ERP system improves Inventory control by offering real-time information on finish good inventory allowing manufacturing and planning to evaluate customer demand. Moreover, ERP system provides data which can further be analyzed to gain more grip on high-moving vs. slow-moving products to minimize the stocked inventories. ERP system improves Material control by providing updated prices on materials which can be leveraged to negotiate better pricing from vendor, therefore directly impacting the company’s bottom line. Moreover, ERP provides more visibility on DOH on storage of raw materials, where this information can be utilize to deploy VIM process to reduce DOH for raw materials. Enabling business to reduce cash-to-cash cycle time.
2. What information would you like to analyze? The economic view of behavior suggests that a review of the incentives for employees. Upper management, the corporate finance employees, have a strong incentive to want accurate reporting for auditing and grant purposes. Review and analyze a strategy to carry that same incentive down ward to the data entry employee, for more accurate data entry.
Value Proposition In order to solve the problem stated in the previous part, we aim at pointing out the value propositions for Spenncon, which could make the company more persuasive to customers. However, it is exceptionally difficult to find value propositions that resonate with all customers (Anderson 2006). Thus, we focus on suggesting how Spenncon could segment their customers and the value creation potential for each segment. In this case, we use resonating focus1, which points out one or two points of difference (and, perhaps, a point of parity) whose improvement will deliver the greatest value to the customer for the foreseeable future (Anderson 2006). In detail, Spenncon should segment their customers into 3 categories based on their sales activities instead of being based on average yearly turnover (which proved to be unsuccessful in the past).
For these reasons, it is necessary to analyze the competitive advantage of the different options presented. • Strengths and Opportunities: The project evaluation should consider a SWOT analysis of each potential application, which allows identifying the strengths, opportunities, threats and weaknesses. This way, it is possible to choose the best option, which maximized the firm’s strengths and opportunities, while mitigating its threats and weaknesses. • Barrier to Entry: Also it is necessary to analyze the cost of enter to the industry. • Economic Benefit: What will be the earnings associated to the project.. • Customer Preferences Bernstein should recommend to the board the
The quality of their products is important to them and their consumers. Desired behaviours: The Director of Finance wanted management to focus on the important matters, be able to spot problems quicker, and improve their commitment to achieve objectives. In general, the company wants workers to improve productivity and efficiency to increase profits. Management Controls: There were cash incentives in place that were based on the subjective performance evaluations performed by an employee’s immediate superior. There was also a performance measurement system in place.
Those questions and decisions require using as much analysis as possible. The understanding of statistics and quantitative reasoning will assist any manager in making affective decisions. Typically, finance and economic experts’ skills focus on tried and true models accepted in the business world. A manager in a forward thinking organization would be much more successful if they enhance their analytic skills. Analytical reasoning is the use of tools of measurement that are necessary for market and business processes.
Competition-based pricing: This can be simply stated as the prices are being set with keeping in view what price tag the competition are putting up on their products. Customer value-based pricing: In this method of price setting value-based pricing is given significance. The perceived customer value of the product has leverage in price setting and therefore the price revolves around how a company such as Heinz could increase customer value. This method of price setting
Production orientation is a business orientation who believes in reduction costs through mass production which will reduce costs and maximise profits. Sales orientation is that orientation of company's who's thinking to the customer's needs and involving strategy: market and marketing, research, product development and promotion strategy. Market orientation mean market research to find out what customer's think about product and which is the importance of that product for customers. Societal Market is that balance to determine the needs, wants and interest of a target market to deliver the satisfaction and competitors where the society's well-being Sainsbury’s