.Critically Assess the Strategic Factors Determining Whether Organisations Survive in a Particular Industry and the Further Factors That Might Lead to Superior Performance

In: Business and Management

Submitted By Collegeboy123
Words 791
Pages 4
“...Critically assess the Strategic Factors determining whether organisations survive in a particular industry and the further factors that might lead to superior performance...’’

There are many strategic factors that influence an organisations survival in a particular industry.
The firm must firstly decide on which industry it wishes to remain in.

1. Fragmented Industry 2. Embryonic Industry 3. Growth Industry 4. Mature Industry 5. Declining Industry
The first Industry to be discussed is Fragmented Industries. Fragmented Industries are industries which have a vast number of small companies competing against each other. There is only one factor for survival, Consolidation. The industry may consolidate in the following ways : 1. Chaining * Involves smaller units acting as one, this increases the power of size eventhough they are singularly small. * SuperValu shops have come together under the Umbrella of Musgrave to have larger buying power in the market 2. Franchising * Franchising grants franchisee’s the use of the franchiser’s brand image and reputation and all thats associated with the franchisers company * McDonalds and Supermacs are increasingly being franchised due to the benifits associated with franchising. 3. Internet and IT * The development of new IT often gives a company the opportunity to develop new business strategies to consolidate a fragmented industry. eBay and amazon.com, for example, use the Internet and the associated strategies e-commerce makes possible to pursue a cost-leadership model and consolidate the fragmented auction and bookselling industries.
The second and third Industries to be assessed are the Embryonic and Growth Industries. In embryonic and growth industries, strategy is determined partly by market demand. The innovators and early adopters have…...

Similar Documents

Assess and Critically Comment on the Idea That Strategic Planning Systems Can Stifle Innovative Thinking in Organisations

...Assess and critically comment on the idea that strategic planning systems can stifle innovative thinking in organisations It is debatable whether strategic planning systems can stifle innovative thinking in organisations. Although strategic planning systems are used in order to make companies work more efficiently, they may restrict organisations from showing their true potential by stifling innovative thinking. There are other theorists that state that listening to closely to markets and strategies can create a barrier to commercialising new technology and lead to reduced competitiveness. (Ferrell and Lukas 2000). In order to truly understand and analyse whether innovative thinking is being constrained by strategic planning systems, it is essential to understand which strategic planning systems are being used, whether their implementation limits the allowance to new and different approaches to organisations, and whether companies in real-life are being affected by this constraint. Before analysing whether innovative thinking is oppressed by strategic planning systems, it is important to define what a strategic planning system is. According to the BNET Business Dictionary (2007), strategic analysis is ‘…the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy’. There are many different tools and analytical methods that are used by companies but there are three......

Words: 1745 - Pages: 7

Critically Compare and Contrast the ‘Best Fit’, Best Practice and Rbv Models of Hrm Strategy – Explain How Each Approach Is Argued to Contribute to Improve Organizational Performance

...Critically compare and contrast the ‘best fit’, BP and RBV models of HRM strategy – explain how EACH approach is argued to contribute to improve organizational performance. As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright, P. 2008). If competitive advantage is understood as a set of organisational capabilities that would lead to superior performance over competitors, then, HRM strategy is essentially the process of defining and enhancing appropriate systems that maximise people’s added value (Wilton, 2011). The key debate which will be explored is whether there is a best way of achieving strategic HRM. This essay will therefore critically engage in this theoretical debate by comparing and contrasting three SHRM models and explore how each can make a contribution towards improved organisational performance. Boxall and Purcell (2008) highlight that there is significant debate regarding approaches to strategic HRM when they discuss three theoretical......

Words: 2847 - Pages: 12

Factor Affect Academic Performance

...selected secondary schools in Ethiope East Local Government areas of Della State. Teachers and students in the sampled schools were administered, an investigator – constructed questionnaire. Biology Achievement Test was also administered on the students in the selected schools. Results of the study indicated that adequate supply of instructional resources have significant effects on students’ performance in biology. Furthermore, the results revealed that schools with adequate teacher quality and material resources in Biology showed superiority in achievements on the biology test than schools without adequate teacher quality and material resources. CHAPTER ONE INTRODUCTION Education, according to Coombs (1970) consists of two components. He classified these two components into inputs and outputs. According to him, inputs consist of human and material resources and outputs are the goals and outcomes of the educational process. Both the inputs and outputs form a dynamic organic whole and if one wants to investigate and assess the educational system in order to improve its performance, effects of one component on the other must be examined. Instructional resources which are educational inputs are of vital importance to the teaching of any subject in the school curriculum. Wales (1975) was of the opinion that the use of instructional resources would make discovered facts glued firmly to the memory of students. Savoury (1958) also added that, a well planned......

Words: 7055 - Pages: 29

Factors That Distort Performance Appraisal

...Six Factors That Distort Performance Appraisals Multiple psychological factors can sway evaluators to rate employees a certain way. Most companies use performance appraisals, also known as job evaluations, to determine whether employees are meeting expectations, and to get some clues about how the employee could improve for the benefit of the business. Even so, performance appraisals have a major flaw in that they are not completely objective. Six major factors cause distortions in performance appraisals. 1. Stereotyping * People usually can fall into at least one general category based on physical or behavioral traits, and performance evaluators sometimes let stereotypes associated with those categories sway their employee appraisals. For example, a boss might assume that because many Asians excel, an Asian worker who doesn't meet a performance objective simply isn't working hard enough, even if the worker tried his best. Similarity * Often, people tend to seek out and rate more positively those who are similar to themselves. This tendency to approve of similarity may cause evaluators to give better ratings to employees who exhibit the same interests, work methods, points of view or standards. A major problem with this cause of distortion is that it can stifle innovation in a company, as "different" people must struggle to rise in the ranks. Leniency * Leniency, sometimes referred to as inflation, is the tendency of evaluators to give employees......

Words: 1168 - Pages: 5

Factors Affecting Academic Performance

...Abstract The study intends to assess difference in the performance of students at school and university levels and estimates the change in perception of students about contribution of family, teachers, and self- efforts in academic achievements. Primary data was collected through a structured questionnaire from final year students of engineering departments of universities of Lahore. The statistics are computed by comparing grades and perceptions of contributing factors of sampled students. The study finds significant difference between university and school levels regarding performance of students. Drastic change in the perception of students about the share of family, teachers, and self- efforts in performance is also observed. Introduction There are two main objectives of this report; first, to estimate the change in the performance of students at two distinct levels; school and university, second, to assess the change in the perception of students about role of contributing factors in their academic achievements. Before the initiation of the survey, a focus group of students of engineering departments of different universities was conducted to assess the most significant factors. In focus group, students identified following factors, which had a significant effect on their academic achievements: 1-Family support (moral and economic) 2-Teachers (teacher’s skill, qualification, guidance etc.) 3-Students’ self profile (self-efficacy, commitment level,......

Words: 2526 - Pages: 11

Is There an Optimal Strategic Approach in Gaining Superior Financial Performance in a Hypercompetitive Environment?

...Cand. Merc. IMM INTERNATIONAL MARKETING AND MANAGEMENT “Is there an optimal strategic approach in gaining superior financial performance in a hypercompetitive environment?” Topic no. 2 Authors: Kristofer Edholm Alexandra Johansen Advisor: Magdalena Dobrajska Date of Hand-in: 19/12 – 2012 “IS THERE AN OPTIMAL STRATEGIC APPROACH IN GAINING SUPERIOR FINANCIAL PERFORMANCE IN A HYPERCOMPETITIVE ENVIRONMENT?” ABSTRACT Hypercompetition has made competition more aggressive, and effective strategies have become vital in order for companies to remain competitive in the vigorous marketplace. The paper will study the two most commonly used theories within strategic planning, the Industrial Analysis and the Resource-Based View, to see which is more effective in order to increase financial performance in a hypercompetitive environment. The paper will first look at the overall effect of hypercompetition on the marketplace. Secondly, the Industrial Analysis effect on financial performance in hypercompetition will be examined, and thirdly, the effect the Resource-Based View has on financial performance considering hypercompetitive challenges. Finally, the paper ends by concluding that a strategy based on RBV will have greater effect on financial performance in a hypercompetitive environment, which suggests that managers' should spend more resources concerning companies' internal environment than the external in order to increase their return on......

Words: 4500 - Pages: 18

Critically Analyse the Article for the Meaning of Strategic Human Resource Management and Identify the Factors Impacting on Strategic Human Resource Management in Contemporary Organisations.

...Q. Critically analyse the article for the meaning of strategic human resource management and identify the factors impacting on strategic human resource management in contemporary organisations. Before an argument can be put in place about whether human resource management (HRM) can be strategic, we need to be aware that human resources (HR) is more then maintaining personal functions. Corporate and economic developments since the 1950Ў¦s have dictated that businesses, to remain competitive, need to view HRM as an evolutionary process which combines the HR functions with the HR policies and strategies, with the business strategies and management teams, with all stakeholders (Unions and Governments) and with the organisation and understanding of the actual employees themselves. Strategic HRM is about aligning the abilities and desires of the employee with the needs of the business so that the corporate objectives can be met. HRM can no longer afford to be viewed as simply an administrative task. Corporations need to have ЎҐproactiveЎ¦ policies to attract and retain the right type of people to their business and in this ever changing and uncertain economic climate the management of employees takes on an even greater role. Using the VIRO (value, rareness, imitability, and organisation) human resources can be proven to be strategic and therefore, provide firms with a competitive advantage through its people. The article by Barney and Wright (On becoming a strategic......

Words: 5511 - Pages: 23

Human Factors and Work Performance

...Name: Mithun Pathakamuri Student ID: 18225163 Unit Coordinator: Dr. Jan Sayers Human factors include organisational, environmental and job factors, and human and individual characteristics. These factors influence the behaviour at work which can influence people’s health and safety (Human Factors in Patient Safety Review of Topics and Tools, 2009). Work performance determines the quality and quantity of work expected from each employee. Acknowledgement of the relationship between human factors, work performance, patient safety and quality in healthcare can promote a positive work environment. This essay mainly focuses on human factors and work performance and the relationship between these and quality and safety in healthcare. The focus is on the issues related to safety of the patients rather than health workers even though they also suffer with injuries. It is explained in detail with illustrations as to how communication system and proactive personality of health care workers is going to result in better patient outcomes. There are various human factors that can influence the behavior at work. Communication is said to be an important factor among them that can influence work performance and it is very essential to deliver high quality and safe work. It plays a very significant role in development of trust within an organisation. Communication is basically two types in an organisation. It is one-way and two-way communication. One-way is just written instructions......

Words: 1957 - Pages: 8

Strategic Factors

...INTERNATIONAL JOURNAL OF COMPUTERS Issue 4, Volume 6, 2012 Strategic and tactical success factors in ERP system implementation K. Curko1, D. Stepanic2, M. Varga3 Abstract— In order to successfully implement an ERP system it is necessary to properly balance critical success factors. By researching what the critical success factors in ERP implementation are, why they are critical, and to what extent they are relevant to users, consultants and suppliers, this paper seeks to identify critical success factors in ERP implementation and to understand the impact of each factor on the success of ERP system introduction. This paper lists ten critical success factors (CSF) providing two points of view: strategic and tactical. These are: top management support, a business plan and vision, top management support, change management program, project management, implementation strategies, project team, business process modeling and minimal customizations, monitoring and performance evaluation, software development, testing and troubleshooting, legacy systems. Keywords— ERP implementation, critical success factors, IT project, management I. INTRODUCTION Complex IT projects, such as developing and especially implementing ERP systems often fail. Many studies indicate a small success rate in terms of exceeding the time limit, budget and poor functionality of the new system. Successful ERP projects bring great benefits to the company, but can also be devastating to......

Words: 8418 - Pages: 34

Strategic Capabilities and Organizational Performance

...ECS8_C03.qxd 10/15/07 14:23 Page 93 The Strategic Position 3 Strategic Capability LEARNING OUTCOMES After reading this chapter you should be able to: ➔ Distinguish elements of strategic capability in organisations: resources, competences, core competences and dynamic capabilities. ➔ Recognise the role of continual improvement in cost efficiency as a strategic ➔ Analyse how strategic capabilities might provide sustainable competitive advantage on the basis of their value, rarity, inimitability and nonsubstitutability. ➔ Diagnose strategic capability by means of value chain analysis, activity mapping, benchmarking and SWOT analysis. ➔ Consider how managers can develop strategic capabilities of organisations. Photo: Glyn Kirk/Action Plus Sports Images capability. ECS8_C03.qxd 94 10/15/07 CHAPTER 3 3.1 14:23 Page 94 STRATEGIC CAPABILITY INTRODUCTION Chapter 2 outlined how the external environment of an organisation can create both strategic opportunities and threats. However, Tesco, Sainsbury’s and Asda all compete in the same environment, yet Tesco is a superior performer. It is not the environment that distinguishes between them but their internal strategic capabilities. The importance of strategic capability is the focus of this chapter. There are three key concepts that underpin the discussion. The first is that organisations are not identical, but have different capabilities; they are......

Words: 18530 - Pages: 75

Strategic Management: a Short Term Insurance Stratagem

...DEPARTMENT OF INSURANCE & ACTUARIAL SCIENCE STRATEGIC MANAGEMENT: AN INDISPENSABLE APPARATUS TO CREATE SUSTAINABLE COMPETITIVE ADVANTAGE IN THE VOLATILE ZIMBABWEAN SHORT-TERM INSURANCE MARKET? By HENSLEY MADAMOMBE N010 7541D SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE B.COM (HONOURS) DEGREE IN RISK MANAGEMENT AND INSURANCE SUPERVISOR: MR A. NYANHETE MAY 2014 Dedication To my family You have been my source of inspiration and hard work. You sacrificed everything that you had for the sake of my education. From you, I have learnt that: ‘it is only through a disciplined mind that success can only be achieved’. I will always love and cherish you. And, to the late Mr Paul Malaba (Former Chairman of the Insurance and Actuarial Science Department at NUST) You have gone too soon dear Sir, but your immense contributions to the academic fraternity will forever be cherished. You were an inspiration and a father-figure to all of us. The Q.A.B courses at NUST will never be the same without you. i Acknowledgements First and foremost, I would like to give honor, praise and glory to the almighty lord for his unending mercy, protection and unconditional love: “I will praise thee, O Lord my God, with all my heart; and I will glorify thy name for evermore” (Psalms 86:12, King James Version). I would also like to thank my parents, Mr. and Mrs. Madamombe, for their parental advice, financial support, guidance and endless love. Dear father and mother: ‘you are my fountain of...

Words: 27207 - Pages: 109

Factor Affecting Employees Performance

...Aidah Nassazi EFFECTS OF TRAINING ON EMPLOYEE PERFORMANCE. Evidence from Uganda Business Economics and Tourism 2013 VAASAN AMMATTIKORKEAKOULU UNIVERSITY OF APPLIED SCIENCES International Business ABSTRACT Author Title Year Language Pages Name of Supervisor Aidah Nassazi Effects of training on Employee performance. Evidence from Uganda 2013 English 57 + 2 Appendices Koskinen Ossi Employees are major assets of any organization. The active role they play towards a company’s success cannot be underestimated. As a result, equipping these unique assets through effective training becomes imperative in order to maximize the job performance. Also position them to take on the challenges of the today’s competitive business climate. Although extensive research has been conducted in the area of Human Research Management, the same cannot be said on employee training especially as it concerns developing countries. The purpose of this thesis was to evaluate the effects of training on employee performance, using the telecommunication industry in Uganda as case study. In order to understand the study aim, four goals were developed and these focused particularly on identifying the training programs’ existing in the industry, the objective of the training offered, the methods employed and finally the effects of training and development on employee performance. The study was based on three case studies of the biggest telecommunication......

Words: 14235 - Pages: 57

Strategic Management

...UNIT 1 i Overview of strategic management Unit 1 BMG 303/05 Strategic Management Overview of Strategic Management ii WAWASAN OPEN UNIVERSITY BMG 303/05 Strategic Management COURSE TEAM Course Team Coordinator: Dr. Chuah Poh Lean Content Writer: Dr. Hasliza Abdul Halim Instructional Designer: Mr. Khoo Chiew Keen Academic Member: Ms Lum Li Sean COURSE COORDINATOR Ms. Loo Saw Khuan EXTERNAL COURSE ASSESSOR Associate Professor Dr. Haji Hamzah Dato Abdul Rahman, Universiti Utara Malaysia. PRODUCTION Editor: Pelangi Sdn. Bhd. In-house Editor: Mr. Khoo Chiew Keen Graphic Designer: Deam Enterprise Wawasan Open University is Malaysia’s first private not-for-profit tertiary institution dedicated to adult learners. It is funded by the Wawasan Education Foundation, a tax-exempt entity established by the Malaysian People’s Movement Party (Gerakan) and supported by the Yeap Chor Ee Charitable and Endowment Trusts, other charities, corporations, members of the public and occasional grants from the Government of Malaysia. The course material development of the university is funded by Yeap Chor Ee Charitable and Endowment Trusts. © 2013 Wawasan Open University All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from WOU. Wawasan Open......

Words: 23866 - Pages: 96

What Are Socioeconomic Factors Influencing Student Performance

...Explaining Student Performance Evidence from the international PISA, TIMSS and PIRLS surveys Final Report November 2005 Explaining Student Performance Evidence from the international PISA, TIMSS and PIRLS surveys Jens Henrik Haahr with Thomas Kibak Nielsen, Martin Eggert Hansen and Søren Teglgaard Jakobsen www.danishtechnology.dk jens.henrik.haahr@teknologisk.dk This study was carried out on behalf of the European Commission’s Directorate-General for Education and Culture. Views expressed represent exclusively the positions of the authors and do not necessarily correspond to those of the European Commission. Contents Index 1. .......................................................................................................................... 2 2. 3. 4. Executive Summary................................................................................................. 4 1.1. Education Systems and Basic Skills................................................................. 4 1.2. Student Background Characteristics and Basic Skills.................................... 10 1.3. School Characteristics and Basic Skills ......................................................... 13 1.4. Individual Student Characteristics and Basic Skills....................................... 17 1.5. New Analysis and Data Collection Activities................................................ 19 Introduction....................................................................

Words: 87837 - Pages: 352

Factors Affecting Export Performance of Pakistan Furniture Industry

...paper focuses on the factors which are affecting export performance of Pakistan furniture industry. The study provides a brief overview of the problems which are creating hindrance for furniture exporters. Also, it provides some suggestions and recommendations to the government and furniture exporters through which they can improve their performance of exports. The study concludes the factors both exogenous and endogenous, which prove to be creating obstacles in the export of furniture. Introduction:- Pakistan has been unable to grasp a good position in the international wooden furniture market despite the fact that the country has a history of dexterity and novelty in the furniture making. The wooden furniture industry represents 95% of the total market in the country. Pakistan is heavily dependent on Sheesham (rosewood) for furniture manufacturing. The primary areas of furniture makers in Pakistan are Chiniot, Gujrat, Peshawar, Lahore and Karachi and the furniture exported by Pakistan is usually made by rosewood and metals, however, some products are also made from walnut wood. Pakistan is exporter to about 80 countries, which mainly include USA, Malaysia, Singapore, Saudi Arabia and Kuwait. USA mostly imports bedroom furniture from Pakistan, whereas UK and Gulf countries along with bedroom furniture also trade in office and kitchen furniture. The wood and furniture industry in Pakistan can be divided into two main types i.e. cottage and small scale industry. Both of......

Words: 2994 - Pages: 12