Changes to the previous assignment
From the previous assignment, I justify the recommendations for business objectives, management responsibilities, funding and IT governance issues. The assignment should have addressed more issues as discussed in the following paragraphs.
Current level of architectural maturity
The previously submitted assignment discussed the current level of architecture maturity as business modularity architecture. To add to this, the organization works on allied-unrelated operational model that emphasizes each business containing the fundamental exertion essential to create advantage independently. Matters of common interest are acknowledged and operated among the businesses. It has developed uniform policies that span across many businesses and help synergies across them to be established. Some support is shared across the businesses (Jeanne, Peter & David, 2006).
Technical Economies of Scale
Termed as “Recommendations to address IT capabilities” in the previous assignment is a very important aspect of achieving an economy of scale. To add to the recommended strategy, it is essential to emphasize the need to use modern facilities that automated production at lower costs. A challenge in this strategy is the initial costs. However, I would like to point out that the final productivity will depend on this. The Proctor and Gamble, which is a well-established long-time market player, can work out on this strategy. However, the organization must not be too fast in adopting a technology as this can cause difficulties for employees in all operations. Not all technologies are suitable for implementation in organizations, therefore meeting thorough preparations is necessary before the change can be initiated (Chris, 2008).
Managerial Economies of Scale
The previous assignment answered the question of who should be made responsible for certain management tasks. An improvement on this will be based on the geographical area of work and the kind of customers. The management activity in the organization should be based on the diverse needs of the customers and the employees. The organization should encourage management activity to be centred on understanding clients’ requirements and needs. It also should train managers on how to handle stress business environments. This decision is very important for the organization to develop and maintain comparative advantage.
Risk Bearing Economies of Scale
The company should embark on advancing on its risk management and introducing diversity in its products. It should as well pay attention to education and research in order to improve the quality of its product. Spreading the risk is an important approach to using economies of scale and working long-term perspectives.
Commercial Economies of Scale
Another approach to improve on the economy of scale lies on the purchases. The organization can work on their delivery rates to encourage more purchases from them. It can implement systems such as the just-in-time inventory management for this purpose (Jeanne, Peter & David, 2006). Ordering in bulk is another approach to control raw materials purchase. The rationale for these changes is to create a platform for developing a cost effective production and a saving scheme.
As suggested in the previous assignment, the organization should work on better communication while encouraging digitization of the firm. While considering these factors, the organization should consider the minimum economy of scale. If at some point it has too many employees, the income will be negatively affected. When the products are too many or the locations are too many, the company may lose control and be overtaken by those companies that provide alternative products.
These changes are very important for the organization to achieve and use economies of scale, which is getting primary goods for lower costs and earning high revenues.