CHAPTER 3 (MGT300)

Strategic Initiatives for Implementing Competitive Advantages

Organizations can undertake high-profile strategic initiatives including:
  • Supply Chain Management (SCM)
  • Customer Relationship Management (CRM)
  • Business Process Reengineering (BPR)
  • Enterprise Resource Planning (ERP)
Supply Chain Management
- involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. 

Four basic components of supply chain management include:
  1. Supply chain strategy- strategy for managing all resources to meet customer demand
  2. Supply chain partner- partners throughout the supply chain that deliver finished products, raw materials and services
  3. Supply chain operation- schedule for production activities
  4. Supply chain logistics- product delivery process



Customer Relationship Management
- involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability. 

CRM can enable an organization to:
  • Identify types of customer
  • Design individual customer marketing campaigns
  • Treat each customer as an individual 
  • Understand customer buying behaviors



Business Process Reengineering
- the analysis and redesign of workflow within and between enterprises. The purpose of BPR is to make all business and processes best-in-class

Seven principles of BPR recommends by Michael Hammer and James Champy:


Enterprise Resource Planning
- Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations



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