Name : Pyae Phyo Aung
Student ID : 000076
Course : 211 Strategic Management
Assignment : 2
Date : 19 December 2011
Email : firstname.lastname@example.org
Phone No. : 095044274
(1) You are the management team of a start-up company which will produce disk drivers for the personal computer industry. You will sell your products to manufacturers of the personal computers (original equipment manufacturers). The disk drive market is characterized by rapid technological change, product life cycles of only six to nine months, intense price competition, high fix cost for manufacturing equipment, and substantial manufacturing economies of scale. Your customers - the original equipment manufacturer - issue very demanding technological specifications that your product has to comply with. The original equipment manufacturers also pressure you to deliver your product on time so that it fits in with their own product introduction schedule.
(a) In this industry, what functional competencies are the most important for you to build?
(b) How will you design your internal process to ensure that those competencies are built within the company?
In this industry, efficiency, quality, innovation and customer responsiveness in all functions are the most important due to rapid technology change, short product life cycles, intense price competition, high fixed cost on manufacturing equipment, substantial manufacturing economies of scale, demanding technological specifications, and delivery on time.
The internal process will be designed as follows to ensure that the above-mentioned competencies are built within the company.
In term of efficiency
In production, we will pursue learning economics for cost savings that come from learning by doing (Labor productivity increases over time, unit costs fall as individuals learn the most efficient way to perform a particular task. Production costs also decline because of increasing labor productivity and management efficiency) and will implement flexible manufacturing systems to reduce setup...