Strategic Project Assignment - Nanotech - Research Paper Example

Strategic Project Assignment (Na ch) The challenge in developing an effective management and supply chain system in operations and supply chain management is in adopting a structure for the identification of resources and capabilities in supply chain using the resource-based view.1 Organization management is the process of extracting the best out of each employee by getting them to work together on a common platform towards a common predefined objective. This process is necessary for employees who feel indispensable as it gives them a sense of security, and at the same time, the organization attains its objectives through better coordination in its departments. Supply chain management involves providing and transporting products manufactured by a certain organization while putting into consideration the impact of the supply chain to the environment economically and socio-politically. The resources being identified in the resource based view in an organization can generally be defined as all assets, organizational functions, organizational processes, firm competitive advantages, information and knowledge.2 I studied that there exists three main types of organizational structures; a functional structure that is set up according to the purpose of each department in the organization. For example in Nanotech, there would be a software engineering department and a marketing or sales department. This structure is best for small businesses and would not be efficient for Nanotech particularly because it does not favor communication between departments across the organizational boundary i.e. the production department in the US and correspondent production department in China. A divisional structure is another type of organizational structure where the organization’s framework is grouped into smaller divisions all equipped with the necessary resources. This structure may be appropriate for Nanotech as the firm can be categorized on a geographical basis i.e. a US and a China division. However, just like the functional structure, it does not cover the effective communication process which is mandatory. A third organizational structure, the matrix structure, is the best for a foreign operation such as Nanotech. This is because it is suitable for multinational companies. The matrix structure divides the organization’s resources by both function and product, and has double management by appointing a project manager to supervise project processes and a functional manager hence balancing organizational procedures. Nanotech can implement this structure and have one of its managers primarily responsible for launching its products into the Chinese market while another one provides technical knowledge like the market potential for their products. The functional manager can delegate responsibilities to the junior mangers who report to him. The foreign operation can be performed by effectively and efficiently defining the supply chain which is overseen by a project and functional manager after the implementation of the matrix structure in the Nanotech organization. A supply chain is effective when its resources and capabilities are fully explored. These resources can be divided into internal and external capabilities of the firm. Internal capabilities include procurement, logistics and manufacturing, supply chain planning and customer service management. Material flow, information flow and interpersonal relationships form the external capabilities. All these resources need to be valuable and sustainable to the organization.3 The factor of transportation of these products from Nanotech headquarters in the US to the new base in China is an internal process that will depend on the logistics and manufacturing capability of the firm. This will be covered in the project scope after looking at the activity resource estimation, the project time estimations and the estimation of the project cost. Once the aspects of the project management i.e. scope, time and cost have been discussed, options weighed and decisions reached by the top managers’ transport of products to China. As it is discussed in the Nanotech case, its products such as the patch is feather-like light therefore the most appropriate mode of transportation for these products to China will be air transport as the patch will easily be allowed by the customs to be fitted in cargo planes and transported to the new warehouses also air transport is quicker than any other mode of transport hence regardless of the time scope for the project the products will be readily available for them to be introduced into the market and considering the distance cheaper as rail and road transportation will have an extra cost for fuel therefore it will be the cost-effective transporting mode to use.4. Storage of the products there will be catered for through the funds set aside in the budget. Scope will be determined by the market way of entry sought fit hence also the warehouses for storage of these products will be determined either they will be vast all over China or minimal and targeting certain areas depending on market evaluation. Due to their software engineering, the patches may need to be transported and stored under certain specifications to avoid destroying them in any way, it is an advantage they are not perishable. However, the logistics and supply chain managers must be prepared for high or low demand once the products have hit the market as the entry stage is most crucial and will determine if the products will be profitable or not. Another key issue here is the legal issue the transporting and storing have to be done legally, and this can only be insured by making sure information acquired is legit. For Nanotech to be a multinational company it must keep its credentials so as also to enjoy the tax tariffs and benefits offered by both nations. The product as it is discussed in the case is feather-like light in weight and also extremely small in size. This characteristic is advantageous in that in the products can be stored in a small warehouse, but still accommodate a large number of the products as the volume to be covered is not much. The cost can be cut in storage as not much money will be spent in setting up storage space since the product cannot take up a lot of space. Products from Nanotech to the end user being their customers in China will highly rely upon the mode of distribution used. Previously Nanotech has been using network marketing as its business model and distribution strategy. It is a marketing strategy where a sales and marketing team is recruited by an organization and is compensated by the organization for the sales they personally generate, but also are expected to recruit another team for sales and from the revenue this team brings to the organization they also are reimbursed for this therefore, it is a kind of referral selling strategy by having access to the sales people networks that the company otherwise would not reach with normal traditional online or offline marketing methods. It is seen as a pyramid selling strategy and also is slow in profit generation but still the most effective especially in a foreign operation. The firm has a competitive advantage in that in the US it has a good supplier-distributor relationship hence it can use this advantage to penetrate the Chinese market through first effectively advertising its products to the distributors first and making it lucrative for them by adding other advantages on the already existing benefits normally provided to the distributors by Nanotech. The product being new and also the in thing in the market as technology takes over will hold a darned good chance in entering the market. Also it may experience market monopoly as its competitors have not yet entered this market and buying these products directly in China than importing them will be seen as a more realistic and cost effective mode of acquisition. The organization can also tap the mass market by both direct and indirect sales; this may be by first opening shops to distribute their products making sure they are readily available with the best sales people to undertake this then later they can go into partnerships with other firms in the country that participate in the same or related fields. This way they can ensure broad spread of their products and amass profits from this project. With the system that Nanotech had already developed for distributors that gave them many benefits among them being unlimited global market in each category and free professional website in multiple languages then growth in the Chinese market must not be a problem as exposure in the market and product communication is already handled efficiently for any existing or interested distributors in the region.5 Although the distributors are reluctant about investing in inventory, with the help of Nanotech this can be solved by giving them incentive and also support hence curbing the problem of having delays in products reaching the end-user. They can invest in having inventory in plenty as long as the distributors are many and getting good market and they will find it revenue generating. With the increase of technology use and innovation, Nanotech can continue using their online distribution method and also expound it in such a way that the clients himself can directly order for a product with terms and conditions applying to ensure security and payments are fully made this way encouraging even the customers against network selling because of trust or such reasons. Nanotech will also find such a client is not subconscious about pricing and will probably be interested with more than just a single product as long as the information is properly provided and products can promptly reach the client immediately the order is made. In conclusion, having tackled transportation for the first batch and also storing it in the region at their preferred location the organization can set up Nanotech china which can partner with interested parties in the corporate market for example those selling health related products may be interested in the diet or pain patch and those in the technical filed also may find something they can use. These corporate market individuals can then recruit their people who can carry out direct sales or they can act as distributors for Nanotech. In the mass market, Nanotech can ensure their clients get their products either directly or indirectly. Directly by setting up shop where the inventory is stored or indirectly by recruiting its own sales force. Figure1.10 flow diagram on distribution of the products from the company to the customer/end user Works Cited 1. Jabad Feiz Abadi. Operations and Supply Chain Management. Malaysia Institute for Supply chain Innovation, 1979. Print. 2. Peteraf M. The cornerstones of competitive advantage: a resource-based view. Strategic Management Journal. 1992. Print 3. Lambert D. M. An Evaluation of Process-Oriented Supply Chain Management Frameworks. Journal of business Logistics. 2006. Print. 4. NANOTECH Inc. Case. 5. NANOTECH Addendum. Read More