For this particular reason, companies that truly engage in diversity will enjoy a competitive advantage over the other companies in the same industry. It is indeed argued that “diversity is probably a competitive differentiator that shifts market share toward more diverse companies over time” (Hunt et al., 2015, para. 1). When your workplace is home to employees all with different backgrounds, experiences, diverse races and so forth, your company will be more attractive to people and will be able to market to all groups of consumers. Research shows that companies with a more racially diverse workforce will perform better than the other competitors in the industry.
It also makes it possible for the business to compete on the market and attract more diverse customers. Investing in Diversity management does not only bring higher revenues, it can also avoid discrimination lawsuits. „With demographic shifts, advances in technology and communications, and globalization, diversity is quickly becoming a driver of growth around the world.“ Diversity is not only beneficial for the companies the organizational culture gives the employee a feeling of belonging and the confidence that they can live their individuality and will be accepted if they do so. In my opinion, it is diversity plays a very important role not only for business also in real life, you can profit from other people with different age, other countries or gender, because you can learn everyday something new. Further, it is important to accept the people for who they are otherwise prejudice and stereotypes will be created and this would the first step to discrimination
When an organization wants to be successful they will embrace diversity because they understand having a diverse workforce is an asset and not a threat and will only improve the organizational structure and performance which in turn increases the company’s bottom line (Nederveen Pieterse, Van Knippenberg, & Van Dierendonck, 2013). The reason for this success is because everyone from different backgrounds can bring a lot of different experiences and talents from all walks of life which can help the organization thrive in ways they would not have without the varying inputs from the different backgrounds. In other words, some employees only know things from their own background and have limited insight on certain topics, whereas employees that have knowledge from a different perspective provides more opportunities for the organization to be more competitive. It is not to say that employees that employees with similar backgrounds and cultures do not have much to offer, but when working with other individuals that have much different experiences and insights it can take a company much further than similar backgrounds working together. The reason for this is due to the different options available to the organization because each individual will bring something unique and have the potential of thinking differently about the
The competition between businesses will ensure better quality of their goods and service they provide. Competition is well known for providing great productivity which leaders to a growth in the economy. Not only can competition improve the quality of work, it can also improve innovation. Innovation is an important quality to have in a company because it aids in keeping products and services fresh. “Economic Influence on Marketing” claims, “To keep current, your business has to adapt to changes in the industry and must always keep its eye out for innovative, cutting-edge technology and product improvements” (Bradley).
2-5-1 Advantages of workforce diversity -High level of Productivity: Increasing productivity at the workplace has been one of the major challenges for managers and leaders and to the company in general. Due to the fact that every organization has its own unique company structure and objectives, different strategies may be used to challenge or address the company in order to increase productivity. One of those strategies involves adopting workplace diversity and managing it effectively. When management takes the welfare of its workers at heart by means of offering them proper compensation, health care and employee appraisal, It enables workers to feels they belong to the company irrespective of their cultural background by remaining loyal and hardworking which helps to increase the company’s productivity and profit. - Creativity increases: When people with different ways of solving difficult problems work together towards a common solution.
Two reasons contribute to this advantage. For one thing, most consumers show preferences for socially reputed brands when evaluating similar products; for another, a firm could sharpen its competitive edge by focusing on non-economic factors. CSR could therefore be conducive for firms to establish a better brand image and promote consumers’ positive attitudes, making it an essential source of competitive advantages (Porter & Kramer, 2006, as cited in He & Lai, 2014). These advantages tend to be more important for companies in the highly-saturated cosmetic industry, where features among competing brands may not be significantly different and non-functional associations are likely to become a vital consideration when consumers make decisions (He & Lai, 2014). A series of empirical studies on cosmetic corporation provide evidence for this perspective.
The critical factors that they seek to address in such a focused differentiation business strategy is the ability of customers and employees to identify with one another, for instance the management might wear biking attire. As such Harley-Davidson’s business strategy has achieved a differentiation advantage by careful examination of customer activities. There are however strategic recommendations to the business structure that would be in place to address the company’s looming threats (Grant 2010). One, the company should reinforce strategic alliance engagement with channels of distribution in the Asian market. This is because Harley-Davidson is faced by a lack of market expansion resulting into fewer market opportunities.
I have a dream to bring happiness and creativity to many communities through a business. I believe that everyone should have a fair chance to compete. In order to reach any goal, dedication and determination need to be demonstrated. Lastly, respect is the most important value because relationships are needed to build a strong foundation in a
That’s why companies should always innovate. “Following Adam Smith (1937) and David Ricardo 's (1962) attempts to explain the mechanisms of industry competitiveness through absolute advantage theory and comparative advantage theory, many scholars have proposed various economic theories to advance our understanding of this phenomenon (Dorfman, 1991). Among them, Porter 's competitive advantage theory has been recognized as one of the most influential (e.g. Adner and Zemsky, 2006; Pavlou and Slawy, 2004)” Usually consumers are too picky, they want the best quality at a cheap price that’s how they push the company to do its best to deliver the best quality. The third diamond is “the related and supporting industries”; when the product become popular in a certain country, companies will move their location in order to open its stores near them, it will create clusters which lead to the knowledge advantage.
Overseeing diversity might hold, select, create, and advance the employees. Adjacent to, to deal with the diversity qualities in the organisation will require significant investment to take care of the considerable number of issues yet it will be anything but difficult to impact one another culture and be utilised to it (Jiang, et al., 2015). I have demonstrated while researching for the essay that, diversity has a greater number of advantages than issues which imply that, it is important to have the diversity in the organisation to give more imagination and efficiency. It can likewise give upper hand when the business is in cutting back. Organisations that over oversee diversity qualities by having an expense will achievement in speedier