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Why Business Management Best Practices Encourage Creativity and Innovation

by gbaf mag

Definition. Industry is an organized group of individuals or companies engaged in the process of producing goods or providing services for another. An industry comprises such industries as manufacturing, merchandising, distribution, retailing, service, engineering, construction, and related industries.

There are industry best practices associated with strategic planning. It is best to incorporate such practices as a way to improve your overall results from the efforts expended in an industry. Some of these practices include:

Identifying industry best practices. One of the best practices associated with industry standards is being aware of and taking into account the requirements of others. This means getting feedback and getting recommendations on those requirements. For example, if you need certain materials to manufacture your product, then it is best to get them from other manufacturers.

Developing a food trust. The development of a food trust involves identifying which major food manufacturers produce high quality products while working within a given framework of regulations and standards. Such initiatives seek to strengthen the relationships among food producers and consumers. It also considers other areas that could have an impact on the supply chain, such as marketing strategies and government policies. It seeks to maximize the production efficiency and productivity, minimize the environmental impact, and promote quality and safety.

Industry analysis. Another industry analysis strategy is the development of a broader factors analysis model. This model draws upon five forces for each industry. These forces can be categorised as the following: general economic, industry structure, competitive forces, market structure, and institutional structures. While industry analysis considers these five broad factors, they are not at all conclusive and it is important to address other issues such as the quality of resources available to an industry.

Using the CFi to develop an industry analysis. The five forces in the broad factors analysis is quite useful for industry analysis and come with a number of advantages. This includes being able to identify trends and developments in the market as well as identifying the drivers of these trends and developments. It also enables you to measure the performance of companies based on these forces alone. However, there are a number of limitations with this tool used in CFi and it must be carefully considered before proceeding with any industry analysis.

Using the CFi to identify a competitive advantage. Unlike the broad factors analysis, industry specific and pest analysis specifically, a CFi focuses more on the industry dimensions and related strengths and weaknesses. It is therefore better to compare and to identify any potential competitive advantage. In addition, using the five forces’ approach in this analysis, it helps to determine the extent of a company’s competitive advantage and hence help in decision making. With a clear understanding of their position in the market, it becomes easier for companies to develop and implement competitive strategies.

Controlling the size and strength of the market. The five forces in the overall industry analysis competitive forces model provides companies with an opportunity to accurately control and even to determine the size and strength of their respective markets. For example, if a company has developed a new product in a particular niche, it will be easy for them to dominate the other companies in that specific niche. However, if they manage to dominate a smaller market, it will be difficult for them to penetrate into larger markets due to the other companies having a strong and stable market share.

Creating an image. The image of the company plays a crucial role in deciding its position and its future growth in the market. The five forces of this business strategy course focus on creating a positive image of the company so as to build a positive reputation, which leads to increased sales and hence the development of a competitive advantage.

Team dynamics. Team dynamics is one of the most important areas of business management best practices. When a team of people are working together, they naturally have an ability to identify problems more quickly and resolve them effectively. On the other hand, when a group of people work individually, they tend to have different perceptions, assumptions and emotions towards each other resulting in poor communication and thus slower progress in solving problems.

Competitive position. In case the company does not possess a clear competitive position, it becomes very difficult for it to develop and foster a brand image in the market. The five forces of the business strategy course focus on building a competitive position by improving the products and services and using innovative and new strategies to promote the company’s image in the market. The final chapter of the course focuses on using strategic thinking to identify opportunities in the industry and achieve goals in the shortest possible time.

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