...have a common central database, meaning the internal management can be improved and optimized, by consolidating the information sharing: - Through the Supply Chain Management (SCM), a better and optimized management of resources (and so cost decrease) - Through the Customer Relationship Management, a higher customer satisfaction. 2) Why did Sinosteel pursue the development of an ERP system? What were the objectives? What challenges (risks) does ERP address for Sinosteel? The main goal was to consolidate the management existing in a decentralized corporate structure, and optimize the management processing in all core business functions. An ERP system improves the information sharing, so the management efficiency. The President lists several objectives that can be reached thanks to an ERP system: - Checking inventory levels at any time, and optimizing resources assignments. - Optimizing human resources management - Preventing from all kinds of potential information risks Question 2: The reason Sinosteel pursue the development of an ERP system is because information technology is one of the main competitive...
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...Chain System The firm's value chain links to the value chains of upstream suppliers and downstream buyers. The result is a larger stream of activities known as the value system. The development of a competitive advantage depends not only on the firm-specific value chain, but also on the value system of which the firm is a part. A firm's value chain is part of a larger system that includes the value chains of upstream suppliers and downstream channels and customers. Porter calls this series of value chains the value system, shown conceptually below: The Value System ... | > | Supplier Value Chain | > | Firm Value Chain | > | Channel Value Chain | > | Buyer Value Chain | Linkages exist not only in a firm's value chain, but also between value chains. While a firm exhibiting a high degree of vertical integration is poised to better coordinate upstream and downstream activities, a firm having a lesser degree of vertical integration nonetheless can forge agreements with suppliers and channel partners to achieve better coordination. For example, an auto manufacturer may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories. Clearly, a firm's success in developing and sustaining a competitive advantage depends not only on its own value chain, but on its ability to manage the value system of which it is a part. LINKAGES WITHIN THE VALUE CHAIN * NOT JUST A COMPILATION OF ACTIVITIES...
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...latter enters an aboard market to get the market share for growing itself up. Peng (2011) argues that International Business includes both international activities and domestic activities. The traditional boundaries of international and domestic business are deliberated blurring, because most of the previously national markets are globalized now. Mention to the current situation about International Business, it is essential to understand what and how International Business is emerged. The variables of why International Business happened have been defined by scholars, first of all, Dunning (2001) believes competitive advantages are quite important to help corporations extend their business. Second, Johnson & Tuner (2003) indicates five drivers of International Business, that are Economy, International governance and regulation, Finance and capital, Communication technology, Social and cultural convergence, etc. Additionally, Huang (2005) and Ashar (2009) argued the improvement of containerization is a support power that accelerates the goods transportation. Furthermore, Paul (2001) points out that not only the former ways, but also competitiveness is an important way in the International Business Variables. Base on the above, through these scholars’ endeavours, the main variables which account for the emergence of International...
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...ELECTRONIC ASSIGNMENT COVERSHEET | | Student Number | 32695016 | Surname | Zhang | Given name | Ming | Email | Zhangming_90@hotmail.com | | | Unit Code | BUS317 | Unit name | Strategic Management | Enrolment mode | | Date | 4th Oct 2015 | Assignment number | 1 | Assignment name | Short Eassy | Tutor | Frankie Yee | Student’s Declaration: * Except where indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another unit. * This submission complies with Murdoch University's academic integrity commitments. I am aware that information about plagiarism and associated penalties can be found at http://www.murdoch.edu.au/teach/plagiarism/. If I have any doubts or queries about this, I am further aware that I can contact my Unit Coordinator prior to submitting the assignment. * I acknowledge that the assessor of this assignment may, for the purpose of assessing this assignment: * reproduce this assignment and provide a copy to another academic staff member; and/or * submit a copy of this assignment to a plagiarism-checking service. This web-based service may retain a copy of this work for the sole purpose of subsequent plagiarism checking, but has a legal agreement with the University that it will not share or reproduce it in any form. * I have retained a copy of this assignment. * I will retain a copy of the notification of receipt of this assignment. If you...
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...Environmental Scan MGT/498 Environmental Advantage One of the fundamental requirements for a company to succeed is to understand both the internal and external environments. The companies must understand these environments and apply the knowledge to a strategy that will give the company a competitive advantage. The competitive advantage must be measured to fully understand how the strategy is being implemented and to what extent the strategy is creating a competitive advantage. Northrop Grumman (NG) uses environmental scanning to understand the market environment. This helps establish a strategy that will hopefully create a competitive advantage. Internal and external environmental scan Northrop Grumman’s internal environment is very strong. The company has positioned itself well to capitalize on the emerging trends in the national defense market place. Northrop has developed new technologies and internal infrastructure to sustain new business in the new technologies departments. NG is also strong in personnel, although there is a troubling trend emerging. NG has a long history of dedicated workers but has failed to retain or attract new talent. There is a growing gap between the experienced knowhow and the new employees. NG has a large gap in the middle of the workforce. The majority of the work force is either five years from retirement or has less than five years with the company. Therefore the “local knowledge” that is essential for continuing seamless operations...
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...million) on its major business activities. In 1992 a new group chief executive, Jorma Ollila was appointed. Jorma Ollila’s mission was to formulate a strategy that was going to rescue the company from its losses, into a profitable organisation. The report focus on Nokia’s reason to select one area of development out of four, the significance of the introduction of new Android software for Nokia’s chosen strategy and the importance of management teams to strategic choice. In dealing with the first section on the study case , the author analysed the three elements of the strategy context used by the management team and then discussed strategic risks associated with focusing on the single development area out of four. Lynch (2012:421) defines strategy context as being concerned with the circumstances surrounding and influencing the way that a strategy develops and operates. The second section deals with the second question and the author discussed the advantages offered by Android mobile phones over Symbian’s mobile and how an organisation can gain its competitive advantage using “Porter’s Five Forces Model”. The report also provides brief discussion on the advantages of technology-driven strategies. Lynch (2012:568)...
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...Strategic Management Journal, Vol. 12, 535-548 (1991) PORTER'S 'COMPETITIVE ADVANTAGE OF NATIONS': AN ASSESSMENT ROBERT M. GRANT Management Department, California Polytechnic State University, San Luis Obispo, California, U.S.A. Porter's Competitive Advantage of Nations is an important book which bridges the gap between strategic management and international economics while contributing substantially to both. Porter's analysis ofthe impact of national environment on international competitive performance demonstrates the potential for the theory of competitive strategy to rescue international economics from its slide into refined irrelevance, while simultaneously broadening the scope ofthe theory of competitive strategy to encompass both the international dimension and the dynamic context of competition. Nevertheless, the breadth and relevance of Porter's analysis have been achieved at the expense of precision and determinancy. Concepts are often ill defined, theoretical relationships poorly specified, and empirical data chosen selectively and interpreted subjectively. The Competitive Advantage of Nations is an important book. Among Porter's books to date, it is the broadest in scope and the most ambitious in intent. The book addresses a question which lies at the heart of economic and managerial science: 'Why do some social groups, economic institutions, and nations advance and prosper?' (Porter, 1990: xi).This is no new issue: the same question stimulated Adam Smith's...
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...of life in the richest countries, they want the same in their mother country. That is why we have some global products for every customer (coca cola, pampers, cars). General results of globalization 1. New division of the world; - information revolution and very fast technical development, create new opportunities for developing countries, economies, companies, and people. But not every country is able to use these opportunities on the same level. It depends on the level of social-economic country’s development. It is called Triad Power: bigger technological, economic, social and cultural integration is present among three most developed regions of the world: North America, west of Europe, east and south-east Asia.- it is a center of the world. (highly educated people, good organization of their work, capital) General results of globalization 2. Globalization changes borders of markets. Local markets are too small Factors for export: Pro- active driving force (results from the internal needs of the company) Reactive driving force (is a reaction to external conditions) - Demand for bigger profits - managers’ aspirations - Ownership of unique products and technologies - Advantages of...
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...The Porter Thesis As we have seen (Lecture 1), Michael Porter in Competitive Advantage of Nations argues that the fortunes of economies rest on the competitive advantages held by their firms and industries. National factor and demand conditions encourage the development of specific competitive advantages and specialization, and, therefore, also the development of specific types of industry. Variations in specialization, output and expertise explain differences in the competitive advantages of nations and in levels of value added and living standards. Porter contends, furthermore, that these national advantages may be difficult to replicate elsewhere, and that they may be embedded in a specific geographical location or cluster offering advantages in the acquisition of technology, knowledge, capital, skills, support structure, and so on. [pic] Porter seeks to explain why companies and industries have emerged in some countries and not others, and why certain economies have expanded in recent decades while others have stagnated or declined. In Competitive Strategy, published in 1980, he dealt with matters of industrial structure, competitor behaviour and the formulation of corporate strategy (M.E.Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Cambridge, Massachusetts, 1980). Successful firms, he contended, have to guard against the activities of existing rivals, buyers, suppliers, new entrants, and potential providers of substitute products....
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...Information Strategy The Information Systems Strategy Triangle Business strategy should drive information system decision making, and changes in business strategy should entail reassessments of information systems. Moreover changes in information systems potential should trigger reassessments of business strategy. If a decision is made to change business strategy of the “triangle”, it is necessary to evaluate the other two corners to ensure the balance is preserved. Changing business strategy without thinking through the effects on the organizational and information systems strategies will cause business to struggle until balance is restored (Pearlson & Saunders, 2013). When used appropriately, information systems and information technology leverage human resources, capital,...
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...serve Canada, UK, Germany, Austria, France, China and Japan. Gross sales have reached almost $ 50B at the end of 2011 with a net income after tax of $ 556M. Amazon.Com’s Competitive Advantage Capital Efficiency – It does not have retail stores and limits its capital investment to its headquarters and warehouses. It receives payments from its customers on an average of 17 days before it has to pay its suppliers. Inventory Velocity – Averages 16.5 times per year. Technology - Uses information technology to execute supply chain on a large scale to realize economies of scale making its gains in capital efficiency and inventory velocity possible. • Run its warehouses as efficiently as possible. It is so high tech that its ERP has complex algorithms that can analyze relationships among the items customers purchase to find groupings that can be located in the same warehouse, thus reducing shipping costs. Warehouse operating costs has dropped from 20% of revenue to less than 10%. • Optimizes delivery performance and enhances service reputation that minimizes distribution mistakes. • Offers its retailing and supply chain management services to more than 1.1M other retailers both large and small. Amazon.Com’s Competitive Advantage • The heart of Amazon.Com’s business model is information technology. It has been investing an average of 7% of its sales. • Some argue that Amazon has built “a stack of software on which thousands or millions of others can build businesses that...
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...are required for gaining success in F1 can initiate through a number of dimensions. Motor sport industry is highly competitive and stands in a rapidly changing environment. For F1 industry the RBV seems to be a much more important factor as compared to MBV. The start up and running costs require huge financial resources. As a basis of being competitive, any medium sized constructor will have to invest up to 50-60 Million USD. In almost all the cases the majority of the team finance is raised via sponsorship. Most of the smaller teams depend a lot on the sponsorships to be able to compete in this sport. Sponsorships can also help a team to improve its overall performance by the way of financial aid it provides. The car and its parts such as engine and chassis are very important resources. Other resources such as own testing and windmills, test tracks and other equipment are of equal importance. The team and its members require to work as in interconnected and organized unit and need to change their strategies to counter the strategies of their competitors. Ability to win a race is determined by technological development and knowledge. Initially, the F1 teams were managed by the founders themselves. However, with changing times the manager runs the team like a business. Manager’s skills and knowledge has become of utmost importance based on a highly competitive environment. For success, team also needs experience and expertise. On an average 450-800 team members are required...
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...Marian Leerburger Date: 3/21/12 Mission statements are the most valuable overviews of a company. It is what separates a company with similar visions and goals from the next. A good mission statement provides a detailed understanding of a company’s unique purpose, functions and operations, products and services, market type and terms of technology. A mission statement also represent the business philosophy of strategic decisions to the firms self concept, primary customer needs of satisfaction, which in all reflect the values and priorities of the company’s performance over a life time. This is a detailed overview of how to construct a well developed mission statement using an example of Facebook a live networking websites. (Strategic Management, 12th Edition, pg 21) Face book’s mission is “to give people the power to share and make the world more open and connected.” (Facebook) As mentioned above, a mission statement is an overview of the company. A well written mission statement will provide in details its company’s unique purpose, functions and operations, products and services, market type, terms of technology, self concept, customer satisfaction, values, and priorities of the company’s performance which are not listed within the facebook’s mission statement. They do provide a philosophy, but it also does not give full details of how they provide users with satisfaction. The missing characteristics of the mission statement make their statement underdeveloped...
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...Background…….……………………….……………………………………...4 Business Strategy………………………………………………………………………………4-5 Mission………………………………………………………………………………………….5 Vision…………………………………………………………………………………………...6 Competition…………………………………………………………………………………… 6-7 Apple’s Strengths……………………………………………………………………………... 7 Weaknesses Apple Faces……………………………………………………………………… 7-8 Opportunities for Apple………………………………………………………………………...8-9 Threats Apple Faces…………………………………………………………………………...9-10 Demand & Competitive Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .10 Labor & Staffing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The Apple Corporation engages in development, design, and marketing for computers, networking solutions, communication devices, software, and music players. Apple's main focus on producing products and operations are mainly done in the United States Organization’s Background Apple was founded in 1970, by Steve Jobs and Steve Wozniak, who started working together to create personal...
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...Honda's Competitive Advantage: There are several factors that can contribute to a firm's ability to be competitive in its industry. Building blocks of a competitive advantage include efficiency, quality, innovation, and responsiveness to customers. A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry. Three areas that give Honda a competitive advantage in the auto industry include Honda's engineering and design, research and development, and brand equity. In order to determine whether Honda's competitive advantage in these three areas is sustainable, we analyze and apply each one to the VRIO framework. Honda is unique in that its corporate structure is made of three companies. Honda Research and Development is in charge of research and development of innovative products for the company. Honda Motor produces, sells, and services the all Honda products. Honda Engineering develops manufacturing processes, systems and equipment used to build all Honda products. Honda's superior design capability has enabled it to build high-quality reliable products and has also added value to the Honda brand. Honda's efficient manufacturing processes have also kept production costs low relative to other automakers...
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