Business Administration 3304K Study Guide - Final Guide: Vertical Integration
Battle to survive is based on superior manufacturing capabilities: difficult to rebuild lost excellence in production. Difficult to change culture to improve manufacturing: can take several years, must identify current position and plan goals for improving to gain competitive effectiveness. Stages of manufacturing effectiveness important choices include capacity, vertical integration, human resources, and policies: overall operation is determined by a balance of these factors a company cannot skip a stage. Managers do not realize that this dictates competitive success. Do not expect manufacturing to contribute positively expected to source all manufacturing equipment from outside suppliers and to rely on these suppliers for most of their information about manufacturing technology and new technological developments. Managers try to minimize their reliance on manufacturing: concerned with investment decisions limiting view of manufacturing causes them to be hesitant to upgrade their labour- intensive, low-technology processes when new generation of technology arrives.