GMS 401 Chapter 2: Chapter 2 - Competitiveness, Strategic Planning & Productivity
10 Feb 2012
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Document Summary
Competitiveness: ability and performance of an organization in the marketplace compared to other organizations that offer similar goods or services. Strategy: the long-term plans that determine the direction an organization takes to become (or remain) competitive. Strategic planning: the managerial process that determines the strategy for the organization; productivity is a measure of how efficiently the resources are being used. Companies must be competitive to sell their goods/services in the marketplace. Competitiveness depends on the capabilities and performance of the company in its marketplace; using teamwork and rewards, and organization can develop its capabilities. Most customers choose the best buy or best value : value = quality, timeliness, etc price. Organizations compete by emphasizing one or more of the key purchasing criteria. As the organization becomes more competitive, it tends to reach a point where improving one priority can be achieved only by reducing the emphasis on another priority.
