Ninth Entry :Managing Internal Operations

Business Process Reengineering

•          Involves radically redesigning and streamlining work effort, flows and processes to achieve dramatic improvements in performance.

•          Uses cross-functional teams, cutting-edge technology and information systems to reset and refocus the organization’s strategy.

Total Quality Management Programs

•          Creating a total quality culture bent on continuously improving the performance of every task and value chain activity.

•          Is a long-term race without a finish in which success comes slowly in small steps forward (Kaizen).

Six Sigma Quality Control Programs

Utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business.

Eight Entry : Building an Organization Capable of Good Strategy Execution

People Capabilities & Structure

Three Key Actions

Staffing the Organization

Putting together a strong Management Team

Recruiting, Training, & Retaining Capable Employees.

Acquiring, Developing, and Strengthening Key Resources & Capabilities

·         Developing a set of resources and capabilities suited to the current strategy.

·         Updating resources and capabilities as external conditions and the firm’s strategy change.

·         Training and retraining company personnel to maintain knowledge-based and skills-based capabilities.

Structuring the Organization and Work Effect

·         Instituting organizational arrangements that facilitate good strategy execution.

·         Establishing lines of authority and reporting relationships.

·         Deciding how much decision-making authority to delegate.

Sixth Entry :Strategies For Competing In International Markets

As we enter to new country, we need to adapt their weather, taste buds, culture and customs. Same as if a firm’s enter to a new company. They need to adapt to the local environment for instant, local taste and customs, local government laws, local franchise operation and local service quality. They need to practice to practice the local specialization precisely, like being done by McDonalds.

Why companies decide to enter foreign markets?

To gain access to new customers

To achieve lower costs through economies of scale, experience, and increased purchasing power.

To further exploit core competencies

To spread business risk across a wider market base.

Home countryà origin country

Host countryà foreign country

Why Competing Across National Borders Makes Strategy-Making More Complexes??

It may cause due to currency exchanges rate risks. However the taste buds and preferences of product and services on the host country are different. In addition, the differences in government  policies, tax rates, and economic conditions would also affect the period before a firm can the host country.

Seventh Entry : Diversification and the Multibusiness Company

What Does Crafting A Diversification Strategy Entail??

·         Picking new industries to enter and deciding on the means of entry.

·         Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage.

·         Establishing investment priorities and steering corporate resources into the most attractive business units.

·         Initiating actions to boost the combined performance of the cooperation’s collection of businesses.

Diversification by Acquisition of an Existing Business.

 Advantagesà

·         Quick entry into an industry.

·         Barriers to entry avoided.

·         Access to complementary resources & capabilities

Disadvantagesà

·         Underestimating costs for integrating acquired firm.

·         Overestimating the acquisition’s potential to deliver added shareholder value.

·         Cost of acquisition whether to pay a premium for a successful firm or…..

Entering A New Line Of Business Through Internal Development.

Advantagesà

·         Avoid pitfalls and uncertain costs of acquisition.

·         Allow entry into a new or emerging industry where there a no available acquisition candidates.

Disadvantagesà

·         Must overcome industry entry barriers.

·         Requires extensive investments in developing production & competitive capabilities.

·         May fail due to internal organizational. 

Tenth Entry : Oshima Restaurant

 https://www.facebook.com/oshimarestaurant

there is a lot that i learn about the real world, the history of how a Japanese Food Restaurant afford to maintain while holding the Halal brand, it is very hard, but if we don't try, we wouldn't know it!!


the owner,madam Asnidar who originally could be an engineer,but she more prefer to be a businesswoman.
such a strong woman she's are, watch their franchise being closed, due to internal issues, and now the restaurant locate will e closed untill 10th of Disember, for the same issues.
however, listening to her motivation, it is very inspired me to be a muslim enterpreneur, there we go...hehehe..
 i really hope to have a chance working with her,
She's amusing me!!

Fifth Entry : The Five Generic Competitive Strategies: Which One To Employ?

Low-Cost Provider  à

 Effective Low-Cost Approaches:

Pursue cost-savings that are difficult to imitate, avoid reducing product quality to unacceptable levels.

 Competitive Advantages and Risks:

Greater total profits and increased market share are gained from underpricing competitors and the larger profit margins is  when the firm’s selling their  products at prices comparable to and competitive with rivals. Lowing the price does not attract enough new buyers, while rival’s retaliatory price cutting set off a price war (For instant, competitive between Maxis, Celcom and Digi).

Broad-Differentiation Strategiesà

Effective Differentiation Approaches:

Carefully study buyer needs and behaviors, values and willingness to pay for a unique product or service.

Incorporate features that both appeal to buyers and create a sustainably distinctive product offering.

Use higher prices to recoup differentiation costs.

Advantages of Differentiation:

Command premium prices for the firm’s products

Increased unit sales due to attractive differentiation

Brand loyalty that bonds buyers to the firm’s products

Fourth Entry :Evaluating A Company’s Resources, Capabilities, And Competitiveness

From this chapter, we studying deep into evaluating a firm’s internal situation through those question;

1.       How well is the firm’s present strategy working?

This can be explained through financial segment for instant, profitability ratios, liquidity ratios, leverage ratios and other important measures of financial performance; internal cash flow, free cash flow price-to-earnings ratio and etc. Either the company is achieving their stated financial and strategic objectives or still in original position.

2.       What are the firm’s competitively important resources and capabilities?

It is well-known that a firm’s will have their own asset, and it is a big determinant of its competitiveness and ability in the marketplace, which is resource and capability.

The firm’s resource can be defined as tangible resources and intangible resources, whereas tangible resources are sort of physical, financial, technological assets and organizational resources. While, intangible resources is human asset and intellectual capital, brands, company image and reputational assets and etc.

3.       Is the firm able to take advantage of market opportunities and overcome external threats to its external well-being?

Through SWOT analysis, we can identify the firm internal weakness and strength, opportunities of the market and the external threats. Thus, SWOT analysis even though it is a simple tool, but it is a powerful enough sizing up the company values for future well-being.

4.       Are the firm’s prices and costs competitive with those of key rivals, and does it have an appealing customer value proposition?

Through using SWOT analysis, we can obtain a firm’s customer value which is can influence the profitably relative to close rivals.

5.       Is the firm competitively stronger or weaker than key rivals?

As result from SWOT analysis, we can obtain how does the firm rank relative to competitors on each of their essential factors that can determine market success.

6.       What strategic issues and problems merit front-burner managerial attention?

 It is a step issues listed from progress before to be solved for example, how to meet challenges of new foreign competitors.