Review. Organization model. Environment. Organizational Goals & Tasks. People. Management. Organizational Structure. Technology.

Transcription

1 Review Organization model Environment Organizational Goals & Tasks People Management Organizational Structure Technology Environment Principles of Business/ slide no 2 1

2 Model of organization: people The most important resource of organization Individual and team work Know how knowledge management Organizational culture individual beliefs, motives, behaviour Principles of Business/ slide no 3 Model of organization: organizational structure Structural components: divisions, departments, positions Relationships: reporting, consulting, functional Principles of Business/ slide no 4 2

3 Model of organization: technology Technology - the information, equipment, techniques and processes required to transform inputs into outputs. Main technology is usually defined by: physical objects like products and equipment used to produce them; processes involved in production methods; specific knowledge required to develop and use equipment and methods for the production of a product (know-how) Principles of Business/ slide no 5 Model of organization: organizational goals Organizational goals are interrelated set of ambitions, aspirations and desired effects of varying degrees of concreteness. Organizational goals are hierarchical system: Strategic goals Tactical goals Operational goals Principles of Business/ slide no 6 3

4 Model of organization: environment Organizational environment - the set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources, and achieve goals. General environment conditions that potentially have an impact on the organisation. Specific environment - the part of the environment that is directly relevant to the organisation in achieving its goals. Domain refers to the claim that the organisation stakes out for itself with respect to the range of products or services offered and markets served. Principles of Business/ slide no 7 Organizational environment key elements ECOLOGICAL DIMENSION REGULATORS POLITICAL-LEGAL DIMENSION The general (external) environment TECHNOLOGICAL DIMENSION SUBSTITUTES STRATEGIC PARTNERS OWNERS BOARD OF DIRECTORS EMPLOYEES CULTURE PHYSICAL ENV. CUSTOMERS SUPPLIERS SOCIOCULTURAL DIMENSION The task (specific) environment GLOBAL DIMENSION COMPETITORS & PROSPECTIVE COMPETITORS ECONOMIC DIMENSION The internal environment Principles of Business/ slide no 8 4

5 H.J. Leavitt model of organization Mission Organizational goals and objectives Goals hierarchy Tasks Goals, objectives & Tasks People Individual values, beliefs, attitudes, motives, competencies Group behaviour Teams Organizational culture Organizational chart Levels of hierarchy, span of authority Formalization Centralization Specialization Organizational structure Technology Complexity of technology Technology routineness Information, equipment, techniques, processes, know-how Environment Principles of Business/ slide no 9 Efficiency vs. Effectiveness Effectiveness: doing those tasks that help an organization reach its goals (= doing the right things) Efficiency: concerned with the means, efficient use of resources like people, money, and equipment (= doing the things right) Principles of Business/ slide no 10 5

6 Key Steps of Planning DETERMINING THE ORGANIZATION S MISSION AND GOALS Define the business Establish major goals FORMULATING STRATEGY Analyze situation and develop strategies IMPLEMENTING STRATEGY Allocate resources and responsibilities to achieve strategies Principles of Business/ slide no 11 Strategic Management Process External Analysis: Opportunities & Threats Strategic Planning Identify the organization s mission, current goals and strategies Reassess the organization s goals (or even mission) Formulate Strategies Define Strategic Programmes Implement Strategies Internal Analysis: Strengths & Weaknesses Strategic Control Principles of Business/ slide no 12 6

7 Strategic planning To do the right things Tools: SWOT analysis, 5 Porter s Force analysis BCG matrix Principles of Business/ slide no 13 Michael Porter s five forces model 1. The relative number of buyers to suppliers and threats from substitutes and new entrants affect the buyer-supplier relationship 2. The ease or difficulty with which new competitors can enter an industry 3. The extent to which switching costs and brand loyalty affect the likelihood of customers adopting substitute products and services 4. The degree to which buyers have the market strength to hold sway over and influence competitors in an industry 5. Intensity among rivals increases when industry growth rates slow, demand falls, and product prices descend Suppliers Bargaining Power of Suppliers Threat of New Entrants New Entrants Industry Competitors Intensity of Rivalry Substitutes Threat of Substitutes Bargaining Power of Customers Customers Principles of Business/ slide no 14 7

8 SWOT Analysis IDENTIFY ORGANIZATIONAL IDENTIFY ENVIRONMENTAL INTERNAL ANALYSIS EXTERNAL ANALYSIS Strengths Weaknesses Opportunities Threats SWOT Analysis The combined external and internal analyses to identify a strategic niche that the organization can exploit Strengths Any activities the organization does well or any unique resources that it has Weaknesses Activities the organization doesn t do well or resources it needs but doesn t possess Opportunities Positive trends in the external environment Threats Negative trends in the external environment Principles of Business/ slide no 15 Formulating Corporate-level Strategies: SWOT Analysis and Grand Strategies Organization Valubale Strengths Critical Weaknessess Corporate Growth Strategies Corporate Stability Strategies Corporate Stability Strategies Corporate Retrenchment Strategies Good strategies are those that support the mission and: exploit opportunities & strengths, neutralize threats, avoid weaknesses. There are three main types of corporate strategies: growth, stability, and retrenchment Abundant Opportunities Environment Critical Threats Principles of Business/ slide no 16 8

9 The BCG Matrix BCG Matrix strategy tool to guide resource allocation decisions (between different SBUs) on the basis of market share and growth of SBUs Stars: Heavily invest Question Marks: Sell off or turn into stars Cash Cows: sustain and Milk for cash Dogs: Sell off or liquidate Low Anticiated Growth Rate High Stars Question Marks Cash Cows Dogs High Market Share Low Principles of Business/ slide no 17 Strategic planning To do the things right Tools: PERT network Gantt chart Principles of Business/ slide no 18 9

10 PERT Network A B = activity B cannot begin until activity A has been completed Principles of Business/ slide no 19 Gantt chart Principles of Business/ slide no 20 10

11 Homework Principles of Business/ slide no 22 11

12 Stable Inflexible Job-focused The Changing Organization Traditional Organization Work is defined by job positions Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogeneous workforce Dynamic Flexible Skills-focused New Organization Work is defined in terms of tasks to be done Team-oriented Temporary jobs Involvement-oriented Employees participate in decision making Customer-oriented Diverse workforce Workdays defined as 8 to 5 Workdays have no time boundaries (24/7) Hierarchical relationships Work at organizational facility during specific hours Lateral and networked relationships Work anywhere, anytime Principles of Business/ slide no 23 Principles of Business/ slide no 24 12

13 Principles of Business/ slide no 25 Your homework Your goal: train the most needed job skills Show an example or your own or someone s business idea of 4.0 industrial revolution in context of chemistry as a science or industry Deadline: Prepare in groups (~4 people): 1. a short presentation of the idea max 5-7 slides, 5 min for presentation 2. a report about your team work (2 pages max.): 1. plan of work with time needed estimation (visualization), 2. reality vs plan, 3. used tools, 4. your remarks and self assessment. Principles of Business/ slide no 26 13