What is The Theory of Constraints

According to Sergio Rattner, Lean enterprise institute (2006) as stated by Eliyahu M. Goldratt, a constraint is any factor that limits the organizations from getting more of whatever its strives for, which is usually profit. This theory states that every organization must have a constraint(s) that hinder the organization from achieving its goals. It is a methodology of identifying the most limiting factor that hinders an organization from achieving its goals. This theory takes a scientific approach to improvement. It takes into consideration the ultimate goal of an organization and it helps the organization achieve its goals by providing powerful set of tools. The tools include the five focusing steps(methodology for identifying and eliminating constraints), the thinking process(tool for analyzing and resolving problems), throughput accounting(a method for measuring performance and guiding management decisions) The best thing with this theory is that it prioritizes improvements by eliminating the challenges an organization faces. The core concept according to Eliyahu M Goldratt as published by Sergio Rattner,lean enterprise institute (2006) of this theory is that every activity has a constraint and it can only be improved when the constraints are improved. The five step process as defined by Goldratt in his book The Goal and published by Sergio Rattner, lean enterprise institute (2006) as process that change agent can use to strengthen the weakest link or link. And it is as follows Identifying the constraints itself ·

Decide on how to exploit the constraint - Goldratt instructs the change agent to obtain as much capability as possible from a constraining component without undergoing expensive changes or upgrade Subordinate everything else - The non constraints component of the system must be adjusted to a setting that will enable constraints operate at a maximum effectiveness. An evaluation is done after everything is set to determine if the constraint has moved to another component, if it has been eliminated then the change agent moves to step five.

Elevate the constraints - Taking the necessary action to eliminate the constraint. ·

Return to step one and beware It is evident in this theory that in any activity there must be a challenge so does in poultry farming there are challenges facing the project. 2.1.2 The marketing strategy theory According to Drucker as quoted by Jorge Mongay (2012) "Strategic marketing is seen as a process consisting of analyzing environmental, market competitive and business factors affecting the corporation and its business units, identifying market opportunities and threats and forecasting future trends in business areas of interest for the enterprise and participating in setting objectives and formulating corporate and business unit strategies. Selecting market target strategies for the product-markets in each business unit, establishing marketing objectives as well as developing,implementing and managing the marketing program positioning strategies in order to meet market target needs”. Under this theory we will look into segmentation and the marketing mix as they are the key components in our research. 2.1.2.1 Segmentation The immense importance of market segmentation resulted from the virtual reality of the differences in the consumers (Howaldt and Mitchell, 2007).

Consumers of a product or service are no homogenous group and it is the fact that every consumer has individual needs, preferences, resources and unique behavior (Matzler and Hinterhuber, 1998). The problems faced by the producers are that it is totally impossible to provide different types of goods for different consumers. Therefore they group the market into homogenous clusters and segmentation is the most viable way to do it (McDonald and Dunbar, 2004). However, successful organization converts these difficulties as opportunities and use market segmentation as a perfect weapon to establish suitable value chain management and gaining the momentum and competitive edge (Howaldt and Mitchell, 2007). Products and services are designed to solve customers' problems or meet their needs. And because not all customers share the same needs, not all will purchase the same product. Market segmentation is the craft of presenting a company's product to segments that want it, can afford it, and know how to access it. Business owners and marketers who identify these segments based on demographics, behaviors and desires can concentrate their marketing efforts on the customers who are most likely to buy. They then can design their marketing mix strategy to attract these consumers, appeal to their needs, and extend the product's profitability.

Marketing Mix Marketing mix means the product, distribution, promotion and pricing strategies to produce and carry out exchanges and achieve the target markets. "Marketing mix - interrelated actions and solutions to meet consumer needs and to achieve the company's marketing goals, a whole" (Sereikienė - Abromaitytė (2013)). The idea of a marketing mix is to organize all aspects of the marketing plan around the habits, desires and psychology of the target market. This orientation considers marketing as it applies to the theory of the "4 Ps." The first P is product, Product is defined as a physical product or service to the consumer for which he is willing to pay. It includes half of the material goods, such as furniture, clothing and grocery items and intangible products, such as services, which users buy (Singh (2016)) it takes into account its design, features and competitors. The second P, price, "The price may also be defined as a monetary expression of value for the consumer agrees to pay" (Entrepreneurship Academy (2012). it is a factor that can be adjusted to manage demand, to determine profit margin, and to drive market share. Promotion is the third P.

It seeks to find which media to engage in order to make the right people aware of the product's benefits, and which slogans, tag lines and logos will resonate with the target market. Place, the fourth P it is defined as "the process and methods by which products or services reach customers" (by Martin (2014).,it determines where and how potential customers can access the product. Young people may want to browse, buy and pay online. Others may prefer the personal service of a trained salesperson.