Questions on an Organization's Management System

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Assignment Requirements Why organizations need to have a strategy to become "lean", and how such strategy should be developed? In particular are there any circumstances in which "Lean" may not be considered as an appropriate strategy? The main reason why organizations need to have a strategy to become lean is because of the changes inside their industry. This is occurring from increasing amounts of competition in the global marketplace. For many firms, this is forcing them to seek out ways to: continually innovate, meet customer demands and maximize profit margins. To achieve these objectives means: reducing costs dramatically and being the first to deliver the cutting edge products consumers want. Those firms that are able to achieve these benchmarks will maintain their lead. (Kawaumra 2011, pp. 108 109) The way a strategy should be developed is by studying ideas that have worked successfully for competitors. Then, analyzing how these concepts can be incorporated into the operating environment of the firm. This is what Lee Iacocca did with Chrysler in the early 1980s. As this approach helped the company to reinvent itself and offer consumers with the kinds of vehicles they demanded. Once this occurred, is when they regained market share and realized a dramatic improvement in its profit margins. (Kawaumra 2011, pp. 108 109) However, there are times when a lean strategy is not considered to be appropriate. This is because a firm can cut back to much in different areas,
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