Manufacturing strategy - a potential competitive tool for J&S Botswana (Pty) Ltd [case study]

Abstract

It is quite common a practice for organizations in developing countries with manufacturing functions, particularly small to medium enterprises, to operate without a defined strategy for competitiveness. This has seen many potential businesses failing to survive the competition in the dynamic business environment. In order to thrive in any chosen market, an organization needs to have a well-defined manufacturing strategy that is periodically audited. An effective manufacturing strategy must clarify and define the links between overall competitive strategy and the development of the company’s resources. Strategy formulation provides direction, purpose and coherence; ensures that manufacturing’s interests are taken into account at corporate level; clarifies and emphasizes priorities and potential conflicts; and helps integrate functions. An understanding of the consumer’s needs is critical and a clear awareness of order winning and order qualifying criteria is essential. Thus a manufacturing strategy sets the destination (and course), and implementation of the same defines how to get there. This work therefore outlines a customized methodology for formulating a manufacturing strategy through a strategic audit of a local case study company. The results of the audit carried out indicate that the company is operating without a defined strategy for competitiveness and is performing very badly with respect to the desired levels of competitive performance objectives. Suggestions are made for the effective implementation of a performance improvement programme within the context of the company’s current limitations.

Keywords: Competitive strategy, Competitive performance objectives, Manufacturing strategy