Businesses like Southwest Airlines, Microsoft, General Electric, Federal Express, and Toyota have taken the correct steps to being leaders in the market. One common thread amongst these businesses is that they have beaten the odds and stayed in the innovator or market category as a leader.
Many businesses have tried the poor strategy of thinking that just because of their name or because they are an American company that is enough to maintain their place in the market. If this mindset does not change then real world scenarios like layoffs, cutbacks and closings will occur.
This brings up the questions of how to stay ahead in the market through the business strategy. In other words, the company has to think about the future and figure out what strategy will take them to the next level as well as will give them the competitive edge. The overall idea is to make the work smooth on every level of practice.
Critical Success Factors
The critical success factors that are important for the department are those that address improvements towards the competition, ideas that can be helpful to win market share, and specific selling strategies aimed at the three dimensions of time organisation (Daniels, Lee & Sulivan 2011).
In other words, the main stratedy necessary is time management. For every company it is very important to differentiate the time for being busy versus the time being for being productive. One company or an organisation can come up with a certain amount of goods and/or services but if it could learn to manage the time accordingly, it will be one-step forward to produce/offer a lot more goods and/or services to the customers.
The competitive advantage of time is in its value to offer the same products and/or services to a customer but bring all the processes in a timely fashion. For example, a client is ordering a product and the company says it will be delivered in three days but delivers it in the morning of the fourth day (Bartels & Christopher 2000).
Alternatively, to manage the time more effectively, the company could say that the product would be delivered in 5 days and deliver it the same morning of the fourth day. Hence, there is no difference, in both examples the products were delivered in the morning of the fourth day but it was positioned differently. Besides, such an approach is also valuable for the reason that it allows for better time management.
In case the company does the same to manage the time of every individual working in the company more effectively, it will be able to bring even more value to the public and thus, satisfy the needs of the customers in services and/or products worldwide. When the companies respond rapidly to such changes on the market, they attract more customers in the most positive way (Cooper, Browne & Peters 1994).
The major benefits of the time-based competition are the values of customers and suppliers, innovation and the level of services offered to clients around the world. As for the customers’ values, they could be reached through the flexibility and faster response, by managing the purchasing decision on time, controlling the procedure of cancellation and offer more special services or modified products.
Considering the value for the suppliers, it is possible to improve the responsiveness of the manufactures and gain another share with the clients who will provide the company with additional earnings based on its performance. If this happens, the company will increase its profit and response of the customers in the world market.
If to talk about the time and innovations, the companies grow and develop their businesses more effectively by applying a descent supply management and logistics. The purpose is to adhere the goods and/or services and deliver them to the end customer in a timely fashion compared to the world market. Such a strategy leads to the advantages in terms of the market share that brings more clients for the company.
Next are the competitive advantages that should be sustained on all levels of a company’s interactions. Finally, what makes businesses grow drastically internationally is that some companies choose to change standard working procedures and invent something new but more efficient, according to new technologies that exist.
The level of services that are offered to the customer have always played an important role in every kind of business. The rising costs of a service and/or product makes some of the companies reduce healthcare expenditures and this ultimately results in poor work quality, which negatively impacts the clients. Furthermore, it results in all kinds of scheduling and coordination problems, including poor efficiency, delays at work and anxiety. In order to improve such a scenario, the companies should redo the operational procedures and thus eliminate this process.
The proper logistics management has to help redesign the order processing in a way to reduce the delivery time. Another thing to do is to launch new products that could bring more value to the customers. In all, it means the total redesign of the procedure, more qualified and time efficient while offering the products and managing the obligations of the company.
When talking about the product development companies can think of the set of activities that could be made easier such as analyzing the markets, competitors and technologies that are used. In order to improve them, it is important to split the workers into teams and have a manager to guide their project performance. The people are different and thus are difficult to coordinate; this solution works best to improve it.
Key Performance Indicators
Marketing and Operations
Business strategy needs to be of the same caliber of that used in a war room for executing pivotal moves and result in victory. For those businesses that accept losing or being second place, then they will experience the harsh reality of being taken out of the game due to a poor performance strategy (Chunawalla 2009).
Some companies in the immerging competitive global market get ahead and stay ahead while others do not. This is a result of having a proper business performance strategy. In other words, the performance strategy is about looking to the future and developing tactics that will ensure that the business will have the ability to survive on the market, thrive and develop into a market-leading and world-beating organisations.
The business performance strategy has evolved from the many success stories of those businesses that have become the innovators and have kept the gap between them and their competitors. There are controllable and uncontrollable performance factors that influence the success of the marketing process of any company. In order to effectively use the controllable factors, the company should gather, record and analyze all the data about both controllable and uncontrollable factors by means of making marketing decisions connected with an effective using of controllable factors (Anbanandam, Banwet & Shankar 2011).
Any market research that focuses on controllable factors such as production, promotion, distribution, and price factors, is known as domestic marketing research, which is used globally by the top companies in the world. Any market research that focuses on uncontrollable factors, such as culture, government, economy, religion, innovation, competitors, and demographics in the country in which it is starting to operate, is known as international marketing research (Enarsson 2006).
Human Resource Management
Nowadays, it is very important to have good employees working for the company and this could be possible only if the heads of the company have highly qualified human resource management personnel as it is their job to hire people who will in the long run work for the company as a long-term investment with the respectable profit margins.
The key aspect of hiring people lies in the thorough human resource management strategy and techniques used by the HR department. There is a series of standard questions that are asked by the HR team when hiring a person in order to challenge them during the interview. Overall, the company should understand the fact that on the same questions people can answer differently depending on their previous job experience and that does not mean they are not appropriate for the position; it is just the nature of how people tackle such situations and manage the job when working under pressure (Gilbert 2003).
In case people do not have enough experience, and if they are asked to answer questions about a situation they have not faced before, the conclusion on whether to hire the person or not will depend mostly on their ability to answer it, rather than try to imagine something one would do and pretend to be someone else. HR people can always see who people are, and what they are inspite of their circumstances.
A very important role is the performance of the liquidity redistribution and maturity transformation. Liquidity redistribution is the distribution of money throughout the company. Financial intermediaries make cash and credit available to businesses and people who otherwise would not have it available for their operations or plans.
This is an integral part of the implementation of the monetary policy, of which financial intermediaries are an integral part. Regarding the daily operations and their performance, these interventions help business in “operating payment systems and in providing appropriate channels for national and international financial flows, which contribute to the overall development of the company” (Goertzel 2001).
Data to be collected:
- Accuracy of planning the workflow and possible improvements
- Number of actions planned per day
- Number of clients to serve
- Time to serve one client
- Number of served returned clients a day
- Reasons why the customers made another purchase
- 20/80 plan for actions, which bring the most returns
- Innovations and improvements.
Such data should be collected every day and planned to be so until employees learn to follow the procedure without any interference from top management. The processes are as follows: one 5 minute check of each member of the department every day and one 15 minute check and planning with the manager of the department. Such information should be informed at first in person, then by email and lastly, over the phone. Therefore, the above strategy will help to improve overall performance management productivity (Johnson & Turner 2006).