dentify how changes within an organization affect the OM strategy for a company.
ID: 394646 • Letter: D
Question
dentify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy: a) Maturing of a product. b) Technology innovation in the manufacturing process. c) Changes in laptop computer design that builds in wireless technology. a) Select all of the correct impacts the maturing of a product might have on OM strategy below. (Check all that apply) A. Maintenance procedures need to be revised. B. Longer production runs are used. C. Design compromises are instituted D. Purchasing needs to be revised. E. Quality standards need to be revised F. Optimum capacity may be achieved.Explanation / Answer
Ans. When the product reaches its stage of maturity in the product life cycle, the main objective of the organization would be to defend its position and also to standardize the product so that the product can be produced at optimal capacity to achieve economies of scale. The pricing of the product would also be reduced to ensure its market share doesn’t fall drastically. The longer production runs are also more effective and the skilled labor can be decreased as the manufacturing process is stabilized. The cost cutting measures also should be considered as the product is in the maturity stage and there is less chance of growth.
Ans. Because of the innovation in the technology, the product design needs to be revised to ensure that the product is better and cheaper and thus get a competitive advantage over the other players in the market. Even the purchasing process should be revised as different raw materials might be needed as a result of the technological innovation. Also, new capital investment is needed to purchase new equipment and technology and this might increase the fixed costs of the company.
Ans. The changes in the laptop computer design that builds the wireless technology warrants a revision in the product design. This requires the entire purchasing and inventory to be revised to check if the old designs can be modified or replaced to ensure they are compatible. There would be some cost involved for the change and training regarding the new change as well.
Thus, the organization have to revise the strategy based on the changes within the organization as well and not just the external environment.
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