1. Strategy in the second half of the 1980s: Having innovative, high-quality products and being a reliable, responsive supplier. 2. (1) Benefits of the “half-life”: it will encourage the company to reduce cost and defective rates. The total quality of the production has been improved. (2) Limitations of the “half-life”: it focuses only cost, not revenues. The quality goals and the company’s goals were in conflict. Half-life made the whole company centered on the quality improvement, while other key factors were ignored. (3) The half-life is not the same for all processes. It depends on the complexity of the process. There are two dimensions to complexity: technical and organizational. Technical complexity is high for new technologies, where part of learning process is related to understanding and refining that technology. Over time, as the technology matures and its use becomes more routine and familiar, technical complexity declines. Organizational complexity arises when a process has linkages to processes outside of its boundaries. These processes may be internal or external to the organization. The linkages may be one-way, one-time or interactive, routine or requiring real-time negotiation. So processes can run the full organizational gambit, from completely self-contained to cross-functional or cross-organizational. As the cultures, goals and objectives of the various players come into potential conflict, the rate of improvement will be expected to slow. (4) Differences between the half-life concept and the experience curve concept: the experience curve, like the half-life, is also an empirical observation. It states that for each doubling of cumulative experience, real unit cost drops by a constant percentage. Half-life deals with defects, not cost. The half-life method, on the other hand, predicts that the rate of decline of defect level is constant over time. The experience curve is a purely empirical observation and is not based on any underlying theory. On the other hand, there is a theoretical basis for the half-life model. 3. The conflicts that exist between the QIP measures and the measures reported by the financial system: the goals of the QIP were not reflected in the financial system and the financial system can’t be used to measure the QIP results. The QIP measures the defects level, which is not reflected in the financial system. Financial statement numbers should be believed because these numbers would be used publically and they are the measurements of the company’s total performance.
To accomplish competitive advantage, and differentiation three elements are crucial; stating the strategies and practicalities, focusing on knowledge based behaviour, and improving the customer relationship management.(Slater and Narve 1995).
We’ve all read about companies who’ve suffered hiccups in product quality or service. Some have survived; some have not.
Contained within the following paper is the evaluation of the author’s organization’s mission, vision goals, and objectives .The author will discuss the pre-determined questions as set forth by Jeffrey Trapp, a certified University of Phoenix instructor. This paper will discuss the differences that a rise between a company that has implemented TQM (Total Quality Management) with that of the authors own organization’s management style.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
Of the four mentioned strategies, I think the most feasible one would be either the price leadership or the technology innovation strategy. Maybe Boeing could engage in both these strategies simult
Signode Industries Inc. - Providing Packaging Solutions Executive Summary SIGNODE INDUSTRY: DILEMMA AT HAND: Mr. Gary Reed, President of Signode Industries packaging division, is in a dilemma as what he should be his course of action to meet the 6.8% increase in price of cold rolled steel- the raw material used in manufacture of Signode’s primary product, steel strapping. There are few options given in the case: Increase Signode’s strapping prices to offset the increased price of cold – rolled steel. Maintain Signode’s current book prices as increasing prices would affect sales force morale. Introduce price-flex model as proposed by Jack Davis i.e. a kind of selective discounting or premium charging for customized services. Recommendations Reason: (All data in accordance to 1983) In accordance to Exhibit 1: Sales of Packaging Division of the company = $285,950 In accordance to Table A: Sales of Apex = 33.3% of $285,950 Sales of BBM = 26.8% of $285,950 Sales of HDM = 33.4% of $285,950 Sales of Customized Products = 6.5% of $285,950 In accordance to Exhibit 4: Similarly, For Apex: As it has a capacity utilization of 71% now, Suppose a sale is $100. Then contribution is $39.15 Therefore variable cost is $60.85. Now if we increase the capacity utilization to 100%, Sales becomes $ 141 since production increases by [(100-71)/71] * 100 = 41% Variable Cost = 141% of 60.85 = $85.8 Fixed Cost = 69.38% * 12.3 = $8.53 Total Cost = 85.8+8.53 = $94.33 EBIT = Sales – Variable cost – Fixed Cost = $46.67 % of EBIT = [(46.67/141) * 100] = 33.09% Suppose the company sales 100x units, the total cost was 69.38. Thus per unit cost was .6938. Now the company sells 141x units, the total cost...
Thompson, A.A., Strickland, A.J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin
Dr. Edward Deming stated that by improving quality, companies will decrease expenses as well as increase the productivity and market share (PMBOK, 2008).
First of all, product strategy. It is absolutely important to plan strategically, as in long-term product strategy. One possible definition of strategic planning is ‘the company’s plan for long run survival and growth that makes the most sense given its situation, objectives, resources and opportunities.’ (Brooks,J.R. 2004) In order to increase the acceptance of our products, product differentiation. Barney,J.B, (2006) stated that ‘product differentiation is a business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products or services.’ Product differentiation is crucial to increase a firm’s revenues and generate competitive advantages. R&W Printer are producing and providing products that emotionally engage customers worldwide.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics can be defined as a system of parameters or ways of quantitative and periodic assess of a process that is to be measured, along with procedures to carry out such measurement and the procedures for the interpretation of the assessment in the light of previous or comparable assessments. The results of the metrics can be used to record trends, efficiency, capital, and etcetera. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Metrics allow organizations to optimize its productivity.
Every organization uses different business strategies in order to remain in business. Some adopt customer- centric strategies; some uses strategies to maximize their profit. For a long time, many organizations have made quality as their selling point.
While total quality management has a lot of benefits, it is not for all organizations. Due to the costs and the time associated with implementing total quality management, small organizations can’t support it. The time and patience it takes to implement is different than the cultural norm in the United States. With the pressure to meet earnings for shareholders every quarter, upper management is often focused on the near future, rather than long term implications. If a cultural shift can take place in the United States, total quality management can help businesses compete better in the future, as the market continues to become more and more
A strategy which is adopted by an organisation indicates what area the firm intends to do well in.