competition among participants and the need to implement changes. Not unless the challenges facing an organization are addressed in the earliest time possible, the organization may lose its competitive nature in the market.
Weaknesses that are facing the organization’s product life cycle
One of the weaknesses that are facing the organization is change in work environment. Change is inevitable and often creates chaos or new working dimensions in the organization’s environment. Once a change has occurred in an organization, the organization must respond by changing its operations for it is to maintain a competitive advantage. In a business organization, change affects employees, customers, and managers (Kuratko, 2014). Customers are part of an organization’s external environment, whereas employees and managers form part of the internal environment. The greatest challenge for an organization in the sustenance of competitive advantage is its internal environment. Managers are motivated to increase the effectiveness of an organization, therefore, are the initiators of change. In many cases, employees do not readily welcome change, which can negatively influence the performance of an organization (Anderson & Zeithaml, 1984).
Another major challenge facing the organization’s product life cycle is lack of information systems. Information System (IS) development and implementation raises significant challenges in organizations. Besides the technological problems associated with the interoperability and integration of legacy systems, the organizational processes often include several informal practices that result in exceptions in process workflows. Currently, many business activities rely highly on some Information System, although this normally depends on the organization. Information systems have become an essential element in most organizations, which is to help firms survive the harsh competition of the modern business world (Saaksvuori & Immonen, 2004).
Contemporary organizations need integrated, precise, and state-of-the-art information systems, whose effective management is important for the success of the organization. An information system helps organizations expand the scope of their business activities, modify business control, reshape responsibilities, offer services, and re-design the workflows. The implementation of information systems is usually a continuous process that incorporates the configuration of the information system through feasibility study, assessment, design indoctrination, instruction, adaptation, and installation of the system. Many information systems fail to materialize if the challenges faced at the implementation stage are not managed effectively (Anderson & Zeithaml, 1984).
The new product design of the company will include introduction of financial services and entertainment services. The emergent approach is one of the strategies that the organization needs as an Incremental strategy in order to strengthen its operations. The emergent approach will view strategy as evolving incrementally over time. The premises of this view are businesses that operate in a social complex environment that is ever changing (Saaksvuori & Immonen, 2004). These circumstances dictate business to evolve strategy through interaction between the stakeholders and the environment
The organization will introduce a lack of sense of supervision hierarchy as a strategy to strengthen its operations except in marketing and promotion issues. By adopting the ‘hands off’ policy, it gives the managers autonomy encouraging them to runs the various companies under our company on their own initiative as this will make managers feel a sense of responsibility for the companies they manage and try their best to make the business a success. The recruitment of managers considers the competitive steak in their personalities. The managers must also be novel people and forges in their fields. Ability to share values and work in a team is a prerequisite for employment as a manager in the company (Anderson & Zeithaml, 1984).
Key components of supply chain management
Managing Leverage is one of the key components of supply chain in our business organization. Even though our organization is well performing, if leverage is not well managed can lead to a downfall of a business. Leverage refers to a technique that can be used to multiply gains. It involves increasing the business assets using borrowed money. This mostly assumes that the income from the assets will be higher than then cost of borrowing (Farooqui, 2010).
Risk management is another key component of supply chain management that will be incorporated in our organization. This is because our company mostly supports operations externally exposing the company to major risks which may be unmanageable at times. External risks are mostly not regarded risks as they as they are not visible or prevalent as the internal risks factors. Risk management is a major thing to be taken care of in any organization as risks if allowed can also lead to a downfall of a company. When risks are noted a lot of care need to be taken so as to come up with good solutions to prevent any loss from occurring as losses are the worst scenarios that would happen to an organization. Developing an effective risk management tool in an organization is one of the major things in supply chain management (Farooqui, 2010).
Efficiency is also another major component of supply chain management in our company. Efficiency in processes and operations in a company is the most fundamental requirement for any better performing company. The supply chain may impact efficiency either directly or indirectly. An improvement in production efficiency requires an increase in supply volume of both maintenance equipment and components. If there would be an increase in the speed market, timely freight management and support of accuracy would be a requirement. The key to meeting improvement and objective efficiency is only met when there is efficiency in strategies incorporated in the organization (Farooqui, 2010).
There are several issues that may affect the structuring, sourcing, purchasing, and the supply chain of our organization. Of these issues is lack of access to latest technology. Having a good access to the latest technology can be a good push over of any organization. It leads to support and development of new products. In our company we would introduce an information technology person who would be following everything new in technology that can be of benefit in our company and making sure that it has been incorporated (Farooqui, 2010).
Another major issue in this is lack of supply base consolidation. Supply base consolidation eliminates base overheads and variance. If incorporated in our company it can be of good help. Another issue that could affect the structuring, sourcing, purchasing, and the supply chain of your organization are safety and quality products (Kuratko, 2014). Every customer in any organization tries to look for the best product in the market. The pressure that our organization is having is to make sure that it produces the best services in the market. This can be solved by first doing a market survey so as to have an idea of what the customers require so as to offer it to them in the best way possible (Farooqui, 2010).
Quality management tool that identifies and analyzes any future issues
For a better performance of any organization there has to be management tool that takes care of the future issues that would make the company to decline. Quality control to quality management is a tool that will be used in identifying and analyzing future issues in the company. Quality represents a philosophy, practices and methodologies that make a business committed in excellence now and in the future taking care of all the other issues that would come up. Quality engages all other individuals in the company as everyone beginning from the president of the company down the messenger all work towards achieving quality in the organization. Inspection of everything before in the company makes sure that quality services are delivered to the customers making a good flow of them now and in the future as there would be a good reputation of the company. Quality makes sure that there is process analysis of motion and time in the organization hence increasing productivity (Kuratko, 2014).
Advantages of employing the just-in-time philosophy in our organization
Just in time philosophy makes would make it easier to terminate the production of one property and switching to another because the production runs are very short. Another advantage is that just in time philosophy would make it easier to minimize the inventory holding costs of the company because there would be low inventory level. Another major advantage of just in time philosophy in our company is that the company would be investing low cash in its inventory; this is because fewer inventories are needed in just in time philosophy (just-in-time philosophy 1990).
The philosophy would enable quality assurance in that one; it makes it easier for the company to realize mistakes in a short time and make it possible for them to be corrected making it possible for the services to be delivered without defects. Two; it allows minimal amounts of inventory undesirability. This makes it possible that there are no items remaining as stock, which prevents them from becoming superseded. Three; it lowers the damaging of inventory levels hence lowering the rates of accidents in the company. This is because there is no inventory that runs for a long time making it possible to produce high quality products all the time (just-in-time philosophy 1990).
Qualitative and qualitative forecasting methods
Qualitative method includes market research while a quantitative method includes simple exponential smoothing.
Methods
Characteristics
Market research
It is mostly concerned about the processes of a market
It maintains the effectiveness over competitors
It provides the required information in identifying and analyzing the market completion, need and size.
Simple exponential smoothing
It is mostly used in data smoothening
Whenever there are two observations, it gives out a smoothed statistic.
Simple exponential smoothing is the best when it comes to short-term forecast as it is used in the absence of cyclical or seasonal variations. On the other hand it does not work well if there is a trend in the series. Market research increases understandings of the market and customer market conduct. On the other hand, doing right-data collection is expensive. Having error in data sampling can give wrong information hence leading to a wrong decision (Kuratko, 2014).
References
Anderson, C. R., & Zeithaml, C. P. (1984). Stage of the product life cycle, business strategy, and business performance. Academy of Management journal, 27(1), 5-24.
Farooqui, S. (2010). Encyclopaedia of supply chain management. Mumbai: Himalaya Pub. House.
Importance and impact of the just-in-time philosophy. (1990). Microelectronics Reliability, 30(4), 827.
Kuratko, D. (2014). Entrepreneurship. Mason, Ohio: South-Western Cengage learning.
Saaksvuori, A., & Immonen, A. (2004). Product Lifecycle Management. Berlin, Heidelberg: Springer Berlin Heidelberg.
No comments:
Post a Comment