Contemporary Management Technique
Contemporary Management Technique
John Doe
ACME University
Accounting and Decisions
Dr. Jane Doe
December 11, 2011
Introduction
Gaining a competitive advantage in today’s business world can be challenging for any organization. The success of an organization may be measured from its critical success factors. According to Blocher, Stout, & Cokins (2010), critical success factors (CSF), sometimes referred as value propositions, represents the critical process in an organization that delivers value to customers (p. 35). An executive committee responsible for developing the vision and mission statements of an organization must understand what value is. Value is the “worth in usefulness or importance to the possessor; utility or merit” (Camlek, 2010, p. 119). It is vital for an organization to have the ability to demonstrate value for their product or service. Camlek (2010) propose a value proposition:
“…will state the measurable value or tangible customer benefits that a product or service will provide to its customers and will illustrate the return on the investment or other tangible positive outcomes of choosing a particular service provider over its competitors” (p. 119).
In order for an organization to become successful, they must demonstrate one of the following three value approaches, such as operational excellence, customer intimacy, or product leadership (Camlek, 2010). For the purposes of this research project and referencing back to the Individual Learning Project One (ILP1), the author explores the value approach of operational excellence because it is based on cost leadership. Remember, in ILP1, ACME, Inc , Inc. (ACME, Inc) strived to gain competitive advantage over other government contractors through cost leadership. Cost leadership is a competitive strategy in which an organization provides services, or develops products at the lowest possible cost (Blocher, Stout, & Cokins, 2010). When an organization accomplishes this type of strategy,
John Doe
ACME University
Accounting and Decisions
Dr. Jane Doe
December 11, 2011
Introduction
Gaining a competitive advantage in today’s business world can be challenging for any organization. The success of an organization may be measured from its critical success factors. According to Blocher, Stout, & Cokins (2010), critical success factors (CSF), sometimes referred as value propositions, represents the critical process in an organization that delivers value to customers (p. 35). An executive committee responsible for developing the vision and mission statements of an organization must understand what value is. Value is the “worth in usefulness or importance to the possessor; utility or merit” (Camlek, 2010, p. 119). It is vital for an organization to have the ability to demonstrate value for their product or service. Camlek (2010) propose a value proposition:
“…will state the measurable value or tangible customer benefits that a product or service will provide to its customers and will illustrate the return on the investment or other tangible positive outcomes of choosing a particular service provider over its competitors” (p. 119).
In order for an organization to become successful, they must demonstrate one of the following three value approaches, such as operational excellence, customer intimacy, or product leadership (Camlek, 2010). For the purposes of this research project and referencing back to the Individual Learning Project One (ILP1), the author explores the value approach of operational excellence because it is based on cost leadership. Remember, in ILP1, ACME, Inc , Inc. (ACME, Inc) strived to gain competitive advantage over other government contractors through cost leadership. Cost leadership is a competitive strategy in which an organization provides services, or develops products at the lowest possible cost (Blocher, Stout, & Cokins, 2010). When an organization accomplishes this type of strategy,
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