The Competitive Position of Bonas - Essay Example

Business ventures can either result to a success or a failure. Success has been tantamount to good business strategies and emphasis on vital components of operations. Failures, however, translate to weak internal capacities and the emergence of problems in the external environment. For most firms, the focus on failures is higher than concentration on success. Companies are designed to prevent from failing, and subsequently succeed. Despite of these aims, problems tend to stall the success of several organisations. Some instances even suggest the problems have led to the downfall of several notable firms. To ensure that the road to success remains intact, firms have to accept a dose of change and the idea of continuous change in their organisations. Bonas Machines Bonas machine is a subsidiary of the Van de Wiele Group of Companies. It is the famous for its innovative design of electronic jacquards. The company has been manufacturing the best electronic jacquards primarily used for weaving. Its manufacturing headquarters is located in West Flanders, Belgium and the company has established communication arteries with its sales agents and consumers. The company continue to operate through its success cores and key attributes that include: speed, reliability, and performance. For the company, customer satisfaction is the utmost priority. The current strategies have remained the same since most of the initiatives to achieve the main goal are handled by the research and development team. The company contends that quality innovations along with after-sales support are the right combination to success. Aside from fundamental concepts, the company has provided several approaches that address the need to compete. These methods are planned, developed, implemented, and assessed over time. The Current Predicament It is hard to doubt that the company has succeeded in turning a not so recognisable innovation to a highly demanded commodity. The recent success of Bonas Machines, however, reflects the some problems that the company has been facing. This paradox defined the complexity of predicament that company needs to overcome to ensure that its success will remain consistent. Although there are several concerns that need to be raised, the most crucial part of the existence of Bonas is its competitiveness. It is hard to discount that the company is capable of controlling the market; but its current position suggests otherwise. The market position of Bonas is crucial in its efforts to succeed. Contrary to popular belief that the position on the market is holistically, success is measured in each entity. Essentially, the decision of the company to become aggressive is insufficient to qualify the company as the leader. Each part of the organisation needs to recognise the necessity to be in the forefront of the market. The fundamental challenge for Bonas is to remain competitive and sustain its advantage. But to ensure that this will be realised, the company needs to make a shift. The process starts from gradual modification until the most radical change is performed and implemented. Motivations to Change Based on the idea of Beer et al (1990), successful organizational change deals with coordination, commitment, and competencies. The absence of one characteristics means that fruitful change has not been attained. More important, the manifestation of the three values has to be manifested systematically. Processes have to be defined to ensure that each stage is satisfied before proceeding with the next step. In organizations, each entity is provided with roles to play before a goal is achieved. To manifest changes in the production process, close coordination among the components of production has to be maintained. Technically, changes in organizations are designed to make firms competent. Essentially, training mechanisms are modified to improve the skills and competency of the workforce. Technology replaces the traditional tools to boost production and limit defects. The change happens when the form concentrates on the development of the new discovery. Real change, however, according to Beer et al. (1990) is realized when the new project lives up to its billing or produce results beyond expectations. Also, change is made to make organizations more flexible. Flexibility is an important characteristic that firms have to obtain. Definitely, flexible firms are able to mitigate economic breakdowns and take advantage of beneficial circumstances. Usually, changes are promoted to make firms more flexible. As companies encounter situations where change is needed, the company becomes creative in surpassing the predicament. Change takes place as the company provides room for further change to take place and take effect. The Keys to Competitiveness As mentioned previously, the strategy of the company to improve its position in the market is three-fold, which consists of: speed, reliability, and performance. First, the company ensures the electronic jacquards perform in fast pace compared with other jacquards. Speed in an essential element that most consumers look at. Indeed, it will benefit the client once the electronic jacquard reduces the time needed for weaving. Basically, Bonas strives to be a contributor to the efficiency of the clients through the products. This attribute is prioritized without jeopardising the quality of outputs produced by the machine. Second, the company ensures that the machines are reliable and break down only during uncontrollable situations. More than just the quality, Bonas designs the jacquards to function effectively beyond the life years. Reliability in this sense means that the machines require less maintenance and other costs when operated. In addition, the machines are made flexible so that the clients can handle multiple tasks. This is an important aspect because it can potentially bring more savings for electronic jacquard users. Furthermore, the jacquards can be setup easily with less assistance required Finally, Bonas focuses on the performance of the machines. This can be assessed by determining both the quantity and quality of input produced by the company. This is perhaps the most critical aspect because the clients' response is usually based on the performance of the machine. The performance needs to be consistent and provides outputs beyond expectations. These are the core strategies of the company is challenging the industry competitors. Sustaining the Competitiveness Mintzberg (1989) observed that strategy is linked to plans and the behaviour patterns within organisations. The technical process of realising strategic management is divided into two areas. The first phase regard planning as course for intended strategy and the patterned actions are the realised strategies. Among the existing strategies, the Five Forces Model of Porter (1983) provides the technical approach in attaining sound strategic management. The facets include the capacity of the consumer, the capability of buyers, the entry of competitors, and the threat provided by the substitutes. These four aspects contribute to the overall state of competition in the market. According to Miller (1987), Strategic Human Resources Management (SHRM) is decisions and actions that pertain to the management of personnel in all business levels. It is important that the employees play significant roles in implementing business strategies geared towards sustained competitive advantage. The company needs to provide quality training mechanisms to the employees. In addition, Bonas needs to formulate performance assessment strategies to serve as the basis for compensation. Benchmarking is emerging in leading-edge companies as an information tool to support continuous improvement and to gain competitive advantage. (Lloyed, 1997) In order to benchmark effectively, a company needs a strong strategic focus and some flexibility in achieving management's goals. To effectively implement benchmarking, adequate planning, training, and open interdepartmental communication are needed. Benchmarking provides cost savings in executing operations and its support of the organization's budgeting and strategic planning process. Through benchmarking, Bonas can determine its strategies in penetrating the market. The information gained from this activity will allow the company to establish an advantageous position. Multi-disciplinary perspectives on performance measurement are increasing the attention given to non-financial measures of performance in general. Miller and Vollmann (1985) argued that the measures traditionally used by managers were inappropriate given the modern manufacturing environment. Changes in technology and working practices resulted to the assigning overheads on the basis of direct labour resulted in wildly erroneous product costs. These aspects are critical to Bonas and the company needs to provide some strategies in relation to performance measurement. Conclusion The competitive position of Bonas is undetermined and the direction where the company is heading appears to be uncertain. Despite of these, the company has managed to succeed with its existence bannered by electronic jacquard. The innovation has made weaving faster and provided more inputs to weavers. Basically, the current practises of the company are enough to provide success. The company, however, has several potentials and these attributes are only realised through change. Adding a sense of sustainable competitive advantage can instantly improve the performance of the company and solidify its claim as the company on top of the competition. References Beer et al. (1990). The Critical Path to Corporate Renewal. Harvard: Harvard Business School Press. Lloyed, Scott. (1997). Industrial Management. "The Benchmarking Process: Assessing its Values and Limitations." Institute of Industrial Engineers, Inc. Miller, P. (1987). Journal of Management Studies. "Strategic industrial relations management and human resources management." Miller and Vollmann. (1985). Harvard Business Review. "The Hidden Factory." Mintzberg, Henry. (1989). Mintzberg on Management. London: Free Press. Porter, Michael. (1983). Cases in Competitive Strategy. London: Free Press. Read More