challenges for the industry to stay competitive.(Wilkinson, J. 2017, October 20). If Havells/Sylvania can create highly differentiated products with investment in research and development they can have an advantage. (Lewis, J. n.d.). Also discussed in our textbook, a company’s competitiveness comes from its core competencies. Included in making the acquisition decision, it is very important that Havells expands on their core competency, which is human resources but also creates new ones.(Hamel, C. P., & Levitt, T. 2015, September 03). We can see this competency in their mission and vision. Havells Mission : ”To achieve our vision through fairness, business ethics, global reach, technological expertise, building long term relationships with …show more content…
This will increase revenue, but also costs. Hypothetical scenario: Havell will acquire Sylvania and with a price increase of 15% for Sylvania’s products this would amount to revenue of 58,950,000 million euros in 2006 with all other costs constant. This number is in comparison to the – 3 million euros Sylvania posted on their 2006 income statement. ((Dhanaraj, C, Ramachandran, K, Dasari, S., n.d.), p.10) Costs would typically go up when there are more products being produced, but if there was a way to cut those costs, this figure could be possible to achieve. If the company sets up manufacturing in China, the corporate taxes would be less and therefore net income would increase. Another scenario would be exploring more opportunities in the area of consumer electrical durables for Havells, which has been the largest growth sector of their business, although not the biggest revenue generating. This has the potential for growth. ((Dhanaraj, C, Ramachandran, K, Dasari, S., n.d., p.11) The acquisition will also create collaboration benefits for both companies. This can produce attractive and competitively priced products. They will be able to manage competitive threats from bigger rivals with new products in the existing market. To do this they will need to invest in innovation in all areas to keep competitive in these industries.(Lewis, J.
Core Competencies Core competencies are capabilities possessed by an organization that “when applied to create products and services, make a critical contribution to corporate competitiveness” (Edgar & Lockwood, 2011). Lockheed Martin is a global security and aerospace company. The corporation’s core competencies are the research, design, development, manufacture, integration, and sustainment of advanced technology systems. By leveraging those competencies, Lockheed Martin delivers a broad portfolio of products and services—including high-performance combat aircraft, laser weapons systems, and unmanned combat vehicles. Business Objectives
• The new CER revisions have put restrictions on employee’s creative and innovative abilities, which could hinder productivity. • Although the growth of the company is a strength, it can also be a weakness by the fact that as a company becomes larger and larger, sustainability can become harder to achieve. Opportunities • The acquisitions in themselves are massive opportunities for Stryker for creating new customers and products. • Expansion into other regions of the world could significantly increase their growth.
Ford’s Strengths Firm position in the American auto market. Ford’s biggest market is the United States, which has been doing better economically than the two other large markets, China and Europe, in recent years. Very strong financial position.
Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage
Background In the 1970s, several large US food processing companies like General Mills and Pillsbury decided to expand into restaurant business. The reason was that an alarming number of consumers were eating out rather than at home more often due to rising family incomes and increase of women in the workforce. National Mills, another food processing company, set up a subsidiary International Concepts Incorporated (ICI) in the year 1983. ICI was doing reasonably well and National Mills also encouraged expansion and offered to supply additional capital.
Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.
Workforce: Highly skilled through successful training and learning programs. Invest huge resources in training and development of its employees resulting in the workforce to be highly skilled and also motivated to achieve more. Well-established but still growing: Expanding to countries such as Scotland and Ireland Expansion has helped the organization build a new revenue stream
It also identifies the internal and external areas of the business that need improvement and that can prove to be successful. Table 3.1 Strengths: • Apple has an awesome and unique interface where they are ‘head and shoulders’ above the others, giving the Apple Watch a high edge over the new product
Besides that, product differentiation is one of the threats of new entrants. Starting a new business we need to use a lot of money for advertising to attract customer, but we have to create our new things that cannot found in others competitors. For non-traditional barriers to entry, we have unique business model. We created a business with a unique design and establish a network of relationships that makes the business model work so that no people can easily to copy our
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
We will use the porters five forces model and the value chain analysis to analyse the company’s strategic moves. PORTERS FIVE FORCES ANALYSIS • COMPETITIVE RIVALRY (HIGH) In both the large enterprises as well as the small enterprises there are many competitors. All the brands have started investing huge amount in the R&D to renew their products so, as to capture the market share. Therefore, H&M will always have to be quick and stylish at the same time to survive and maintain its position along with the changes and competition.
They have achieved such a success based on the way they have organized their operations. Competencies are very important for an organization to build up on their own. Competencies can be of two aspects namely core competencies and threshold competencies. A core competence can be identified as a unique set of skills or production techniques that deliver a particular value to the customer. A threshold competence can be identified as a quality that need to maintain by the organization in order to remain competitive in the market (Rohwedder & Johnson,
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to.
P2) Explain the Strengths and weaknesses of different approaches to Recruitment and Selection Recruitment and Selection Recruitment can be defined as searching for and obtaining a pool of potential candidates with the desired knowledge, skills and experience to allow an organisation to select the most appropriate people to fill job vacancies against defined position descriptions and specifications. (Ref-Green, Paul C. Building Robust Competencies: Linking Human Resource Systems to Organizational Strategies. Jossey-Bass, 1999.) External recruitment brings new blood, new face to the organization.