a multinational company, communication among managers was greatly lacking.
As all businesses grow, they become more and more reliant on supply chains that are well organized, which include sophisticated logistics. This element of supply chains is crucial for the development of a large business. A well organized supply chain will improve both efficiency and profitability. Supply chains are intricate networks between businesses that deal with production, shipment, warehousing, and delivery of products. Maintaining these networks is imperative as they have a significant effect on sales and profits.
PepsiCo’s Current State Our brands are sold in more than 200 countries worldwide. In 2010, we earned the title of “fourth-largest food and beverage company” in the world. We are now in the fourth quarter of 2011 and must continue to focus on our leadership and power in the market. We must continue to differentiate our products and expand our market presence. To do this we intend to focus on our Alternative Beverages sector.
Higher cost is to be absorbed in the final product pricing as they out-sourced from distant location which includes transportation costs and production schedules. China uses fixed exchange rate regime to help the exports to be cheap worldwide. Due to overly reliance on global sourcing, they have to have positive relationships with suppliers. Other than that, guidelines are given to the manufacturers to monitor the product quality and labor conditions. Supply Chain Management Manufacturing is complex and supplier needs to have good skills in planning, design, transportation and logistics.
Because of this, I believe the internal resources and capability analysis concept is appropriate and useful when applied to the particular case of Wal*Mart. On the other hand, Wal*Mart’s superiorly developed resources and capabilities would be a great potential for it to differentiate itself from competitors. I feel value chain analysis is a suitable methodology to analyze and recommend how Wal*Mart can differentiate itself and sustain its competitive advantage. In the case, I can see that Wal*Mart puts quite an emphasis on finding and developing its resources. It expands by “pushing from the inside out” and diverse itself into different store formats.
The company’s objectives include continuing to secure sustainable growth through acquisitions and then attain successful integration of those acquisitions. In addition executive management seeks to improve the company’s business activities by implementing infrastructure improvements, improve the quality of customer service, and lower operating costs. Although these objectives are of significant importance the executive managers also recognize the need to implement financial strategies to reduce risk and to implement a strategic growth management plan. Functional Tactics Functional tactics are derived from the company’s business strategy
They use forward integration strategy which is meant by involves gaining ownership or increase control over distributors or retailers. The opportunities are low cost, high profit margin, and have more customers. The challenges are it’s hard to control the quality of the products and the management system. Second Case: What It Means to be Overstocked 1. Customer service is the vital component, not only to Overstock.com, but also to any online retailing business.
These resources are then diverted into productive channels. A capital market facilitates and promotes the process of economic growth within my manufacturing business through several ways. The changes in a market will have an effect on the decisions a manager makes. Supply, demand, inventory and production can all be affected by a thriving or poor capital market. The success and effectiveness of a manager will result in investors in the manufacturing company or people who withdraw their investment.