Strategies for Competitiveness
Intense global competition, fast technological change and demanding customers are responsible for a knowledge intensive and uncertain environment. In such a challenging, turbulent competitive environment, any manufacturing firm, which can compete on all dimensions of competitive priorities such as fast delivery, superior quality, competitive price, volume and product flexibility can be considered as a competitive firm.
In sustaining their competitiveness, organizations face many pressures and constraints due to their limited resources of finance, skilled manpower and advance technology. Therefore strategy should match to resources, altering environment and in specific markets and customers. Therefore for surviving
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The outputs constitute the physical products of the company and the inputs are the resources used by the company. Performance of an organization relative to its industry standards may be viewed as its competitiveness. Therefore performance of organization with respect to industry standards will decide its competitiveness. For measuring performance both subjective and objective measures can be considered.. This could be based on: manufacturing cost, labor productivity and throughput (Rs/hr) etc. Objective performance can be evaluated on measures such as market share, profitability, export …show more content…
. (source : https://www2.deloitte.com/us/en/pages/manufacturing/articles/global-manufacturing-competitiveness-index.html) . The 2016 study also examined various global forces shaping the manufacturing competitiveness of nations. From talent to health care systems, the study examined twelve drivers. Among these drivers, four key drivers have emerged as the major determinants of global manufacturing competitiveness:
1. Talent
2. Cost competitiveness
3. Workforce productivity
4. Supplier network
In each of these India has huge potential to perform.
a) Talent: The country is a talent bank of various professionals, be it engineering or other professionals. . With its experienced work force, large pool of scientists, engineers and managers, India indeed has a talent supply chain in place. A good educational infrastructure and training facilities across the country offer a unique advantage. The “Skill India “and stat-up mission has been identified by the government to leverage the huge entrepreneurial talent that exists in the
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
Some of Caterpillar’s competitors are Komatsu Ltd, that is based in Japan, Deere & Co, based in Illinois, Kubota Corp, based in Japan, and CNH Industrial NV, based in the United Kingdom. All of these companies are manufacturing companies, so they face similar problems or benefits depending on the current trend for their type of manufacturing. Vault’s overview of Manufacturing states, “The Manufacturing Industry consists of two categories: durable and nondurable goods. Durable goods, such as cars, airplanes, and large household appliances, may be used for a long time. Nondurable goods, such as food, cosmetics, and clothing, are consumed more rapidly.” That is only a rough summarization of some of the fields that go into durable or nondurable goods. The two categories are very different, so many different types of employees work in the manufacturing industry. Workers can range in skill, education, and interest since the industry is so vast. A factory worker is far different from an engineer, yet they still both work for the same
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.
But, technological factors are truly key in order to maintain a competitive edge when competing in the global market. Technology must be implemented in order to stay current, and even more so ahead of your competition through innovation of products and processes. From a manufacturing standpoint, the focus must be on improving efficiency. One way in which Gap Inc. is trying to do so is by implementing automated manufacturing processes. As a company, they are trying to create more attraction for consumers by shifting the focus of the organization in order to improve and create environmental sustainability while also promoting healthier
Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces of an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or exploit particular characteristics of their industry.
The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011). There are three determinants which can be used in the competitive advantage that what the company produce for their consumers, their target market that what they have to achieved and the competition from the other entity
Along with the rapid development of economy and society, the companies have to own skills to adapt, cater, and transfer new knowledge, and try to modify their activities to reflect insights. Strategic management evolves
Caterpillar’s main industry of machinery has many barriers to entry which makes it difficult for new organisations to enter the market. It is a mature and highly competitive industry with few dominant competitors who have cemented their position over the decades. Furthermore, these corporations have sustained a competitive advantage over any new entrant that tries to enter into the industry.
To keep up with today’s volatile marketplace, an organization should be able to adapt to its environment so that it is able to stay competitive. In order to accomplish the often times difficult task of continuous growth, in all its facets an organization has to plan and be prepared to change in the ever evolving business world.
A service firm performance is usually measured in terms of quality. Nevertheless, these performance measurements can also be measured in terms of time, flexibility and cost, and they can also be used by a manufacturing company. In order to analyze the measures, I will divide them to the three main parts of operations, input – process – output:
Since market and profit advantages are continuously eroding by time, company has to be innovative and should be continuously competitive.
This report provides an analysis and evaluation of strategy implementation used by California Pizza Kitchen (CPK) and discusses the effectiveness of their strategy through organization design, control systems, people and culture. My research concluded that CPK relies on control systems to undertake a majority of the company’s operational activities and that human resources and organizational culture must support the strategy implemented, which it does in in the case of CPK.