3 Advantages and disadvantages of MBO The above has detailed the concept and the basic features of the model. But what do these features mean in practice? To understand the model, you also need to consider the strengths and weaknesses of the approach. Advantages of MBO MBO has plenty of advantages relating to the operational effectiveness and the enhanced relationships between the different stakeholders. Drucker thought of effectiveness as something the management has to focus on and through the communicative and participative style, organisations can improve the rate at which they achieve objectives.
(2012) pointed out that the organizational adoption and implementation could be effected in variety of ways due to multi-contextual system quality of an ERP system. Also research by Ram et al. (2013) has shown that system quality is one of the key factors for successful ERP which has been measured from the criteria context of project success. Additionally managers understanding of system quality, Ram et al. (2013) will help them to be prepared for ERP implementation process by analysing if they have all required knowledge and expertise.
Benchmarked could be such things as quality, price, cost-effectiveness and other factors. Benchmarking is important also in terms of improving company's supply chain management. As you are comparing your supply chain to the best practiced supply chain, it gives you detailed information on how to make your company's management processes more successful. When supply chain is benchmarked, it focuses on three aspects: the supplier,
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory. Oliver’s market competes with rivals by its pricing strategy. They set their everyday prices on traditional grocery items eight to ten percent below Safeway’s prices. They also price its natural foods just below Whole Foods.
I How should the information be analysed? I How should the information be used? These are the five main steps in Benchmarking. The first step is to identify exactly what the company intends to benchmark. Benchmarks that are important for customer satisfaction might include consistency of product, correct invoices, shorter delivery times, shorter lead times and improved after sales service.
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Understanding the needed supply chain capabilities before one sets out to operate in a global market place is a good idea, before trying to find and fill the holes in the dike are needed. Implementing a strategic plan that can be rapidly duplicated throughout the organization, strengthen supplier relationships, set quality expectations for suppliers by using a supplier performance score card to measure compliance. Optimize logistics and manufacturing capabilities, synchronize business units using information technology, and in order to drive organizational efficiencies create a culture of action. Set goals for a sourcing strategy. This means internal, or possibly external, personnel who can build new capabilities seamlessly.