Week 8 Discussion Board
Weekly Discussion Question – (25 points)
For this discussion question, you are to once again consult your book (in this case, Chapter 11), wherein we will be looking at issues related to cost management and competitive advantage. There is a great likelihood that in the next few months, Highpoint Barnie will be very successful in selling quite a few units of the Selfie EIf on a Shelf. While this may go quite well in the short term, the goal is to maintain the long-term competitive advantage.
Week 8 Discussion
There is various issue that takes place in the organization. The major issues that take place in the organization are the issues related to cost management and competitive advantage. The issue takes place because of the various changes and the things that happen in the organization. The issue which takes place due to cost management are stated below-
Managing project changes– Managing simultaneous project changes is perhaps the most challenging aspect of effective cost control. It can be said that the budget is made beforehand and there is also the scope of the inevitable changes. One of the issues that take place in the organization is related to the project changes. The changes also take in the project making so managing it properly is one of the most common issues which take place in almost the organization as well. The issue is that managing the several changes led to difficulties and sometimes time-consuming it is as well.
Inaccurate reports– The report has its importance in the organization. The Reports provide valuable insights and information on growth, profits, and spending, which enable executives to control spending. It can be said that if an improper report is made then it gives the wrong or inaccurate information about the organization (Blocher et al. 2019, p.5). Though there are some mistakes which are evadable or smaller some mistakes cannot be evaded as they need to be more attention to so that it does not provide the wrong information to the organization and the organization can run properly and effectively as well. Therefore, it can be said that investor wants to invest in those things that provide them with the correct information about the work rather than some misleading information.
Forecasting of the budget– The important factor that needs to be looked at by the organization is the forecasting of the budget. Several circumstances take place in the organization where the forecasting of the budget fails. This is one of the most common issues that takes place in the organization. The failure in the forecasting of the budget led to an issue within the organization. Failed forecasting gives the wrong information and sometimes the loss is also faced by the organization due to it as well. It can be said that the forcasti8ng should be done properly so that the work can be performed properly need effectively as well.
Poor support for inter-organizational cost management– One of the common issues that take place in the organization is the poor support of inter-organizational cost management. It can be said that it is one of the most common things that take place in the organization and one should always be aware of it as well (Muha, 2019, p.105). The poor support of the cost management led to the delay in the completion of the work and sometimes led to the incomplete of the work. This issue arises when people do not work together rather than do the work without any proper information.
Inefficient process and system– Regardless of several cost management technology advancements, roughly 69% of organizations are still stuck with inefficient processes and systems. A significant reason for their failure to adopt modern tools is the fear of the potential disruption it may cause to their overall operations. Insufficient processes and systems take place due to the lack of knowledge at work. It can be said that insufficient processes lead to more time-consuming work which leads to the not completion of work properly.
The issue related to the competitive advantages
There are various issues related to competitive advantages and some of them are stated below-
Inattentiveness to customer needs– It can be said that one of the issues of the competitive advantages is the inattentiveness issue to customer needs. There are various circumstances where it is seen that the customer needs are not been seen properly or the organization doesn’t focus on the demand and need of the customer which leads to getting less growth as the customer if they do not get the desired goods will shift the other places where their needs are been seen.
More competition in the market– Due to the more competition in the market the issue of comparative advantages takes place. It can be said that more competition in the market leads to the get less attention from the customers as well (Banker et al. 2018, p.187). It also led to less profit for the organization.
Too much focus on immediate result– The organization is always focused on the instant result and does not want to wait which creates an issue in the competitive market. As in this time of the market, people need to wait for the result.
Banker, R. D., Byzalov, D., Fang, S., & Liang, Y. (2018). Cost management research. Journal of Management Accounting Research, 30(3), 187-209.
Blocher, E. J., Stout, D. E., Juras, P. E., & Smith, S. (2019). Cost Management (A Strategic Emphasis) 8e. McGraw-Hill Education.
Muha, R. (2019). An overview of the problematic issues in logistics cost management. Pomorstvo, 33(1), 102-109