Strategic management Essay Example | Topics and Well Written Essays - 2000 words - 3

Strategic management - Essay Example On the supply side of the old thought, the production technology employed was unique to both within and outside markets. Another alternative thought detailed the firm as a unit that consolidates financial surplus from the different profit sources both inside and outside a given economy matrix. On the demand side, the old issue was also winning the name plate competition between substitutable end products. The emerging trend is about capturing expenditure on a function as it trickles down from the firms and households into substitutable and complementary products and services (Froud 2006, p.7). At this juncture, the sector matrix is a form of opportunistic and multifaceted thinking on the side of management spearheaded by financialization and starting from a totally different set of assumptions to the concept of supply chain industry (Froud 2006, p.100). Some of these assumptions detailed: that the household and corporate demand for the related products and services will be the starti ng point of the analysis; the boundary of the matrix is to be defined by the unique function, for example, motoring, healthcare and mobility; the boundary might have a tendency of shifting with time, as it responds to regulatory, social and economic changes (Froud 2006, p.101). This is based on the assumptions that the financial firm is persistently looking to increase its profits; that there is no restriction of competition only to group of firms producing similar products, although there is extension also to other firms that aspire to position in the matrix (Froud 2006, p.100). Analysis of motoring matrix The major illustration of sector matrix is a motoring matrix. It highlights the new used car relation as well as the overall importance of non manufacturing activities. The matrix allows us to give a new definition to the competition that is common in car companies. It clearly shows that this is not a contest the manufacturing systems. It also highlights that it is not a competit ion between social; settlements so that the Americans and Europeans must lose due to their high salaries and social costs. It then affirms that the car business is merely a business contest (Froud 2006, p.257). This is to see how these logic and assembly can be modified through the consolidation of non-manufacturing activities. Breaking from the value chain approach requires adoption of two wider assumptions in the process of constructing a matrix of framework. First, on the demand side, rather than limiting this to expenditure on the new product by an individual consumer, the definition should include all the household expenditure. Secondly, on the supply side, rather than limiting the definition of a business operating in an industry defined by the same technology and identical finished products, the definition should be widened in such a way that the definition of the business is by financial consolidation of a range of activities cutting across all industrial sectors (Froud 2006 , p.95). Extended examples illustrating sector matrix From the above analogy, another grid can be drawn for any complicated product. This centers on whether it requires supporting infrastructure or needs consumption coupled with ancillary services. A healthcare matrix is such an example. Here in the matrix, the primary and secondary healthcare can replace the new and