Patrick O’Leary Chapter 3-4 September 6, 2012 Page 84 Question 5 “Chapter 3” Having a strong financial strength for a company creates more opportunities for one’s company. This would give the company an advantage over their competitors. When getting started with a company it is required to take large amounts of capital. If a company wants to be ahead of its compactors the company wants a strong marketing approach, great production facilities, or advertising before the company makes its first sale. An example of this is the company Dick Sporting Goods.
Given the rapid growth and success of Haier since its inception, the company’s strategies appear to be helping Zhang and his employees to reach their strategic goals. 3. How might SWOT analysis be useful to Zhang Ruimin? In order to compete effectively in a global market, Zhang Ruimin must be alert to changes in opportunities and threats in the external environment; be equipped to take advantage of internal strengths; and be cognizant and realistic about Haier’s internal weaknesses. Conducting a SWOT analysis is a valuable tool in achieving these objectives.
The sustainability for Rolls Royces plans for expansion can be assesed by wether or not their expansion will be able to assist the companies economic standing in the long run and wether or not the businesses expensees in the expansion will result in a financial gain for the business as oposed to a loss. Several segments of the businesses accounts such as the balance sheet illustrate wether or not the business will be able to cope with its plans for expansion in the long term. One of the most prodominant factors influencing Rolls Royces decision to expand the business would be due to the increased demand and growth for their product range in international markets which is illustrated by their increase of sales growth in these regions with China increasing by 11% and with the Middle East increasing by 17% , as well as reaching an all time sales high of 3,630 cars in 2013. This indicates that their is a growing global market and want for cars produced by Rolls Royce and in the high end car market , therefore Rolls Royce will want to try and expand their business and their production in order to try and cater towards this market as this will further result in increased revenues and will also assist the competitivness of the business. The gearing of Rolls Royce can give us an insight into how well they well be able to financially cope with the expansion and wether or not it will be capable of doing so.
They play a critical role on the firm's ability to compete within the market. Their performances can have a huge impact on the firm's strategies and how the firm’s goal is designed. The managers are charged to make certain their firm is able to effectively formulate and implement strategies. The top level manager's strategic leadership is the ability is to anticipate, envision, maintain flexibility, and empower others contribute to the firm’s success. They involve in managing entire enterprise rather than a functional subunit, and coping with change that continue to increase in the global economy.
However, as for the summary of the article I will explain how each of the forces model relates to this article. The purchasing power which is also known as the buyer power is higher when the buyers have more choice. The companies are forced to add value to their products and services in order to maintain their loyalty. Many bonus programs are excellent services that customers want on-line. Customers want to solve their problems and often are more successful on-line and on phone.
All projects are conceived with a vision to satisfy certain needs of the business. Hence the beneficiary of these needs become key stakeholders. Appropriate participation of this key stakeholder in steering the project insures the success of the project. Also businesses are impacted by competition and changing market place resulting in skewed expectation management. Managing expectations enhances the success of the project immensely.
Globalization, technology, innovation, diversity and ethics are the internal and external factors that require the four functions of management to ensure the success of a company. Companies may fly high for a while, but they cannot do well for every long without good management (Bateman & Snell, 2011). Globalization is the ability to trade and provide goods, services and capital worldwide. A good management team is required to run an organization as they embark on expanding their business globally, meeting the needs of their customers located anywhere in the world. Globalization directly affects the core
For example, regarding my newsagents, they could change from a sole trader to a partnership to expand their business as they may need the additional workload to possibly have a new van driver to pick up the deliveries to save costs. Possibly they may buy an additional van to get even more deliveries so that the customers can always buy their products conveniently. Having additional shareholders would increase capital because selling more shares means that people would be buying a share in your business and is a long term investment, the increased capital would mean that your business has the extra money to expand and grow the business. By growing the business the stakeholders (which can be customers or employees or anyone who is affected by the business) will be better off as there is a better service being provided by that business on a potential larger scale. Expanding the business would mean there is a larger workload.
The strength or limitation of a capital market will result in the indication of how well a manufacturing company market value will be perceived. The most important goal of an effective manager is to raise the perceived value of a company. Hi Jamie This is a great response to the discussion question and was very informative. It is very important for a manager to have knowledge on capital markets. It is important to do a thorough review of all performance activities up to the current date.
Industries have characteristics or strategic elements that affect their ability to prosper in the marketplace (i.e., attributes, resources, competencies, or capabilities). The ones that most affect a firm's competitive abilities are called key success factors (KSFs). These KSFs are actually what the firm must be competent at doing or concentrating on achieving in order to be competitively and financially successful; they could be called prerequisites for success. In order to determine their own KSFs, a firm must determine a basis for customer choice. In other words, how do customers differentiate between competitors offering the same or similar products or services and how will the firm distinguish itself from these competitors?