STRATEGIC MANAGEMENT & BUSINESS POLICY 13 TH EDITION

Transcription

1 STRATEGIC MANAGEMENT & BUSINESS POLICY 13 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER

2 Integration Managers Prepare a competitive profile of the company in terms of its strengths and weaknesses Draft a profile of what the ideal combined company should look like Develop action plans to close the gap between actual and ideal Establish training programs to unit the combined company and make it more competitive Prentice Hall, Inc

3 Successful Integration Managers Deep knowledge of the acquiring company Flexible management style Ability to work in cross-functional teams Willingness to work independently Sufficient emotional and cultural intelligence to work in a diverse environment Prentice Hall, Inc

4 Staffing Follows Strategy Training and development Executive types Dynamic industry expert Analytical portfolio manager Cautious profit planner Turnaround specialist Professional liquidator Prentice Hall, Inc

5 A corporation following a concentration strategy emphasizing vertical or horizontal growth would probably want an aggressive new chief executive with a great deal of experience in that particular industry a dynamic industry expert. A diversification strategy, in contrast, might call for someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product lines an analytical portfolio manager. A corporation choosing to follow a stability strategy would probably want as its CEO a cautious profit planner, a person with a conservative style, a production or engineering background, and experience with controlling budgets, capital expenditures, inventories, and standardization procedures. Weak companies in a relatively attractive industry tend to turn to a type of challenge oriented executive known as a turnaround specialist to save the company. If a company cannot be saved, a professional liquidator might be called on by a bankruptcy court to close the firm and liquidate its assets. Prentice Hall, Inc

6 Selection and Management Development Executive succession- replacing a key top manager Succession planning Identifying candidates below the top layer of management Measuring internal candidates against external candidates Providing financial incentives Prentice Hall, Inc

7 Identifying Abilities and Potential Performance appraisal system identifies good performers with promotion potential Assessment centers evaluates a person s suitability for an advanced position Job rotation- ensures employees are gaining a mix of experience to prepare them for future responsibilities Prentice Hall, Inc

8 Problems in Retrenchment Downsizing the planned eliminated of positions or jobs Can damage the learning capacity of an organization Prentice Hall, Inc

9 Successful Downsizing Eliminate unnecessary work instead of making across the board cuts Contract out work that others can do cheaper Plan for long-run efficiencies Communicate the reasons for actions Invest in the remaining employees Develop value added jobs to balance out job elimination Prentice Hall, Inc

10 International Issues in Staffing Culture differences Management styles Human resource practices Suboptimization Communication and coordination Lack of international management with experience Prentice Hall, Inc

11 Implementation involves leading and coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives Prentice Hall, Inc

12 Managing Corporate Culture Strong cultures are resistant to change Optimal culture supports mission and strategies Change in strategy should be followed by change in culture Prentice Hall, Inc

13 Accessing Strategy-Culture Compatibility 1. Is the proposed strategy compatible with the company s current culture 2. Can the culture be easily modified to make it more compatible with the new strategy 3. Is management willing and able to make major organizational changes and accept probable delays and a likely increase in costs 4. Is management still committed to implementing the strategy Prentice Hall, Inc

14 Prentice Hall, Inc

15 Managing Cultural Change Through Communication CEO and top management communicated the strategic vision throughout the organization Current performance was compared to competition and constantly updated Vision was translated into key elements needed to accomplish the vision Prentice Hall, Inc

16 Managing Diverse Cultures Following an Acquisition Methods of managing two different cultures Integration- balanced give and take of cultures Assimilation- domination of one culture over the other Separation of the two cultures Assimilation- disintegration of one culture resulting from pressure form the other to impose its culture and practices Prentice Hall, Inc

17 Prentice Hall, Inc

18 Action plan- what actions are going to be taken, by whom, during what time frame, and with what expected results 1. Specific actions to be taken to make the program operational 2. Dates to begin and end each action 3. Person responsible for carrying out each action 4. Person responsible for monitoring the timeliness and effectiveness of each action 5. Expected financial and physical consequences of each action 6. Contingency plans Prentice Hall, Inc

19 Importance of Action plans Serve as a link between strategy formulation and evaluation and control Specifies what needs to be done differently from current operations Evaluation and control processes appraise performance and identify remedial actions Prentice Hall, Inc

20 Prentice Hall, Inc

21 Prentice Hall, Inc

22 Management by Objectives (MBO)- encourages participative decision making through shared goal setting and performance assessment based on achieving stated objectives Establishing and communicating organizational objectives Setting individual objectives Developing an action plan to achieve objectives Performance review (periodic and annual) Prentice Hall, Inc

23 Total Quality Management (TQM)- philosophy that is committed to customer satisfaction and continuous improvement Objectives 1. Better, less variable quality of the product and service 2. Quicker less variable response in processes to customer needs 3. Greater flexibility in adjusting to customers shifting requirements 4. Lower cost through quality improvement and elimination of non-value added work Prentice Hall, Inc

24 Essential Ingredients 1. Intense focus on customer satisfaction 2. Internal as well as external customers 3. Accurate measurement of every critical variable in a company s operations 4. Continuous improvement of products and services 5. New work relationships based on trust and teamwork Prentice Hall, Inc

25 Dimensions of National Culture 1. Power distance 2. Uncertainty avoidance 3. Individualism-collectivism 4. Masculinity-femininity 5. Long-term orientation Prentice Hall, Inc

26 High- and Low-Context Cultures High Context Information resides in context Emphasis on background, basic values, societal status Less emphasis on legal paperwork Focus on personal reputation Saudi Arabia, Japan Low Context Messages are explicit and specific Words carry all information Reliance on legal paperwork Focus on non-personal documentation of credibility Switzerland, U.S., Germany 4-26

27 High- and Low-Context Cultures Factor/Dimension High Context Low Context Lawyers Less Important Very Important A person s word Is his/her bond Is not reliable get it in writing Responsibility for Organizational error Space Taken by highest level People breathe on each other Pushed to the lowest level Private space maintained Time Polychronic Monochronic Competitive Bidding Infrequent Common 4-27

28 Background Information Dr. Geert Hofstede Dutch social psychologist Worked from as a psychologist for IBM Collected and analyzed data on values and norms from 116,000 IBM employees in 40 countries Based on these results, he developed a model that identifies four primary dimensions to culture. He later added a fifth dimension. Currently Director (Emeritus) of the Institute for Research on Intercultural Cooperation (IRIC)

29 Hofstede s Cultural Typology Power Distance Individualism/Collectivism Masculinity Uncertainty Avoidance Long-term Orientation 4-29

30 Hofstede s Model of National Culture Individualism Low Power Distance Masculinity Low Uncertainty Avoidance Short Term Orientation Collectivism High Power Distance Femininity High Uncertainty Avoidance Long Term Orientation

31 Individualism Individual freedom and self expression are valued within a society. Collectivism Culture that values the group over the individual.

32 Power Distance a society s acceptance of differences in the well being of citizens due to differences in heritage, and physical and intellectual capabilities. Low Power Distance High Power Distance Equality and opportunity for all is emphasized. Society tries to reduce differences between rich and poor with social programs and taxes. Inequalities of power and wealth have been allowed to grow within the society. Wide gap between rich and poor.

33 Culture Map for Power Distance and Individualism

34 Masculinity or achievement orientation focused on the degree to which society values assertiveness, performance, and success. Masculinity Society is results oriented stressing success, money and possessions. Femininity Nurturing-oriented where quality of life, personal relationships and service are valued.

35 Culture Map for Uncertainty Avoidance and Masculinity- Femininity

36 Uncertainty Avoidance the degree to which a society is willing to tolerate uncertainty and risk. Low Uncertainty Avoidance High Uncertainty Avoidance Society values diversity, tolerates differences in personal beliefs and actions More rigid society, high conformity to norms is expected; structure and rules provide security

37 Culture Map for Power Distance and Uncertainty Orientation

38 Long-term orientation focuses on the degree to which a society embraces devotion to traditional, forward thinking values. Long-term orientation Society values thrift, persistence, planning for the future. Short-term orientation Society that values personal stability and happiness and living for the present.

39 PowerPoint created by: Ronald Heimler Dowling College- MBA Georgetown University- BS Business Administration Adjunct Professor- LIM College, NY Adjunct Professor- Long Island University, NY Lecturer- California State Polytechnic University, Pomona, CA President- Walter Heimler, Inc Prentice Hall, Inc

40 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall