Professional Documents
Culture Documents
Corporate planning
Planning growth &diversification Forecasting. Corporate planning. Synergy
Positioning
Competitive advantage
Strategic innovation
Reconciling size with flexibility & agility
Selecting Focusing on sectors/markets. sources of Positioning for competitive leadership advantage Industry analysis Segmentation Experience curve Portfolio analysis
Resources & Cooperative capabilities. strategy. Shareholder Complexity. value. Owning E-commerce. standards. Knowledge Management
MANAGEMENT IMPLICATIONS
Diversification. Restructuring. Alliances & Global strategies. Reengineering. networks Matrix structures Refocusing. Self-Organiz Outsourcing. ation & virtual organization
Establish procedures Provide facilities Provide capital Set standards Establish programs and plans Control information Activate people
Redefine as needed
Revise as needed
Reformulate as needed
Rework as needed
Analysis of Environment
Five Force model PEST SWOT Analysis BCG matrix GE matrix Ansoff Matrix Value chain analysis
Environmental analysis
Process of examining the organizations environment to determine: Strengths Weaknesses Opportunities Threats
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Environmental structure
General environment Social, economic, political, legal, technical Operating environment International, supplier, labor, competition, customer Internal environment Organizational, marketing, financial, personnel, production
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Establishing an organizational direction for the company involves determining two indicators: Organizational mission the reason why the organization exists Objectives measurable targets to track the growth of the business
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Types of objectives
Profitability Growth Market share Social responsibility Employee welfare Product Quality Service
R&D Diversification Efficiency Financial stability Resource conservation Mgt & labor development
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Strategy formulation
What are the purpose and objective of the organization? Where is the organization presently going? What critical environmental factors does the organization currently face? What can be done to achieve organizational objectives more effectively in the future?
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Growth-share matrix
22 Stars 20 18 Market Growth Rate (percent) 14 12 10 8 6 4 2 Question Marks
Cash Cows
Dogs
10.0
5.0
2.0
1.0
0.5
0.1
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Structural analysis of competitive forces Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products Rivalry among existing competitors Strategic alternatives
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Scenario Analysis
Confronting Assumptions Recognizing the degree of uncertainty Mental Maps Mapping the uncertainty Conflict and Dilemma Phases: Research, Scenario building, Application and Dissemination
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Marketing strategy
Human resource strategy
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Competitive Strategy
Overall cost leadership Differentiation Focus
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Strategy implementation
Commander approach
Organizational change approach
Collaborative approach
Cultural approach
Crescive approach
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Commander approach
Manager determines best strategy Manager uses power to see strategy implemented Three conditions must be met Manager must have power Accurate and timely information is available No personal biases should be present
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Commander approach
Limitations Can reduce employee motivation and innovation Advantages Managers focus on strategy formulation Works well for younger managers Focuses on objective rather than subjective
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Limitations Managers dont stay informed of changes occurring within the environment Doesnt take politics and personal agendas into account Imposes strategies in a top-down format Can backfire in rapidly changing industries
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Collaborative approach
Enlarges the Organizational Change Approach Manager is a coordinator Management team members provide input Group wisdom is the goal
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Collaborative approach
Advantages Increased quality and timeliness of information Improved chances of effective implementation Limitations Contributing managers have different points of view and goals Management retains control over the process
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Cultural approach
Includes lower levels of the company Breaks down barriers between management and workers Everyone has input into the formulation and implementation of strategies Works best in high resource firms
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Cultural approach
Advantage More enthusiastic implementation Limitations Workers should be informed, intelligent Consumes large amounts of time Strong company identity becomes handicap Can discourage change and innovation
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Crescive approach
Addresses formulation and implementation simultaneously Subordinates develop, champion, and implement strategies on their own Bottoms-up approach Ultimate strategy is sum of all successful approaches
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Crescive approach
Advantages Encourages middle management to participate Strategies are more operationally sound Limitations Resources must be available Tolerance must be extended
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Strategic control
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Customer Perspective Financial Perspective Internal Business Process Perspective Learning and Growth Perspective
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Design School Planning School Positioning School Entrepreneurial School Cognitive School Learning School Power School Cultural School Environmental School Configuration School
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Target Setting
Gap Analysis
Strategic Appraisal Strategic Formation Strategic Implementation
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Organizational implications of
different strategies.
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Corporate Scandals
Enron, WorldCom, Parmalat Jack Welchs retirement package
War
Invasion of Afghanistan & Iraq Civil wars in Congo, Liberia, Sudan, Somalia
Decline of Multilateralism
Collapse of Doha round Trade wars between US, EU, China Weakening of UN
Age of Disbelief
Unstable Currencies
Fear of Disease
SARS, Mad Cow, Bird Flu
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Technology Resources & capabilities as Continued advances in ICT basis for competitive advantage Knowledge-based theory of the firm Demands of society Option theory Social & environmental responsibility Complexity theory Ethics & fairness Quest for meaning
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Emerging Developments
STRATEGY
Multiple competitive advantages/multiple capabilities Innovation / New Product Development / New Business Development Alliances & networks
ORGANIZATION STRUCTURE
Reconciling flexibility & integration Modular structures Multidimensional structures Informal organization & self-organization
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Emphasis on control
Single performance goal
Emphasis on co-ordination
Multiple performance goals
Organization by design
Process-based organizations
Project-based organization
Q&A
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Thank You
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