MGT300 CHAPTER 3

CHAPTER 3 : STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE            ADVANTAGES.
 
Strategic Intiatives
 
  • Organizations can undertake high-profile strategic intiative including :
         -Supply chain management (SCM)
         - Customer relationship management (CRM)
         - Business process reengineering (BPR)
         - Enterprise resource planning (ERP)
 
 
  1. Supply Chain Management (SCM)
          - 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.
 
         -Four basic component of supply chain management include :
  • supply chain strategy - strategy for managing all resources to meet customer demand
  • supply change partner - partner throughout the supply chain that deliver finished products, raw material and services
  • supply chain operation - schedule for production activitities
  • supply chain logistic - product delivery process
 
 
             - 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




        

2.    Customer Relationship Management (CRM)
  • 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
  • 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 enterprise wide level
  • CRM can enable an organization to :
            -identify type of customer
            -design individual customer marketing campaign
            -treat each customer as an individual
            -understand customer buying behaviors




3.    Business process reengineering (BPR)
  • Business process - a standardized set of activities that accomplish a specific task, such as processing a customer's order
  • Business process reengineering (BPR) - the analysis and redesign of work flow within and between enterprises
          -the purpose of BPR is to make all business processes best-in-class







4.      Enterprise resources planning (ERP)
  • Enterprise resources planning (ERP) - entergrates all department and functions throughout and organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operation
  • keyword in ERP is " enterprise "

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