Knowledge ManagementMost of the organizations in the current world need to strategize on how to maintain their competitiveness in the business environment. Many companies are running out of business because of the increasing competition in the market. Literature reveals that the only way for a company to survive despite the increasing competition in the market is by convincing customers to believe that the company is providing quality services and products (Camison, 2008. p 178). MacDonald is an example of an organization that has survived despite having a stiff competition in the market.
The main factor which has enabled MacDonald Company to survive despite the increasing competition in the marketplace is the application of knowledge management in establishing and maintaining its competitive advantage. The company uses knowledge management to integrate intellectual assets internally, implementing new marketing strategies to maintain the competitive advantage of an organization, enabling the entire department in the company to access the right information in a timely manner and using an advanced technology which enables a groupware intranets. MacDonald Company has implemented business strategies which are closely associated with knowledge management such as change management, risk management, benchmarking and other effective and efficient practices.
Turban has identified the importance of knowledge management in his book titled “Position Paper on Knowledge Asset Management", that the key primary business factors comprise of early retirement and the employees quitting the company leading to loss of knowledge, frequent changes in the company that can lead to the loss in the knowledge with and competitive pressure that can interfere with the normal process in the company thus leading to a valuable business knowledge (Jennex, 2009.
p 98)Researchers such as Voehl have given a strong argument on how organizations apply knowledge management. He also defines it as a range of exercises used in an organization to recognize, generate, represent, allocate and allow implementation of insight and understanding. These insights and understanding comprise of the knowledge, which in most cases comes about as a result of specialization or development in the organization over time, which can best be termed as experience gained by the organization. Knowledge management has become part of the requirements in MacDonald Company in order to handle the growing numbers of customers in the market segments they focus.
Also the company has been able to operate in an e-Business environment due to its good command of knowledge in the market which has facilitated the proper handling of customers, production of high quality services and adoption of strong marketing strategies. The company has also improved knowledge management in the organization through the use of the internet. They obtain the most valuable information in the internet which acts as guidelines for managing the resources in the organization.
Besides, the company has improved its competitiveness because they perform its duties electronically, seamlessly across the world through the internet and via intranets which has resulted in the explosion of wealth and the reach of information and knowledge, (Turban, 2009. p 679). MacDonald Company uses knowledge management to ensure that value is extracted from knowledge that is both internal and external to the organization. Thus knowledge management is effective when combined with business strategies since its primary aim is to focus in achieving organizational goals and improving its performances, innovating new strategies, continuous improvement of its competitiveness and sharing of lessons learned.