Cbmec
Cbmec
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7. References
According to the report of the BASC (Business Advisory Service Center) there are some basic
causes of poor local and global competitiveness of Bangladeshi firms or companies. The decision-making
process of these companies is based on short term horizons which results in under investment in
research and development. They failed to recognize the threats posed by foreign competitors, neglected
the manufacturing function relative to other functional areas of the company and under invested in
physical and human capital. There is a lack of cooperation among departments within firms that led to
too little communication among marketing, product design, process design engineering and
manufacturing. Consequently, firms have ended up with products unsuitable to customer needs or
wants, products that needed redesigning, products unsuitable to the manufacturing capabilities of an
organization, and products lacking sufficient quality to be competitive in the market place. Moreover,
most of the companies or firms have the tendency to view labor as a cost factor to be minimized instead
of a valuable resource underestimating the importance of training, motivation and adaptability. Finally,
there are some weaknesses in technological practice, often characterized by emphasizing rapidly to the
market, and subsequently, to a loss of market position.
Case questions
1. As a manager, do you agree with the causes of poor competitiveness traced out by the BASC? If
yes, then how will you handle the problems to overcome the situation? If no, then give reasons to
support your opinion.
2. Define your production/operation strategy. Describe how your strategy leads your organization
to a competitive advantage.
and their promotional endeavors had failed miserably. Due to the huge capital already invested, they
were unable to stop production, and cut their losses.
Question:
1. What was the problem with top management’s mission? How should they
As the business team sits at their round conference table, Rita brings up an issue now near to her heart.
She has just become engaged to Duke, who works for Pepsi Co. Duke is worried about his new job.
Coke’s CEO Robert Goizueta has created more wealth for shareholders than any CEO in history with the
single focused strategy of making Coke the domestic and international drink. On the other hand, Pepsi is
a conglomerate with domestic and international drinks; restaurants such as Sonargaon, Sheraton,
Sundarban, and Pizza Hut etc; Bottling operations. While Coke has been focused on selling Coke, Pepsi
has diversified, pouring billions of dollars into other capital-intensive business. Some think Pepsi has lost
the cola wars, both in Bangladesh and overseas. Duke wants the team’s advise about what strategic help
he can give his new boss.
Questions:
1. Taking the steps in the strategic process in order, what advice do you think the team should give
Duke?
2. What factor do you think have led Pepsi to choose its strategy instead of Coke’s strategy?
3. What strategic planning changes would you recommend to Pepsi and why?