MGT300 Chapter 3 – Strategic Initiatives for implementing Competitive Advantages

STRATEGIC INITIATIVES
Organization can undertake high-profile strategic initiative including:-

Supply chain management (SCM)
- Involves the management of information flows between and among stages in a supply       chain to maximize total supply chain effectiveness and profitability

Wal Mart And Procter & Gamble (P&G)




- Four basics component of supply chain management include:-

• Supply chain strategy is the strategy for managing all the resources required to meet customer demand for all products and services. 
• Supply chain partners are the partners chosen to deliver finished products, raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics. 
• Supply chain operation is the schedule for production activities including testing, packaging, and preparation for delivery. 
• Supply chain logistics is the product delivery processes and elements including orders, warehouses, carriers, defective product returns, and invoicing.

Effective and efficient SCM systems can enable an organization to;

o      Decrease the power of its buyers

o      Increase its own supplier power

o      Increase switching costs to reduce the threat of substitute products or services

o     Create entry barriers thereby reducing the threat of new entrants

o    Increase efficiency while seeking a competitive advantages through cost leadership

Customer relationship management (CRM)

-Involves managing all aspects pf a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

-CRM is a strategy, process and business goal that an organization must embrace on an       enterprisewide level

-CRM enable an organization to identify types of customers, design individual customer marketing campaign, treat each customer as an individual and understand customers buying behaviors






Business process re-engineering (BPR)
- Business Process is a standardized set of activities that accomplish a specific task.

- Business Process Reengineering (BPR) is the analysis and redesign of workflow within and between enterprises

• An organization can improve the way it travels the road by moving from foot to horse and then horse to car. BPR looks at taking a different path such as an airplane which ignores the road completely.

• Progressive Insurance Mobile Claims Process

Types of change an organization can achieve along with the magnitudes of change and the potential business benefit:

Enterprise resource planning (ERP)
 -ERP is an integrates all department and functions throughout an organization into a single IT system so that employees can make decision by viewing enterprise wide information on all business operation

-EPR system collect data from across an organization and correlates the data generating     an enterprise wide view