Question

8. Explain Diffusion of Innovation Theory.

9. Explain lean enterprise management, total quality management (TQM), and Six Sigma

10. .Explain Factors That Lead Firms to Seek Competitive Advantage and Explain that the five forces

Answer 1

Answer:-

8)ans)

Diffusion of Innovation (DOI) Theory:- developed by E.M. Rogers in 1962, is one of the oldest social science theories. It originated in communication to explain how, over time, an idea or product gains momentum and diffuses (or spreads) through a specific population or social system. The end result of this diffusion is that people, as part of a social system, adopt a new idea, behavior, or product. Adoption means that a person does something differently than what they had previously (i.e., purchase or use a new product, acquire and perform a new behavior, etc.). The key to adoption is that the person must perceive the idea, behavior, or product as new or innovative. It is through this that diffusion is possible.

Adoption of a new idea, behavior, or product (i.e., "innovation") does not happen simultaneously in a social system; rather it is a process whereby some people are more apt to adopt the innovation than others. Researchers have found that people who adopt an innovation early have different characteristics than people who adopt an innovation later. When promoting an innovation to a target population, it is important to understand the characteristics of the target population that will help or hinder adoption of the innovation. There are five established adopter categories, and while the majority of the general population tends to fall in the middle categories, it is still necessary to understand the characteristics of the target population. When promoting an innovation, there are different strategies used to appeal to the different adopter categories.

1. Innovators - These are people who want to be the first to try the innovation. They are venturesome and interested in new ideas. These people are very willing to take risks, and are often the first to develop new ideas. Very little, if anything, needs to be done to appeal to this population.
2. Early Adopters - These are people who represent opinion leaders. They enjoy leadership roles, and embrace change opportunities. They are already aware of the need to change and so are very comfortable adopting new ideas. Strategies to appeal to this population include how-to manuals and information sheets on implementation. They do not need information to convince them to change.
3. Early Majority - These people are rarely leaders, but they do adopt new ideas before the average person. That said, they typically need to see evidence that the innovation works before they are willing to adopt it. Strategies to appeal to this population include success stories and evidence of the innovation's effectiveness.
4. Late Majority - These people are skeptical of change, and will only adopt an innovation after it has been tried by the majority. Strategies to appeal to this population include information on how many other people have tried the innovation and have adopted it successfully.
5. Laggards - These people are bound by tradition and very conservative. They are very skeptical of change and are the hardest group to bring on board. Strategies to appeal to this population include statistics, fear appeals, and pressure from people in the other adopter groups.

9)ans

lean enterprise management:-

Lean is a tool that helps cut costs and reduces cycle time. In this course, you’ll develop a plan to implement lean across your organization. Employees at every level of a company can apply these strategies to improve workplace performance.

Help your company remain competitive, innovative, and profitable in today’s business environment, where global competition and demands for price reductions heavily impact management decisions. Implement lean to enhance cost and cycle-time reduction, improve customer satisfaction, and standardize high quality. Learn the lean methods you can use to minimize all forms of waste and maximize value for your customers.

total quality management:-

Total quality management (TQM) consists of organization-wide efforts to "install and make permanent climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value."^[1] "Total" emphasizes that departments in addition to production (for example sales and marketing, accounting and finance, engineering and design) are obligated to improve their operations; "management" emphasizes that executives are obligated to actively manage quality through funding, training, staffing, and goal setting. While there is no widely agreed-upon approach, TQM efforts typically draw heavily on the previously developed tools and techniques of quality control.

Six Sigma:-

Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by engineer Bill Smith while working at Motorola in 1980. Jack Welch made it central to his business strategy at General Electric in 1995. A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects.

Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits

10)ans

Let’s take a look at the factors that allow a competitive advantage to exist prior to an established relationship. No matter what you are selling, defining your target market and maintaining a strong position to attack that market is vital for success. How is this achieved, you ask? Within any given market there are three areas in which a company can strive to gain an edge and consequently more sales. These areas are:

• Cost
• Quality
• Lead

Cost

Cost is simple—it’s the price you are charging for your product or service. What will your product or service cost? All too often people are under the impression that the cheaper the product is, the more likely it is to sell. While that is partially true, companies that only compete on cost generally don’t offer a quality product. Who competes on cost:Dollar stores, distributors, larger companies pursuing higher volume and lower profit margins.

Quality

The general public does know what to think in terms of quality. The common viewpoint is that the higher the quality the better. The quality that is generally assessed is in relation to the standard of excellence. From an engineering standpoint, the quality of a product relates to the elimination of variability. If a product goes out the door the same way every time it is a “quality” product. If each time a part is ordered it has a high degree of variation, it is be considered a low-quality product. This extends also to the customer service you provide. Who competes on quality: McDonalds (that’s right, their cheese burgers taste the same all over the world).

Lead

The lead refers to the turnaround time required from the moment the order is received to the moment the item is in the mail. The fastest turnaround time exists when items are in stock. Who competes on lead time: Made-to-order manufacturers.

five forces:-

1. Cost Leadership Strategy. Companies may place themselves ahead of the pack by offering attractive pricing. Wal-Mart and Amazon are two companies that have risen to the forefront by this strategy. While this is effective for companies, low pricing is seldom a desirable method for individuals.
2. Differentiation Strategy. Branding is likely the most widely used method to differentiate one company from another. With this method, a name like Nike or Rolex automatically assumes a status distinct and apart from all other shoes or watches.Individual executives using this method must seek to find a core strength or talent that separates them from the pack. Then they leverage this unique skill or ability through increasing their visibility and the perception of its value to the company.
3. Innovative Strategy. Companies may move ahead of the competition by doing things in new and different ways. Insightec has created a way to eliminate brain tumors and other cancers without cutting into the body. Clearly they gain a competitive edge over traditional surgeries by reducing pain, risk, and long recovery time.People can gain a competitive edge as they discover and offer innovative ways of doing things for the company. If your ideas consistently result in benefits to the company you’ll have that essential edge.
4. Operational Effectiveness Strategy. Some companies just do what they do better than anyone else. FedEx started out with an innovative strategy. But it continued its leadership — even after dozens of other companies jumped into the overnight shipping business — by doing it very well.For individuals, this may mean creating systems of operating or new ways to analyze data. When you do what you do very well, you gain a competitive advantage over those doing it the longer and slower way.
5. Technology Based Competitive Strategy. Since the time Henry Ford revolutionized the auto industry with the assembly line, companies have sought for a competitive edge using new technology or technology in a new way. Computers and applications continue to… perhaps briefly… give companies an advantage over the competition. Workers who embrace new technology and learn to master it nearly always redefine or increase their competitive advantage over those who resist new methods.