...Executive Summary This report suggests that mass car market is highly competitive and through proficient operational approach McLaren remained successful in eliminating all barriers to entry in mass car market.The successful merger of McLaren team with Ron Dennis’ Project 4 team in 1981 and itsstrategic alliance with Mercedes-Benz later in 1995 for supplying enginesprovided the group with a golden opportunity to establish itself on the global platform. McLaren was the first company to use carbon-fibre-composite in its road car designs, which has provided the company with a competitive edge in the mass car market. Continuous investments are made in R&D to produce high-performance road cars for its discerning customers. McLaren’s successful establishment in the mass car market signifies the effectiveness of its global business strategy. McLaren’s diversified business portfolio consists of McLaren Automotives, McLaren Racing, McLaren Electronic Systems, McLaren Marketing, Absolute Taste and McLaren Applied Technologies. McLaren has adopted related diversification to increase its growth rate and market power. There is operational synergy amongst the businesses in McLaren’s business portfolio.Vertical integration has allowed the group to increase its operational efficiency and profitability. McLaren Racing is the most profitable company in the portfolio and all the other companies in the portfolio are also making considerable profits. Core competences are the underpinnings of...
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...intra-industry competition and its corresponding barriers. His reasoning is based on the assumption that a company who deliberately choose a position within an industry and at the same time is able to combine activities in a different fashion, can create sustainable competitive advantages that will lead to profitability and with it sustain competition. Aside this more general position of Porter, in an article from 1996, he asks “What is Strategy” and discussed operational efficiency in connection with strategy making and he advised that those two things should not (can not) be used interchangeably. Below their is a summary of Porter‟s main arguments from his article and what he sees as main components on strategy and how to distinguish between operational efficiency and strategy. SUMMARY The ability the make an informed decision about how, when and where to target a customer group, facilitate resources and set objectives(limits) makes the difference between a manager who thinks from a strategic perspective in light of what might emerge in future. Anticipating those movements into current decision-making helps to set a stage to create sustainable advantages. Porter argues that positioning is still a notable way to shape advantages within a company and sees hypercompetition as rather odd concept to explain shifting patterns in competition and points out that a misunderstanding exists to distinguish between operational effectiveness and strategy. The replacement...
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...leadership and innovation in developing employees of a company to accelerate their organizational success. It consists of a talented team of professionals which collaborates with an organizations team to accelerate success whether through Learning & Development, Management Consulting, or Performance Technologies. They serve to find the right answers, and to put those answers into action collaboratively with the organization they work with. Human capital is the single most valuable asset for most organizations and they consider no better way to improve operational performance, gain a clear competitive advantage, or continue growth with sustainable success than through the effective development of people and enterprise strategy. Adayana, accelerates its clients' success through: • Learning Solutions • Management Consulting • Performance Technologies Adayana is honored to collaborate with clients from around the globe, in business and in government, in our strategically focused and experienced industries. It is largely involved with organization such as: Adayana Automotive The Adayana Automotive Group delivers value to clients in the motor vehicle and transportation industries. Within this market, it serves retailers, manufacturers, service providers, and their channel partners. Adayana is richly experienced in the automotive industry and continually strives to accelerate success and to achieve the ultimate goal as a trusted strategic partner. Adayana is known for exceptional...
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...Case Study: ‘The OSCar Project – Cars to save the world’ | | | Case Study: ‘The OSCar Project – Cars to save the world’ Question 1 – IT took Hugo about 6 years to secure funding for the LIFEcar project whilst at the same time he was keen to develop the Hyrban city-car as a parallel project. Comment on the creation, development and management of the two projects. Where they indeed separate, as presented? The creation of the LIFEcar project was based on opportunities that had been generated by the current practices of the automotive industry. In times were combating global warming is a big issue Hugo identified that the long term future of the automotive industry was uncertain as it relied heavily on finite fossil fuels. Hugo identified a market opportunity that would take advantage of the current issues the automotive industry had by proposing a vehicle that did not depend entirely on the consumption of finite fossil fuels. The creation of the LIFEcar project was Hugo’s answer to clean transport and it seemed to be the way forward and future of automotive technology. With the concept of the LIFEcar project underway Hugo identified another potential market for Hydrogen fuel cell Car, one which he believed seemed to be a more ideological market and moved away from the development of a HFC sports car. Hugo identified that a more promising early market would be for HFC city-cars, this lead to the development of a second project the Hyrban city-car. The Hyrban city-car...
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...PurposeIdentify team members, analyze work, develop goals to achieve mission success, and generate strategies to achieve goals (Robbins & Judge, 2013). | High level of communication promotes clearly defined purpose. Proper planning enhances climate of trust and allows common purpose to provide guidance for overcoming barriers (Robbins & Judge, 2013). Enhanced tendency to attain synergy and achieve goals (Wienclaw, 2015). | Personal agendas weaken the common purpose and reduce cohesiveness. Infrequent strategy reviews encourages team confusion (Robbins & Judge, 2013). | Storming: Team Member Commitment | Create structure and processes. Reduced dysfunctional conflict and build trust and cohesiveness (Robbins & Judge, 2013). | Challenges to authority. Some participants may struggle with the limits the team levies on individualism. | Norming: Determine Leadership Hierarchy and Performance Metrics | Clearly defined chain of command promotes normalcy and respect. Clearly communicated performance metrics enhances normalcy (Robbins & Judge, 2013). | New task assignments may cause some members to revert to Storming phase. | Performing: Coach to Goals | Team Manager is able to distribute tasks and delegate authority when necessary. High emphasis on member development and process improvement. | Overall team function is challenged by individual ambition. | Adjourning: Wrap-up | Determine success, focus on achievement, and provide coaching and insight for future projects...
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...EWMBA 299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being acquired or going out of business. Analysis of the airline industry To determine the profitability of the airline industry, we will do an industry analysis using Porter’s five-forces framework. This industry analysis will help us in understanding the size of the Potential Industry Earnings (PIE), and how much of this the different participants can extract. Rivalry among competitors There is intense rivalry among different airlines. In the pre-deregulation days, airlines competed mostly on things like service, meals and in-flight movies etc., since prices were mandated by the Civil Aeronautics Board. In the post-de-regulation era, this rivalry has taken on the form of severe price competition, with airlines ruthlessly undercutting each other...
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...EWMBA 299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being acquired or going out of business. Analysis of the airline industry To determine the profitability of the airline industry, we will do an industry analysis using Porter’s five-forces framework. This industry analysis will help us in understanding the size of the Potential Industry Earnings (PIE), and how much of this the different participants can extract. Rivalry among competitors There is intense rivalry among different airlines. In the pre-deregulation days, airlines competed mostly on things like service, meals and in-flight movies etc., since prices were mandated by the Civil Aeronautics Board. In the post-de-regulation era, this rivalry has taken on the form of severe price competition, with airlines ruthlessly undercutting each other...
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... Oligopoly • Small no. of Firms Providing Service • Pure Oligopoly ( Less/ No Differentiated)- Steel • Differentiated Oligopoly ( More Differentiated)Camera, Overhead projectors Monopolistic Competition • Many Competitors • Ability of differentiate offering is high - Hotels Pure Competition • Many Competitors • Similar Offering • Scope and basis for Differentiation is low - Cereals, Cigarette, Tea, Biscuit Drivers of Industry’s Competitive Structure • • • • • • Entry Barrier Mobility Barrier Exit Barrier Cost Structure Degree of Vertical Integration Degree of Globalization Entry Barrier • • • • • • • Capital Requirements Economies of Scale Patents Licensing Requirement Location Raw materials Intermediaries Exit Barrier • Legal and Moral Obligation to Customers, Creditors, Employee • Govt. Restrictions • Low Asset Salvage Value • Lack of Better Opportunities • High Degree of Vertical Integration Mobility Barrier • Barrier when Firm Tries to go Upward, Enter More Attractive Segments ( AirAsia & Vistara; Permission to operate internationally) Cost Structure • Which Component is the major Cost Centre -Manufacturing - Distribution -Advertising -Licensing and any other Degree of Vertical Integration • Flexibility in Operating in a Highly Integrated Chain and its Disadvanatges. Degree of Globalization • How Local/Global the Firm is ? Analyzing Competitors • Strategic Groups Strengths and...
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...Manage People Performance Business Name: - Housefriends Homewares (Homewares retailer specializing in bathroom & bedroom fittings and home decorative items) Operational Goals Team Goals Progress Goal Focus KPI Reason/ barriers Team Deliverable Goal KPI Due 1 2 3 4 To be a major retailer in Home wares Expansion the new store in developing greater city corridor and each in major regional town Provide huge range of product selection of merchandise and double the trading hours from 46hrs to 84 hrs Apply new code of conduct by govt. Import from medium to low reputed countries where as their selling rates are lower Marie Strictly follow govt. code of conduct mainly on product origin tag Store operation going smoothly without any legal issues Organize meeting on ignorance of govt. code of conduct Nov 2015 • Store operation and bookkeeping Reduce operational cost – reduce electricity consumption by using power saver timer Offered training course to be a in house trainer Aug 2015 • Tony High class product base training for new appointed staff Train new staff and resolve behavioral issues of existing staff Arrange counseling session for his behavioral issues against newly appointed staff Within 2 week after appointment and Every 3 month • Opening new stores in each major regional town Recruit qualified skill sales people and current staff promotion as per merit Non cooperative employee...
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...Burger King – Are They The True Leader of the Fast Food Industry? Barriers to success exist for every company regardless of how big or small they are. How a company strategizes for and responds to these barriers will determine the positioning of the company within the industry and its overall existence. To indentify potential barriers, a company must first formulate its key strategies for growth. A company can then examine itself internally and externally to identify barriers that may inhibit the realization of these key goals. For example, a company must be aware of their competition’s strengths and weaknesses as well as their strategic visions. Seemingly, the company and competition have the same target audience so it’s also vital to understand what the demand of the marketplace is and how these expectations will be met. An internal examination of personnel competencies and realistic production expectancies will be critical in determining if the company can meets its expectations. While a multitude of barriers exist that inhibit success, the following four barriers can be more common than not and significantly impact a company’s ability to adopt innovative practices and processes: 1. Lack of Collaboration – When the varying departments of a company act independently without a common goal, progress is halted. While a particular department may perform exceptionally in their given function, if their efforts are not complimenting other areas, then...
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...Table of Contents Levels of Decision Making 2 Role of Office Manager 3 Financial Planning and Budgetary Control 4 Effective Delegation 5 Leadership Models 6 Bibliography 7 Levels of Decision making Strategic and operational decisions differ in structure, time scale and risk. They also differ in the way they relate to objectives, strategic is in the way of forming the objectives, whereas operational offers the way of achieving the objectives. Strategic Strategic decisions are made by top management; they normally take into consideration the organisations long term goals and tend to cover a larger time scale (5years or more). Strategic decisions cover a broader area and are not very specific in details. They are a higher risk, mainly in relation to the financial side. In short, it is deciding upon the courses of action the organisation should follow to achieve its goals. Classic Interiors could make a strategic decision to invest in more staff, specifically qualified interior designers; as the products they organisation offers mainly requires face to face services sometimes for long periods of time. The popularity of the organisation is increasing at a high rate and if they cannot continue to meet the demand rate of their clients the company will not be fully benefiting from the financial gain. This is a high risk decision as it will involve investing money and time into the right recruitment and training process, then continuous outgoing money for new salaries...
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...ANALYSIS OF THE AIRLINES INDUSTRY Introduction The airlines industry in the U.S. provides air transportation services for passengers. To determine the current state of the airlines industry, various analyses were performed. An analysis of the macro-environmental factors affecting the industry was first analyzed. Then, a Porter’s five forces analysis was used to determine the attractiveness of the industry, and current changes in the industry as a whole. Key success factors were analyzed to determine a firm’s ability to thrive within the marketplace. And lastly, a strategic group map was created to assess the companies that are best positioned and worse positioned in the industry, along with a financial analysis of major competitors in the industry. Macro-Environmental Factors Affecting the Industry Macro-Environmental components include, “demographics, social values and lifestyles, political and legal factors, economic conditions, environmental conditions, technological factors, and global forces” (Gamble, Thompson, & Peteraf, 2012, p. 79). The most influential factors in the airlines industry are economic conditions and environmental factors. The economic recession in 2009 greatly affected the airlines industry. Poor economic conditions reduced the demand for consumer and business travel. According to the IBIS World database, “Rising unemployment rates and falling disposable income during the recession resulted in a stark 16.3% decrease in revenue” (Brennan, 2013)...
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...automotive industry in the United States has continuously fluctuated. As a result of the economic downturn, GM filed for Chapter 11 bankruptcy in June of 2009 and was bailed out by the U.S. government. During the Chapter 11 bankruptcy, GM eliminated about one-third of its plant assets and workforce and reduced its debt from nearly $95 billion to $17 billion. GM has bounced back tremendously, by releasing brands such as Saturn and Hummer in an effort to cut costs, and in 2014 the company made $152 billion in revenue (Mergent Online). Other automotive companies have struggled as well, in 2010, Toyota’s brand reputation for vehicle reliability and safety was tarnished due to vehicle recalls. Toyota also endured its most significant operational complications in the past five years when the Great East Japan Earthquake struck in March of 2011. With recent innovation strategies and strong marketing efforts Toyota ended 2014 with $226 billion in annual revenue...
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...transport a 70% loaded container. • Bonded warehouse and truck operations • ETMS – Exim Terminal Mgmt. Sys. – container tracking service • Handling of customized non-std. containers • Hazardous material handling • Exim customs handling: CCI handles all the export- import custom documentation for the international orders. The client should remain completely hands-free; all the transactions between port’s terminal, customs handling will be taken care by CONCOR. Industry analysis Overview: Name of Force Force score Implications on future Profitability Substitutes 2 Decreasing Complements & Govt Regulation 1 Decreasing Barriers to entry & Govt Regulation 5 Decreasing Bargaining Power of Suppliers 2 Decreasing Bargaining Power of Customers 2 - Competitors 3 Decreasing The overall industry profitability is very high with barriers to entry being high and the bargaining power of the suppliers/buyers being very low. CCI almost holds monopoly in the industry. But recent developments and trends suggest...
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...infrastructure and professional management systems required to facilitate its future growth. This a delicate balancing act. If an entrepreneurship is carried to an extreme in large companies, it can result in chaos, and chaos ultimately leads to organizational difficulties and even bankruptcy. (Flamholtz & Randle, 2007) The entrepreneurial personality can be a barrier to success at Stage III. Making the transition from an entrepreneurship to professional management involves more than just the development of operational and management systems. It requires a profound mind-set change on the part of people, especially the founders—the entrepreneurs. This transition may be a difficult task for entrepreneurs because they may fear of becoming “bureaucratic” and then confuse bureaucracy with systems. Some of this is deeply rooted in their personalities; they do want to be controlled by anyone or anything—not plans, not role descriptions, not policies, not procedures. Because they have been successful in launching a new venture without these things, they assume that they are not necessary and that they are, in fact, barriers to success. Without systems or plans or role definitions, the organization will definitely experience increasing confusion and chaos. (Flamholtz & Randle, 2007) Reference Flamholtz, E. G., & Randle,...
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