Strategic Manufacturing Management



Strategic Manufacturing Management

Describe the market dynamics in terms of Porter's model (5%)

A company is an organization engaged in business activities for profit. These activities fall into different specialties in technology and develop physical and social areas that may have been the subject of a sort. Companies are not isolated from one another, however, are an open system that is in constant interaction with their environment. The globalization of the economy and the emergence of new technologies have transformed the competitive environment in which these are active.

The internal dynamics of the company and the speed and how it moves the environment, must be treated as a whole at the time of analysis of which will emerge the strategies to attain competitiveness in a market increasingly convulsed, and the difficult requirements to meet the ever increasing customer expectations and increasingly minimizing the resources spent, in order to maximize profits. For this it is essential to note that the internal business results depend to a large percentage of the characteristics of the environment in which it moves and it's ability to assimilate and manage this environment effectively.

The strategy is to incrementally dynamically. Traditional advantages sources no longer provide long-term safety. Traditional barriers to entry are being shot by skilled players, fast. The strength of a given strategy is determined by the initial movement, but by how well we anticipate and face the maneuvers and reactions of competitors and changes in customer demand over time. The success of the strategy depends on how effectively it can manage the changes that occur in the competitive environment. Globalization and technological change are creating new forms of competition, deregulation is changing the rules of competition in many industries, markets are becoming more complex and unpredictable flows of information in a highly interconnected world is allowing the organizations to ...