Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome. This is due to the fact that an organization runs a major risk of constantly striving to maintain its customer base, as the new type of product or service has not yet been introduced into the maintstream. Additionally, pricing may be an issue based upon: Should pricing be very low to attract new buyers?, or Should pricing be set high to offset initial entry into a new marketplace? These are the questions that an organization must face, but for the most part, being a
Capacity is a key element in a firm’s production strategy; all resources (manpower, facilities, machinery) impact strategic capacity planning. Strategic capacity planning involves many variables, which provides flexibility in targeting specific production objectives. Conversely, poor strategic capacity planning can negatively affect a company’s production process; for example, it would be detrimental to a company that produced perishable or time-sensitive products to maintain excessive warehousing space, since the product has very little shelf life. The opposite would also be true—if a company had insufficient warehousing for nonperishable or non-time sensitive goods, it would not be able to store sufficient product to meet customer demand during surge periods. In supply chain management, strategic capacity planning controls the demand of new opportunities at minimal cost (Chase, Jacobs, and Aquilano, 2006).
The strongest competitive advantage is a strategy that that cannot be imitated by other companies. Competitive advantage can be also viewed as any activity that creates superior value above its rivals. A company wants the gap between perceived value and cost of the product to be greater than the competition. Michael Porter defines three generic strategies that firm's may use to gain competitive advantage: cost leadership, differentiation, and focus. A firm utilizing a cost leadership strategy seeks to be the low-cost producer relative to its competitors.
Question : (TCO 7) When selecting performance measures for an implementation, which of the following can be used to measure increased service? (This question may have one or more answers. For full credit, check all that apply). 15. Question: (TCO 8) Goals of performance measurements include which of the following objectives?
Week 9 Discussion Question Rapid global development poses a challenge to modern for organization’s supply chain which has made increased in requirement on the expertise of modern organizations strategic managements. The development consist of the current globalization as well as an escalating amount of emergent demands of market security, competition, protection of the market environment and the scarcity of resources couple with the needs for flexibility, reliability with business system which is cost efficient and able to support differentiation of customers. Further than always, organization in current supply chain is faced by complex and dynamic supply chain, hence by development and predisposition which is difficult to forecast. (Balkan Cetinkaya, 2011) As years go by there will be added strategic tasks on supply chain management which will expand further more than in its present scope of operational activities, to remain competitive and be able to respond effectively to these changes, organizations should be capable of identifying and understanding the issues of the innovative sustainability in the organization and the business environments as a whole. (Balkan Cetinkaya, 2011) What is 'sustainable alignment?'
Associating the upper and lower paths of Figure 2, it is possible to verify the divergence between strategies that can be implemented by Supply Chain’s members to get better association levels (Simatupang et al., 2004). According to Blackstone (2001), in the upper path of the diagram, where each Supply Chain’s member focuses on the revenues maximization for the whole Supply Chain, this aim can be obtained by improving the sales to Supply Chain’s end-customers. A good Supply Chain income will only be attained through a coordinated performance between Supply Chain’s partners, all of them concentrated on the global gain and supporting rational gain sharing among them. On the other hand, in the lower path of the diagram, the Supply Chain’s partners are making inaccurate decisions based on a mistaken comprehension in which they are taking great pro by protecting their own profitability (Blackstone, 2001). This behaviour happens that is because Supply Chain’s members understand that they “get benefits from collaboration only if their profit margin is boosted and they are accountable for ensuring high returns to their shareholders” (Simatupang et al.,
Challenges Because major changes had to be made to their compensation plan to successfully integrate FedEx Express and Ground sales, it is very important to determine the right balance in compensation. The key to creating a good compensation plan is balance between base salary and incentives. Sales compensation can be complex and while there are many ways of approaching it, maintaining a competitive edge in terms of the “right mix” of base salary and compensation is critical. It’s also important to keep in mind that compensation typically ranks very high in importance among sales people. Often, salespeople are heavily motivated by compensation and competitive environments.
Introduction: Production and Capacity planning is one of the key aspects of operations management as it determines the amount of goods or services which can be produced within a given time duration. Too less capacity indicates that customers won't be satisfied and too much capacity would result in the operation being under-utilized with resultant high fixed costs and also affecting breakeven and profitability. A company, when it has to increase its capacity it has various options to consider, from working overtime to building a new facility or a plant. Forecasting demand is critical to capacity planning and companies can adopt different strategies of capacity planning, to ensure customer satisfaction and maintain the operations well
Applying the line of fit concept to operations strategy implementation helps a company or the implementation team to determine if the alignment between the requirements of the market and the company’s operation resources capabilities has been or is been achieved. Implementation of operations strategy can be a period of high risk. This can be mainly attributed to the fact that implementation typically involves making internal changes to the organization in terms of structure, control systems and other organizational features and also dealing with changes in the external environment (Reed & Buckley, 1988). These changes have the potential to affect the balance between the market requirements and operations resource capabilities and introduce the element of risk during the implementation phase. Most importantly
To accomplish goals you must provide incentives, without them people have no reason to com-plete tasks (Laffont & Martimort, 2001). The incentive structure is essential to the study of economics. There are two primary forms of incentives, negative and positive. They are usually monetary but can be in the form of social or moral. A negative incentive will cost you something while a positive incen-tive will save you something.