1. Beltran’s strategic position is to be competitive by providing goods or services at lower costs than its competitors. In this scenario they have lower maintenance costs compared to the Quitax.
Qintax’s strategic position is being competitive by differentiation, which is providing faster & higher quality service to its customers than its competitor but at a premium price
A good example would be Dell compared to HP or Acer as they are well known for their after sales service, and their quality is better than other competing brands in the same market.
2. Quitax’s service reputation and the cost of maintenance are sources of value to the customer the quality of their products
Quitax’s faster delivery times also gives customer the impression
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The business would have to carry out changes in their business activities such as implementing new production processes, new software packages and introducing innovative human resource management policies. Information such as labour effectiveness & productivity should also be measured. Managers would need budgets from cost centres, performance reports & product cost from manufacturing department in a timely manner. There should be a pre-set allocation for defective units as a control measure for the supervisors to maintain the quality of the operation & the production. To reduce the cost of labour, labour hours should be also allotted efficiently. Supervisors and managers should calculate a rate at which labours are given the time to produce a given number of products in a given period of time so as to keep the staff cost to the set budget. These two control measures are very critical to the success and maintenance of the internal process. Control mechanisms ensure that operations proceed according to the plan and the objectives are …show more content…
As a result of this in the short run the business might show profits and would look good in the books, however in the long run the potential of growth from the opportunity cost might be lost.
Managers might set budgets that are too high or too low. If budgetary goal is easily achieved manager would lose interest and performance would decrease. On the other hand if the target is too high the manager might lose focus and performance would decrease. (Mowen, Hansen and Heitger 2009) The long run effect from these actions would be that the company would suffer from inefficient resource usage or allotment which in turn reduces
In this argument I will be focusing on Fox Car Rental, Inc. as the basis for a systematic analyses of the organization, as I identify the strength, weaknesses, opportunities, and threats to the existence of the organization and its operations. Also, I will be providing three pitfalls to strategic management. In order to facilitate my argument, the use of a strategic matrix analyses will be utilized.
Every organization and business enterprise has a dream of making the highest profit in all their ventures as well as minimizing all the inputs while at the same time maintaining the quality of their products and services. This goal cannot be achieved without the proper and powerful management team that directs all the organization operations and calls the shots. Management comprises of procedures and processes for rationalizing and connecting the activities of the business in order to achieve defined objectives and goals. In most cases, management is included as a fundamental of production process in the same category as machines, raw materials, and cash (Niederle, 2013). However, for an organization’s management to effectively and efficiently manage all its activities that include staffing, organizing, coordinating and controlling, it has to be conversant with rules of the land regarding
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competitors products (differentiation advantage). (QuickMBA, 2007) Creating this competitive advantage is produced using the organizations resources and capabilities b either a cost advantage or differentiated. Porter identified three basic strategies one of which is the cost leadership strategy. This strategy intends for the organization being the low cost producer in the industry. Such ways to lower prices include; improving process efficiency, vertical integration, and avoiding some cost for example.
To build a competitive advantage and deliver superior value to customer management must select a competitive strategy for the organization (Bethel University, 2017) A competitive strategy can be defined as exclusively dealing with specifics of management’s game plan for competing successfully (Bethel University, 2017). After conducting research, I have concluded that Denso Manufacturing is utilizing the Focused Differentiation Strategy. Shiv Nadar once said “adaptability and constant innovation is key to the survival of any company operating in a competitive market” (Brainy Quote,
Then there’s Apple. Their products are generally always innovative and meet some consumer unmet need so well that people literally fall in love with their brand and products they pump out each and every year. Yes, there have been some duds (the Cube is one that comes to mind), but it doesn’t happen often.
To stay competitive in this industry this report has given us some key factors for companies to follow and meet to be successful in this com...
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
Below are some of the competitive advantages (or factors which led to competitive advantages) I identified in the case:
Production planning and control is necessary in making decisions concerning utilization, acquisition, and allocation of resources in production processes with the objective of satisfying customer needs effectively and efficiently. It is used in determining workforce level, assigning of overtime work, sequencing the order in which tasks follow and deciding on production quantities (Graves 1999).
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.
The protection enhances the ability of sustaining a business in a competitive marketplace for the long run. A firm should also undergo the DYB strategy to get rid of business units and other resources that do not add value to the company 's performance. It should adopt the GYB strategy, in which it would utilize the business opportunities lying at its disposal to its advantage. As a direct result of these two strategies, the company would gain a substantial competitive edge against rivals, as well as boost its profitability in the long run (Grimm, Lee & Smith, 2010). Knowing that today 's business environment is characterized by heightened competition that has led to extensive gaps between industry leaders and laggards, and that there are greater churns among the industry rivals, the GYB and DYB strategies are essential for any modern company. More importantly, the GYB strategy should be focused towards the increase of
Effective control process in an organization would help in gathering information about the process and the employees, this can further help the management whilst taking important decisions in terms of establishing standards to meet standards, measuring the actual performance, as well as comparing performance with the standards. It can further help the companies in achieving their optimum goals so that they can take corrective actions as and when required. The process controls in place and guide and provide the company with the required regulations of the company’s activities. Which can lead to the performance of the company, hence it will also help the organization in terms of monitoring and responding.
The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data
GM- focused differentiation, medium pricing, breadth of product line is high. A strength is market share, and a weakness is styling and reliability and perceived quality.