Introduction
Terex may have an operational failure if the new electronic system functions as anticipated, and inventory cannot be tracked. Terex could encounter a functional failure if the new electronic system does not perform as expected. For instance, if the system cannot effectively track inventories, this could result in delivery delays or even inaccurate customer orders. Consequently, this would result in delays in preparing units for shipment, which could ultimately lead to lost customers and income. Additionally, if the system is user-friendly, it could result in employee satisfaction and higher productivity. In addition, Terex could encounter an operational failure if the new electronic system does not perform as expected. This is because the corporation would be unable to track its inventory, resulting in delivery delays and a loss of client confidence.
Discussion
Terex could encounter a failure in operations if its personnel are not adequately trained on how to use the new system and cannot function as efficiently. Terex relies on its personnel to correctly utilize and maintain its equipment; hence, a lack of sufficient training for its staff could result in the company’s operations failure. If the team is adequately trained, they may be able to utilize the equipment correctly, which could result in accidents or property damage. In addition, if personnel are not sufficiently instructed on how to maintain the equipment, it may break down more frequently, resulting in even more operational failures. The organization may have operational difficulties and delays if personnel need to be adequately instructed on how to use the new electronic system. Untrained employees may have difficulty communicating with other employees and customers as they are unfamiliar with the company’s culture and values. This can lead to misunderstandings and conflict, damaging the company’s reputation.
Terex Corporation could consider using an electronic tracking and digital inventory control system to reduce labor expenses. This strategy would require a significant amount of time each month to conduct physical inventory, but it could help the company keep track of its inventory levels, orders, and shipments. It can also help to streamline the company’s operations and improve its customer service. By tracking its inventory levels, the company can ensure that it has the right products in stock. This can help to avoid costly stockouts and backorders. In addition, by tracking orders and shipments, the company can identify any issues with its supply chain and address them quickly. The company can also improve its efficiency and bottom line by streamlining its operations.
The electronic tracking and digital inventory control system help the company to reduce its environmental impact. This system helps the company to reduce the amount of paper and packaging material used in its operations. This system also helps the company recycle and reuse its products and packaging materials. The electronic tracking and digital inventory control system help the company reach the target group more effectively and sell its products and services more efficiently, thus increasing sales and improving its profitability.
Terex Corporation would tremendously benefit from an MRP inventory control system. With such a system in place, the corporation would be able to track its inventory in real-time and identify products in its transfer center with much more ease. In addition, an MRP system would allow for more accurate forecasting of client demand, resulting in enhanced production planning and cost savings. In this instance, an MRP inventory control system would be advantageous for Terex Corporation. Utilizing an electronic system to track and manage their inventory would allow the business to save time and money.
In this instance, Terex Corporation should utilize an MRP inventory control system for its manufacturing plants. This method would assist the organization in keeping track of its inventory and increasing purchase orders. Terex Corporation would benefit from an MRP inventory control system for several reasons. The system would assist the organization in monitoring inventory levels. This would let the corporation know when to order extra supplies, preventing stockouts. The method would aid in reducing the time required to conduct a physical invent
The MRP Inventory Control System is also responsible for generating reports
that help the company to make decisions about its inventory. It provides information about the current inventory levels, historical trends, customer demand, and forecasts for the future. The company uses this information to determine the right inventory levels for the future.
Internal environmental analysis is a strategic management technique that enables firms to assess their strengths and weaknesses and identify any internal opportunities or threats that could affect the business. This type of study can be performed using various techniques, such as SWOT analysis, business model analysis, and financial statement analysis.
SWOT analysis is one of the most prominent methods of internal environment analysis. This strategy evaluates a company’s strengths, weaknesses, opportunities, and threats (Omer, 2019, p, 57). The SWOT analysis is a useful tool for corporations developing strategic plans. It can assist them in discovering areas where they may have a competitive advantage and may be susceptible (Omer, 2019, p, 59). Utilizing the company’s operations helps in determining its strengths and weaknesses. The company’s capabilities allow it to capitalize on existing possibilities. The firm’s weaknesses represent the threats it confronts. For instance, the firm faces competition from other businesses (Omer, 2019, p, 60-61). Hence, the SWOT analysis helps the firm to identify areas where it perfectly performs and areas it needs improvement
The internal determinants of a company’s operations are regarded as control factors because either the company can adjust the physical facilities or the individuals involved (Sushmita, 2019). Internal variables may include the resources that allow the company to operate efficiently. The firm’s resources may comprise its financial, technological, managerial, or conceptual assets (Sushmita, 2019). Incorporating internal elements facilitates the production of high-quality outputs by managing and determining the supply chain channels and input variables.
An example of a SWOT analysis might be a South African marketing firm. The family-owned and operated firm is situated in a small town, which enables it to develop ties with its customers. The company also provides consumers with various marketing services, including consultancy and design. The company has several weaknesses, including the fact that it is too small to have the purchasing power of large corporations. The business cannot attract new clients because of its placement within the city. The business’s strengths include establishing an online presence, enabling it to reach a large audience. To explore opportunities to attract the company owner intends to expand the company to other cities. Even after expansion, the company will face threats such as competition from larger firms. Moreover, if consumers alter their preferences, the business could be impacted by shifting consumer preferences. Therefore, this may result in the closure of the company.
The business model analysis is another strategic management tool used in the internal environment process. This strategy examines how a company generates revenue and provides value to its customers. This type of analysis can assist firms in identifying areas where they may be able to enhance their business model and implement changes that could lead to the business’s sustainability (Pieroni, McAloone, and Pigosso, 2019, p, 198). A business model study is intended to assist a corporation in achieving a balance between the integration of economic success and the promotion of environmental resilience (Pieroni, McAloone, and Pigosso, 2019, p, 198). The analysis is a valuable tool for the strategic planning procedure.
A business model analysis may employ a variety of frameworks for business models. The most prevalent framework is the firm’s resource-based perspective. This framework examines the company’s strategies and how they boost its performance, allowing it to compete favorably (Adnan, Abdulhamid, and Sohail, 2018, p, 31). This paradigm examines the company’s resources and asserts that they should be valuable, unique, scarce, and non-replaceable to improve the firm’s effectiveness and efficiency (Adnan, Abdulhamid, and Sohail, 2018, p, 31). Therefore, the company could obtain a competitive advantage by identifying the firm’s core resources.
Utilizing a business model framework, such as the Business Model Canvas, to identify the essential components of the business model that produce value and value capture in supply chain management is an example of business model analysis (Wiener, Saunders, and Marabelli, 2020, p, 89). In addition, the business model reveals the extent to which the organization collects, stores, manages, and processes data (Wiener, Saunders, and Marabelli, 2020, p, 90). Since outsourcing BD specialists are necessary to manage BD data, this can result in the establishment of employment possibilities. Furthermore, outsourcing BD specialists results in a sufficient market supply.
Analysis of financial statements is another strategic management tool that is utilized in internal environment analysis. This method analyzes a company’s financial accounts to determine its strengths and weaknesses. Financial statement analysis can be a valuable tool for organizations, enhancing the business’s operational and financial success. Consequently, the stock prices on the exchange will grow, and the company’s market value will rise (Kadim, Sunardi, and Husain, 2020, p, 859). The three most prevalent financial statements are the income statement, the balance sheet, and the cash flow statement. The income statement displays the company’s revenue and costs over a specific period. The balance sheet displays the company’s assets, liabilities, and equity as of a specific date (Arnold, Ellis, and Krishnan, 2018, p, 46). The cash flow statement illustrates how much cash a business has generated and utilized over a specified period.
Financial statement analysis is studying a firm’s financial statements to determine its financial health. For instance, financial statement analysis can be used to incorporate data or information from the balance sheet and income statement on a monthly, quarterly, or annual basis (Arnold, Ellis, and Krishnan, 2018, p, 47). Financial statement analysis can be performed using a variety of techniques and instruments. Ratio analysis, trend analysis, and common-size analysis are typical methodologies (Arnold, Ellis, and Krishnan, 2018, p, 47). Ratio analysis analyses financial statements that involve computing and comparing financial performance ratios. Trend analysis is a strategy for analyzing financial statements that include reviewing statement data over time (Arnold, Ellis, and Krishnan, 2018, p, 51). Utilizing trend analysis, trends in income, expenses, assets, liabilities, and equity can be identified.
A common-size analysis can be used to compare a company’s financial statements to those of other companies in its industry, as well as to compare the company’s financial statements over time (Arnold, Ellis, and Krishnan, 2018, p, 48). Financial statement analysis is a vital tool for assessing a company’s financial health and making decisions regarding investing, financing, and other strategic planning by examining cash flows and developing financial forecasts (Arnold, Ellis, and Krishnan, 2018, p, 50). Financial statements only provide a glimpse of a company’s financial status at a certain point in time. They do not provide information regarding the future financial performance of a company.
Conclusion
In conclusion, the internal business analysis consists of a SWOT analysis, an analysis of the company model, and an examination of the financial statements. The SWOT analysis entails analyzing the business’s strengths, opportunities, weaknesses, and potential threats. In addition, the business model includes a component that enables the company to understand how to maximize profit and provide consumers with high-quality services. An example of a business model is the Business Model Canvas, which assists the company in identifying its major components and their relationships. The financial examine financial statements that aid the company in determining its weaknesses and strengths. As examples, financial statements include ratio, trend, and common-size analysis. The financial statements can be used to recognize trends, evaluate risk, and make investment, financing, and other strategic planning decisions.
Reference List
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Kadim, A., Sunardi, N. and Husain, T. (2020) ‘The modeling firm’s value based on financial ratios, intellectual capital and dividend policy’, Accounting, 6(5), pp.859-870.
Omer, S.K. (2019) ‘SWOT analysis implementation’s significance on strategy planning’, Journal of Process Management and New Technologies, 7(1), pp. 56-63. Web.
Pieroni, M.P., McAloone, T.C. and Pigosso, D.C. (2019) ‘Business model innovation for circular economy and sustainability: A review of approaches’, Journal of cleaner production, 215, pp.198-216.
Sushmita K (2019) ‘Internal analysis in strategic management: tools, importance and SWOT Analysis’, Research Papers and Articles on Business Management. Web.
Wiener, M., Saunders, C. and Marabelli, M. (2020) ‘Big-data business models: A critical literature review and multiperspective research framework’, Journal of Information Technology, 35(1), pp.66-91.