Honeywell is an American multinational firm, which produces a variety of consumer and commercial products, and it offers engineering services to various consumers. It operates four business units including Honeywell Performance Materials and Technologies, Safety and Productivity Solutions, Strategic Business Units, and Honeywell Aerospace (Honeywell, 2017).
Honeywell firm invests and manufactures technologies addressing some of the worlds challenges related to productivity, safety, energy, global urbanization, and security. The company is positioned to blending physical products with software to help support the connected systems, which improve buildings, homes, utilities, factories, vehicles, factories, and aircrafts (Honeywell, 2017). Furthermore, the firms solutions enhance the quality of individuals lives around the world by creating new markets and industries.
The companys Globalization and technological changes that have influenced the company
The use of Honeywell User Experience (HUE) has enabled the company to deliver smart, practical, and high-quality products, which are easy to use, install and maintain. HUE is also used in developing a deep understanding of the users needs to design desirable, intuitive, and differentiated experiences (Cummings & Worley, 2014). Honeywell is the first Western firm to announce that it has a 100% compatibility with Capability Maturity Model Integration (CMMI) with level 5 maturity across the globe. The technology does software development and creates standards and the best practices that are long-lasting, repeatable, and are executed conferring to standardized methods. It also allows for the creation of a robust software from the beginning, and it is a competitive advantage which offers a solid foundation as firms transform to premier cyber industrial companies.
Globalization has also taken place in the firm as it has expanded its operations to India (Aldonas, 2009). The new company marks the entry of the company to renewable equipment manufacturing in India, and it will manufacture the solar heating system for commercial, industrial, and residential applications for domestic markets and export to North Africa and Southeast Asia. Therefore, other countries in Asia and Africa will get the chance of using the companys products.
Apply the industrialization model and the resource-based model to determine if the company can earn above-average earnings
The industrialization model adopts an external perspective in explaining that forces outside a firm represent dominate influences on a companys strategic actions (Vargo & Lusch, 2004). Honeywell experiences high competition from companies like General Electric Co, ABB Ltd, Siemens AG, and 3M Company. Honeywell competes on various factors including price, reliability, quality, customer service, applied technology, product recognition, product innovation, and performance (Stanton & George, 1999). The pressure from the competitors makes the company work towards being the best in the industry by opening its branches in other countries and this result in good earnings. Furthermore, the pressures from the investors of the company have determined the above-average earnings of the firm. Therefore, high execution in the companys continued momentum and business across the portfolio has assisted it to deliver stronger gains.
The resource-based model adopts that it is an internal perspective that explains the way a firms unique capabilities and internal resources act as a basis for earning the above average returns (Vargo & Lusch, 2004). The management of the Honeywell plays a significant role by looking for opportunities it ensures that the firm earns above-average earnings. For instance, opening a branch in India is an excellent opportunity in the company, as it will get the chance of selling its products to other markets, thus, an increase in the earnings.
The way vision statement and mission statement fuel the success of the company
The vision and the mission statement of the firm have played a significant role in its success. The firm strives for a comfortable, secure, cleaner and a more efficient future and it had done this by addressing the critical challenges related to productivity, safety, energy, global urbanization, and security (Honeywell, 2017). Their mission and vision statement has also enabled them to achieve their success by enhancing the quality of life of individuals around the world and creating new markets and industries. Furthermore, it has helped them to make higher earnings as compared to the competitors because of its steadfast belief in the strength of innovation.
Evaluate how each category of stakeholder impacts earnings
The stakeholders of Honeywell include investors, customers, employee, and suppliers. The investors have the highest priority in the company, as they are the ones who fund its operations. They are mainly interested in profit, and the pressure they put on the firm has enabled it to work extra hard to ensure that it achieves high earnings (Morningstar, 2006). They have also ensured that the business minimizes its operational costs to get high earnings.
The customers are also an essential category of stakeholders. Customers of Honeywell are usually interested in affordability of products as long as they have acceptable quality. The need for quality products by the consumers has made the firm to work towards that direction. Buying the products of the company by the customers increases its earnings.
The employees have an essential consideration in the managerial decision making of the company. The employees do have two significant interests including higher wages and job security (Morningstar, 2006). The employees have increased the companys earnings through inventing and manufacturing technologies, which address some of the critical challenges in the world around security, productivity, energy, global urbanization, and safety.
Suppliers also play an essential role in influencing the earnings of the company. Supplying goods on time increases the profits in that the employees can manufacture products on time and sell them to the different consumers. Suppliers also increase the gains by selling their products at lower prices.
Aldonas, G. D. (2009). Globalization and the American worker: Negotiating a new social contract. Washington, D.C: CISI Press/Center for Strategic and International Studies.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage Learning.
Honeywell. (2017). Honeywell. Retrieved 16 October 2017, from https://www.honeywell.com/
Morningstar (Firm). (2006). Morningstar stocks 500. Hoboken, N.J: Wiley.Stanton, J. L., & George, R. J. (1999). Success leaves clues: Practical tools for effective sales and marketing. Los Angeles, Cal: Silver Lake Pub.
Vargo, S. L., & Lusch, R. F. (2004). The four service marketing myths: remnants of a goods-based, manufacturing model. Journal of service research, 6(4), 324-335.
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