MGMT670 week 5 Conference Instructions - Essay Example

Management Task: Management The business of starting a new company, expansion of an existing one or just relocating to anew geographical location is normally a precarious scheme. The corresponding return on an extensive venture of time, capital and applied oomph, is never guaranteed. In accordance with one of the latest reports by an American research and development institute, only about half of undersized businesses that engage workers still survive after five years (Harper, 2011). However, there are myriad factors that such businesses can uphold to better their opportunities and stick out.

These competitive strategies (factors) include; cost and differentiation competitive advantages, the quality of management among others. Competitive or positional advantage as an aspect of the competitive strategies can either be cost advantage or differentiation advantage strategies (Harper, 2011). Cost advantage strategy is the description of a company’s attempts to offer comparable market products or services at consistent lower costs. The company should be capable of maintaining the lower prices as well as fending off competitors who try to adopt the same approach.

Differentiation advantage, on the other hand, defines a company’s efforts to provide better-quality services or articles for similar market prices. A firm which employs any of these two strategies appropriately may find itself beating its rivals in the long run competition. The quality of management is another vital factor to consider. On the eve of attempting to expand an existing firm into a new market, the proposal of the pioneering management team for the new market should be done considering the blend of experience.

Skilled and experienced administrators are deemed to be mentorship providers for subsequent cohorts of managers (Dellmour, 2011). Furthermore, they can lead the newly established company perfectly through its daily operations. However, the topmost management should ensure that the management team is satisfactorily rewarded to avoid moving to rival companies which tend to sway them by providing more handsome payment packages. 2. Conversely, there are innumerable ways in which the expanded firm can help trim down the dangers associated with this type of expansion.

One of the most illustrious maxims about initiating a business unit is that qualified and result-oriented industrialists should look for a niche in the market and strive to fill it. As a result, new companies should be capable of providing clients with something or an idea they do not already have. Suppose the item for consumption is related to that proffered by the opponents, some aspect of its delivery should be up-to-the-minute, such as its usage or promotion. Without a clear modernism, clients will have little gripping reasons to buy it (Rud, 2009).

Therefore, it is fundamental to carry out business operations uniquely in order to beat rivals in the field and reduce any looming risk. Likewise, the promotion and marketing of the firm to be expanded in the new market as well as its respective products is equally noteworthy (Dellmour, 2011). Being aware of the existence of a good or service and feeling stimulated to purchase it is a significant precondition to a customer buying. Consequently, a firm should inform the precise assembly of potential customers of its services and products.

It should also provide persuasive reasons why the consumers must adopt its strategies or buy its products. In addition, the company should adopt a customer service culture in the new establishment. Virtually all firms should be responsive and reactive to customer needs and problems. This involves the identification of market gaps and customer needs leading to the creation of healthy producer-consumer relationship as well as building mutual conviction and allegiance. In general, a firm that aims at expanding its operations into a new market must be extremely keen to succeed against the competition from the rivals (Harper, 2011).

References Dellmour, B. (2011). Critical success factors it-start-up companies. Santa Cruz, CA: GRIN Verlag. Harper, S. (2011). The Ever-Evolving Enterprise: Guidelines for Creating Your Company’s Future: Goleta, CA: ABC-CLIO. Rud, O. (2009). Business Intelligence Success Factors: Tools For Aligning Your Business In The Global Economy: New York, NY: John Wiley & Sons.