Competitive advantage implies the creation of a system that has a unique advantage over competitors. With the advent of globalization, the competition has become stronger and can be located anywhere in the world. The idea behind competitive advantage is to create customer value in an efficient and sustainable way. One approach to address this issue would be the use of resource-based theories of competitive advantage.
Resources are not simply raw materials but include all the inputs, such as intellectual capital, necessary to produce a good or service. Consider this as you address globalization strategies for Fortune 500 firms in this assignment. Be mindful of constraints, such as transportation costs and cultural barriers, as you complete this assignment.
Review the article Purchasing, supply chain management and sustained competitive advantage: The relevance of resource-based theory by J. B. Barney from the readings for this module.
Based on your analysis of this article and other readings for this module, respond to the following:
Explain how resource-based competitive advantage drives globalization strategies for Fortune 500 firms. Why are application of project management principles critical to effective business operations? Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource-based theory. Journal of Supply Chain Management,48(2), 3-6. Retrieved from Proquest database. Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation _______________________________________________________________________________________________________________________ Assignment 2: Discussion—Munger’s Mental Models
In his article “A Lesson on Elementary, Worldly Wisdom as it Relates to Investment Management & Business,” Charles Munger (1995) wrote about tools, techniques, and critical skills that great managers need to develop.
Consider Munger’s thoughts on the importance of mental models. Respond to the following:
In your own words, describe what Munger means by mental models. Examine how Munger’s concept of mental models has changed your ideas of decision making in investment management and business. Describe at least one example from your own experience where your perspective or experience provided a mode of thought that brought new light to a discussion or a tough decision. Explain how this experience has affected your decision-making process. Munger, C. T. (1995). A lesson on elementary, worldly wisdom as it relates to investment management & business. Outstanding Investor Digest, 1, 49–63.
Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation _________________________________________________________________________________________________________________ Assignment 1: Discussion—Outsourcing: A Strategic Advantage?
Outsourcing may provide tremendous advantages for firms. It may allow companies to specialize, reduce costs, and focus narrowly on the core competencies they deem strategic; however, companies also have to think about what they may lose both qualitatively and quantitatively. For example, when outsourcing, managers need to be certain that what they source from outside is not a key component of their value proposition.
A way to reduce those risks is to use an approach called vertical integration. The meaning of vertical integration is developing the ability to produce goods or services previously purchased or to actually buy a supplier or a distributor. It can take two forms: backward and forward. These forms relate to how the corporation moves in its supply chain to pursue the vertical integration. If the movement is towards the suppliers, it is called backward integration. Conversely, it is known as forward integration.
Using the module readings, Argosy University online library resources, and the Internet, research outsourcing. Based on your research, respond to the following:
What are the risks and benefits of the outsourcing approach? What are the strategic advantages of outsourcing to vertically integrated firms? Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punct
Assignment 1: Discussion—General Electric
Sustained profits come from building a competitive advantage. This advantage can be accomplished not only through good financial return on a specific process but also through the correct capacity decisions that must be integrated into the organization’s mission and strategy.
Jack Welch, former CEO of General Electric (GE), understood this better than anyone else. Although GE was a profitable and respected company when Welch took over, its financial results during the1970s were troubling to both its investors and senior management. Welch immediately made changes to the company’s structure and management practices. From the beginning, he stressed the importance of being one of the top players in the industry. He told his colleagues that GE should always be number one or number two in all its businesses; if it was not, then their only options would be to fix, sell, or shut down.
Because of this strategic direction, GE today usually dominates the markets in which it participates; and if it does not, then it divests. A major part of GE’s strategy is to be the first or second in every market. As you review the module readings for this week, consider the complexity of GE’s products and its emphasis on vertical integration and capacity planning.
The General Electric Company, or GE, is a diversified company that offers infostructure, media and finance products and services. The company was originally founded by electrical innovator Thomas Edison. It is also listed as one of the most admired companies, ranking as number one in electronics and 16th overall according to Fortune Magazine. For the company’s innovation focus, it was ranked as one of the world’s most innovative companies by Business Week.
The General Electric Company is organized into 5 divisions including “’NBC Universal”, “Technology Infrastructure”, “Consumer & Industrial”, “Energy Infrastructure” and “Capital Finance”. The company functions in over 100 countries and has over 300,000 employees. For 2009, the company achieved $11.2 billion in earnings and an industrial cash flow of $16.6 billion. Effective January 1, 2011, it reorganized the Technology Infrastructure segment into three segments: Aviation, Healthcare and Transportation.
Chemicals, Petrochemicals, and Fertilizers Food & Beverage Government & Public Administration Metals and Metals Fabrication Mining (Coal, Minerals, Metals) Oil & Gas Upstream Power Generation
GE. (2013). The History of General Electric. Retrieved from http://www.ge.com/about-us/history/1878-1904.
GE. (2013). GE fact sheet. Retrieved from http://www.ge.com/pdf/news/GE-Fact-Sheet.pdf
Using the information above, the module readings, Argosy University online library resources, and the Internet, respond to the following:
How does GE’s framework give it the opportunity to be at the forefront of the markets in which it participates? Examine your own firm or a firm you would like to work for in the light of GE’s framework and respond to the following: Does this firm have the means to execute like GE? Which type of resources would the firm require? How could GE’s lessons be applied to this firm? Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation
Do the following when responding to your peers:
Read your peers’ answers. Provide substantive comments by contributing new, relevant information from course readings, Web sites, or other sources; building on the remarks or questions of others; or sharing practical examples of key concepts from your professional or personal experiences Respond to feedback on your posting and provide feedback to other students on their ideas. Make sure your writing is clear, concise, and organized; demonstrates ethical scholarship in accurate representation and attribution of sources; and displays accurate spelling, grammar, and punctuation.