Michael Hill
Assessment 1B
MGMT.7930
Tutor: Neihana Jacob
Due Date: 4/4/12
Word Count: 1234
In 1979, Michael Hill started Michael Hill Jewellers (MHJ) after 20 years of working in his uncle’s jewellery store. Doing away with the usual giftware items and the more formal atmosphere, his strategy was to make shopping for jewellery more accessible to the public. One strength of the company is the strict use of the Friedman Group’s sales techniques. This allows the staff to maximise conversion rates and increase sales. One threat to MHJ is that another company can easily enter the market that may be able to overtake Michael Hill as one of the leading jewellers in New Zealand. Through an internal environmental analysis, the strengths and weaknesses of the company can be identified and acted upon. The strengths can be perfected or improved on and weaknesses can be remedied.
Resources, Capabilities and Core Competencies
A tangible resource is “an asset that can be seen or quantified”. (Hanson, Hitt, Ireland, & Hoskisson, 2011, p. 76) One tangible resource belonging to Michael Hill is the equipment used to manufacture the jewellery. An intangible resource can’t be seen or touched but is usually more important in developing core competencies as it is harder for competitors to understand and replicate. One intangible resource belonging to Michael Hill is their comprehensive salesperson training. (Clark, 1998, p. 41)
A capability is when “resources have been integrated to achieve a specific task.” (Hanson, Hitt, Ireland, & Hoskisson, 2011, p. 79) One such capability is the ability to create jewellery that is durable. Michael Hill uses their experience, knowledge, equipment, access to raw materials, etc. To create items of jeweller that will last. Another example is the motivation of its employees through various incentives and rewards. This uses the resources of staff, training, and capital to help improve the performance of its salespeople. (Clark, 1998, p. 43)
A
MGMT.7930
Tutor: Neihana Jacob
Due Date: 4/4/12
Word Count: 1234
In 1979, Michael Hill started Michael Hill Jewellers (MHJ) after 20 years of working in his uncle’s jewellery store. Doing away with the usual giftware items and the more formal atmosphere, his strategy was to make shopping for jewellery more accessible to the public. One strength of the company is the strict use of the Friedman Group’s sales techniques. This allows the staff to maximise conversion rates and increase sales. One threat to MHJ is that another company can easily enter the market that may be able to overtake Michael Hill as one of the leading jewellers in New Zealand. Through an internal environmental analysis, the strengths and weaknesses of the company can be identified and acted upon. The strengths can be perfected or improved on and weaknesses can be remedied.
Resources, Capabilities and Core Competencies
A tangible resource is “an asset that can be seen or quantified”. (Hanson, Hitt, Ireland, & Hoskisson, 2011, p. 76) One tangible resource belonging to Michael Hill is the equipment used to manufacture the jewellery. An intangible resource can’t be seen or touched but is usually more important in developing core competencies as it is harder for competitors to understand and replicate. One intangible resource belonging to Michael Hill is their comprehensive salesperson training. (Clark, 1998, p. 41)
A capability is when “resources have been integrated to achieve a specific task.” (Hanson, Hitt, Ireland, & Hoskisson, 2011, p. 79) One such capability is the ability to create jewellery that is durable. Michael Hill uses their experience, knowledge, equipment, access to raw materials, etc. To create items of jeweller that will last. Another example is the motivation of its employees through various incentives and rewards. This uses the resources of staff, training, and capital to help improve the performance of its salespeople. (Clark, 1998, p. 43)
A