THREE GRAND STRATEGIES

Transcription

1 THREE GRAND STRATEGIES Cost Leadership Michael Michael Porter is an economist, researcher, author, advisor, speaker and teacher. Differentiation Focus

2 FOUR STRATEGIC TYPES Raymond Miles Professor Emeritus and Former Dean Berkeley Haas Prospector Defender Charles Snow Professor Penn State Analyzer Reactor

3 VALUE CHAIN Primary Activities: Strategy involves the combination 1.Inbound of Logistics goals and plans to achieve competitive advantage 2.Operations and the methods of implementing 3.Outbound them. Logistics 4.Marketing and Sales 5.Service Support Activities: 1.Firm Infrastructure 2.Human Resource Management 3.Technology Development 4.Procurement

4 KNOWLEDGE CHECK The three major approaches to achieving long-term competitive advantages are cost leadership,.. A) Quality, and production efficiency B) Resource acquisition, and market share C) Cost containment and cost sharing D) Differentiation and focus

5 STRATEGY FORMULATION Strategic Management Process 1 Identify the Organization s Mission & Objectives 2Analyze Environment: Opportunities & Threats 3 Analyze Resources: Strengths & Weaknesses 4 Formulate Strategy 5 Implement Strategy 6 Evaluate and Monitor Results

6 STRATEGIC ALIGNMENT

7 ORGANIZATIONAL CAPABILITIES

8 ALIGNING THE ORGANIZATION

9 RESOURCE BASED THEORY OF THE FIRM Control of resources that are rare, nontradable, nonsubstitutable, valued by the market, and difficult or impossible to imitate. Distinctive Competencies: Human resources Physical resources Organizational capital resources

10 DISTINCTIVE COMPETENCIES Human resources Physical resources Organizational capital resources

11 FIVE FORCES MODEL

12 COMPETITOR ANALYSIS Future Objectives Current Strategy Assumptions Capabilities

13 KNOWLEDGE CHECK The resource-based theory of the firm claims that an organization s competitive advantage is determined by its: A) Core Capability B) Relationship with suppliers and buyers C) Superiority over rival firms D) Ability to limit new entrants into the industry

14 Congratulations, you have completed this lesson

15 SECTION 03 HR Control & Evaluation

16 LESSON OBJECTIVES List and describe quantitative and qualitative measures. Identify key performance indicators and describe their benefits within the organizational scorecard. Recognize the value-add of HR technology and variations of innovation.

17 HR BUDGETING PROCESS A budget is an itemized estimate of the operating results of a company for a future time period. Three major purposes: 1.Coordination and Integration 2.Motivation 3.Control and Evaluation

18 MEASURES OF HR EFFECTIVENESS Subjective Attitudinal Measures Human Resource Audit Statistical Benchmark Employee measures Productivity measures HR process measures Human Resource Accounting Outlay Cost Replacement Cost Human Resource Value Costing HR Activities

19 HUMAN RESOURCE AUDIT Step 1: Define responsibilities of HR Dep t Step 2: Collect data Step 3: Analyze results Step 6: Implementation & follow-up Step 4: Data feedback and evaluation Step 5: Develop an action plan

20 KEY PERFORMANCE INDICATORS Organizations need HR metrics that measure both efficiency (time & cost) and effectiveness (ROI & profitability). Leading Indicators Lagging Indicators

21 BALANCED SCORECARD Analyzing the traditional HR measures concurrently with performance metrics. Four perspectives: 1.Strategic perspective 2.Operational perspective 3.Financial perspective 4.Customer perspective Stakeholders: 1.Stockholders 2.Customer 3.Employees

22 OUTSOURCING Human Resources Outsourcing (HRO) is a means of outsourcing specialists to perform human resources functions. HRO Options Professional Employer Organization (PEO) Employee Leasing

23 HR TECHNOLOGY New technologies has dramatically changed the way many HR practices are performed.

24 KNOWLEDGE CHECK The primary advantage of using a professional employee organization is A) It provides inexpensive consulting advice B) Human resource functions can be outsourced and performed more capably C) The company reduces its exposure to illegal discrimination D) The company saves the money it would have spent on employee benefits and services

25 Congratulations, you have completed this lesson

26 SECTION 04 Organizational Environments

27 LESSON OBJECTIVES Examine and evaluate the eight environmental sectors of an organization. Demonstrate the conditions of environmental scanning. Identify the four processes in which HR Managers can influence the legislative process.

28 ENVIRONMENTAL SECTORS

29 ENVIRONMENTAL SCANNING Examining the economic & social forces influencing the organization, especially the long-term composition of the labor force and the future availability of employees. Economic conditions Unemployment Inflation Competition Technological advances

30 INFLUENCING LEGISLATION HR managers are expected to actively participate in the formation of state and federal laws. Legislative Process Proposed Legislation Informing Legislators Protesting a Law or Agency Regulation

31 ENVIRONMENTAL UNCERTAINTY Some organizations enjoy a fairly stable world while others face growing uncertainty. Environmental uncertainty stems from two variables 1. The complexity of the environment 2. How rapidly the environment changes

32 ORGANIZATIONAL ENVIRONMENTS Rate of Change Rapid Slow Entrepreneurial Organizations Proprietorship Organizations Simple Flexible Organizations Institutional Organizations Complex Environmental Complexity

33 REDUCING UNCERTAINTY Because uncertainty threatens organizational survival and reduces its effectiveness, organizations use a variety of strategies to reduce environmental uncertainty. Changing the organizational structure Planning and forecasting Mergers and acquisitions Cooptation Public relations and advertising Political activity Illegal activities (although wrong)

34 KNOWLEDGE CHECK When examining environmental uncertainty, the number of external elements that are relevant to an organization is referred to as environmental A) Domain B) Relevance C) Stability D) Complexity

35 Congratulations, you have completed this lesson

36 SECTION 05 Organizational Design & Development

37 LESSON OBJECTIVES Differentiate between organizational structures and assign which structures would best be suitable to make an organization functional and profitable. Define and describe the advantages and disadvantages of the matrix structure.

38 DIFFERENTIATION AND INTEGRATION The creation of an organizational structure requires an organization to respond to two basic issues: Differentiation How to divide the work into specialized jobs. Integration How to coordinate what has been divided.

39 DEPARTMENTALIZATION Functional Focus on one function May cause suboptimizing Product Combines jobs that produce similar products May cause duplication of roles

40 DECISION MAKING Centralized Authority to make organizational decisions is retained by top managers within the central office. Decentralized Power and authority are extended to supervisors and the production employees at lower hierarchical levels of the organizational structure.

41 DECISION MAKING Authority: Delegation Centralized Decentralized

42 FORMAL VS. INFORMAL RULES The creation of an organizational structure requires an organization to respond to two basic issues: Coordinating mechanisms: Personal discretion Direct supervision & rules Mutual adjustment

43 DIVISION OF LABOR The extend to which jobs should be specialized. Division of Labor: Specialization High Low

44 SPAN OF CONTROL The number of individuals in a group under one supervisor. Span of Control: Number Few Many

45 MATRIX STRUCTURE

46 KNOWLEDGE CHECK A bureaucracy that is characterized by homogenous functional departmentalization, centralized decision making, formal rules and control mechanisms, and highly specialized jobs is considered A) Mechanistic Structure B) Organic Structure C) Matrix Structure D) Paradox Structure

47 Congratulations, you have completed this lesson