Since Bose uses JIT system which minimizes inventory. This will have negative multiplier effect downstream supply chain. The implication of this is that, there will be a delay in Bose’s deliveries to its customers resulting in possible loss of customers and profit. To prevent this, Bose must have a strategic alliance with supplier. That ensures quality delivery of
The influence will be different, it depends on the purpose of these products. For example, if these products are used to produce other products, it will cause their products cannot produce in time and it will let their timetable disorganize. However, if these products are important for them which means this timetable cannot be disorganized. They have to find a new supply of goods, and maybe cost more money for the same products (means it will let their cost raise). In addition, if they cannot find supply of goods, and their products have to provide to their customers, they will face reputation risk too.
If there is a problem manager normally look back at experience and the solution to the problem. This is a way organization form strategy decision. The existing culture of the organization is a major impact. If it is an organization that is reluctant to change and doesn’t embrace innovation, then they are going to make decisions and approach strategy based on something already existed or their experience. The problem with this is it stifle innovation and can prevent innovative change.
INTRODUCTION “The moment you make a mistake in pricing, you 're eating into your reputation or your profits.” - Katharine Paine The above quote from the founder of KDPaine & Partners LLC and The Delahaye Group is quite apt. Pricing is quite often ignored by executives & leads to people not understanding how it can change the competitive game in an industry. Most executives believe pricing to be a zero-sum game, i.e. price increase shall lower volume of sales thus in turn hurting the margin gain, but the other way round need not necessarily be true. This problem arises owing to the setting of prices based on cost-plus basis rather than a customer value point of view basis.
Stryker likely gets their raw materials from multiple suppliers and if they are dominate enough, the suppliers can reduce the marginal earnings of the company. Stryker can reduce this risk by experimenting with new product design, having an efficient chain of suppliers, and seeking out suppliers whose business depends more on Stryker than vice versa. Buyer Power Buyers can put pressure on Stryker because they search for the best quality materials, yet they want to pay the least amount they can for it. This causes difficulty in sustaining profitability over a long period of time. Luckily, Stryker can reduce the bargaining power of buyers by creating a large customer base.
In consideration of the issue, the conflict of interest arises between the wish of the customers to use an application without advertising and the wish of businesses to have an opportunity to use the messenger for their marketing needs and sending advertisements. According to some considerations, the conflict of interests might appear useful for the company. However, in most cases, the conflict of interest “undermines trust” and ultimately tends to reduce the revenue (Lawrence & Weber 101). Nevertheless, with reference to the rights method of ethical reasoning and the identification of the right for privacy as the core human right, privacy of the users should be a primary concern of WhatsApp managers. Besides, identification of the right to privacy as the fundamental human rights supported by both international and national law systems, keeping privacy is the primary task of the company (Rotenberg).
The use of competitive conflicting style will create a negative result when used in certain situations or inappropriately. After all, the “win-lose” approach leaves no room for compromise. Management that choose this approach with their employees may breed hostility between parties. Power driven decisions made abruptly can strain the relationships between individuals of the workplace. This can possibly result in resentment and retaliation, which would eventually lead to lower motivation and productivity of the organization.
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).
• Negative rate of return: There is another serious implication of mishandling. Mishandling might cause damage to the new AirMouse, if the user is not careful with the system. The whole implementation being a costly affair, it would result in a negative return for the organization, if the physical systems get damaged before serving their purpose. Thus, it is important for the CIO to mitigate both the potential risks, by planning well in advance (Jutte, 2011). The suggested steps would be to imbibe a culture for ‘change’ by educating the staff members of the long term benefits that AirMouse could bring for them.
A. Good research, development and innovation will have a positive effect on Threat of substitute products or services and Threat of new entrants. B. The ability to deliver high-quality products or services will have a positive effect on the Business Power. C. Large organizations are pursuing a differentiation strategy need to stay agile with their new product development processes.