Import restrictions or tariffs are helpful because
if our government thinks that a product that is produced say in China is
harmful to us then they might implement a tariff to discourage us from buying
that product. A tariff is a tax on imports and exports.
Import restrictions or tariffs can be harmful as it can reduce the revenue for
the government weakening its finances.
Key ways organizations compete:
Product and service design: The Company wants to be first in the market to have
a competitive advantage. Example could be that Apple I always wanting to
release their new phone before Samsung.
Cost: Companies seek to keep their cost low. Sometimes companies will outsource
to help reduce their costs.
Location: This can help keep costs low. If you are a Bread company and your
customers are nearby then you will save on transportation. And they could
receive their product faster. Many companies like to be near expressways so it’s
faster to their product moving vs if your company is 20 miles away from an
expressway you could potentially travel more mile than need be.
Quality: Meeting the consumer’s
expectations on the product or service.
Quick response: Being able to deliver on a timely manner such as amazon where
you will have your product within days. There was one time I ordered something
and had it the next day.
Flexibility: Being able to change a product for their customers or being able
to produce a product on short term notice for a customer.
Inventory management: Keeping a little amount of product in a warehouse as it’s
a cost issue if you have excess. You also take the risk of using a product that
is newer product so the old product just sits there and potentially can be
Supply Chain Management: This goes hand in hand with inventory management and
try not to have excess inventory but keep just enough to meet demand.
Service: Getting your oil changed, taxes, your nail, tow Truck Company,
mechanic shop, Geek squad and so many more different types of services are
Managers and workers: Managers are important because they help keep the morale
of the workers up and they delegate the work so it’s a productive day. Workers
are important because without them there would be no productivity. They are a
key part of the company’s success.
Oder qualifiers is what consumers expect from a
product or service to have before they consider to but the product. Like a refrigerator.
When I go to look for a refrigerator I know that I want my refrigerator to have
a little freezer pull out on the bottom. If it doesn’t I won’t purchase anything.
Order winners is when the product / service exceeds the consumer’s qualifiers.
Like Samsun meets my qualifiers but exceeds my expectations over an Apple
phone. This is because when I look for a phone I mainly look at storage and Samsung
you are able to add more storage here Apple you are not. And with Apple you
must purchase majority of your apps where Samsung has so many more free apps.
Walmart: low price and convenience
Target: higher quality and sales
Walmart compete with Target on their prices and conveniences as the ratios of Walmart’s
to targets is higher. Target carries products that have a better quality and
they provide weekly sales, Walmart just offers everyday low process. But none
the less they both compete over customers.
“The balance scorecard (BSC) is a top down
management system that organizations can use to clarify their vision and
strategy and transform them into action.” In other words management systems
that allow organizations to achieve their strategies.
It is useful because it allows organizations set themselves apart from their
competition. There’s four ideas that are used to help separate themselves from
their competition. Customer scorecard (how satisfied the customers are), financial
(how well the organization is doing), internal business process (to satisfy everyone,
which one task do we need to exceed at), learning and growth (keeping updated
Strategies are how you plan to achieve the
organizations goals. Or even your personal goals.
A strategy that Walmart might have is to be the number one big box store to
have the lowest prices.
Tactics are the steps you take to achieve those strategies.
One of their tactics they use in being able to have low prices is they have a wide
range of customers. There’s not one person I don’t know that don’t shop at
Walmart. By doing this they open up stores that have easy access such as right
off the express way. If you think about it in a 25 mile radius I have at least
7 different Walmart’s I have access to.
Organization strategy is the way they lead the
organization taking in consideration of their strengths and weaknesses.
Operations strategy focuses more on “cost, scheduling, quality, methods and
Organization has a low level of detail and use their top and senior management.
Time based strategy: “Strategy that focuses on reduction
of time need to accomplished tasks.”
planning time is the most efficient way to get the job done.
Process time is how long it takes to produce that product.
Delivering time is how long it takes to fill those orders and get them out the