Friday, May 17, 2019

How Effectively an Organization Meets the Wants

Competitiveness How sumively an organization meets the wants and needs of customers relative to other(a)s that allow similar goods or work Business compete using MARKETING 1. Identifying consumer wants and/or needs is a basic input in an organizations decision making regale, and central to competitiveness. The idea is to come across a perfect match surrounded by those wants and needs and the organizations goods and/or services. 2. Price and type atomic number 18 pigment agents in consumer buying decisions. It is Coperni stooge to understand the trade-off decision consumers make between price and quality. 3.Advertising and promotion atomic number 18 ways organizations deal inform authority customers about features of their products or services, and earn buyers. Business compete using OPERATION 1. Product and service conception should reflect joint efforts of some(prenominal) aras of the firm to achieve a match between financial resources, operations capabilities, s upply chain capabilities,and consumer wants and needs. fussy characteristics or features of a product or service tummy be a key factor in consumer buying decisions. Other key factors include innovation and the time-to- commercialize for new products and services. 2.Cost of an organizations create is a key vari able-bodied that doctors pricing decisions and profits. Cost-reduction efforts are generally ongoing in business organizations. productiveness(discussed afterwards in the chapter) is an important determinant of terms. Organizations with high up productiveness rates than their competitors father a competitive court advantage. A high society may outsource a portion of its operation to achieve pull down costs, high productiveness, or better quality. 3. Location can be important in terms of cost and doojigger for customers. Location near inputs can event in debase input costs.Location near markets can result in lower transportation costs and quicker delivery times . Convenient location is particularly important in the retail sector. 4. Quality refers to materials, workmanship, design, and service. Consumers judge quality in terms of how well they think a product or service volition satisfy its intended purpose. Customers are generally willing to yield more for a product or service if they perceive the product or service has a higher quality than that of a competitor. 5. Quick response can be a competitive advantage. matchless way is quickly bringing new or improved products or services to the market.Another is being able to quickly deliver existing products and services to a customer after they are ordered, and still some other is quickly handling customer complaints. 6. Flexibility is the ability to respond to changes. Changes might relate to alterations in design features of a product or service, or to the volume demanded by customers, or the mix of products or services offered by an organization. High flexibility can be a competitive a dvantage in a changeable environment. 7. Inventory management can be a competitive advantage by effectively matching supplies of goods with demand. . Supply chain management involves coordinating internal and external operations (buyers and suppliers) to achieve by the way and cost-effective delivery of goods throughout the system. 9. Service might involve after-sale activities customers perceive as value-added, such(prenominal) as delivery, setup, warranty work, and adept support. Or it might involve extra attention while work is in progress, such as courtesy, keeping the customer informed, and attention to details. Service quality can be a key differentiator and it is one that is a good deal sustainable.Moreover, businesses rated highly by their customers for service quality tend to be more profitable, and grow faster, than businesses that are not rated highly. 10. Managers and workers are the people at the heart and soul of an organization, and if they are competent and motiva ted, they can provide a distinct competitive edge by their skills and the ideas they create. One often overlooked skill is answering the telephone. How complaint calls or requests for information are handled can be a positive or a negative. If a person answering is rude or not helpful, that can produce a negative look-alike.Conversely, if calls are handled promptly and cheerfully, that can produce a positive image and, potentially, a competitive advantage. Key EXTERNAL factor 1. Economic conditions. These include the general health and prudence of the economy, inflation and deflation, interest rates, tax laws, and tariffs. 2. Political conditions. These include favorable or unfavorable attitudes toward business, political perceptual constancy or instability, and wars. 3. Legal environment. This includes antitrust laws, government regulations, trade restrictions, minimum wage laws, product liability laws and modern court experience, labor laws, and patents. . Technology. This can include the rate at which product innovations are occurring, menstruum and incoming process technology (equipment, materials handling), and design technology. 5. Competition. This includes the number and strength of competitors, the basis of competition (price, quality, special features), and the ease of market entry. 6. Markets. This includes size, location, brand loyalties, ease of entry, potential for growth, long-term stability, and demographics. Key INTERNAL factors 1. Human resources. These include the skills and abilities of managers and orkers special talents (creativity, designing, chore solving) loyalty to the organization expertise dedication and experience. 2. Facilities and equipment. Capacities, location, age, and cost to maintain or replace can take on a operative impact on operations. 3. Financial resources. Cash flow, access to additive funding, existing debt burden, and cost of capital are important considerations. 4. Customers. Loyalty, existing relationshi ps, and understanding of wants and needs are important. 5. Products and services. These include existing products and services, and the potential for new products and services. . Technology. This includes existing technology, the ability to integrate new technology, and the probable impact of technology on current and future operations. 7. Suppliers. Supplier relationships, dependability of suppliers, quality, flexibility, and service are typical considerations. 8. Other. Other factors include patents, labor relations, company or product image, distribution channels, relationships with distributors, maintenance of facilities and equipment, access to resources, and access to markets. PRODUCTIVITY MEASURE Productivity measures are useful on a number of levels.For an individual department or organization, productivity measures can be used to track performance over time. * This allows managers to judge performance and to decide where improvements are needed. * For example, if productivi ty has slipped in a certain area, operations staff can examine the factors used to compute productivity to read what has changed and then devise a means of improving productivity in subsequent periods. Productivity measures similarly can be used to judge the performance of an entire industry or the productivity of a country as a whole.These productivity measures are aggregate measures. In essence, productivity measurements serve as scorecards of the effective use of resources. Business leaders are concerned with productivity as it relates to competitiveness If ii firms both have the same level of outfit but one requires less input because of higher productivity, that one will be able to charge a lower price and consequently gain its share of the market. Or that firm might elect to charge the same price, on that pointby reaping a great profit.Government leaders are concerned with national productivity because of the close relationship between productivity and a nations standar d of living. High levels of productivity are largely responsible for the relatively high standards of living enjoyed by people in industrial nations. Furthermore, wage and price adds not accompanied by productivity increases tend to create inflationary pressures on a nations economy. Improving Productivity A company or a department can take a number of key steps toward improving productivity 1.Develop productivity measures for all operations. Measurement is the first step in managing and autocratic an operation. 2. Look at the system as a whole in deciding which operations are most critical. It is overall productivity that is important. Managers need to reflect on the value of potential productivity improvements forwards Okaying improvement efforts. The issue is effectiveness. There are several aspects of this. * One is to make sure the result will be something customers want. * For example, if a company is able to increase its output through roductivity improvements, but then is otiose to sell the increased output, the increase in productivity isnt effective. * Second, it is important to adopt a systems stall A productivity increase in one part of an operation that doesnt increase the productivity of the system would not be effective. * For example, suppose a system consists of a sequence of two operations, where the output of the first operation is the input to the second operation, and each operation can complete its part of the process at a rate of 20 units per hour.If the productivity of the first operation is increased, but the productivity of the second operation is not, the output of the system will still be 20 units per hour. 3. Develop methods for achieving productivity improvements, such as soliciting ideas from workers (perhaps organizing teams of workers, engineers, and managers), studying how other firms have increased productivity, and reexamining the way work is done. 4. Establish reasonable goals for improvement. 5. work on it clear tha t management supports and encourages productivity improvement. Consider incentives to reward workers for contributions. . Measure improvements and publicize them. Other factors that affect productivity include the following * Standardizing processes and procedures wherever possible to reduce variability can have a significant benefit for both productivity and quality. * Quality differences may distort productivity measurements. One way this can happen is when comparisons are made over time, such as comparing the productivity of a grinder now with one 30 years ago. Quality is now much higher than it was then, but there is no simple way to incorporate quality improvements into productivity measurements. Use of the Internet can lower costs of a wide range of transactions, thereby increasing, productivity. It is likely that this effect will continue to increase productivity in the foreseeable future. * Computer viruses can have an immense negative impact on productivity. * Searching fo r lost or misplaced items wastes time, hence negatively affecting productivity. * Scrap rates have an adverse effect on productivity, signaling inefficient use of resources. * New workers tend to have lower productivity than seasoned workers. Thus, growing companies may experience a productivity lag. Safety should be addressed. Accidents can take a toll on productivity. * A shortage of information technology workers and other technical workers hampers the ability of companies to update computing resources, generate and sustain growth, and take advantage of new opportunities. * Layoffs often affect productivity. The effect can be positive and negative. Initially, productivity may increase after a layoff, because the workload remains the same but fewer workers do the workalthough they have to work harder and longer to do it.However, as time goes by, the remaining workers may experience an increased risk of burnout, and they may fear additional job cuts. The most capable workers may de cide to leave. * Labor turnover has a negative effect on productivity replacements need time to get up to speed. * Design of the workspace can impact productivity. For example, having tools and other work items within easy reach can positively impact productivity. * Incentive plans that reward productivity increases can boost productivity.

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