Thursday, 19 December 2013

Chapter 3 : Strategic Intiatives For Implementing Competitive Advantages

Strategic Initiatives

Organization can undertake high-profits strategic initiatives including :-


  • Involve the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
  • Four basic components of SCM includes :-

Effectiveness and efficient SCM system 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


  • 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 goals that an organization must embrace on an enterprisewide level.
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

CRM Overview


  • BUSINESS PROCESS - A standardized set of activities that accomplish a specific tasks, such as processing a customer's order.
  • BPR - The analysis and redesign of workflow within and between enterprises.
  • The purpose of BPR is to make all business processes best-in-class.
                                    Seven Principles of business Process Reengineering

Finding Opportunity Using BPR

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

Progressive Insurance Mobile Claims Process

The Benefits and Magnitude of Change


  • Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.
  • ERP systems collect data from across an organization and correlates the data generating an enterprise wide view

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