Porter's differentiation strategy and total quality management implementation

Improvement in an Organization That Can Benefit a Customer

An improvement to the organization, which will benefit the customer

The best porter's generic strategy is the distinction strategy; this will help the business to differentiate its service delivery in some way that will help to attract customers. This will overcome the wave of supernumerary services and challenger access. This strategy is the best because it will allow the company to institute changes in line with the desired technological requirements. At this point, differentiation of products and services will increase entrance obstacles in terms of technology and other technical requirements and thus eliminate the threat of new entrants. In other terms, a distinctive product or service will also attract clients and reduce the threat of alternative or substitute service provision (Henderson, 2011).

The selected strategic business approach relates with the business components. This is suitable because it goes in line with the porter's standard (generic) policy. In this case, the differentiation strategy will apply to the organizational components in a way that will make the products and services offered more distinctive and attractive to customers who visit or access the business outlets. This will be achieved by focusing on the introduction of technological changes. In the acquisition of information concerning products and services, payment, client records, mode of services available, and the schedules established. A card reader will be associated with the website creation: it will facilitate easy membership identification and follow-up. It will give a channel for marketing the company and the products/services offered while providing a means through which products/services can reach many clients, in a short span of time (McLaughlin, Johnson & Sollecito, 2012).

The quality improvement approaches used to implement this improvement, how these approaches are planned, and their effectiveness

The concept of Total Quality Management (TQM) is founded on the guidelines provided by the American management consultants. The business has embraced this concept thus becoming successful in acquiring premium prize of excellence manufacturing. In general, the company has adopted the concept of total quality management in marketing to understand and deliver customer expectations. This exclusive approach seeks to achieve customer satisfaction. Evidently, the company has generated growth in various departments dealing with production and service delivery (Henderson, 2011).

The business process of the company involves access to products and services; this is whereby, the process of retrieving customer records while checking in or out and the payment of accessed services. These processes are slow and confusing because they utilize manual recording procedure. Implementation of TQM will allow easy access of records, through a simple card reading process. Therefore, through website-based record checking, clients themselves may have a chance to locate their information. Reservation or booking of services and review of schedules may be done online and products will be accessed on the website where the process of marketing the business will utilize the easiest online access (Baker & Powell, 2005).

The proposed improvement will employ card reading to deliver products and services as customers access the company's services, right from the entry point. Electronic payment systems will be incorporated in the business, where easily and faster receipt issuing will be facilitated. New clients will no longer need to visit the business physically and acquire what they need; they may only fill out online forms that are downloadable on the website. The main or major hardware components will include a card reader, a server for the website application, a number of computers in the company (Maher, Stickney & Weil, 2008). The employees and a few customers to access predefined data will use these PCs at numerous sites in the buildings. The other hardware is external storage or backup devices for safety of client and the business data.

Various 'software' and 'software applications' will be availed conferring to the purposes desired at the business premise. Because the employees complained earlier of lack of internet connectivity, the business will ensure this is part of the technological change. In addition, the 'internet' will be fully fitted in all reachable areas of the business locations. As discussed earlier, the proposed technology will make it easy to access services through a card reader, and through online service check and new client registration. Through the new technology, the strategic objective of the business, which is to make its products and services distinctive will be achieved through the application of card reading, online marketing and product check, an easy online marketing as well as online client interaction: therefore, this will be in line with Porter's generic strategy (Anderson, 2011).

The selected daily process is the service access through the Internet and client identification and registration process. This call for the stakeholders to devise ways of creating an interactive website; where the clients are to gain access to products or various services offered and other additional materials on the created website to embrace advances in information technology. Website service access will be of assistance in many ways in processing every detail of new clients and existing customers in an easy and dependable way. It will also help in the reclamation of customer records easily. Everybody who has a computer will easily access a website page in a convenient manner. This will form the foundation to engage in social media at later stages to connect clients effectively. In this case, the management can seek innovative ideas from customers on what they think is better in terms of services and products provided by the company (Russell & ASQ Quality Audit Division, 2005).

The introduction of the information technology systems has led to effective service delivery and better customer care. Many clients access the services from different points and access different information and services at the same time without any delay. This will be possible through a website that has all the necessary links to important data and service access. It would also in later days, incorporate idea generation processes, which will allow the creation of corrective actions that involve clients as well as enable client socialization through some form of social media. The arrangement will deliver easy commercial competence that may reach many people, even new clients in a short span of time (Maher, Stickney & Weil, 2008).

Cost definition and allocation

Costs are generally easy to assess. The cost of a particular piece of equipment will be available from the supplier and the cost of an extra member of staff should be available through the personnel function of the organization. The costs the company needs to consider will generally fall into three categories:

• The cost of obtaining the resource: This includes purchase price, installation price etc., and in the case of personnel, it will include the cost of conducting interviews and providing training.

• The cost of using a resource: This may include running costs of machines, maintenance and service costs and for staff it will include salaries and expenses.

Financial evaluation techniques

In management accounting, a set of tools have been proven as effective in making informed management decisions involving cost and revenue data. While most techniques seem to be naturally simple, they have shown to be of immense value. This section has focused on qualitative and systems financial evaluation techniques.

Quantitative Approaches

Quantitative approaches to decision-making attempt to acquire mathematical solutions to managerial challenges. Mathematical techniques and linear programming are widely applied for optimal distribution of scarce resources. Queuing techniques can be applied to analyze situations that involve forms of waiting lines. Inventory models are often effective in controlling inventories. Project models like program review and evaluation techniques and critical path mechanisms are appropriate in planning, controlling, and coordinating large-scale projects. Techniques of forecasting are useful in scheduling and planning. Currently, statistical models can be applied in various decision-making areas (Helfert, 2007).

Quantitative techniques enable the management to make decisions in financial management and other functional areas that utilize high-speed computers handling the required calculations. Computers have a great impact on financial management operations. In addition, the increase in availability of software offering quantitative techniques has enhanced the utilization of computers in financial management. Because quantitative approaches have received extra emphasis in light of financial management decision making, it is necessary to acknowledge that managers can apply both quantitative and systemic approaches. However, most financial decisions are guided by the f principles of quantitative approaches (Russell & ASQ Quality Audit Division, 2005).

A Systems Approach

A systems approach is often beneficial in financial decision-making. A system if defined as a collection of interrelated sections that collaborate. In business institutions, the business can be described as a system made up of subsystems comprising of finance subsystem, operations subsystem and marketing subsystem. In turn, the organization comprises of lower subsystems. Therefore, from the systems perspective, the objectives and output of an organization as an entity precedes those of the single subsystems. Alternatively, an organization can focus on efficiency under the subsystems thus achieving overall efficiency. However, this strategy overlooks the fact that businesses must function in a climate where resources are scarce. This allows subsystems to compete for these resources directly. Therefore, this calls for an orderly approach to resource allocation (Abraham, 2008).

A systems technique is useful where something is being re-designed, designed, changed, or improved. It is essential to consider the impacts of all the subsystems. For instance, if the new model will add more benefits, the organization must consider customers' perceptions on the changes, chances of misusing the new developments and procedures for use. Additionally, employees need training on how to use the new applications, procedures of inventory must change, quality standards must be well established. Adverts should be developed to portray the new developments. In addition, suppliers will have to be reviewed and select the best (Anderson, 2011).

Outsourcing and global competition have led to the rise in the length of value chains. This has made it more important than before for companies using systems approach to embrace the bigger picture in their decision-making. Companies are facing financial difficulties brought about by ethical behaviors of the high-ranking company managers. In making an informed decision, it is crucial to consider how decision will influence the environment, customers, employees, management, and shareholders. Choosing decisions that will fulfill the interests of all the above stakeholders has proven to be challenging. However, all managers must strive to achieve this goal. Moreover, even the best managers are prone to make mistakes. In case of a mistake, managers must act responsibly to reverse the mistake quickly and address the negative impacts. Like all managers, financial managers are charged with making ethical decisions (McLaughlin & Kaluzny, 2006).