Management case study, weaknesses
The weaknesses are the factors that can be controlled by the management yet slow the organization’s ability to obtain or maintain a competitive advantage. The two weaknesses as in this case study is inadequate technology and skills and the poor business physical location. Organizational weaknesses deter a business growth and reduce the product or service value. The organizational weaknesses also thwart a company form achieving its objectives and missions. The lack of technology slows down business communication, interactions between the company and market, and entry of the new market. The lack of technology also deters the company from gaining a competitive advantage over its competitors. It is through technology that that communication is an organization is enhanced. For instance emails are a means of sending instant messages with or little interruption to the recipient. Technology also helps in product improvement and invention of new products in the market. Limited technology therefore prevents a company from growing.
Technology also helps in a company product’s marketing. Majority of the modern marketing are internet based. Technology has helped business operate globally and all businesses are able to operate in any market through internet. In this case study, the business lacks website and so cannot fully operate in all market segments and thus its weakness.
The three market structure types are: Free market, Oligopoly, and Monopoly. In the free market structure, there is perfect and free competition. A free market is characterized by the policy that profit maximization is increasing the difference between revenue and production cost. Suppose a company can ensure it minimizes its production cost and maximize its revenue then the company is maximizing the profit. In other words, profit maximization is achieved suppose a company’s revenue is greater than the production cost.
In the free market structure, product maximization can be achieved by decreasing production cost or increasing the market price of product and services. However, since there is perfect competition in free market, a company would lose its market share by increasing its price. The company has therefore to reduce its production cost and this can be done by using latest technologies. The other method for reducing the production cost is through having direct access to the market where middle men are reduced. The other way of profit maximization is through increased sales and this can be achieved by increasing distribution and marketing to cover the whole market. The increased distribution leads to increased sales. Marketing ensures customers are aware of the product and the advantages customers get form the product or services are clearly spelt.