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VIRTUAL UNIVERSITY OF PAKISTAN

Submitted by : Kamran Khan

ID : Mb140200115

Subject : Strategic Management

CITY : Peshawar

Q1.What types of strategic issues were faced by Japanese firms in 1870s and 1980s with a sole focus on
operational effectiveness and TQM? How can the global companies gain competitive advantage along with
operational effectiveness and TQM?
Answer
In 1970,s and 1980,s Japanese firms came into function to support the global revolution in operational effectiveness,
with skilled practices with continuous improvement such as total quality management, which results the Japanese
firms to enjoy the cost and quality advantages for long time.
Japanese companies rarely developed strategic positions discussed in this article. Those are Sony, Canon, and
Sega, for example! It were the exception, rather than the rule. Most Japanese companies imitate and emulate one
another. All opponents were offer most if not all product varieties, features, and services; they employ all channels
and match one anothers plant configurations for product greater output from the available in input to produce
effectiveness.
Japanese companies were all able to grow in an expanding domestic economy and by penetrating global markets.
But after some time as a gap in operational effectiveness narrows, the Japanese companies increasingly caught in a
trap of their own making and production. If they were to escape the mutually destructive battles now ravaging their
overall performances,
Japanese companies will have to learn strategy. Japan have to overcome strong cultural barriers. Japan is notoriously
consensus oriented, and companies have a strong tendency to mediate differences among individuals rather than
accentuate them. Strategy, on the other hand, requires hard choices. The Japanese also have a deeply ingrained
service tradition that predisposes them to go to great lengths to satisfy any need a customer expresses.
To create a successful global strategy, the managers must understand the nature of global industries and the
dynamics of global competition
One of the quickest ways to over your competitors is to be a low-cost leader. This means that your products or
services are priced cheaper than your competitors.
This will cause price-conscious customers to rash to your firm quickly. However, there are a number of problems
with this strategy. First of all, it's not very stable at any point. Anyone can meet or beat your price at any point,
causing you to lose your advantage. You likely don't have access to numerous low-cost suppliers, and the operating
costs of running a large business are relatively lesser than running a small company.
You can also gain advantage is to differentiate your products or services from those of your competitors. Stress the
benefits of what you offer, and how these are unique in your market. If you offer a higher quality, make sure you
communicate that well. If you do something slightly different than the rest of the pack, advertise this.
Differentiation is a fairly stable strategy, as it relies on qualities of what you sell. It also relies strongly on image,
which can be manipulated and projected.

Q2. How can Vanguards Activity System be helpful for examining the strategic fit in the activities of a
firm? Choose any company and try to elaborate strategic fit in the activities of any function for that
company.
Answer
Vanguard is widely known for providing services to the conservative, long-term investor, and the company's brand
is very different from that of competitors.

Vanguard strives for a strategic fit between all its activities in the firm, from limiting the costs of advertising and
business travel to fostering shareholder education and online information access. Low costs and informed investors
go hand in hand.

This strategy is no accident. As founder John C. Bogle explains, early in its history, Vanguard established
"a mutual structure without precedent in the industry structure in which the funds would be operated solely in the
best interests of their shareholders. Noting that "strategy follows structure," he suggests that it was logical to
pursue "a high level of economy and efficiency; operating at bare-bones levels of cost, and negotiating contracts
with external advisers and distributors at arms-length. For the less we spend, the higher the returns dollar for dollar
for our shareholder/owners."

Strategic fit of Nestle Company

1. Nutrition, Health and Wellness

Aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and
beverage choices and encouraging a healthy lifestyle. Nestle express this via our corporate proposition 'Good
Food, Good Life'.

2. Quality Assurance and product safety

Everywhere in the world, the Nestl name represents a promise to the consumer that the product is safe and of
high standard.

3. Consumer Communication

Nestle is committed to responsible, reliable consumer communication that empowers consumers to exercise their
right to informed choice and promotes healthier diets and respect consumer privacy.

4. Human rights in our business activities

Support the United Nations Global Compacts (UNGC) guiding principles on human rights and labor and aim to
provide an example of good human rights and labor practices throughout our business activities.

5. Leadership and personal responsibility

Success is based on our people. Nestle treat each other with respect and dignity and expect everyone to promote a
sense of personal responsibility. Nestle recruit competent and motivated people who respect our values, provide
equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of
harassment or discrimination.

6. Safety and health at work


Nestle are committed to preventing accidents, injuries and illness related to work, and to protect employees,
contractors and others involved along the value chain.

7. Supplier and customer relations

Nestle require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and
fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own
customers.

8. Agriculture and rural development

We contribute to improvements in agricultural production, the social and economic status of farmers, rural
communities and in production systems to make them more environmentally sustainable.

9. Environmental sustainability

Nestle commit to environmentally sustainable business practices. At all stages of the product life cycle we strive to
use natural resources efficiently, favor the use of sustainably-managed renewable resources, and target zero waste.

10. Water

Nestle is committed to the sustainable use of water and continuous improvement in water management. It
recognize that the world faces a growing water challenge and that responsible management of the worlds
resources by all water users is an absolute necessity.