What are the risks and benefits of the outsourcing approach?
Assignment 2: DiscussionCompetitive Advantage and
Globalization
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 Management48(2)
3-6. Retrieved from Proquest database. Write your initial response
in 300500 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: DiscussionMungers 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 Mungers thoughts on the importance of mental models.
Respond to the following:
In your own words describe what Munger means by mental models.
Examine how Mungers 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 4963.
Write your initial response in 300500 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: DiscussionOutsourcing: 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 300500 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
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Assignment 1: DiscussionGeneral 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 organizations 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 companys 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 GEs strategy is to be the first or second
in every market. As you review the module readings for this week
consider the complexity of GEs products and its emphasis on
vertical integration and capacity planning.
GEs Profile
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.
GEs Reach
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 300000
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.
Services
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 GEs 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 GEs
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 GEs lessons be applied to this firm? Write your
initial response in 300500 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.