Every Industry Has Sole Issues - Essay Example

Every industry has sole issues, products or services, problems, and ideas. Yet the main thing is that industries also share common problems. When resolving problems for one industry, that best action is to look for best practices or strategies to improve that industry or organization output. The strategies are basically adopted by the industries due to the following reasons: Manage with approaching Enhance the business competence and competence Help ensure business dexterity Drive transactions and sales Optimize services levels. An industry has a dual compulsion: To gain consumers of their own To retain consumers of their own But also help industries contributing other products to exchange their desired customers among consumers who are "vague" into consumers or customers who are "convinced." This difference between "consumers" and " customers" is important, as each asks a different type of question required different examination in the proposed theoretical framework. For example, a study of "sport consumers" requires response that explains reasons that influence their behavior, and how to get better their behavioral propensity to remain loyal consumers. on the contrary, research on "sport customers" demands results of how to build upon their product knowledge, formulate or change their predilections for a product, and as a result determines how to make the sport product fits their predictable value, personality, and life style. Not all firms in an industry have the same critical success factors in a specific industry.A firm's existing position in the industry where it is next of kin to other competitors in the industry and also the market leader its strategy, its resources and capabilities For example, in 2005 Caterpillar determined a new strategy to aggressively grow revenues over the continuing. As part of that new strategy, Caterpillar described several critical success factors specific to the firm which are the following: "Organizational culture: "creating a culture that engaged employees, while focusing on safety and diversity" Quality control: "accelerating the pace of quality improvement for its products, while focusing on improving new product introduction and continuous product improvement processes" Cost focus: "implementing processes to become the highest-quality, lowest cost producer of our high-volume products in each hemispheric currency zone" ( Gordon, 2005): Other firms in Caterpillar's industry may or may not have the same factors, and are not likely to have the same complete situation that is why strategies are different practicing in different industries. There is also factor which is a key elment of changing the strategies that is the following: Environmental Factors These communicate to environmental factors that are not in the control of the industry but which an industry must consider in adopting the strategies. Any industry first of all take the view of the following factors and after that mage the strategy Ensure a good understanding of the environment, the industry and the company Build knowledge of competitors in the industry Develop a chart of those factors which get measured are more likely to be achieved versus those factors which are not measured. Develop the concept of those factors which have great positive and negative impact on the industry's performance and working. So due to the characteristics like environment, nature of service and products values, target audience, measuring and fruitful factors future risks and challenges competitors audience responses The strategy of any industry is made by the higher officials of the industry. The reason behind this that why the strategy of the different industries are different Is that all the above mentioned factors are the responsible for it. By difference among these factors, strategies became changed. EXAMPLE OF SAUDI TELECOM Saudi Telecom Company (STC) is the largest service bringer operating both mobile and fixed line businesses in Saudi Arabia. STC is the biggest telecommunications company in the Middle East which has more than 13 million mobile subscribers and 2.5 million Internet subscribers as well.There are the different issues which we can say Business Issues that are the key element to adopt the strategies to solve these issues or promote its services of STC. And these are the following; merge and centralize IT resources for better efficiency, lower expenses and stretchy expansion lessen TCO for current and future server infrastructure save investments while minimizing IT investment risks Improve presentation and accessibility of critical systems for improved customer service To solve all these business issue, STC selects Sun to give hardware, software and services for a main server consolidation and centralization project. So we can say that it is a strategy adopted by STC that is diiferent from telecommunication industries. With Saudi mobile phone handling growing by 30 % year, and with handset saturation in the region still below the international average, Saudi Telecom Company (STC) is looking forward to sustained business expansion. At the same time, the challenges facing Saudi Arabia's sitting telco increased when the government began the market to competition in 2004 and a third Global Systems for Mobile Services (GSM) supplier entered the market in 2007. STC is planning another strategy for the future by working intimately with Sun Microsystems to adapt its IT infrastructure for continued, gainful growth and improved business suppleness. Edifice on a strong relationship, STC has selected Sun as a principal seller for its server consolidation and centralization project. In this position, Sun will serve the Middle East's largest telecommunications company as a major mean for server hardware, software, professional services and technical support. The project combines STC's mission-critical GSM, Business Support Systems (BSS), Operational Support Systems (OSS), multiple network management applications, and Oracle databases on Sun Fire E25 servers with Ultras ARC IV+ processors administrating the Solaris 10 Operating System. These are what These are the strategies which are adopted by the STC which are different from others industries due to the different goals and achievements. EXAMPLE OF THE GENERAL MOTORS: General Motors Corporation, also known as GM, an American multinational corporation, is the world's biggest auto company by production volume for the first 9 months of 2007, and by sales volume for 76 consecutive years.it was Founded in 1908, in Flint, Michigan, GM have employees almost 284,000 people around the world. GM has global headquarters at the Renaissance Center in Detroit, Michigan, USA. GM products are cars and trucks in 33 countries. Their European headquarters are based in Zurich, Switzerland. Their Holden headquarters are in Melbourne, Victoria, Australia. 9.18 million GM cars and trucks were manufactured globally in 2006 under the brandswhich are the following: " Buick, Cadillac, Chevrolet, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall" . GM has the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea and has also collaborative ventures in technology and manufacturing with several other automakers of the world. The single most important challenge facing industries the formation, implementation and advancement of effective strategic management. Effective strategic management includes a global external direction, clear business section, an intimate consideration of strategic marketing and competitors' study, a center of attention on appropriate measures of presentation, systematic resource allotment, and a supporting organization structure and culture. The development of strategic management systems with these components will make easy organizations to compete effectively both domestically and internationally. Competition is not always the drivers during an industry reformation and performances. Instead, group effort among firms in times of change is more about future rents appropriation. We highlight on the effects of these changes occurring at the downstream and the upstream, between and within segmented layers of the manufacturing value chain as the result of the evolving interactions among actors from different market sections, based more on enduring collaborative preparations and history addiction. Keeping the view of these issues, industry changes its strategies and adopts different and unique strategies to make industry successful. REFERENCES 1: Vong Srivastava, J. and M. Finger (2005) Industry boundaries in times of Change: how do firms strategize, MIR - REPORT 2005-007, EPFL, Lausanne. 2: Lindorff, Dave (April 19, 2005).Health Care Costs and the Jobs Flight to Canada Counterpunch. Retrieved on April 24, 2007. 3: Barrett, H., Balloun, J. and Weinstein, A., 2005. Success Factors for Organizational Performance: Comparing Business Services, Health Care, and Education. SAM Advanced Management Journal. [online]. 70 (4). Available from: http://www.factiva.com. 4: Amberg, M., Fischl, F. and Wiener, M., 2005. Background of Critical Success Factor Research. Friedrich-Alexander-Universitat Erlangen-Nurnberg Working Paper No 2/2005. Nurnberg, Germany. 5: Caralli, R., 2004. The Critical Success Factor Method: Establishing a Foundation for Enterprise Security Management. Carnegie Mellon Software Engineering Institute. July 2004. Read More