Their strategy is focus on specification. They take order specifications from clients. In such a case, they are not in competition with the mass producers. This strategy requires innovation and time. However, two orders can be very different requiring different expertise.
At our business level, the strategic management process includes activities that range from appraising the organizations current mission and goals to strategic evaluation. Given the level of competition in the furniture market, they should state their goals more precisely reflecting the volatility of the market. This first step is for senior mangers evaluating their position in relation to current mission and goals.
Environment analysis looks at strengths and weaknesses the companies are facing. Use of SWOT analysis is very important. Competition is tight and a company should know its strong points, weak points, opportunities and threats. Some of these are external and internal. Bench hill and sons strong points are its ability to be a cost leader and the threat is the raging competition in the market.
Strategy formulation involves senior managers evaluating interaction between strategic factors and working strategic choices that guider managers meet organizations goals. Some strategies are formulated at the corporate, business and specific functional levels.
Strategy implementation focuses on technique...
In particular, it refers to activities that deal with leadership styles, structure of organization, information and control systems and the management of human resources. Leadership is the most important and difficult part of strategic implementation process.
Strategy evaluation determines what extent the actual change and performance match desired change and performance.
Basing on Bench Hill and Sons
Bench hill and sons is pursuing a cost leadership strategy. It will reduce its cost because it enjoys economics of scale. That is it buys its inputs in bulk and such inputs are standard.
Furniture designs are kept simpler and this means they do not incur extra cost on design development.
However to remain competitive given the fact that other companies are adopting this strategy they need to reinforce the business strategy. Basing on human resource practices Benchill and sons should do the following.
Performance and Appraisal
The company should form a basis of measuring the performance. It can measure either internally or externally. Internally by comparing performance of other companies in the line of business. This can be achieved by bench marking. This way, the best practice is identified and company's performance is compared against it. Appraisal should be based on results obtained. However, it should be noted that such a best practice does not always operate in exact circumstances. Areas of improvements will then be identified and necessary corrective action taken.
Some companies use ABC analysis to measure the performance of the human resource. Such an analysis tends to have pre-determined targets to be achieved. Costs are assigned according to activities that are directly related to them. Nowadays may companied have