MAC007A Strategic Management Accounting Assessment Answer
Answer to question no- 2
In order to develop core competency in the business process, organization needs to strengthen its inbound and outbound activities program which should be integrated with the advance technologies and system process. This helps company to increase the overall outcomes of the organization. Strategic Management has been called the continuous planning, analysis, monitoring and assessment that is necessary for an organization to achieve its goals and objectives (David, 2016).
Core Activities of Organization
The company is engaged in courier services in all over Australia and also provides service to their customers to the international market. The company is engaged in international courier business through strategic management. This has kept its business more customized and developed core competency by keeping the customized products in market. Company has developed its core competency by keeping its business inbound and outbound activities different and distinguish from those of others in market. The core activities of the Company needs to be managed the courier services and timely delivery the products to clients. If company wants to sustain its business in long run then it will have to create core competency in cost leadership and product differentiation strategy in market (Cundy, et al.2013).
Industry Value Chain
Industry value chain has been made for the customer perspective. It is analyzed that want if company wants make its market strong and in terms of operations, products, logistics and all the function that support the work of the company. The value chain functions and inbound activities of organization supports in dealing with the market place, customers, essentially industry and competition. On time deliveries of company is a national delivery services which align its inbound and outbound activities with the overall outcomes of organization (Chan, Ngai, & Moon, 2017).
Source:- (Chan, Ngai, & Moon, 2017).
It has been analyzed that the expenses of company is very high on the transport system such as trucks, planes, vans and bikes. The company has kept high investment in its business process with a view to earn high return on capital employed. It is considered that due to the tough competition in the market company cannot change its price for the coming years. The company has analyzed that it is required to keep an effective performance measurement to set standards in its business process. It has to keep strong customer service as the company cannot provide 100% timely delivery to the customers. It is found that various accidents on roads and other incidents sometimes had been the hindrance in the timely delivery. The company has set its objectives to strengthen its profitability therefore, the structure of the company must been improved by undertaking the re-engineering business strategy (Chan, Ngai, & Moon, 2017).
The industry value chain is goes through supplier value chain, firm value chain, channel or distributor value chain, buyer value chain and disposal or recycles value chain. The company has to focus on all areas for the better customer satisfaction that will improve the profits for the company (Lawson, Potter, Pil, & Holweg, 2019).
The suppliers are an important factor for the business as they supplies the goods to the customers. The company is facing the high expenditure in the transportation that means supplier chain is required to be improved. The company is required to reduce its cost in the supplier chain is in the trucks, planes and bikes. The company has the highest investment in the supplies which resulted to reduction in the profit for the company. The company should use the methods which are cheapest among all in both international and national supplies (Chan, Ngai, & Moon, 2017).
The firm value chain is also an important factor to improve the number of customers for the company. The firm value chain includes operation of the company that is required to be the strongest in every aspect. The profit of the company depends on how their firm internal operations are strong. On time delivery Service Company should analyze their weakness by their firm value chain to strengthen its business outcomes (Kersten, Blecker, & Ri, 2015). .
Channel or distributor value chain is the system through which the final buyer gets the product. It includes the wholesaler, retailer or through the other medium such as internet. The company if have to provided 100% timely delivery to the customer than it is the method that can be improved. The company performance in the market will improve through this method and can earn more customers and also give tough competition to the competitors (Kersten, Blecker, & Ri, 2015). .
Buyer value chain is an important factor where the company has to focus as the views of Yohan should been analyzed. The customer reviews matters a lot for the company for the improvement and the customer who not give feedback and do not use the service are more disastrous or dangerous for the company. It is required that customers demand should be analyzed by this supply chain for offering more customized services to clients (Hitt, & Duane Ireland, 2017).
Disposal or recycle value chain is the method through which company can regain its business value chain. In the courier services, there are various products that can be recycled and t can help the company to earn more benefits in its business process. (Kersten, Blecker, & Ri, 2015).
The most important value chain is highly beneficial for the company to improve more customers and make timely deliver to the customer. This needs to be strengthen by effectively managing the inbound and outbound activities program. The supply chain undertaken in company will reduce the concern of both Marcela and Yohan. On time deliveries limited has to consider this chain to improve the performance measurement of the company which will also allow to create value in the undertaken program (Kersten, Blecker, & Ri, 2015).
It can be analyzed that there are various factors of the company that should be strong to improve the customers. The timely delivery is an important factor to make more customers and to achieve the higher growth. The on time delivery company needs to re-engineer its inbound and outbound activities program to strengthen its business process. The decrease in the business costing of the process will be done by focusing on reducing the wastage and making timely delivery. The logistic and supply chain process of the company needs to be improved by installing the advance technologies and system process in its inbound activities program.