Important Factor of competitive Advantages

The important Factor of competitive Advantages are

1. The use of the advanced Technology
2. More professional and competent team
3. The distribution network of the organization
4. The quality of product offered
5. The additional services offered
6. Geographical Coverage

Important Factor of competition

Important Factor of competition:-

The following are considered to be important factor of competition

1. Nature of Market
2. The customer ability to switch
3. The market player ability to exist the market
4. The industry set up costs
5. The new entry requirement also know as barrier of new entry
6. Availability of market space also known as growth opportunity
7. Long term aspect of product and services.

Factors of Bargaining Power

 Factors of Bargaining Power

The bargaining power can be classified as under

1. Bargaining power of customer
2. Bargaining power of supplier

Important factor of Bargaining power of Customer

1. Customer ability to buy
2. Importance of product to the customer
3. Customer ability to switch to other supplier
4. Availability of supplier
5. Quality related issue of product
6. Procurement office ability and skills

Important factor of Bargaining power of Suppler

1. Market Nature (Monopoly etc)
2. Possibility of new entry in the market
3. Uniqueness of supplier product
4. Customer switching cost and ability to switch

Characteristics of Good Planning Process

  

 Characteristics of Good Planning

1.Participation 

The everyone in the organization are involved in planning. The information is gather from the all relevant departments.

2.Documentation 

 Plans are formally documented for future reference.

3.Specify the Goals 

The plans specify the goals and target that are to be achieved.

4.Properly communicated 

The plans are properly communicated to all stakeholder in writing.

5.Organized Structure 

 An organized structure of planning is developed . The plans are structure from long term to short term .

6.Role and Responsibilities 

The plans clear identify the roles and responsibilities for achievement of target set out in planning.

Types of Strategic Decisions

Types of Strategic Decisions

1. Scope and Overall Direction:- The strategic decision mainly set the overall direction of the organization and deal in scope of the organization. for example the organization may decided that in next five year we want to capture 80% of market share is a strategic decision.

2. Major Investment and Resource Allocation:- The strategic decision also related to make investment in the existing business or in new operation.


3. Capabilities enhancement :- The strategic decision also analyze the organization capabilities and take necessary course of action to develop new capabilities or enhance the existing capabilities of the organization. for example the management may decide the establishment of a training institute to improve the skill of employees . The management may also decided to develop a reseach and development department to promote the innovation and creativity in the organization.

Types of Planning

Types of Planning

There are mainly two types of planning

1. Bottom up Planning
2. Top-down Planning

1.Bottom up Planning :- 

The decision making process start from the bottom the decision making information collected and process at lower level and the top management is provided with the available solution . 


The main advantages of bottom up planning is

1.Participation :- 

The everyone is involved in planning so it is self motivating factor to achieve the target of planning. because the plan were made by you then you are more committed to achieve the target set by yourself. This is also a good feeling gesture for employee that they are important for organization.

2.Better understanding of Organization 

This planing also help management to better understand the organization. All section provides a details analyses of problems and solutions. it is very helpful for the management to identify the key issues or critical areas within organization.

3.Many Solution and Option available 

This type of planing is a kind of collective wisdom and provide the management with many solution and options for planning and decision making. The management function to plan effectively depends on useful information and this planing serve the purpose.

The disadvantages of bottom up planning

1. Difficult to achieve overall objective organization
2. Coordination and communication is lacking
3. Overall direction of the organization is not set

1.Difficult to achieve overall Corporate Objective

The main disadvantage of bottom planning is that overall objective is lost in the process. Every department and section bringing the solution and ideas to improve their performance. The lower tier of management takes little care of the overall objective of the organization.

2.Difficult to set Overall Direction

Different people will come with different solution and mainly those solution would be related to their problems and for example a machine supervision may suggest that if the new machinery is installed the repair will reduce substantially. The machine will not consider the financial possibility of the option . Therefore it is difficult to set a overall direction of the organization under bottom up planning

Types of Corporate Decisions

Types of Corporate Decisions

The corporate decision is related to success of the organization. These decision are the in support of overall direction of the company. These decision is normally a short term planning and controlling of the organization activities.

1.Profitable Operation 

 The profit target are set and those target are monitored and strategies are formulated to achieve profit target in the short term.

2. Market Share 

 The strategies are formulated to retain the current market share and attract enhance the customer base.

3.Cash Flow Requirements

 The cash flow requirement of the organization is determined through periodical cash budget .

4.Customer Satisfaction 

 Promises with customer are fulfilled.

5.Healthy Relationship with Supplier 

 Management try to maintain a healthy relationship of the supplier it is important because supplier is important factor for production and supplies.

6.Organization Image 

The management also take some decision to improve the organization image in the market.
Compliance with Laws and Regulation:-