Why is a manufacturing company which adheres to a world class approach better able to succeed in the contemporary corporate environment? How is world class status achieved?
The contemporary corporate environment is hugely different from what the corporate environment used to be in the past. Now the corporate environment is highly competitive, volatile and information is easily available to everyone including the customers. Over the years customers have become more demanding and they are clear about what they want and what they don’t want. They don’t want to settle for anything different from their needs and wants.
Markets are more fragmented in the contemporary corporate environment. There is a lot of volatility in the market. This is due to continuous improvements and changes in technology which has a huge impact on the production process of companies in the contemporary corporate environment. Many products now have much shorter product life cycles in the contemporary corporate environment. Prices and costs of products are also fluctuating a lot due to the volatile corporate environment. Companies have to keep selling prices low since there is too much competition in the market. The more competitors there are the more difficult it is for companies to survive since they have to make sure they offer the customers something better in quality as well as price than their competitors.
Companies adhering to world class manufacturing (WCM) are better able to succeed in the contemporary corporate environment. This is because adhering to WCM allows companies to be more competitive in the market. WCM focuses more on what the customers want rather than what the company can offer the customers. Under WCM products are made to meet exactly the needs of the customers rather than something similar to what they want. WCM allows companies to be more customers focused and know exactly what they want. This is achieved by putting more resources into market research and...
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