4. What are the pros and cons of management using theexperience curve to determine strategy?
The experience curve is an idea developed by the Boston Consulting Group (BCG) in the mid-1960s. Working with a leading manufacturer of semiconductors, the consultants noticed that the company's unit cost of manufacturing fell by about 25% for each doubling of the volume that it produced. This relationship they called the experience curve: the more experience a firm has in producing a particular product, the lower are its costs. However, if the decline in cost is fast if growth is fast and slow if growth is slow.
The strategic implications of the experience curve came closer to shattering earth. For if costs fell (fairly predictably) with
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In some cases, this can save companies money because they do not have to pay travel expenses. When employees use technology for telecommuting, they can work in the comfort of their home instead of traveling to a workplace.
Benefit: Saving Time
Technology can decrease the time it takes to accomplish a task, which can ultimately save money and increase productivity. Communication speed also increases. Instead of sending a message by postal mail, using email or fax can deliver it instantaneously. Technology can also speed up various manufacturing processes, as machines and computers can do work that was once performed by humans more quickly and efficiently.
Drawback: Dependency
On the downside, the use of technology doesn't always result in greater efficiency. Companies that depend heavily on computer systems to conduct business can come to a virtual standstill if the system breaks down. There is typically a learning curve that accompanies the introduction of a new process, which can lead to a loss in productivity and disgruntled employees. For employees who telecommute and experience computer problems, it may be more difficult to receive timely technical support.
Drawback: Need to Upgrade
Some technologies contain features that need to be upgraded regularly, which can result in an additional expense for the company. For example, companies may need to change computer software frequently just to
Employers allow telecommuting for many reasons, including the ability to recruit better talent, decrease overhead expenses, increase productivity, expand the employee base to include those with disabilities (Anderson, Bricout & West, 2001; Lipin, 2010; Myungjung & So Hee, 2017), and to support
Today’s fuel costs have put a great deal of pressure on the commuting employee and they are looking for ways to cut corners. An alternative for work commute trips is telecommuting. It is obvious that there is a tangible savings by the employee if they are able to work from their home. The employer is concerned and rightfully so that managing resources through telecommuting is more difficult than managing traditionally.
Farah Ahmedi, with her prosthetic leg, undertakes a mission to cross the border and take her mother to a land free of war. Cap takes his dead friend miles across the icy land to give him his last request of being cremated. Aengus, a lovestruck man, wandered his whole life, searching for a fantasy girl he saw in the woods. All of these characters were determined to complete a goal, whether it be for love, survival, or for friendship.
Exxon Mobil is a business that believes in a diverse workforce comprised of talented employees who are driven by its purpose. The company retains its employees, by continually developing them to be successful. In Exhibit A, the graph explains the training costs and employee retention Exxon Mobil has during the years of 2011 to 2015. “Currently, the company employs more
“What If the Secret to Success is Failure?” by Paul Tough presents how Dominic Randolph, the headmaster of Riverdale Country School, wants his students to succeed, but he believes that in order to succeed, you have to learn how to fail. It is believed that character is the most important part for success. Dominic Randolph, and David Levin, superintendent of the Knowledge in Power Program (KIPP) schools, work together in order to to reach a conclusion, that is character traits is needed in order to succeed in academic and in life. Though a student could be smart in academics, but he has to have character in order to succeed. “The Inverse Power of Praise” by Po Bronson and Ashley Merriman cite how praising a child too much could affect their
Two, it conserves energy and produces more goods. “Technology allows us to find creative alternatives and innovations to using nonrenewable and costly resources. From hybrid vehicles to energy efficient light bulbs, there are ways to save everywhere. One machine can do today in minutes what in years past would have taken days to accomplish” (Franke 2013, para. 3). Finally technology saves lives.
Regardless of the continuous growth of the consulting industry, turnover in the industry has increased immensely. This has resulted in the negative impact for many consulting firms, including Dogs Bollocks 5. The reasoning behind the unstable retention of employees is assumed to derive form the “long and demanding hours with no flexibility” (LinkedIn). This paired with the urge ne graduates have to work for start-up companies has negatively affected the consulting industry. It is my recommendation that Dogs Bollocks 5 encourage employees to stay by increasing the company’s entry program. As the program will allow for more graduates to enter and gain the knowledge and skills needed to minimize the negative impact of co-workers exiting the firm. By focusing of the entry program and advance the training and involvement process this would make the transition of duties smoother, in case of spontaneous turnover with upper level consultants. Of course with any program expansion cost is a major factor. According to the Association of Talent Development, in 2013 the average midsized organization spent $838 on employee training (Miller, 2014). If we were to be generous and declare roughly $1000 per employee with an entry program headcount of 10, the potential cost would factor in the amount of $10,000. A price that is substantially less than the damage of losing a vital consultant during an
In this class I put in one hundred percent effort, a ten. I do not believe in not trying my hardest because then if I do not succeed I cannot say I did not try, and no matter how hard things may have gotten I did the best possible for me. My three strategies are to read the material carefully, read everything more than once, and ask questions if you do not understand something in particular. I learned at the very beginning of the class reading the entire assignment carefully and thoroughly will help tremendously in the long run, and reading over things two or three times will ensure complete understanding and you will have plenty of details to reinforce essays. Asking questions was the most helpful to me, whenever I did not understand something I would ask and the assignment or reading material would become exponentially easier for me.
- The experience curve suggests that unit production costs decline by some fixed percentage (commonly 20%–30%) each time the total accumulated volume of production in units doubles. The actual percentage varies by industry and is based on many variables: the amount of time it takes a person to learn a new task, scale economies, product and process improvements, and lower raw materials cost, among others
“Success is not final, failure is not fatal: it is the courage to continue that counts”
Thus, following Taylor’s ideas, organizations in our days make huge efforts to “hire the right people to a position” and to train them to develop their skills (Mckinnon, 2010: 1). One example could be human resources policies in consulting firms, which focus on hiring unexperienced workers with great potential and, then, train and develop their skills so that they can make very valuable workers for a low cost (Babío et al, 2007: 50).
The overall objective of this individual assignment is targeted in two separate, yet strongly interrelated sections. Our first task is concerned with one inspiring entrepreneurial story and its reasons for success. Furthermore, other factors for success will be discussed, in the light of relevant literature. Additionally, I will identify the personal takeaways I can take from it. To support this, I also intend to explain the logic used to identify these takeaways. Other interesting details of this entrepreneurial story, but not relevant for the main critical analysis, will be placed in the appendix.
The pros and cons of telecommuting from a human resource professional perspective is that they are able to attract and retain good employees who may have a high morale and some of their effects may enhance the competitive status of the organization. For purposes such as the development of working relationship, a combination of telecommuting and on-site work is preferred over a full time telecommuting work arrangement (Kurland & Bailey, 1999; McNerney, 1995; HR Focus, 2002; Telecommute Connecticut, 2002). Some of the pros are the ability to concentrate more on their job without distractions, no or reduced time in traffic, less wear and tear on your car, reduction in gas expense, less money for lunches and having more time with the family or whatever. You can or will be able to work for the company at any location in the world and this alleviates the need for travel time or getting an office setup for you in another location. This saves on recruitment and retention which in turn saves the company in high turnovers. The company saves on recruitment because they want have to pay for advertising, timer consumption for interviewing, searching for recruiting agencies, hiring a company recruiter and giving bonuses for relocation. Absenteeism is reduced because of less stress and obligations. With a better working arrangement this helps to improve productivity and better health of a worker. Organizations are able to employ disabled, elderly or other individuals who are
Technology has created shortcuts in working and made tasks easier to accomplish. Technology may have caused our life to be faster but it made it easier also. Phones, vehicles and computers are all physical examples that contributed abundantly towards the life of our people. With technology, transportation has increased significantly. We don’t have to walk to go