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1.2 CONTEMPORARY BUSINESS ENVIRONMENT, MGT ORG, INCREASED EXP FOR PRODUCT…
1.2 CONTEMPORARY BUSINESS ENVIRONMENT
CHANGES
Increased global competition
Lean manufacturing
LEAN MANUFACTURING
JIT INVENTORY METHODS
Reduce cost & waste of maintaining large levels of materials & unfinished product.
Flexible manufacturing techniques
Reduce set up times
fast turnaround of cust orders
SPEED TO MKT
Deliver the product or service faster than the competition
Japanese man lean methods
cost & quality imp
quality teams & statistical quality control
advances in info technology, the internet & enterprise resource mgt
NEW ECONOMY
for communications
for sales
business data processing
REDUCES TIME FOR PROCESSING TRANSACTIONS
EXPAND ACCESS TO INFO WITHIN THE FRIM, THE INDUSTRY & THE BUSINESS INDUSTRY AROUND THE WORLD
Internet based firms Amazon, ebay
Changes in social, political & cultural environment of business
Ethically & racially diverse workforce
changes in regulatory requirements
sense of ethical responsibility among managers & employees
Greater focus on customer
New forms of mgt organization
Growth of international mkts & trade
rise of worldwide economies
decline of trade barriers
ECONOMIC NATIONALISM
Ideology that promotes domestic economic growth & opposes globalization, free trade, and immigration
June 2016 Brexit
GLOBAL BUSINESS ENVIRONMENT
Growth of international markets & trade
Rise of economies throughout the world
Decline of trade barriers
Rapid growth of economic interdependence & increased competition from other countries
Consumers Benefit: low-cost, high-quality goods traded worldwide
Managers & Business Owners: know imp of pursuing sales & operating activities in foreign countries
Investors: benefit from the increased opportunities for investment in foreign firms.
STRATEGIC FOCUS OF COST MGT
Identification of measures that are critical orgs success
STAGES OF SHIFT IN FOCUS
Basic Transaction Reporting Systems
Role: Measurement & Reporting
2 External Fin reporting...limited usefulness of cm
Role: Measurement & Reporting
Role: Measurement & Reporting
3 Systems track key operating data & info is developed
Role: Operational Control
4 Strategically relevant info is INTEGRAL part of the system
Role: integral, part of mgt teams
IDENTIFY CRITICAL SUCCESS FACTORS
Financial & non financial
depends on nature of competiton
Measures of those aspects of the firm's performance that are ESSENTIAL to its COMPETITIVE ADV and success.
MGT ORG
CHANGING BECAUSE OF
TECHNOLOGY
MARKETING
MANUFACTURING PROCESSES
NOW
CUST SATISFACTION
Time to delivery
service
Quality
FLEXIBLE ENCOURAGES TEAMWORK & CO-ORDINATION
PREVIOUS
FINANCIAL & PROFIT BASED
HIERARCHICAL COMMAND AND CONTROL
INCREASED EXP FOR PRODUCT FUNCTIONALITY & QUALITY
Shorter prod life cycle
CHANGED
FROM
Low cost prod of large quanties
TO
Quality
Service
Timeliness of delivery
ability to respond to the customers' desire for specific features
Reports include specific measures of customer preferences & customer satisfaction.