Also it may incur the cost of having to retrain either the managers or the outlet staff assistants on how to do the role of the supervisor and they may demand more pay. Overall I feel that it would be best to de-layer the business and to do so by removing the supervisor’s layer. This is because it would incur a smaller cost financially to remove this layer and lead to more pro’s such as a quicker decision making process and hopefully a more efficient business. Though I would also suggest to Tim that he allow smaller decisions such as whether an outlet is allowed to re order new stock, be down to the managers of the individual outlets.
This leads to stressed, disconcerting and less effective staff. To avoid the process of redundancy, the company may decide to reduce overtime, ‘natural wastage’ and send some employee to an early retirement or redeployment. Redeployment is a way of displaying employees form one area/post to another one. This mainly involves re-skilling and retraining staff whose jobs are redundant. This often enhances the company for extra costs for training, while actually improving their financial performance.
Organizations attempting to reduce waste may find themselves stuck trying to understand precisely where vital financial cuts need to take place. Variability can actually prevent Lean Six Sigma from working in a business environment and can sometimes impact flow in a negative way (Locher, 2007, p. 54). As demand in many organizations can be unpredictable, many employees will find the need to multitask in order to get the job done. Multitasking itself creates highly skilled employees that are required in a lean environment. Companies that employ individuals who are capable of multitasking benefit from these employees as the organization see’s a high degree of flexibility and responsiveness with a reduction in operational costs.
Happy customers buy more than unhappy ones, and they do so for a much longer period of time. They help companies win new customers, instead of sending them to competitors as unhappy customers do. They’re also easier to work with when problems arise; unlike chronically unhappy customers, whom will usually cost money and cause grieve if a business makes even the slightest mistake. The more opportunities that a customer has to conduct business with a company the better, and one way of achieving this is by opening up channels such as direct sales, online sales, franchises, use of agents, etc. However, the more channels a business have, the greater the need to manage its interaction with its customer base.
According to Porter’s article, revolution on information technology (IT) affects competition by changing the alignment of the industry and rules of competition. This makes competitive advantage in ways for companies to exceed their competitors and bring businesses in place. IT spread all through the value chain, which are activities performed in business at a low cost, and helped perform optimization functions for companies. This allowed the capture of information that wasn’t accessible before. The value chain are activities that have physical and information processing components.
Insourcing business activities create a desire for In-house expertise, creating jobs. Companies also receive benefits such as faster market product cycles, revenue generation, greater innovation and protection of intellectual property (Savitz, 2013). Insourcing is the better practice because it allows companies to avoid marketplace pressures. An example of a marketplace pressure is wage inflation. Wage inflation in outsourcing markets puts pressure on providers to find alternative ways to control
These benefits are of two main types: Improvements in infrastructural efficiency, as information systems replace old ones with systems that are more flexible, have greater reach and cost less to run, and new business opportunities made possible by new information systems. These opportunities include improvements in external and internal processes, tapping employees’ and external knowledge, and the creation of networked communities of customers and staff. ICT should be able to streamline your business, produce measurable improvements, but most importantly managers need to use the resource to be on the lookout for new business opportunities. BIBLIOGRAPGHY: 1. Heathcote.M .P, (1998) ‘A’ Level Computing 2.
to customers and interact with them in real time, which can greatly impact customer loyalty. Again, time reductions represent a powerful benefit, and they are projected to increase with the continuous advancement of processing capabilities. Evidently, there are many benefits to working with Big Data analytics and procedures, and as computing capabilities continue to advance these benefits are only projected to increase. Data’s value is now more dependent on its cumulative potential uses than its initial use; however it is unlikely that a single firm will be able to unlock all of the dormant value from a given dataset. Therefore, in order to maximize Big Data’s value firms can license their accumulated data to third parties in exchange for royalties.
To solve these problems, top management support and cross-functional involvem... ... middle of paper ... ...ion Activity-based costing is used as a supplement of traditional cost accounting in a company to support manager in internal decision making. It focus on assigning the indirect cost to direct costs in order to get a more accurate cost on products. Activity-based costing uses several cost pools instead of one in traditional cost accounting. The system is easy to implement and it provides many benefits, it allows the company to respond to inefficiency by reallocating resources to more profitable activity from areas that absorb too many resources. It also allows the company to respond to manufacturing overhead cost and assumes a more accurate selling price on products in order to make more profits.
The same issues such as getting existing services for a reduced price at acceptable quality standard came up repeatedly. Second, failure to meet service standards can force management to find other ways of achieving reliability. It is not atypical to find a company in which cumulative IT management neglect eventually culminated in an out-of-control situation the current IT department could not recover from. Management can see outsourcing as a way to fix a broken department. Third, a firm under intense cost or competitive pressures, which does not see IT as its core competence, may find outsourcing a way to delegate time-consuming, messy problems so it can focus scarce management time and energy on other differentiators.