Evaluation of LARG Supply Chain Competitive Strategies based on Gap Analysis in Cement Industries

Autor: Gholamreza Jamali, Elham Karimi Asl
Jazyk: perština
Rok vydání: 2018
Předmět:
Zdroj: مدیریت تولید و عملیات, Vol 9, Iss 1, Pp 29-54 (2018)
Druh dokumentu: article
ISSN: 2251-6409
2423-6950
DOI: 10.22108/jpom.2018.92479.0
Popis: Supply Chain Management (SCM) is considered a strategic factor for the better attainment of organizational goals such as enhanced competitiveness, improved product quality and increased profitability in cement industry. This research aims at competitive positioning of LARG supply chain in Iranian cement industry and its strategic requirements (Strenghts, Weaknesses, Oportunities and Threats) Importance-Performance Analysis (IPA). A survey-descriptive research method was applied and an available sample which includes 11 Iranian cement companies were selected. First, using literature review and Delphi Method (DM), strategic requirements of LARG supply chain in the cement industry were identified. In the next step, the importance of strategic requirements was determined using SWARA method. Then, the results of applying Internal/External Factors Evaluation (IFE/EFE) matrix showed that the suitable position for LARG supply chain in Iranian cement industry would be an aggressive strategy. In the final step, applying Importance-Performance Analysis (IPA) matrix showed all requirements for the aggressive strategy, except exporting opportunities and cooperation culture in supply chain, were evaluated in quadrant II (keep up the good work). Finally some suggestions are presented toward improving LARG supply chain performance in Iranian cement industry. Introductıon: Supply Chain Management (SCM) is considered a strategic factor for the better attainment of organizational goals such as enhanced competitiveness, improved product quality and increased profitability. SCM is a value chain management from the supplier of a supplier to the customer of a customer of a company with the aim of attaining an overall value. Lean, Agile, Resilient and Green are now at the forefront in management methods and SCM (Espadinha–Cruz et al., 2011). The trade-offs between these managerial paradigms (LARG) are actual issues and may help supply chains to become more efficient, streamlined and sustainable. The supply chain as a network is expected to provide the right products and services on time with the required specifications at the right place to the customer. The main purpose of this research is a competitive positioning of LARG supply chain in Iranian cement industry and its strategic requirements (Strenghts, Weaknesses, Oportunities and Threats) Importance-Performance Analysis (IPA). Materıals and Methods: A survey-descriptive research method was applied and an available sample which includes 11 Iranian cement companies were selected. First, using literature review and Delphi Method (DM), strategic requirements of LARG supply chain in the cement industry were identified. In the next step, the importance of strategic requirements was determined using SWARA method. Then we used the Strategic Position and Action Evaluation Matrix (SPACE MATRIX) to select an appropriate strategy for LARG supply chain in Iranian cement industry. In the SPACE matrix, we assessed Iranian cement industries across four dimensions including: Industry Attractiveness (IA), Environmental Stability (ES), Competitive Advantage (CA) and Financial Strength (FS). The SPACE diagram showed favourable positions in all four dimensions. In the final step, an Importance-Performance Analysis (IPA) matrix was applied. Results And Dıscussıon: The results (as shown in Fig. 1) of applying SPACE matrix revealed that the suitable position for LARG supply chain in Iranian cement industry would be an aggressive strategy as it leverages its strengths into the opportunities. In other words, Strengths-Opportunities (SO) strategies are based on using a firm’s internal strengths to take advantage of external opportunities and threats. Fig. 1- SPACE Matrix for positioning of LARG supply chain in Iranian cement industries In order to determine the performance level, mean values of strategic requirements were calculated via 1 to 5 lykert continum questionnaire completed by cement experts. Also, we used SWARA method to determine the importance of strategic requirements. Importance-Performance Analysis (IPA) matrix showed all requirements for the aggressive strategy, except exporting opportunities and cooperation culture in supply chain, were evaluated in quadrant II (keep up the good work). Conclusıons:This study proposes a competitive positioning for LARG supply chain in the Iranian cement industry and its strategic requirements importance-performance analysis. In the SPACE matrix we assessed Iranian cement industries across four dimensions including: industry attractiveness, environmental stability, competitive advantage and financial strength. The SPACE diagram showed that Iranian cement industries can pursue an aggressive strategy as it has a strong competitive position in the market with rapid growth. The two big concerns in this competitive positioning are: 1) Avoid complacency – it seems that business is too easy but threats may come from new markets or as technology makes different sectors to converge; and 2) Avoid running foul of anticompetition policies. A business that is too strong may be able to attract the attention of regulators and especially if it uses predatory pricing aimed at driving competitors out of business. Applying Importance-Performance Analysis (IPA) matrix clarified that all strenghts and opportunities were important. While there are gaps between performance level and strategic requirements importance, the improvement process will be continued. This study showed that integration of LARG supply chain competitive positioning in the Iranian cement industry and IPA model, can help Iranian decision makers in strategic planning for the SCM performance improvement. Iranian cement industries are also blessed because it has a good competitive advantage in an industry which is considered to be attractive. So, among the strategic choices, develop new local markets strategy has the first priority, followed by the; Increase production capacity, Export markets development and Product diversification. References Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2016). LARG index: a benchmarking tool for improving the leanness, agility, resilience and greenness of the automotive supply chain. Benchmarking: An International Journal, 23(6), 1472-1499. Espadinha-Cruz, P., Grilo, A., Puga-Leal, R., & Cruz-Machado, V. (2011). A Model for Evaluating Lean, Agile, Resilient and Green Practices Interoperability in Supply Chains. Proceedings of the 2011 IEEE IEEM (978-1-4577-0739-1/11/$26.00 ©2011 IEEE). 1209-1231. Jamali, G., Karimi Asl, E., Zolfani, S. H., & Šaparauskas, J. (2017). Analysing LARG supply chain management competitive strategies in Iranian cement industries. Ekonomika a Management, XX(3),70-83.
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