Saturday, 26 September 2015

Chapter Three Strategic Initiatives for Implementing Competitive Advantages

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                              Strategic Initiatives for Implementing Competitive Advantage


Supply Chain Management (SCM) – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability

Supply Chain Strategy: A plan to manage all the resources need it by customers to supply their own products and services.

Supply Chain Partners: The associates to the business, picked by the company to deliver their finish products and other tasks such as pricing, delivering, selling, and paying partnership.

Supply Chain Operation: The way and time of production activities are conducted, from the packing to the testing, from productivity and quality of such.

Supply Chain Logistics: The way the product is being deliver, the cars and carriers, invoicing the product and returns.

Wal-Mart and Procter & Gamble (P&G) SCM

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Effective and efficient supply chain management systems can enable an organization to:

 ■ Decrease the power of its buyers.

 ■ Increase its own supplier power.

 ■ Increase switching costs to reduce the threat of substitute products or services.

 ■ Create entry barriers thereby reducing the threat of new entrants.

 ■ Increase efficiencies while seeking a competitive advantage through cost leadership 

Effective and efficient SCM systems effect on Porter’s Five Forces

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Customer relationship management (CRM) – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability

- Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems

- CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level

CRM can enable an organization to:

-Identify types of customers

- Design individual customer marketing campaigns 

-Treat each customer as an individual

-Understand customer buying behaviors

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Business process reengineering (BPR) – the analysis and redesign of workflow within and between enterprises
- The purpose of BPR is to make all business processes best-in-class

  • 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

   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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