Reasons Why A Organization Can Fail Business Essay Example
Reasons Why A Organization Can Fail Business Essay Example

Reasons Why A Organization Can Fail Business Essay Example

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  • Pages: 7 (1781 words)
  • Published: October 4, 2017
  • Type: Research Paper
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There are various universal reasons why organizations fail to achieve a competitive advantage and lose to their rivals, including in Pakistan. For one, organizations often prioritize short-term financial performance over social responsibility and employee motivation, ultimately leading to failure. Moreover, organizations neglect successful strategies and core competencies when they fail to take advantage of their strengths and opportunities. At times, a change in leadership causes organizations to abandon their core competency for the sake of glory and high profits, resulting in downfall.

In addition, organizations fail when they overlook competitive threats; instead of introducing new products or services or innovating existing ones, organizations choose to maintain the status quo. Consequently, this leads to reduced customer satisfaction and declining profits. Lastly, failing to pay attention to operations strategy is another significant reason for failure; by disregarding this aspect, organizations find th

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emselves using unproductive techniques that result in inconsistent and failed operations.

The lack of an Operations Strategy also results in a focus on product and service design at the expense of improvement. In the 1980s, American companies distinguished themselves from Japanese competitors by making significant changes rather than small refinements which resulted in losses.
Neglecting investments in capital and human resources displays a complete disregard for an organization's most valuable assets, which can ultimately determine its success or failure. Insufficient internal communication may arise due to a hierarchical or matrix organizational structure. Failing to consider customer wants and needs reveals a lack of marketing research skills and indifference towards Customer Relationship Management.

For a Pakistani automobile manufacturer, the strategic concept revolves around providing high-quality vehicles for individuals and businesses in Pakistan while ensuring safe transportation. The mission is to

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supply utility and heavy equipment mobiles. Tactics involve implementing Total Quality Management (TQM) methods to execute various strategies.

The considered strategies are as follows:
1. Low cost (Cost Leadership/Economical)
2. Scale-based schemes (Critical Value)
3. Specialization (Specific features)
4. Flexible operations (Modifying production designs on the same foundation)
5. High quality (Exceeding client demands and satisfaction)
6. Service (Meeting minimum standard specifications)

The specific attributes or capabilities that give an organization a competitive advantage include Price, Quality, Time, Flexibility, and Service; these factors must be taken into account when determining the location of quality.

(Note: The text ends abruptly here, so it is not possible to provide further while preserving the .)Atlas car company incorporates these determinants into their TQM philosophy: quality of design, conformity, ease of use, and service after delivery. Poor quality can result in consequences such as loss of concern (decline in sales, revenues, and customer base), liability (the risk of being taken to court by dissatisfied customers), productivity loss (additional time required for rectification), and increased costs. During the development stage, Atlas Auto Mobile recognizes the significance of organizing employees and labor as they contribute significantly to further progress. The necessary tools, resources, and systems are crucial for this purpose. However, it is understood that an effective operations strategy can provide a competitive advantage. Operational research now includes more than just operations; it also encompasses equipment procurement, training, logistics, and infrastructure due to advancements and awareness in the field. Therefore, Atlas directors must reconsider their previous principles of good operations management for current success. Companies should tailor their improvement strategies based on the specific needs of their organization at any given point in its lifecycle before implementing changes. Prior

to implementation,
Atlas emphasizes conducting a SWOT analysis as an important step. While delegating tasks to teams may not always be optimal,
assigning them to talented individuals can sometimes be more effective.
Operational failures are common in all industries, ranging from minor inconveniences to major disasters. Managers should encourage frontline workers to solve problems that arise from these failures. In the healthcare industry, operational failures occur frequently. Some organizations voluntarily report incidents to incident reporting systems for organizational learning. The response and resolution of operational failures depend on the level of risk and management's commitment to addressing them. This study's findings can help organizations enhance their incident reporting systems for improved operational performance.

Performance criterion:

To meet performance standards, certain terms are crucial, along with the three familiar ones. It is important to implement these terms when necessary. One such term is competitiveness in Pakistan's car mobile market, which is challenging due to its maturity. Atlas needs a new product that will be easily accepted. Effective communication with the audience is vital for success in this endeavor.The strategy also plays a key role in implementing plans and allocating resources correctly.Unfortunately, Atlas failed to communicate its product effectively due to a lack of proper strategy formulationProductivity, the measurement of output-to-input ratio, necessitates ongoing improvement and monitoring from both managers and staff. The management of human resources presents specific challenges in the pursuit of productivity goals. The Atlas car company encounters difficulties in overseeing performance objectives, particularly cost, as it directly affects income.

Undertaking 3 Organization's public presentation:

Businesses traditionally compete against one another, resulting in a variety of markets for almost all products and services. While absolute monopoly and perfect competition markets are

rare, businesses strive to avoid perfect competition and instead aim for absolute monopoly to eliminate competition and influence customer opinions. The following are common ways that organizations can compete against others:

1.Price: Lower prices attract more customers, provided the product or service meets their needs.
2.Quality, Velocity, Dependability, and Flexibility: Efficient management of these factors can reduce operational costs and result in customer satisfaction. It is the responsibility of the operation manager to facilitate communication between the operation department and front-line staff to meet customer demands. Time serves as a value-added service that generates profit for the company. Flexibility enables the organization to adapt to market changes effectively and fulfill customer demands efficiently.Consistency is crucial for managers to ensure integration and interrelation of all factors of production, necessitating strong relationships among them. It is highly recommended that managers strictly adhere to tools, resources, and systems mentioned above in order to secure future growth for the company.

Quality: The product or service provided to customers maintains superior quality through the use of excellent materials and skilled workmanship. Quality is always offered without any additional cost.

3. Product Differentiation: To enhance customer appeal, special features are incorporated into the product or service. For instance, a car manufacturer may provide a GPS system at an extra cost for selected customers.

4. Flexibility: Flexibility refers to adaptability and responsiveness to changes. This can include adding GPS devices to all cars based on sales fluctuations. Time also plays a role in terms of order placement, delivery duration, and resolving defects or errors.

Assessing Organization's Performance based on Clients and Stakeholders' Demands:

The performance evaluation of an organization considers factors indicating its ability to meet clients' and stakeholders’

demands. However, assessing company performance can be challenging due to differing stakeholder objectives.

Customer:

Customers evaluate performance based on qualities like quality, speed, flexibility relative to the price they are willing to pay. This presents an opportunity for attracting customers towards our product.

Employees:

Employee performance is measured based on bonuses, incentives, and additional benefits that directly correspond with the organization's profits and earnings.

Competitors:

Competing businesses gauge performance through factors such as market share, product variety, and customer loyalty. A company's value is determined by comparing its equity to that of its rivals.

Suppliers:

By evaluating supplier performance and monitoring raw material demand, a company can boost sales and make timely payments to suppliers.

Government:

The government assesses a company's performance by scrutinizing tax payments and adherence to ethical standards. Complying with regulations is of utmost importance to the government.All stakeholders share a vested interest in the success of the organization. Recommendations for improving alignment with organizational objectives and goals include hiring a team of industry advisors to thoroughly evaluate business operations, avoiding reliance on one person alone to minimize human errors in measuring operations, ensuring that production capacity and layout design meet organizational demands in an automobile company, precisely monitoring and predicting transportation time and costs, and efficiently recycling waste materials by collaborating with other organizations or finding buyers for the waste.

To achieve these recommendations:
- Deciding on the most efficient methods and processes for production is crucial.
- Establishing a timeline and schedule for production activities is necessary.
- Allocating resources and determining the location of production facilities is important.
- Identifying the necessary workforce and their roles in the production process is essential.

It is imperative to understand the

goals and objectives of the organization in order to work accordingly and meet standards. Additionally, addressing sudden demand fluctuations can be achieved by identifying when goods are needed, scheduling, and ordering more inventory. Selecting an appropriate location for production while ensuring adequate raw materials are available can help fulfill unexpected variations in demand.

This text highlights measures that are beneficial and effective for an Operations Manager.These measures have several advantages including being user-friendly and cost-effective. They also require users to have organizational skills and utilize a systematic problem-solving approach. Additionally, they enhance understanding of problems and enable exploration of "what if" scenarios. Furthermore, these measures have specific aims and serve as consistent tools with standardized mathematical formats.

Managers need to carefully consider implementing new ideas in the organization because changes, whether positive or negative, can bring initial challenges. However, effectively managing these changes can lead to success within the organization. Implementing such changes requires ample resources, skills, and thorough research which includes conducting SWOT and TOWS analyses to ensure profitability and overall improvement in all aspects of the organization.

For Atlas Company, it is recommended to implement backward integration as an approach. This will help decrease input costs and increase net income while enhancing the quality of goods to meet the same standards that are currently lacking in providing after-sale services.

Pakistan is currently undergoing transformations in demographics, economy, and social norms that result in growth in the service sector. Value addition involves converting raw materials into finished goods or services and is measured by the difference between their costs. The revenue generated from selling goods improves existing products or services, invests in research and development activities, as well

as acquires new facilities and equipment.The reduction of non-value adding operations leads to lower storage and inventory costs while increasing value addition. Accurate information is essential for both the operations department and design department to carry out their tasks successfully. Effective communication between departments plays a vital role in achieving organizational success. Ultimately, Atlas should formulate a strategy to improve its supply chain management, service, and production levels.

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