Research on the practices of a business industry develops the ways on how best-performing companies coped up with the barriers and what strategies they used to improve their company's bottom line.
The business industries here in Tagbilaran City produce tons of goods every day, all of which impact costumers indirectly or directly. Similar to any industry, those certain business industries have specific objectives and corresponding strategies that are designed to improve their company. Manufacturing sector contributes enormously to the GDP and it has huge potential for creating employment.
However, business industries are also having their hard time finding for an employee that has the skills to do machinery tasks. They also face global competitiveness with low price manufacturer. They also have problems with the machinery. Not to mention, the machines have always been the center of focus for optimum utilization and they continue to be so.
From a broader perspective, quality, safety, vendor selection, and efficiency cost are one of the factors that the company needs to look into. These following factors should be considered for the improvement of a company.
Although management and marketing play a major role in any company's success, manufacturing strategies can mean the difference between success and failure for many firms. Companies must develop a business strategy that plays up their strength and pits them competitively in their market. Developing business strategies that suit a company's strengths is essential not only to maintain the supply chain to costumes but to ensure the company remains competitive within its market.
However, managerial winners display heightened business strength on a number of performance criteria simultaneously, including proxy variables for delivery, flexibility, price and market scope (Abernathy, Miller J.G, A.V. Roth, Chase, DeMeyer, Nakane, Ferdows, Gerwin, and Hayes).
In our current project, we aim to empirically address the issue of business and managerial success and business unit performance in a certain company. We will employ all qualitative approaches to gather primary and secondary data and information with the objective of determining success factors for the said business industry.
Purpose of the Study
The purpose of this study is to discover the manufacturing practices of the chosen business establishment. This study focuses on a group of businessman who runs a business within the vicinity of Tagbilaran City. To develop good and successful business, a company must have certain knowledge on how to come up with a good strategy, practices, and performance. Some of these practices are focussing on few differentiating capabilities and organizing for growth. Being competitive enough and exceed a lot of effort is considered as a good company.
This study centers on the strategies and practices of best performing company. This study gives the participants response and opinion of what they usually do and practice to make the business successful.
According to Ken Smith, Walter Ferrier, Herman (2001), Competitive dynamics theory helps explains the interaction and impact of firm actions and competitor reactions in a given industry. Action can relate to any observable decision made by a firm for the purpose of defending their current competitive position or attempting to gain a new competitive position. Example of actions may include making price changes, initiating marketing activities, introducing new products, or withdrawing from a market. Reactions represent the corresponding response taken by a rival firm.
The competitive dynamics model looks at both firms initiating competitive move as well as the reacting rival firm. Several characteristics of the initiating firm's activities are considered by the competitor before formulating a response. First, the magnitude of the action is assessed. For example, an action that required significant financial investment or resources would be considered the high magnitude and warrant more competitive attention. Second, the scope of the action is relevant. An action that has an impact on multiple competitors is more potentially threatening than an action that has an impact on only one competitor firm. Third, the type of action (tactical/temporary versus more strategic) is considered.
Ken Smith, Walter Ferrier and Hermann Ndofor further explains that several attributes of responder's reaction are also relative to the competitive dynamics, including the likelihood of a response (if the attack is substantial, the likelihood is higher) as well as the frequency and timing of the response. In addition to the attributes of the actor/action and reactor/response, the characteristics of the industry itself also impact the competitive dynamics model. For instance, a higher rate of industry growth can reduce competitive interactions, as the growing demand minimizes the need for individual firms to jockey for position. Likewise, a more concentrated market with a smaller number of competitors leads to more collusion and less competitive activity. An industry with high entry barriers limits the number of new entrants that incumbent firms need to be considered with.
As what Carl Shapiro (1989) stated, strategic conflict approach complements Porter's strategies in that it recognizes the ability a firm has to manipulate its market environment, thus improving its competitive outlook. Utilizing a game theoretic foundation, strategic conflict can help firms identify and pursue a preferred position within their industry. As firms take action, they also anticipate what action they believe their rivals will take. Some of the potential strategic moves Shapiro highlights include investment in physical capital, investment in intangible assets (e.g., R&D), strategic control of information (impacting rival firms' beliefs about market conditions), horizontal mergers, product standardization (e.g., in highly networked industries), and strategic contracting.
Teece et al. point out that the relevance of applying strategic conflict's gaming concepts can be context specific. For example, a firm that overwhelmingly dominates a given industry may not need to be as attractive to rival firm's activities as a firm in an industry where the competitive advantages are more subtle or evenly dispersed, further reinforcing the principle that the need for strategy is driven by the existence of competition.
All of the theories discussed showed the common elements of the importance of having a business strategy in a company.
This study aims to examine factors that have an impact on manufacturing company and to determine the business practices and strategies that best-performing company does.
This specifically answers the following questions:
1.) Profile of the Respondent
1.3 Position in the business
2.) What strategies will you employ to overcome problems met in their workplace?
3.) How does your business meet the demands of their customers?
4.) What factors should be considered in raising successful business?
5.) How does the innovation of products help increase the manufacturer's market sale?
Scope and Delimitation
This study will focus on knowing the best business practices in a certain company, the strategies on building their own goals and business practices for the good of their company.
The study is descriptive in nature and will focus on the employees and managers that are working in a manufacturing company. The research sample composes 7-10 participants between the ages 30 and 40. The primary data gathering method that the researchers are going to use is through an interview.
The researcher will conduct an interview with the employees and the manager who runs the company. The question will focus on how they handle their company and make it longer or what are their strategies for goals, luck or business practices.
Significance of the Study
The contributions of this study would be of great interest to the entrepreneurs as well as the employees and the acting manager of the said company. Studies in the business objectives, factors, strategies, and practices are core areas of research in the field of business, to which this study would be significant.
In our world today, specifically the economic world, there are lots of issues concerning the works of businesses. For example, the lack of employees, high demands, no jobs and such.
The study also contributes to the economy and society in two ways: first, it will help the businessmen or the entrepreneurs to know what are the best strategies to do for them to meet the demands of their customers that will lead to the contribution to the society. Second, this will help to gain more information on how important to have a huge number of employees in the working area that will also lead to the contribution to the society.
The outcome of this study will be beneficiary to both manufacturers and for the young entrepreneurs who want to build a huge business in the near future.
Definition of Terms
' Enormous- very great in size or amount
' Optimum- the amount or degree of something that is best or most effective
' Efficiency- the ability to do something or produce something without wasting materials, time or energy; the quality or degree of being efficient
' Pits- to set into opposition or rivalry; to set into or as if into a pit to fight
' Proxy- a person who is given the power or authority to do something for someone else; power or authority that is given to allow a person to act for someone else
' Flexibility- easily changed; able to change or to do different things; willing to change or to try different things
' Simultaneous- happening at the same time
' Empirical- based on testing or experience
' Business Practices- a method, procedure, process, or rule employed or followed by a company in the pursuit of its objectives.
' GDP (Gross Domestic Product) - is the best way to measure a country's economy. It is the total value of everything produced by all the people and companies in the country.
' Manufacturing Sector- it is a part of the goods-producing industries supersector group. It comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.
' Perspective- the capacity to view things in their true relations or relative importance; a mental view or prospect
' Management- the act or skill of controlling and making decisions about a business, department, sports team, etc.; the people who make decisions about a business, department, sports team, etc.
' Marketing- the activities that are involved in making people aware of a company's products, making sure that the products are available to be bought, etc.
' Manufacturing Strategies- In general, it can be defined as the set of the co-coordinated objectives and action programs that are applied to a firms manufacturing function and aimed at securing the medium and long term, sustainable advantage over that firm's competitors.
' Heightened- to increase the amount, degree, or extent of (something)
' Firms- a business organization; the name or title under which a company transacts business; a business unit or enterprise
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