1) Analyze how managing knowledge and skills contributes to AFMI’s competitive advantage?
AFMI manages the knowledge and skills of people who work in a company to meet the needs and wants of its consumers. To develop a competitive product, the company needs to use a fluid engineer technology. In such a way, an engineer group can add some value for customers.
There are five areas that heavily depend on proper competencies and skills. It is the fluid power that controls air in different industries by developing valves; the severe service controls the flow of steam and gas in heavy industries. Furthermore, the indoor climate implies having an efficient heating and cooling system to reduce energy consumption; the beverage dispense provides cooling and dispensing equipment for drinks; lastly, the merchandising develops innovative approaches to enhance buyers’ decisions.
AFMI has a strategy to make a plan to become a leader on in the niche of the global market. It tries to focus on reducing costs that are needed for manufacturing and organising the optimal supply chain. The company invests a lot in developing new products to make profit in future. In addition, it invests in people to improve their knowledge and skills and thus better organise the work that could also add to making a big profit. The company considers people and their skills the main factor in the realization of business strategy. Therefore, it always searches only those potential employees who have the entrepreneurial talent. To ensure suitable conditions for personal growth and mastering of people’s skills and knowledge, AFMI supports the ongoing development.
People in the company should know and develop business competencies. It is the key account management, project management, and seizing initiative in emerging economies. KAM requires highly talented people, who are always oriented at the customers’ needs. Project management could help to provide a real advantage for the customers by producing the high-quality products. Finally, the last competency allows to invest in emerging economies that quickly grow, for instance, such countries as China, India, Brazil and Eastern Europe. That is why this company needs the most competent people in the world.
The company has to find customizing solutions regarding the goods and services it should provide to create customers’ loyalty. AFMI knows that it should apply product differentiation to satisfy long-term customers’ needs.
2) What are the key factors in the external environment that AFMI identified as opportunities for business growth?
There are many factors of the external environment that influence achieving business strategy. AFMI identified the four key factors for business growth. The first one is climate change that means developing the products that provide cleaner energy. Those products could help reduce the consumption of energy resources. The next factor that is one of the most important ones is the resource scarcity which should be considered in developing products. Unfortunately, such resources as energy and water are limited. Therefore, the company needs to control the environment. The third factor is urbanization that leads to big investments in the infrastructure. It takes place in emerging markets of many countries in the world. For example, China needs a big amount of investments in its infrastructure. People should travel to any cities and towns easily and with comfort being satisfied with an effective work. The last but not less important factor is the ageing population that requires different types of medical equipment to maintain their health. AFMI supports the population because its delivers some products and medical equipment that are so needed for prolonging people’s lives.
All factors of the external environment may influence the successful achievement of the company’s strategies. She should be able to manage those factors to maximize positive opportunities and minimize all her possible threats. Therefore, to achieve growth, AFMI should successfully combine skills, knowledge and experience of the company’s employees and allow to develop innovative solutions.
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