Thornton's Operations Strategy
Thornton’s operations
Analysis of strategic capability Thornton operates in a very volatile industry made up not only of fast moving consumer goods but one in which the consumer tastes and preferences continue changing continuously. Using Deal and Kennedy’s structure, the industry operates in one that has rapid feedback and low risk because of the fast moving nature of the goods. Effectively handling this kind of market according to Morden (2004) requires two elements which are a persistent management and a workforce that can keep up. The company’s competencies for that reason will be based on its ability to have a management that is consistent and one which is able to get the workforce to keep up. Before analyzing the company’s strategic capabilities, it is important to identify its critical success factors or those elements that will determine whether or not the business is successful. The company receives orders that fluctuate from season to season yet the customers demand a personalized service of products that are fresh. This makes it hard for the company to capitalize on economies of scale because the possibility of mass production is not possible. Central to the analysis of the company’s strategic capability is its core feature of vertical integration and whether it has helped the company to meet its critical success factors.
Vertical integration Thornton exercises total control over almost all the processes involved in the manufacture of its products and only outsources noncore elements. It is this total control that qualifies the firm’s process to be referred to as a vertically integrated process. The firm also has limited horizontal integration instances but that does not reduce the prominence of vertical integration. Jones & Hill (2009) give few advantages that come with vertical integration those that are relevant to Thornton meeting its required core competencies are improved scheduling and improved product quality. The customer in the company’s
Analysis of strategic capability Thornton operates in a very volatile industry made up not only of fast moving consumer goods but one in which the consumer tastes and preferences continue changing continuously. Using Deal and Kennedy’s structure, the industry operates in one that has rapid feedback and low risk because of the fast moving nature of the goods. Effectively handling this kind of market according to Morden (2004) requires two elements which are a persistent management and a workforce that can keep up. The company’s competencies for that reason will be based on its ability to have a management that is consistent and one which is able to get the workforce to keep up. Before analyzing the company’s strategic capabilities, it is important to identify its critical success factors or those elements that will determine whether or not the business is successful. The company receives orders that fluctuate from season to season yet the customers demand a personalized service of products that are fresh. This makes it hard for the company to capitalize on economies of scale because the possibility of mass production is not possible. Central to the analysis of the company’s strategic capability is its core feature of vertical integration and whether it has helped the company to meet its critical success factors.
Vertical integration Thornton exercises total control over almost all the processes involved in the manufacture of its products and only outsources noncore elements. It is this total control that qualifies the firm’s process to be referred to as a vertically integrated process. The firm also has limited horizontal integration instances but that does not reduce the prominence of vertical integration. Jones & Hill (2009) give few advantages that come with vertical integration those that are relevant to Thornton meeting its required core competencies are improved scheduling and improved product quality. The customer in the company’s
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