Porters Generic Strategy - 1455 Words

Introduction It is clear that competing for sustainable and superior performance enhances a firm’s profitability. Equally, this same level of profitability depends largely on the attractiveness of the industry which is easily measured using the Porter’s 5 tools and more importantly, the position the firm takes within the industry to leverage on its strengths. To compete properly, a firm must address two fundamental questions. Should it focus on identifying a microcosm of the industry or serve the entire market? According to Michael C. Porter, the porter’s three (3) generic strategies are very important strategies, which can be applied to products and services in any industry or organization regardless of its size. The Three Porter’s†¦show more content†¦They are also involved in developing innovative operating systems and browser. Its main competitors are Microsoft, Samsung, HP, Blackberry, Acer, Toshiba, Nokia and Dell. Apple Inc. leads the competition by implementing a Differentiation Strategy. Apple Inc. sets itself apart from its competitors by providing unique features for its products, which the customers really cannot get anywhere else. These unique features include design, functionality, durability and consistency. Also, Apple electronic products are known to be sleek, simple and minimalist. It’s MacBook and iMac products have a reputation for long battery life and completely zero tolerance for viruses, which are known to plague other competitor’s products that run either Windows or Linus operating systems. Another aspect of differentiation that Apple utilizes well is its amazing customer service. Through its Apple Stores worldwide, Apple creates a very interactive forum where customers can come to purchase new devices or fix faulty ones. These unique aspects of its differentiation strategy are what give Apple the right to charge higher prices, thereby commanding a premium for their services. This strategy has proven to work well for the company because its market share has constantly been increasing since it released the iPod in 2005. The following diagram illustrates Apple inc’s strategic position relative to two of itsShow MoreRelatedPorter Generic Strategies and Samsung1237 Words   |  5 Pagesyears of activity. The semi-conductor industry in which Samsung participate is highly competitive and very dynamic. Thus, in order to analyze the case properly, we must know first the ropes of the industry, and afterwards dig in the company itself. Porter s 5 forces – Industry Analysis: 1. Threats of new entries: The main threat on Samsung is the growing Chinese market that enjoys a government support and attracts outside financing. Moreover, the Chinese are willing to endure loses for severalRead MoreThe Generic Strategy Options Of Porter2328 Words   |  10 PagesQ1. â€Å"The generic strategy options of Porter are insufficient and inappropriate for today’s complex, hyper-competitive environment†. Discuss. â€Å"Generic strategies† was first set out by Michael Porter in 1985 in his book â€Å"Competitive Advantage: Creating and Sustaining Superior Performance.† Academic work in the field of strategic management, Porter (1980, 1985) typology of general competitive strategies: cost leadership, differentiation and focus. The three virtually divided into two basicRead MoreEffective Porter s Generic Strategy Options1999 Words   |  8 PagesStrategy is used in different ways for varying purposes. From trying to start and finish projects to sports teams, political campaigns and even individual ambition, the concept of strategy is always essential. This essay examines the topic of if â€Å"The generic strategy options of Porter are insufficient and inappropriate for today’s complex, hyper-competitive environment†. However the purpose of this paper is to show how ineffective porter’s generic strategy options (model) are in the modern day environmentRe ad MoreThe Key Options Of Porter s Generic Strategies1907 Words   |  8 Pagesthree key options of Porter s generic strategies. Cost leadership, differentiation, and focus are the three generic strategies that will be deliberated on, and in addition the benefits and difficulties that come along with each strategic method. Michael E. Porter is a person of importance in regards to the competitiveness and economic development of nations and on competitive strategy. According to the Harvard Business School, â€Å"Michael Porter is the founder of the modern strategy field and one of theRead MoreMichael E. Porter Known as Generic Strategies704 Words   |  3 PagesINTRODUCTION Business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. Generally there are various types of business strategies used by the company to compete more competitively. Business strategies used by a multinational of companies may vary from one subsidiary to another subsidiary. Managers should really get to know the internal and external business environmentRead MoreCase Study Of Porter s Generic Strategies And Its Later Development1857 Words   |  8 Pagesalso a challenge for each auto maker to create the right strategy for competing in global market. Volkswagen Group, the biggest German automaker, have target for being â€Å"the world’s most profitable, fascinating and automobile manufacturer in 2018†. To make it happen, they need to find the right strategy and positioning in international market among automobile manufacturers. The aim of this paper is to provide a review of porter’s generic strategies and its later development which will be used to analyseRead MoreThe use of Porter Generic strategies3051 Words   |  13 Pagesof Michael Porter’s Generic Strategies in the Romanian Hotel Industry Ovidiu N. Bordean, Anca I. Borza, RÄÆ'zvan L. Nistor and CÄÆ'tÄÆ'lina S. Mitra, Abstract— Porter’s generic strategies remain one of the most widely accepted typology of strategic options for businesses. Using a survey a sample of 69 hotel managers from the Nord-West part of Romania was questioned about their current strategic practices. A factor analysis revealed that hotels are pursuing only two strategies that can be identifiedRead MoreWhat Are The Three Generic Strategies Of An Organization1516 Words   |  7 Pagescovering most of the marketplace or if they choose, they can decide to concentrate on a narrower target within the market (Lynch 2003). While doing so may reduce their market range it essentially reduces their other competitors. Porter stated that there are three generic strategies that an organisation can follow to achieve competitive gain over other organisations. These are: 1) Cost Leadership 2) Differentiation 3) Focus Cost Leadership The organizations that endeavour to wind up the least cost makersRead MoreMichael Porter’s Generic Strategies1656 Words   |  7 PagesMichael Porter’s Generic Strategies According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation and focus. Porter calls these bases as generic strategies. Cost leadership emphasizes producing standardized products at a very low per unit cost for consumers who are price sensitive. Differentiation is a strategy aimed at producing products and services considered unique industry wide and directed at customers who areRead MorePorters Generic Strategies1412 Words   |  6 PagesPorter s Generic Strategies If the primary determinant of a firm s profitability is the attractiveness of the industry in which it operates, an important secondary determinant is its position within that industry. Even though an industry may have below-average profitability, a firm that is optimally positioned can generate superior returns. A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm s strengths ultimately fall into one of two headings: cost

A Brief Description of Non-Parametric Tests Free Essays

Non-parametric Tests In contrast to parametric tests, non-parametric tests do not require any assumptions about the parameters or about the nature of population. It is because of this that these methods are sometimes referred to as the distribution free methods. Most of these methods, however, are based upon the weaker assumptions that observations are independent and that the variable under study is continuous with approximately symmetrical distribution. We will write a custom essay sample on A Brief Description of Non-Parametric Tests or any similar topic only for you Order Now In addition to this, these methods do not require measurements as strong as that required by parametric methods. Most of the non- arametric tests are applicable to data measured in an ordinal or nominal scale. As opposed to this, the parametric tests are based on data measured at least in an interval scale. The measurements obtained on interval and ratio scale are also known as high level measurements. Level of measurement 1 . Nominal scale: This scale uses numbers or other symbols to identify the groups or classes to which various objects belong. These numbers or symbols constitute a nominal or classifying scale. For example, classification of individuals on the basis of sex (male, female) or on the basis of level of education (matric, senior secondary, raduate, post graduate), etc. This scale is the weakest of all the measurements. 2. Ordinal scale: This scale uses numbers to represent some kind of ordering or ranking of objects. However, the differences of numbers, used for ranking, don’t have any meaning. For example, the top 4 students of class can be ranked as 1, 2, 3, 4, according to their marks in an examination. 3. Interval scale: This scale also uses numbers such that these can be ordered and their differences have a meaningful interpretation. 4. Ratio scale: A scale possessing all the properties of an interval scale along with a true zero point is called a ratio scale. It may be pointed out that a zero point in an interval scale is arbitrary. For example, freezing point of water is defined at 00 Celsius or 320 Fahrenheit, implying thereby that the zero on either scale is arbitrary and doesn’t represent total absence of heat. In contrast to this, the measurement of distance, say in metres, is done on a ratio scale. The term ratio is used here because ratio comparisons are meaningful. For example, 100 kms of distance is four times larger than a distance of 25 kms while 1000F may not mean that it is twice as hot as SOOF. It should be noted here that a test that can be erformed on high level measurements can always be performed on ordinal or nominal measurements but not vice-versa. However, if along with the high level measurements the conditions of a parametric test are also met, the parametric test should invariably be used because this test is most powerful in the given circumstances. From the above, we conclude that a non-parametric test should be used when either the conditions about the parent population are not met or the level of measurements is inadequate for a parametric test. References: http://classofl . com/homework-help/statistics-homework-help/ How to cite A Brief Description of Non-Parametric Tests, Papers

Performance Management at Heinz Company Australia - Solution

Question: Describe about the Performance Management at Heinz Company Australia? Answer: Introduction The report aims at developing skills to apply HRM strategies within a contemporary organisational framework. The company being taken to examine the concepts of performance management is Heinz Australia. The company was found to fire one of their sales managers, Moretti on grounds of performance management. However, this was found unfair by Fair Work Australia. The report takes into consideration various aspects of performance management. By definition, performance management refers to the process by which managers and employees work in a team, plan, and assess the employees work objectives and his /her overall contribution towards the success of an organisation (Olsen, 2010). Besides just being a reviewing process, performance management is the continuous process of setting objectives, monitoring the performance of the employees, providing training to employees for their weaker sections and helping them grow themselves professionally (Steve, 2009). For instance, there are numerous so ftware applications and templates available for the organisation to effectively manage the performance of their employees. For example, Taleo Perform is one of the software applications available for effective performance management. Taleo Perform gets integrated with Microsoft Outlook and Taleos recruiting software. With this, managers and employees can complete online surveys on performance management which can be assessed by managers to offer rewards and promotion to employees who have shown exceptional performance. This report is basically a critical review of the employee performance management strategies of Heinz Company Australia. Towards the end, the report also provides recommendations to Heinz Company Australia for future. 1. How was Heinzs approach to performance management invalid in relation to Morettis job? Explain your answer in relation to significance of strategic performance management, appraisal and employee feedback in organisational context. The foremost aspect which can be observed from the case study is that Heinz insisted on an individual performance management plan for the manager was a low score in his annual review (Nielsen, 2013). But this score was not a rating for individual performance which can be attributed solely to Moretti, rather it was companywide rating which implies that it applies equally to all the employees in a uniform way and hence, if this was the only reason then all the employees would have been stress upon individual performance management plan. At the outset, this approach was faulty which discriminated against Moretti and strictly violates the policies of corporate performance management and unethical. Strategic Performance Management is employed for different purposes and serves the interest of the employee and the company simultaneously (Swiss, 2005). For the company, it is aimed at synchronizing the objectives of the company with the employees career growth. On the other hand, it is significant for the employee as he or she can focus on the organizational goals by working towards the collective good along with improving his own career prospects within the organization (US Office, 2009). The general techniques to be adopted for employee performance evaluation are to be weighed against the facts of the case; in light to the meeting with retail sales manager and the communication exchange which took place between Heinz and Moretti between the month of July and August also indicates towards faulty implementation of employee performance evaluation plan due to various reasons. When the meeting took place with the retail manager sales, Moretti was asked either to leave or he would be done away with by being performance managed out. In case this was not true, Heinz should have come up with a claim disputing this fact but ironically, it did not happen which made it an undisputed fact. Further, the employee made several requests so that the company let him the performance concerns but this was denied until unless he signed an individual performance management plan. In employee feedback strategies, this is termed as undue influence because Heinz was at a better position and hence, observed implied control on Moretti due to which it exercised carelessness and implicitly stressed upon him to agree to their demand which was individual performance management plan (Olsen, 2010). The apprehension of Moretti was pretty genuine in this case that this might be used as a tactic to oust him from the company. This is to be seen in comparison to settled principles of strategic performance management. Strategic performance management is a tool for evaluating the performance of the employee with respect to how he has delivered f or meeting the organizational goals and has fared in career development. It comprises of reviews of employees within the company which are based on peer reviews, progress of the project and other criteria (Rausch, 2003). Here, the efforts have been made by the retail manager sales which specified that there is no longer a job for Moretti, a company like Heinz cannot shun its responsibility as it reflects poor job security prospects on the part of the company and also reflects faulty Human Resources techniques. It is very crucial for the employees that an optimal level of job security is provided so that the employees can be assured of being a part of the organization and it also works as a motivational factor for them subsequently indicating proper implementation of Human Resources strategies (Coknis, 2009). According to Patrick Proctor, it is very important to heed to the needs of the employees as it is the best way to make sure that the company is listening to the employees needs after all, they are the ones who are at the helm of the affairs and make the company run the business. If the employee would be unsure of his job prospects and is afraid that in the name of individual performance managemen t plans, he can be made a scapegoat of the situation, then it would block all the paths to approach the higher management and any honest opinion would be lost in oblivion which is highly detrimental to the company itself. If one goes by the Strategic performance management concepts by Cranfield University school of management, the knowledge to create strategic alignment across your organization through the design, implementation and management of goals, measures and targets is an important part of it (Routledge, 2009). This means that this knowledge was not imparted which disturbed the alignment and this divagate the employees from the vision of the company which will further carve up the path of individual growth and organizational goals and create conflict of interest among the employees. The appraisal also known as performance review or career development discussion is pivotal to the projects for evaluating and making decisions on the basis of the performance of the employee whic h is documented in detail and then performance is evaluated. As mentioned in the case study, there were other alternatives which could have been adopted Heinz. Some of these alternatives can be found in the improvements techniques of applications of Performance appraisal (Mawhinney, 2001). According to Muchinsky, training, peer reviews, development sessions and regular feedbacks to employees are the alternatives which can be adopted if the performance is not going on as per the company standards. In the present study, it was a genuine apprehension expressed by Moretti that he was suspicious about the intentions of the company. Moreover, there has been no past record where any manager was subjected to such an individual performance management plan although employees other than the manager were subjected to such but whenever it happened; it culminated in the result that it was because of their poor performance. So all in all, even if his performance was not up to the mark about which there is not substantial record, it was not justified that he would be subjected to such an approach which not only lead to reversal of decision of the company by his reinstatement but also put an adverse impact on other managers about faulty strategic performance management and erroneous implementation of employee appraisal (Chen, 2007). 2. How was Heinzs approach towards employee performance management unreliable? Discuss your answer that relates employee performance management and its impact on strategic human resource management and organisational performances. Employee performance management is an indicator of the employees contribution towards success of the company (Ghemawat, 2002). A company which is successful tends to have better employee performance management than others which are not doing well in competitive scenario. By definition, employee performance management refers to the process of establishing a shared workforce understanding regarding what is to be achieved at an organisation level. In broader sense, employee performance management aligns the organisational objectives with measures, competencies and development plans as agreed by employee (Hill, 2012). In case of Heinz, the approach adopted by the company towards employee performance management was considered totally unreliable. This is due to the fact that the company dismissed a sales manager on grounds on inefficient performance. But the real scenario was somewhat different. The organisation took a company-wide rating instead of individual rating for employee performan ce and in this rating, Moretti scored really low. Since the ratings were not individual instead company-wide, Heinz Company Australia could not dismiss him on grounds of performance concerns. Moreover, the company tried threatening Moretti to fire him if he didnt sign the individual performance management plan. Although Moretti was repeatedly told about his performance concerns but no details were provided on his repeated insistence. The employee performance management has a critical impact on the strategic human resource management of an organisation (Lamb, 2004). Strategic human resource management is defined as the form of management of activities of employees in an organisation. A company where employees have high performance, it will have efficient strategic human resource management. Alternatively, a company with low employee performance will have inefficient strategic human resource management (Porter, 1996). However, strategic human resource management hugely depends upon the employee-employer relationship. In case of Heinz Company Australia, the relationship of the company with its employees doesnt seem cordial and healthy. Due to unhealthy relations, the company took an action against its sales manager on false grounds of performance concerns. As per experts in HRM, it is believed that HRM strategies have direct impact on the employee performance through employee motivation. By definition, employee moti vation refers to the process of motivating and encouraging employees contribute hugely towards success of organisation. Employee motivation provides employee outcomes, boosts the performance of employees and ultimately impacts the productivity and performance of employees (Kvint, 2009). Strategic HRM is seen as an indicator of the intentions of organisation towards its employees. For instance, if an organisation conducts regular training for its employees then it can result in better employee performance. Hence, greater training can be effectively linked to productivity of employees. In case of Heinz Company Australia, the company lacked motivation in its HRM strategies. Due to this, the Deputy President of FWA didnt accept the repeated arguments of Heinz Company Australia. He figured out that flawed employee performance management is one of the primary reasons for the failure of the company in developing their employees performance. In another example, employee performance management have strong relationship with organisational performance and behaviour. Employees who are regularly awarded with bonuses, promotion and rewards based upon their performance tends to be highly motivated (Crosby, 2009). It keeps them satisfied and encouraged towards contributing their best towards their job role. Also, the effective recruiting and selection practices along with better compensation terms tend to have positive impact on the performance of the employees. But in case of Heinz Company Australia, no employee had ever been subjected to performance management plans. Moreover, managers were never subjected to performance management plans but one employee was subjected to the poor performance management plans of the company, he was dismissed without a second thought. Hence, it can be concluded from above discussion that employee performance management usually have positive relationships with strategic HRM and organisational behaviour. 3. Identify the ways in which Heinzs employee performance management could be improved. As part of your answer, make sure you explain carefully how the company should implement your recommendations because so much of success in this area depends on the how of any strategy is implemented. In the scenario, Heinz Company Australia had to suffer due to its poor employee performance management. An effective employee performance management requires continuous process of setting objectives, monitoring the performance of the employees, providing training to employees for their weaker sections and helping them grow themselves professionally (Chaffee, 1985). However, in case of Heinz Company Australia, no such employee performance management plans were followed for employees and managers. Ultimately, this impacted the strategic HRM and organisational behaviour of the company greatly. The company dismissed their sales manager, Monetti on grounds of performance concerns but didnt provide any details to him in spite of his repeated insistence. The case when taken up by Deputy President of FWA was viewed as the fault of the company rather than employee. In order to improve the ways using which employee performance management of Heinz Company Australia can be improved are: Diagnosing poor performance: In order to enhance the employee performance management, one of the critical ways is to diagnose the poor performance by conducting frequent employee performance audits. These audits will help to monitor the weak points of employees individually. In general, before taking any step to fix the poor performance of the employees, it is crucial to determine its cause. Those causes can only be determined with regular performance audits (Chandler, 2002). Most common causes of poor performance of employees in organisations such as Heinz Company Australia are lack of ability, lack of motivation, lack of training sessions. But in case, managers observe that an employee is not making efforts to do his job then they are likely to put pressure on him. The increased pressure can worsen the problem in spite of motivating employee to his job efficiently. The low ability of employees in Heinz Company Australia can be due to numerous reasons, such as, over-difficult tasks, low aptitude, skills and knowledge of employee, high effort but low performance and lack of improvement over time. Many times, candidates with low ability are matched with wrong jobs. This is one of the factors leading to poor performance. Secondly, some employees might have been promoted to positions that are demanding. Thirdly, employees might have not been able to get the support from management which they must get. These are most probable causes of poor performance (Mintzberg, 1987). These can be effectively fixed by recruiting right candidate for position, assessing the performance level of the employee and then promoting him and providing appropriate support to him by management (Mintzberg, 1996). Boost the ability of employees: In organisations such as Heinz Company Australia, managers can enhance the ability of the employees. In general, there are five ways to overcome employee performance problems related to lack of ability. The ways include Resupply, Retrain, Refit, Reassign and Release. Resupply: This includes assessing the resources available to employees. Many times, employees dont have adequate resources to complete their job. For example, employees dont have internet access to be updated with latest trends. It can result in poor performance (Drucker, 1954). Hence, managers need to resupply the resources so that employee performance can be enhanced. Retrain: This includes training the employees about their work. Untrained employees are not productive and cant be innovative in their work. Hence, second way is to retrain the employees and providing them significant training to manage their work effectively. Refit: If resupply and retrain dont work to maximise the employee performance, then the other option is to reconsider the person for the job role. Many time, a candidate is not fit the job and hence it results in poor performance. Reassign: Fourth way to maximise employee performance is to reassign the tasks to different employees who might be much capable of doing work than the employee who has been assigned previously. Release: In case all four options dont work to maximise the employee performance at Heinz Company Australia, the last option is to release the employee. In other words, it means to let the employee go and hire another at his position. This should be seen as final step and must not be used in situations where employee performance can be managed by training, supplying the resources (Henderson, 1981). Enhance motivation level of employee: In order to improve the employee performance management at organisations such as Heinz Company Australia, one of the ways is to improve the motivation level of employees. This can be done by setting performance goals for individual employees, provision to provide assistance to employees and provision to provide feedback to employees regularly (Kearney, 2002). These are some of the ways that can be adopted by Heinz Company Australia to improve their employee performance management. Conclusion To conclude, it can be said that employee performance management has a huge impact on HRM strategies and organisational behaviour. A company with efficient employee performance management can be successful in long run due to successful HRM strategies and cooperative organisational behaviour. 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