Skip to main content

MGT300 - Chapter 3: Strategic Initiatives For Implementing Competitive Advantage

 Organizations can undertake high-profile strategic initiatives including
  • Supply Chain Management (SCM)
  • Customer Relationship Management (CRM)
  • Business Process Reengineering (BPR)
  • Enterprise Resource Planning (ERP)
  1. Supply Chain Management - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability

      • Four basic components of supply chain management include :
        • Supply chain strategy - strategy for managing all the resources required to meet customer demand for all products and services
        • Supply chain partners - the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics
        • Supply chain operation - the schedule for production activities including testing, packaging, and preparation for delivery. Measurements for this component include productivity and quality
        • Supply chain logistics - the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing
      • Effective and efficient supply chain management systems can enable the organization to : 
        • Decrease the buyer power
        • Increase supplier power
        • Increase switching costs
        • Create entry barriers
        • Increase efficiencies while seeking a competitive advantage through cost leadership
          2. Customer Relationship Management - involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

          • CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level
          • CRM can enable the organization to
            • identify types of customers
            • design individual customer marketing campaigns
            • treat each customer as an individual
            • understand customer buying behaviours

          3. Business Process Reenginering - analysis and redesign of workflow within and between the enterprise
          • The purpose of BPR is to make all business processes best-in-class
        •  Finding opportunity using BPR

         - Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit 
         4. Enterprise Resource Planning - integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations

        • ERP systems collect data from across an organization and correlates the data generating an enterprisewide view

        Comments

        Post a Comment

        Popular posts from this blog

        MGT300: Chapter 15 - Outsourcing

        Outsourcing Project Insourcing (in-house-development)  – A common approach using the professional expertise within an organization to develop and maintain the organization’s information technology systems Outsourcing  – An arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house Onshore outsourcing  – engaging another company within the same country for services Near shore outsourcing  – contracting an outsourcing arrangement with a company in a nearby country Offshore outsourcing  – using organizations from developing countries to write code and develop systems Big selling point for offshore outsourcing “inexpensive good work” Factors driving outsourcing growth include; Core competencies Financial savings Rapid growth Industry changes The Internet Globalization According to PricewaterhouseCoopers “Businesses that outsource are grow...
        Post a Comment
        Read more

        MGT300 - Chapter 11: Building Customer-Centric Organization: Customer Relationship Management

        1)CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ➨CRM enables an organization to : a)Provide better customer service because focus more to customer. b)Make call centers more efficient because did not have to pass phone to other. c)Cross sell products more effectively because many products. d)Help sales staff close deals faster so service will become more faster. e)Discover new customers. 2)Recency,Frequency ,and Monetary Value (RFM) ➤How recently a customer purchased items (Recency) .To recognize latest customer. ➤How frequently a customer purchased items (Frequency).To know regular customer. ➤How much a customer spends on each purchase (Monetary Value).To know who customer spend a lot. 3)The Evolution of CRM ⟹CRM reporting technology -help organizations identify their customers across other applications. ⟹CRM analysis technologies -help organizations segment their customers into categories such as best and worst customers. ⟹CRM predicting technologies-help or...
        5 comments
        Read more

        MGT300 - Chapter 12: Integrating The Organization From The End To End - Enterprise Resource Planning

        Enterprise Resource Planning (ERP) It serves as the organization’s backbone in providing fundamental decision making support. It enables people in different business areas to communicate.  ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share. The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system’s individual application components (called modules), supporting diverse business function such as accounting, manufacturing, marketing, and human resources.   ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it.  ERP Integration Data Flow  ERP Process Flow  Bringing the Organization Together   ERP enables employees across the organization to share information across a si...
        Post a Comment
        Read more