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Amazon to gain a competitive advantage
Amazon to gain a competitive advantage
Amazon to gain a competitive advantage
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Industry Leader. Alexander Mann Solutions is currently an industry leader in Europe and would like to retain this title in the Americas, precisely in the United States. According to Pearce & Robinson (p.192, 2011), firms most often measure their success in the marketplace through the advantage they have over the competition. This advantage is not only viewed by measuring sales and market shares, but also through technology. With the constant change in technology, Alexander Mann Solutions always strive to be innovative in the delivery of their services. They utilize venues such as social media (Twitter, Facebook) in order to reach passive candidates as well as retain their interest. Alexander Mann Solution highly values authenticity and passion …show more content…
A generic strategy is a ‘core idea about how a firm can best compete in the marketplace (Pearce & Robinson, p.195, 2011)’. In order to competitive, firms must be able to control their costs and create differentiation with their products and services. Cost control within an organization applies to several areas. In the case of Alexander Mann Solutions, it will apply to operational expenses, such as salaries as well as fixed costs. One of the advantages of controlling costs is the ability to provide services at a lower cost and still benefit from the higher profit margins. Unfortunately Alexander Mann Solutions has not been able to create effective strategies enabling organizational costs to be at a …show more content…
Although great progress is being made, the firm however has areas to improve. One of the major areas to be improved on is cost control. Mark Zuckerberg, CEO of Facebook, emphasized the need to control cost as it greatly impacts the growth of the organization. While cutting cost however, firms must pay attention to its consumers as well as employees as these stakeholders are mostly impacted by the change. An implemented cost strategy must be a sustainable one in order to survive through an economic depression. Alexander Mann Solutions can build on their innovative strategies, creating improvements directly impact company costs. Also the firm can leverage the training programs in place by tailoring the training to topics such as career progression and time management. It is important for employees to make a connection between their productivity, absenteeism and career progression. Employees are more willing to work hard if they see a reward. Finally cost can be controlled by Alexander Mann Solutions by doing a regular headcount assessment. Although difficult, it is imperative for the firm to assess headcount on each account as the business
CEO Johnston also has plans to bolster the company’s leadership with the best minds available and also use motivational techniques to invigorate his employees. These ideas show the character of the CEO in enhancing productivity from his work force.
A focused cost leadership strategy would be appropriate, in other words, a attention to consumers. Cost focus is a strategy that will focus on a particular buyer groups or a geographic market and attempt to serve only that place, to the exclusion of others. When looking at cost factors, there are very few options available to K-Mart in developing a pricing strategy to compete with Target or Wal-Mart. Therefore, K-Mart would not have many price strategy options available. However by using a cost focus strategy, and matching the quality of well known brands but keeping cost low by eliminating advertising and promotional expenses will save K-Mart money.
The Goal is a book that focuses on the theory of constraints in order to improve production. Eliyahu Goldratt brings us a pleasant story that shows the important strategies that any manager or CEO should follow to be successfully productive, and capable of reaching their goals. The book easily explains and demonstrates many attainable ways for any human being to learn how to manage their industrial relations, business processes, and also, their personal lives.
Porter’s generic strategy typology and the Miles and Snow strategy typology are both examples of generic strategic models that a decision maker may find useful (Parnell, 2014). Both generic strategy frameworks explain generic business strategies by utilizing four different strategy types. A few of the strategies may share some common traits, however the frameworks are different in the approach they take to view and describe strategies (Parnell, 2014).
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
One primary key to a successful health care organization is having a strategy to achieve the mission of the organization. This is particularly true in reference to creating a budget and generating revenue for a profitable bottom line of a hospital. Executives are experiencing a gap that is continuously widening between technology and hospital demands, which is causing additional conversation around pricing. According to Nugent (2004), there are three major themes to consider when it comes to strategic pricing. These themes include pricing at the margin (pricing new business to cover variable costs and margin, if capacity exists), cross-subsidizing (funding one service with profits from another service) and testing what the market will bear
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
Organizational changes that reduce cost. The M&S reduced its management levels to reduce the cost.
Even though a myriad of tools and techniques learnt in the Strategic Cost Management and Strategic Business Analysis courses are not fully exploited in this essay, it is generally recognised that those techniques are useful for a corporate to formulate strategy, do strategic planning, control costing and quality, as well as eventually elevate its values, regardless the nature and size of organizations.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
In this age of rapidly changing technology, market-driven decision making, customer sophistication, and employee restlessness, leaders and managers are faced with new challenges. Organizations must build new structures and master new skills in order to compete and survive.
Porter argues that no firm can provide value in all the ways that people wish value to be delivered, so they should select one strategy; cost leadership, differentiation or focus. (Robbins & Barnwell, 2002)
OLLIER-MALATERRE, ARIANE; ROTHBARD, NANCY P.; BERG, JUSTIN M. Academy of Management Review (Oct2013), Vol. 38 Issue 4
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)