How the sector matrix framework is useful for analyzing demand and Essay

How the sector matrix framework is useful for analyzing demand and supply in an industry - Essay Example A strategic management system is one that maintains good follow up on matters in the firm over time. It is important that management strategies be consistent and systematic (Ansoff 1979). According to Porter (1985), a firm’s competitive advantage is achieved by quality development of differentiation and leadership in the chain of that firm. Porter classifies these chain activities into two groups; the primary and the support activities. Primary activities are activities such as marketing and sales, inbound-outbound logistics, and service. Inbound logistics receive actual raw material during the beginning of the production process. Operations comprises of physical activities of processing raw materials. Outbound logistics involve storage of produced goods while marketing and sales refers to the actual and physical processes of sale of goods and marketing. Services relate to activities that follow after sale to customers. Support activities include technology advancement, firm infrastructure and management of human resource. Primary systems are aided by firm infrastructure which consists of the company’s culture and its systems of control. The human resource management engages in activities like hiring, firing and training staff. Technology advancement factors are useful support to activities during work process and procurement such as purchasing and obtaining material. Primary activities are those activities directly and physically involved in the production process while support activities comprises of those processes indirectly and not physically involved in production and sale of products created. Furthermore, Porter argued that support activity provides an anchor on speci fic primary activities while firm infrastructure support the entire line as a whole. Sector matrix is a long known phenomenon. Since organization of production processes was challenged, it has been a topic of debate. The challenges began after Porter. When observations made by scholars of management like Geffen came up with the commodity value chains. Value chains are further argued against the sector matrix Froud et al (1998). Maiden arguments made concern overall effect of a single factor such as firm infrastructure on the cause of competitive advantage. It is argued that competitive advantage is an aspect of many activities incorporated together to gain the firm a general step ahead. This argument led to value adding effect of more than one activity being achieved in production, marketing and delivery of products. Sector matrix system is developed especially for complex management structures. Though a popular system that is established effectively in many organizations, the matri x has its limitations. Sector matrix is a system of management with a number of managers in different departments who report to one overall manager. The strategy is excellent in some large firms. It is however yet to be adopted by other companies that follow trend and wish to use it. Sector matrix framework has been an issue of trying and making mistakes. It has created such downfalls and rising cycles for companies trying to incorporate it for the very first time. Sector matrix in general is only efficient in the long run. Some of the challenges faced by organizations with or trying to adopt the matrix include; decision process complications. These could be lengthy since major decisions have to involve departments while it could just be