Contemporary Management Issues

1920 Words8 Pages
Introduction:
With more and more fierce market competition, much attention has been paid to the research on corporate competitiveness.
Enterprise Competitiveness can be tracked back to 1776. Adam smith raised the division of labor theory. But the academia by conscious researches this theory at the start of the 1980's.
Concept of Enterprise Competitiveness
Business community and economy community thought enterprise competitiveness played an important role in ensuring the survival and development of their respective enterprises. Enterprise competitiveness is based on industries competitiveness and country competitiveness. And this theme is central to our competitiveness study.
Argument from the America side: A. M. Spence from Harvard
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H&M’s the best price by: having few middlemen, buying large volumes, having a broad, in-depth knowledge of design, fashion and textiles, buying the right products from the right market, being cost-conscious at every stage and having efficient distribution.
2. H&M does not have any factories of its own, but instead works with around 700 independent suppliers in primarily Asia and Europe.
“OEM” is one of management way for H&M. “OEM” Short for original equipment manufacturer .OEMs is manufacturers who resell another company's product under their own name and branding. (http://www.webopedia.com/TERM/O/OEM.html)
H&M sources clothes and other products from about 700 suppliers who in turn use subcontractors. In all, around 2,000 production units and more than 700,000 people are involved in the manufacture of our products.
3. New goods are delivered to our stores every day. H&M controls every link in the chain from idea to store, which makes the flow of items efficient. H&M’s merchandise is transported by boat, train, truck or airplane from the production countries to one of H&M’s distribution centers.

IEKA core competition:
IKEA was founded in 1943 by Ingvar Kamprad in Sweden. Now it is become the world's largest furniture manufacturer. IKEA is the world's largest furniture retailer that specializes in stylish but inexpensive Scandinavian designed furniture.IKEA's success in the retail industry can be attributed to its vast experience
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