MGT 300 - Chapter 3

Strategic Initiatives for Implementing Competitive Advantages.

STRATEGIC INITIATIVES

• Organizations can undertake high-profile strategic initiatives including :-

- supply chain management (SCM)

- customer relationship management (CRM)

- business process reegineering (BPR)

- enterprise resource planning (ERP)

Supply Chain Management

1. Supply Chain Strategy - strategy for managing all resources to meet customer demand.

2. Supply Chain Partner - partners throughout the supply chain that deliver finished products, raw materials, 

                                                        and services.

3. Supply Chain Operation - schedule for production activities.

4. Supply Chain Logistics - product delivery process.

Supply Chain Management

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

- Increase efficiencies while seeking a competitive advantage through cost leadership

CUSTOMER RELATIONSHIP MANAGEMENT

• 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 types of customers

           - Design individual customer marketing campaigns

           - Treat each customer as an individual

           - Understand customer buying behaviors

Business Process Reengineering

• 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 workflow within and between enterprise

Finding Opportunity Using BPR

Enterprise Resources Planning

• 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 enterprise wide information on all business operations
• keyword in ERP is ''enterprise''

                                          OPENING CASE STUDY QUESTIONS 

                             Apple - Merging Technology, Business, and Entertainment 

1. Evaluate how apple can gain business intelligence through the implementation of a customers              relationship management system

2. Create an argument against the following statement: ''Apple should not invest any resources to            build a supply chain management system

3. why would a company like Apple invest in BPR?

                                                     CHAPTER THREE CASE

                                             Consolidating Touchpoints for Saab

• Saab consolidating customer view among its three primary channels

- Dealer network

- Customer assistance center

- Lead management center


                                                  THE END CHAPTER 3