Bsm 405 Week 1 Paper

Efficiency can increase productivity however increases in efficiency points to a narrower view of improving fixed assets. In other words efficiency focuses on getting the most out of existing resources. When an organization primary focus is on the improvement of fixed asset, they generally gets sidetrack and trap in placing its efforts on assets perfection. Rather than looking just at improving the current asset, the company should look at how to increase productivity from a broader viewpoint. The company should evaluate the strength, weakness, opportunities, and threats to devise a strategic plan. However, if the focus remains on the existing resources the growth of the company limits its growth to the existing product leaving the company behind the curve. If the company views the goal of increasing productivity only in view of increasing the efficiency of current asset, the company eventually can get trap in efficiency improvement.

An example of efficient improvement trap:

Kingdom Networks provides video streaming services to business across the country. Their goals are to improve their current delivery of streaming services and stay current with the rapid changes of technology. The company decides to increase its efficiency by improving and updating their servers to offer a better quality video stream. The company implements the changes to their existing servers by increasing of the physical memory, integrating new software to offer more services, and acquire a cheaper Internet service or content delivery provider. These tasks will result in productivity increases and cost decreases that could produce a better quality service or savings to the customer or higher profit margin to the organization. The cost of labor will decrease because the update to the servers would eliminate the need of constant repairs. However, the company limits its goals and objectives to the efficiency of existing offerings. Although the company improves in their brand, product, and...