CHAPTER 3

Chapter 3

STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

MGT 300

Assalamualaikum and hey there.. ;)

Hello...it's me..Fathi..

Okay today i want to share with you guys out there especially in course business and have subject MGT 300 for chapter 3.Don't worry for this chapter is easy to understand because it relates with our daily life actually..hehehe..

What is strategic initiative?

1. A strategic initiative is an endeavor intended to achieve three interrelated outcomes: A boundary-spanning vision or “strategic intent” Realization of important benefits to “strategic” stakeholders and. Transformation of the organization.
2. Organizations can undertake high-profile strategic initiative including:

• Supply chain management (SCM)
• Customer process management (CRM)
• Business process engineering (BPR)
• Enterprise resource planning (ERP)

supply chain management

What is supply chain management?

1. involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
2. Four basic components of supply chain management include:

• Supply chain strategy  
  strategy for managing all resources to meet customer demand
• Supply chain partner– partners throughout the supply chain that deliver finished products, raw materials, and services.
• Supply chain operation – schedule for production activities
• Supply chain logistics – product delivery process

process SCM

PROCESS SCM

Effective and efficient SCM systems can enable an organization to:

• Decrease the power of its buyers
• Increase its own 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

Effective and efficient SCM systems effect on Porter’s Five Forces

Organisation 's supply chains

Decrease

• buyer power
• treat of new entrance
• treat of substitute product or service

Increase

• supply power

CUSTOMER RELATIONSHIP MANAGEMNET

What is customer relationship management?

1. Customer relationship management (CRM) – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability 
2. Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems

CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level

1.  CRM can enable an organization to:

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

process CRM

BUSINESS PROCESS RE ENGINEERING

What is business process re engineering?

Business process

 – a standardized set of activities that accomplish a specific task, such as processing a customer’s order

Business process re engineering (BPR) 

– the analysis and redesign of workflow within and between enterprises

The purpose of BPR is to make all business processes best-in-class

Re engineering the Corporation – book written by Michael Hammer and James Champy that recommends seven principles for BPR

Finding Opportunity Using BPR

1. A company can improve the way it travels the road by moving from foot to horse and then horse to car 
2. BPR looks at taking a different path, such as an airplane which ignore the road completely

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

-fails to keep up with competitors

What is Enterprise Resource Planning?

1. Enterprise resource planning (ERP) – 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 
2. Keyword in ERP is “enterprise”

ERP systems collect data from across an organization and correlates the data generating an enterprise wide view

Saab required a consolidated customer view among its three primary channels:

1. Dealer network
2. Customer assistance center
3. Lead management center