The purpose of this document is to provide an understanding as to the feasibility of a start up business (FRP Sheet) manufacturing flat fiberglass sheeting. Currently, Flat Fibreglass Sheeting is being imported into Australia for industries such as: The Transport Industry, particularly used as Sides of Truck trailers and panels for Buses; the Caravan manufacturing Industry, the Building Industry for wall and ceiling linings, and the Mining Industry for corrosion resistance, to name a few. These imported sheets are low in quality and clients are required to wait many weeks for manufacture and shipping from overseas countries. An opportunity has arisen to purchase an automated machine, which is designed to manufacture these sheets. With quick manufacturing to delivery time and minimal labour requirements needed to operate this business; this looks to be a productive opportunity, which will be examined throughout this document. The objective of this document is to identify opportunities through the investigative process, while identifying reasons not to proceed with this business. The business model will be illustrated and examined to identify how FRP Sheet will create value. The external factors within the industry will be analysed using planning tools such as, Porters five forces identifying the key success factors, and a PESTEL analysis tool, which will look the dynamics and trends. The differentiation of the business within the industry will be mapped on two key attributes, to see where it sits compared to its competitors. The internal analysis will look at the businesses Recourses and Capabilities to discover any competitive advantages. The businesses value chain will be illustrated and analysed to recognize which activit... ... middle of paper ... ...stinctive Capabilities. For FRP Sheet to operate at a level equal to its rivals the Threshold resources and competences listed are at a normal standard for this industry, however the Distinctive capabilities listed will give a competitive advantage over most of the rivals, particularly the Automated machine together with short lead times. References Casadesus-Masanell, Ramon, & Ricart, Joan Enric. (2010). From strategy to business models and onto tactics. Long Range Planning, 43(2), 196. Johnson, Gerry. . (2014). Exploring Strategy, 9th Edition.: Pearson Higher Education (UK),. Porter, Michael E. (2008a). Competitive advantage: Creating and sustaining superior performance: Simon and Schuster. Porter, Michael E. (2008b). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 26.
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which the primary mode of operation should be and exactly why. A detailed description on how management can keep track of the job status and location during production will also be addressed. Finally, there will be a recommendation on they type of changes that need to occur that will be beneficial to the company and at the same time add value to the customer. This paper will conclude with summary of the major points.
1A. Describe your company’s business model (e.g. vertical, horizontal, hybrid, FIPNet, etc. (If the company has been in existence over 10 years, you may choose to focus on the recent 10 years; if your company has been in existence for less than ten years, please describe the same since inception).
Key problem 4: Company is a German-European based which is a limited market. They should increase their product distribution in different parts of the United States. Partnering up with retailers with a similar target market is suggested to make the company’s products readily available and attainable to the public.
According to Porter, the five forces that are present in competitive industries combine to impact its attractiveness and ultimate profit potential. ...
The strategy will be carried out within 3 years and finances will be disbursed for this project after full cost analysis is carried out. The process of sourcing and training artisans will follow ethical employee guidelines and the factories will also be guided by work and environment safety laws which will help protect the brand from any law suits.
An analysis of the firm's resources and capabilities must include critical assessment whether they are unusual when compared to those of competitors
Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: John Wiley & Sons.
By using this structured analysis, firms can more easily evaluate the attractiveness of an industry and gain a complete overview of all relevant competitive factors that have to be considered in the process of establishment. It helps to better understand the present market structure and to evaluate as a consequence of that external threats and opportunities. Unfortunately, the analysis established by Porter is not a guarantee for success and above that, it is often accused for limitations, lack of considerations and inoperative outcomes. The non-observance of a collaborative economic behaviour and of governmental influence, the inflexibility of the model and furthermore lack of application to rapidly changing market conditions are major limitations that have to be considered.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
The external factors of an organisation could be emphasised when strategic thinking is taking place, looking at the bigger picture, including their competition and customers. The PESTEL analysis framework can be used to identify an organisation’s external macro-environment. Issues including political, economic, social, technological, environmental and legal environments may be the key drivers that affect organisations (Johnson G et al, 2011). Managers within an organisation should analyse their environments carefully, as it could help an organisation to anticipate any future threats and take action and minimise the threats before it could affect the company. An example is the western European brewing companies, where the legal laws such as the drink and driving has affected large supermarket chains like ...
Hendersern and Stern 2000, ‘Untangling the origins of competitive advantage’,Strategic Management Journal, Vol. 21, pp. 1123-1145.
...ssibilities and capabilities and the most important, improved availability of supplies. However, backward integration also generates risks. Therefore before entering the new segment of a value chain the company shall do the analysis and evaluate if there are necessary resources, competence available.
In today’s competitive and rapidly changing business environment, it’s important to understand the strategic issues opposite organizations and enhance the ability for long term success; Organizations must study the external and internal environment. Porter’s five forces model exams organizations external environment and value chain exams internal environment. Five forces aid businesses to determine the attractiveness and the profitability of a market they competing and assist organizations to make a qualitative evaluation of their strategic position. Wit and Meyer (2010: p264) suggests that the ultimate purpose of competitive strategy is to deal with rules in the industry and if possible make changes for the firms favor, whether this industry is local, or global or produces a product or service, the competition is embodied in five competitive forces: the entry of a new competitor, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes and the rivalry among the existing competitors. I will apply Starbucks on my analysis.
Carter to all three markets segments, use Fusion Alternative - produce “accessible goods’ use the automation since this groups cares solely about the brand image. Produce absolute goods using artisan labour this group care are heritage and tradition. They look for excellent craftsmanship, the use of high-end materials and excellent buying experience.
Pierce, J. & Robinson, R. (2009). Strategic Management: Formulation, Implementation and Control (11th Edition). New York: McGraw Hill Companies.