Choose three sources of competitive advantage (cost, innovation, etc.). After you identify your sources of competitive advantage, identify the potential strategic performance drivers that are critical for realizing those sources of competitive advantage. How does how you manage employees affect your ability to achieve those strategic performance drivers?
The three sources of competitive advantage I chose are cost, focus, and development. With cost and the potential performance drivers that are critical for realizing those sources of competitive advantage is that we have the machines to make the products for less in production cost than any other company in the market. The second is focus, the reason I chose focus is that we are the leaders in the market and we are focused on the end results and getting the products to the consumer. Lastly, is development, development is the fact that we have ideas and our machines are ahead of the competition in order to remain focused and prevent a high production cost. The way I manage the employees affects the employee’s ability to achieve those strategic performance drivers because I have to let them grow. I also have to teach them too so that they can perform their jobs to the standards of the company.
Lepak, D., & Gowan, M. (2017). Human Resource Management: Managing Employees for Competitive Advantage 3rd Edition. Chicago: Chicago Business Press.
Three sources of competitive advantage are low costs, product quality and customer service. If any firm can effectively manage these three elements it would allow them to corner any market that they are competitive in. When companies operate with the notion of economy of scale customers win. The firm has to be able to pay the lowest price possible to pass on the savings to the consumers without losing money themselves. When products have been quality tested there is somewhat of an assurance that it will last long enough that the customer will be able to get the value out of that they are looking for. The firm that sells this product has to somewhat back this product to a point, the fact that it is on the shelf shows support for the product. Customer service is for sure one of the most important elements for the firm to stay in business. Customers have expectations that if they are spending their money on the items that the firm is offering for sale well there needs to be support if anything doe not meet the customer’s preconceived notion of appropriate actions.
A competitive advantage when it comes to Human Resources is when the primary asset (humans) is utilized for gains for a firm over all competitors. Employees have tons of value that they add to the organizations that they are employed by. How do we get the employee to ensure we get our products at a low cost, quality is at or above standard and that customer service meets or exceeds the customers’ expectations? Training is the number one way in which we maintain the organizational standards set forth by leadership. There is a need to constantly follow up and opportunities to teach coach and mentor employees. Its dependent upon the culture of training the appropriate methods to maintain and attempt to exceed the standards set forth in the firm.
The company name that comes to mind with these elements is Walmart. I for one have expectations as a customer at Walmart. I expect to get the lowest price that the product doesn’t break as soon as I take it out of the bag and that I am greeted walking in and walking out of the store. These elements do not just come about by chance either. Walmart has to have a program that trains their employees on how to effectively manage these elements to gain a competitive advantage. It is obviously working for them because they posted the largest revenue of all companies for the last couple of years with $514 billion in 2019 so far.
Lepak, D., & Gowan, M. (2017). Human Resource Management: Managing Employees for Competitive Advantage 3rd Edition. Chicago: Chicago Business Press
Faisal Kahn, World’s 100 Largest Companies by Revenue in 2019, August 2019 https://medium.com/technicity/worlds-100-largest-companies-by-revenue-in-2019-d6d53dd1851d (Links to an external site.)
Edited by Stephen Dobles on Dec 10 at 7:09pm
Three competitive advantages I have chose would be cost, focus and differentiation. A competitive advantage is, “distinguishes a company from it’s competitors, it continues to higher prices,, more customers and brand loyalty.” (CFI, 2019). With cost the potential strategic performance drivers is important in making products for a lower cost rather than another company making the products for more. Focus is, “a company focuses it’s products or services towards a narrow-target market segment.”(CFI, 2019). The potential strategic performance drivers that is critical for those realizing those sources of competitive advantage would be customers have different views in what the want and need for the company. The company must be able to create products that are specifically for them. There is two types of focus there is cost focus and differentiation focus. Differentiation focus is, “differentiated products/services in a narrow market segment.” (CFI, 2019). Managing employees affect your ability to achieve those strategic performance drivers by wanting them to perform all policies and standards correctly. This is why it’s important to train them to what the standards that need to be met with you company guidelines. You want employees to grow for the company and wanting to increase your profits to increase competitive advantage. An example for competitive advantage in the market place would be Petsmart offering price match guarantee, this would be on cost leadership strategic. Another competitive source that is important is focus. Focus is the attention that is given by the firm will determined how the companies goals will achieved. Competitive advantage is very important to the company and is needed when you want the company to survive.
CFI, (2019) “Competitive Advantage” Retrieved from: https://corporatefinanceinstitute.com/resources/knowledge/strategy/competitive-advantage/