Thursday, 21 January 2016

CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

Strategic Initiatives
  • Organizations can undertake high-profile strategic initiatives including:
    • Supply Chain Management (SCM)
    • Customer Relationship Management (CRM)
    • Business Process Reengineering (BPR)
    • Enterprise Resource Planning (ERP)
Supply Chain Management
  • It involves the management of information between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
• Supply chain strategy
• Supply chain partner
• Supply chain operation
• Supply chain logistics

SCM can enable an Organization to
Decrease the power of its buyers
Increase supplier power
Increase switching costs to reduce the threat of substitute products or services
Create entry barriers thereby reducing the threat of new entrants
Increase efficiencies while seeking a competitive advantage through cost leadership


Customer Relationship Management 
Involves managing all aspects of a customer’s relationship with an organization to increase
customer loyalty and retention and an organization's profitability

Benefits
Identify types of customers
Design individual marketing campaigns
Treat each customer as an individual
Understand customer buying behaviors

Business Process Reengineering
Business process
a standardized set of activities that accomplish a specific task
E.g. processing a customer’s order
Business process reengineering (BPR)
the analysis and redesign of workflow within & between enterprises
The purpose of BPR is to make all business processes best-in-class

Enterprise Resource Planning
Integrates all departments and functions throughout an organization into a single IT system so
that employees can make decisions by viewing enterprisewide information on all business
operations. 


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