...Chapter 1- Introduction to Strategic Management Overview Strategy: set of related actions that managers take to increase their company’s performance -for most, if not all companies, achieving superior performance relative to rivals is the ultimate challenge -if a company’s strategies result in superior performance, it is said to have a competitive advantage -Ex: Dell’s strategies produced superior performance from mid-1990s until mid-2000s, as a result, Dell enjoyed competitive advantage over its rivals -How did they achieve competitive advantage? -due to successful pursuit of varying strategies: Direct selling, customization and efficient supply chain mgmt. -enabled company to lower cost structure, charge low prices, gain market share, and become more profitable than its rivals -Dell lost competitive advantage in later half of 2000s HP offered bundled products, needed to find ways to sell to intermediaries & Apple differentiation -first step toward achieving objective is to describe in more detail what superior performance/competitive adv mean and to explain pivotal role that managers play in leading strategy-making process Strategic Leadership: creating competitive adv through effective mgmt. of the strategy-making process -strat-making process is the process by which managers select/implement a set of strategies that ain to achieve a competitive adv Strategy Formulation: selecting strategies based on analysis of an org’s external/internal environment...
Words: 4937 - Pages: 20
...enterprises are achieved. CORPORATE STRATEGY/ STRATEGIC MGMT: It focuses on how managers formulate and implement, and evaluate strategies or plans aimed at developing and maintaining competitive advantage. Here competitive advantage means “the reason some firms enjoy higher levels of performance than their rivals or competitors” FEATURES OF STRATEGY: It includes planning & implementation. It is creative in nature. It is a dynamic & flexible program. It includes all the levels of Org. but maximum efforts are done by Top & Middle Mgmt. Its Life Span is Limited. It is Future Oriented or Forward Looking It offers Broad Guidelines or blueprints to be successful. Strategy is a well defined roadmap of an organization. (mission & Vision are defined). COMPONENTS OF STRATEGY: The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement are as follows: a) STRATEGIC INTENT(PLAN/TGT/GOAL) An organization’s strategic intent is the purpose that it exists and why it will continue to exist, providing it maintains a competitive advantage. Strategic intent gives a picture about what an organization must get into immediately in order to achieve the company’s vision. It motivates the people. It clarifies the vision of the vision of the company. Strategic intent helps management to emphasize and...
Words: 4798 - Pages: 20
...Business Man 1 Intro to Bus Man as science - Study Unit 1 & 2 Man science uses a scientific approach to solver many problems. Used in variety of orgs to sove different types of problems. Encompasses a logicical mathematical approach to problem solving 1.1 Man science process • Observation - Identification of a problem that exists in the system or organization. • Definition of the Problem - problem must be clearly and consistently defined showing its boundaries and interaction with the objectives of the organization. • Model Construction - Development of the functional mathematical relationships that describe the decision variables, objective function and constraints of the problem. • Model Solution - Models solved using management science techniques. • Model Implementation - Actual use of the model or its solution. 1.2 Factors of production Natural resources i.e. crude oil Capital i.e. investors Labour i.e. technical and academic Entrepeneurship i.e. takes capital and link labour and natural resouces combined with risk to provide goods and services. Knowledge i.e. to determine wants and needs quickly and to respond to them with products and services. 1.3 3 Most NB Economic systems = Capatalism, Socialism and Communism 1.3.1 Capatalism Free market system Built on principles of private ownership Is based on the right to make a profit, right to compete and the right to own property. System is market driven and the solutions to a country's economic problems...
Words: 9542 - Pages: 39
...MANAGEMENT ACCOUNTING: AN OVERVIEW Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 2 Learning Objectives Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 3 Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other financial reports. External Users Managerial Accounting Users of information Managers within company Regulation Financial Accounting Interested outside parties Required. Must comform to Not required because for internal GAAP which is regulated by use only FASB and SEC. Basic accounting system plus Almost exclusively from the Source of Data various other sources basic accounting system Reports often focus on subunits. Reports focus on the enterprise Nature of Reports Based on a combination of in its entirety. Based on and...
Words: 2550 - Pages: 11
...long term, which achieves the advantage of changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. Direction – Mission, vision, and course Scope – broad or narrow strategy Long term – 5-10years Environment – General environment & industry environment Resources – tangible and intangible Capabilities – capacity of organisation to integrate and deploy resources to achieve an obj. Stakeholders – society, suppliers, creditors, shareholders, employees, customers Levels of strategy * Corporate * Business General environment (Macro) – broad collection of factors that directly or indirectly have the potential to influence every firm in ever industry within the economy PESTDG framework * Identify trends * Explain trends * State if opportunity or threat * Explain why is it an opportunity or threat Segment | Trends | Political / Legal | Changes to workplace relations, carbon tax law | Economical | Rising interest rates, GFC, inflation rate, unemployment rate | Socio-cultural | Climate change, increase in casual workers, greater concern for health | Technological | Wireless communications, cloud computing, growth in hand held devices | Demographical | Aging population, growing disparity in income level | Global | Growth in Chinese and Indian economy, free trade agreements | Industry environment (micro) – the set of factors that influences a firm and its competitive...
Words: 3237 - Pages: 13
...Modern Organization in the Global, Web-Based Environment Management information systems (MIS)- deals with the planning of info tech to help people perform tasks related to info processing and management Information technology (IT)- any computer-based tool used with info to support the needs of an org Importance of Planning for IT -a new info system can apply to the whole org, or a specific area of the org Application portfolios- are groups of new system proposals (apps that have to be added/modified) IT Planning -begins with an organizational strategic plan -states the firm’s mission, goals, and steps to reach those goals -IT architecture describes the way an org’s info resources should be used to accomplish its mission -includes both technical (hardware operating systems) and managerial aspects (managing the IT dpt, how area managers will be involved) IT strategic plan- LT goals that describe the IT infrastructure and major IT initiatives to achieve the organization’s goals -it must meet three main objectives: -must be aligned with the org’s strategic plan -must provide for an IT architecture that networks users, apps, and databases -must efficiently allocate IS resources among different projects so they can all be completed on time, within budget, and function properly IT steering committee- composed of managers/staff who rep diff organizational units -they establish IT priorities to ensure MIS function is meeting the org’s needs -it links...
Words: 24496 - Pages: 98
...will be punished more severely than ever before. According to Siemens there are 3 innovation strategies when relating to time: First movers – These are highly innovative firms that rapidly react and are the first to market a new technology, application or business model. Fast followers – These are the companies that avoid risky starts and high R&D costs, but win market share by improvements in price, quality or service from the first mover companies. Trendsetter – These are the companies that succeed in establishing a new technology and disruptive technologies that can revolutionize the market in the future. This is where companies aiming to obtain high profits should be putting their efforts just like Siemens is. There are many other strategies that Siemens is pursuing in order to improve quality of life for their customers and provide higher profit margins for the corporation. Exploiting synergies: Increase the efficiency and effectiveness of R&D activities as well as exploiting synergy potential more consistently. These include intelligent sensors, new types of displays, piezo-controlled valves, turbine coatings, and miniaturized laboratories on a chip. Strategic patent management: Siemens is...
Words: 1744 - Pages: 7
...to tackle the issues there are currently facing. Such as, the decline in sales, market share decreases resulting in their stock prices dropping significantly, the possibility of losing their long-term popular place in the snack food industry due to the lack of their innovation and creativity. Best Snacks has the chance to integrate in a cultural change program aimed to increase employees’ creative thinking skills resulting in their increase in innovation and creativity at work. By doing this, Best Snacks would open up new realm of strategies in organizational theory, design and change. In examining and recognizing what opportunities are available, taking into account the issues it would be critical to first assess and develop a strategic innovation plan consisting of intrapreneurship and creativity. “The leaders of innovation and new product development in established organizations are intrapreneurs,...
Words: 3410 - Pages: 14
...different businesses competing in different product markets. Diversification strategy is expected to help firm earn above-average returns while profit came from different sources of market. Perhaps is also should increase firm overall performance. Value ultimately determined by degree to which the businesses in the portfolio are worth more under the management of the company then they would be under any other ownership. (eg: Types: a. Low Levels Single Business Strategy is Corporate-level strategy in which the firm generates 95% or more of its sales revenue from its core business area (operating in relatively few product markets). Eg: Wrigley only produces chewing and bubble gums. Dominant Business Diversification Strategy is Corporate-level strategy whereby firm generates 70-95% of total sales revenue within a single business area. Eg: UPS generated 61% of its revenue from its US package delivery biz and 22% from its international package biz, with the remaining 17% coming from the firm’s non-package biz. b. Moderate to High Levels Related Constrained Diversification Strategy—Firms generate less than 70% of revenue comes from the dominant business. The firm’s businesses are direct links with each other and share resources and activities between its biz. (i.e., share products, technology and distribution linkages) Related Linked Diversification Strategy (Mixed related and unrelated). Less than 70% of revenue comes...
Words: 3697 - Pages: 15
...grouped, who reports to whom and where decisions are to be made. Leading: A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. Controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. Mintzberg‟s Managerial Roles [2] Definition - Organisational Behaviour. OB is a systematic study of the actions and reactions of individuals, groups and subsystems. O.B. is the systematic study and careful application of knowledge about how people- as individuals and as members of groups –act within organizations. It strives to identify ways in which people can act more effectively. O.B. is a field of study that investigates the impact that individuals, groups and structures have on behaviour within organizations for the purpose of applying such knowledge towards improving an organization‟s effectiveness. O.B. is the study and understanding of individual and group behaviour, patterns of structure in order to help improve...
Words: 12695 - Pages: 51
...1 2 The CVF model looks at an organization based on two cultural dimensions; Horizontal and Vertical. Horizontal: Inward / Outward Focus The horizontal dimension is used to plot the degree to which the organization focuses inwards or outwards. If an organization’s position on the horizontal axis tends toward the left, it is focused primarily inward. If it tends toward to the right, the organizational focus tends to be outward, towards customers, suppliers and the external environment. An internal focus is valid when maintaining a corporate identity may not be as important as pleasing external stakeholders. Hewlett Packard and EDS were well known for creating an internal culture that was recognized, and perceived as having value. Vertical: Stability/Flexibility The position on the vertical axis determines who makes decisions. At the lower end, control is with management, whilst at the upper end, it is devolved to employees who have been empowered to decide for themselves. Stability is a valid form when the business is stable and reliability and efficiency is paramount, but when environmental forces create a need for change, then flexibility becomes more important. (Changing Minds.org) The two dimensions of the CVF are further classified into four models or cultural types, each one containing a different set of effectiveness criteria. Quinn and Rohrbaugh (1983, p.371): Clan, Adhocracy, Market, and Hierarchy, respectively (Cameron and Quinn, 2006, p.29‐35)...
Words: 4900 - Pages: 20
...University NPM 6108 Lisa Dennis 1605 Peachtree Street NE, Atlanta, GA 30309-2955 (404) 870-7700 ldennisldennis@yahoo.com Instructor: Dr. Boyd Johnson Organization Overview AIDS ATLANTA, Inc. is a non-profit 501(c) 3, which was incorporated in Georgia. AID Atlanta Inc. is a small organization by revenue operating in the Non-Profit & Professional Orgs. Industry. AIDS ATLANTA purpose is to provide financial and supportive services to those infected and affected by HIV/AIDS and to create awareness and prevention education programs in the community which has yet to overcome the challenges of stigma, discrimination and denial of the epidemic. AID Atlanta, Inc. has been saving and transforming lives since its inception in 1982. The agency was founded as a grass-roots response to the devastating and fatal impact HIV/AIDS was having on the Atlanta community. AID Atlanta quickly began expanding to offer a broader range of services, and has since grown to be the largest and most comprehensive AIDS Service Organization in the Southeast United States (www.aidatlanta.com, 2011). Role of Board of Directors Nonprofit boards generally have the duties of selecting and working with the Executive Director, amending bylaws, approving the annual budget and long-term strategic plans, and ensuring its own succession. There are 24 members on the Board of Directors, with 6 Department Heads Directors of Aid Atlanta. The Executive Director presently is Cathy Woolard. The Executive Director...
Words: 2485 - Pages: 10
...[pic] MIDLANDS STATE UNIVERSITY DEPARTMENT OF MARKETING MANAGEMENT MODULE: MARKETING OF FINANCIAL SERVICES (MMRK812) [pic] LECTURE NOTES CHAPTER 1: AN OVERVIEW OF THE FINANCIAL SERVICES SECTOR IN ZIMBABWE 1. Introduction Zimbabwe’s financial sector is relatively sophisticated and consists of the Reserve Bank of Zimbabwe (RBZ) at the apex of banking institutions, commercial banks (e.g. CBZ, NMB, FBC, ZB, MBCA, Kingdom, Trust, Stanbic, Barclays, Chanchart), merchant banks, building societies (e.g. CABS, CBZ building society, FBC building Society etc), the People’s Own Savings Bank (POSB), insurance companies (e.g ZIMNAT, NICOZ DIAMOND, Old Mutual, First Mutual, Nyaradzo), pension funds (e.g Allied workers pension fund, NRZ pension fund), asset management companies (Imara and Edwards), developmental financial institutions, the Zimbabwe Stock Exchange (ZSE), microfinance institutions (e.g MicroKing) and money transfer agencies (e.g Western Union, Moneygram, Homelink). Discount and finance houses have closed and their functions taken by commercial and merchant banks. The growth of the financial services sector is largely attributed to the financial liberalization of the early 1990s, through the Economic Structural Adjustment Programme (ESAP). 2. Structure of the banking sector Number of operating banking institutions (including POSB) declined to 25 from 26 following the voluntary surrender of a banking license by Genesis Investment...
Words: 14699 - Pages: 59
...www.thevision21.org BALOCHISTAN Problems and Solutions Vision 21 is a Pakistan based Non‐Profit, Non‐Party Socio‐Political organisation. We work through research and advocacy for developing and improving Human Capital, by focusing on Poverty and Misery Alleviation, Rights Awareness, Human Dignity, Women empowerment and Justice as a right and obligation. Vision21 is a registered Non‐Profit organization under section 42 of Companies Ordinance 1982 Any part of this publication can be used or cited with clear reference to Vision21 By Vision21 Foundation Website: http://www.thevision21.org/ Blog: http://awaam.wordpress.com g p p Phone: 92‐51‐250 5030 Fax: 92‐51‐550 1288 Email: info@thevision21.org BALOCHISTAN PROBLEMS AND SOLUTIONS CONTENTS Preface • Introduction • British Era and Sandeman System • Since 1947 Since 1947 • Reasons for the conflict • Provincial Autonomy & Ethnic Culture • Resource Exploitation • Deprivation and Lack of Development lag • Government’s Neglect Government s Neglect • Role of Sardars • Religious Extremism • External Factors and Geo Politics • History of the conflicts • The Current Insurgency and Baloch Nationalism The Current Insurgency and Baloch • Insurgency and ‘Geo‐Politics of Energy Resources’ • Insurgent Groups in Balochistan • Settlers issue & current situation in Balochistan • Pakhtun Factor • Liberation and Viability: Is independent Balochistan viable? y p • Possible consequences for independent Balochistan and divided ...
Words: 16261 - Pages: 66
...when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity * Meet foreign customer, McTaggart in 2004 * Can’t build the market in Britain on the basis of shipments from America, since the large transaction...
Words: 18260 - Pages: 74
