CHAPTER 3

STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVES ADVANTAGES

Strategic Initiatives.

Organization can undertake high-profile strategic initiatives including: 

• Supply chain management ( SCM )
• Customer relationship management ( CRM) 
• Business process reengineering ( BPR )
• Enterprise resource planning ( ERP ) 

Supply chain management ( SCM )

#  Involve the management of information flows between and among stages in a supply chain to              maximize total supply chain effectiveness and profitability

# Four basic components of supply chain management include: 

• Supply chain strategy = strategy for managing all resources to meet customer demand
• Supply chain partner = partners throughout the supply chain that deliver finished products, raw materials, and services. 
• Supply chain operation= schedule for production activities
• Supply chain logistic= product delivery process

#Effective and efficient SCM systems can enable an organization to: 

• Decrease the buyer power
• Increase its own supplier power
• Increase switching costs to reduce the threat of substitute products or services 
• Create entry barriers thereby reducing the threat of new entrants
• Increase efficiencies while seeking a competitive advantage through cost leadership

Customer relationship management ( CRM) 

~ Involve managing all aspects of customers relationship with an organization to increase customer loyalty and retention and an organizations profitability

~CRM is not just technology, but a strategy, process and business goal that an organization must embrace on an enterprisewide level.

~ CRM can enable organization to : 

• Identify types of customers
• Design individual customer marketing campaigns
• Treat each customer as an individual
• Understand customer buying behaviours

Business process reengineering ( BPR )

* Business process= a standardized set of activities that accomplish a specific task, such as processing a customers order. 

*Business process reengineering= the analysis and redesign of workflow within and between enterprise. 

Enterprise resource planning ( ERP ) 

: Integrates all departments and functions throughout an organization into a single IT system so that      employees can make decision by viewing enterprisewide information on all business operation

:Keyword in ERP is ‘’enterprise’’

:ERP systems collect data from across an organization and correlates the data generating an       enterprisewide view.