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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

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