Understand how strategic management fits in the P-O-L-C framework.
Be able to define strategic management. Understand how strategic management fits in the P-O-L-C framework. Broadly identify the inputs for strategy formulation.
What Is Strategic Management? Strategic management reflects what a firm is doing to achieve its mission and vision, as seen by its achievement of specific goals and objectives.
Planning and strategy formulation sometimes called business planning, or strategic planning, have much in common, since formulation helps determine what the firm should do. Strategy implementation tells managers how they should go about putting the desired strategy into action.
The concept of strategy is relevant to all types of organizations, from large, public companies like GE, to religious organizations, to political parties.
The following figure summarizes where strategy formulation strategizing and implementation fit in the planning and other components of P-O-L-C. We will focus primarily on the strategy formulation aspects of strategic management because implementation is essentially organizing, leading, and controlling P-O-L-C components.
In-between is the critical role played by strategy. Specifically, a strategy captures and communicates how vision and mission will be achieved and which goals and objectives show that the organization is on the right path to achieving them.
At this point, even in terms of strategy formulation, there are two aspects of strategizing that you should recognize. While other food-service companies have multiple outlets—YUM! The following figure provides a graphic guide to this kind of planning.
That is, synergies arise when each of YUM!
Task analysis laid the foundation for the development of training objectives (Mager, ). In addition to training, task analysis often forms the basis for job description schemes (Fine, ), hiring criteria and the performance appraisal systems adopted by larger business organizations and governments (Cooke, a; Gael, ). The development of empowered organizations enables managers to share responsibility with the workers through delegation and accountability for local performance. It also fosters powerful teams in which the best employees elevate the performance of the weakest. A review of Structure in Fives; Designing E ective Organizations Thomas Schmidt [email protected] July 7, Abstract This review of Henry .
Brands food outlets does better because they have common ownership and can share valuable inputs into their businesses. Specifically, synergy exists when the interaction of two or more activities such as those in a business create a combined effect greater than the sum of their individual effects.
The idea is that the combination of certain businesses is stronger than they would be individually because they either do things more cheaply or of higher quality as a result of their coordination under a common owner.
Diversification in contrast, is where an organization participates in multiple businesses that are in some way distinct from each other, as Taco Bell is from Pizza Hut, for instance.
Just as with a portfolio of stock, the purpose of diversification is to spread out risk and opportunities over a larger set of businesses. Some may be high growth, some slow growth or declining; some may perform worse during recessions, while others perform better. Sometimes the businesses can be very different, such as when fashion sunglass maker Maui Jim diversified into property and casualty insurance through its merger with RLI Corporation SEC Info, Perhaps more than a coincidence, RLI was founded some 60 years earlier as Replacement Lens International later changed to its abbreviation, RLI, in line with its broader insurance products offeringswith the primary business of providing insurance for replacement contact lenses.
There are three major diversification strategies: Whereas corporate strategy looks at an organization as a portfolio of things, business strategy focuses on how a given business needs to compete to be effective.
Again, all organizations need strategies to survive and thrive. A neighborhood church, for instance, probably wants to serve existing members, build new membership, and, at the same time, raise surplus monies to help it with outreach activities.
Its strategy would answer questions surrounding the accomplishment of these key objectives. Strategic Inputs So what are the inputs into strategizing? At the most basic level, you will need to gather information and conduct analysis about the internal characteristics of the organization and the external market conditions.
This means an internal appraisal and an external appraisal. Together, these four inputs into strategizing are often called SWOT analysis which stands for strengths, weaknesses, opportunities, and threats see the SWOT analysis figure.
It does not matter if you start this appraisal process internally or externally, but you will quickly see that the two need to mesh eventually. At the very least, the strategy should leverage strengths to take advantage of opportunities and mitigate threats, while the downside consequences of weaknesses are minimized or managed.
Conversely, examining opportunities and threats is a part of environmental analysis—the company must look outside of the organization to determine opportunities and threats, over which it has lesser control.
Strengths and Weaknesses A good starting point for strategizing is an assessment of what an organization does well and what it does less well. In general good strategies take advantage of strengths and minimize the disadvantages posed by any weaknesses. Michael Jordan, for instance, is an excellent all-around athlete; he excels in baseball and golf, but his athletic skills show best in basketball.
As with Jordan, when you can identify certain strengths that set an organization well apart from actual and potential competitors, that strength is considered a source of competitive advantage.
Opportunities and Threats On the basis of what you just learned about competitive advantage and sustainable competitive advantage, you can see why some understanding of the external environment is a critical input into strategy.
Opportunities assess the external attractive factors that represent the reason for a business to exist and prosper. These are external to the business.Coordination is required because emergency response organizations that differ in their capabilities must work in coordination to implement an effective emergency response.
Business ethics in the workplace and poor workplace behavior ethics can be directly related to ineffective communications. Understanding ethics in the workplace and workplace behavior ethics is the all important first step.
Underlying the entire discussion of participative management and employee and stakeholder involvement is the dominance of the bureaucratic, hierarchical organization model and management approach commonly referred to as Taylorism (based on Frederick Winslow Taylor’s.
Nov 23, · The increasing ubiquitous interconnectedness based on recent technological developments, such as the Internet and smartphones, has enabled new modes of economic coordination and management to become feasible, such as crowdsourcing  and sharing economies .
Although in the past, organizations. Recognizing Organizational Culture in Managing Change The purpose of this article is to examine how organizational culture influences the likelihood of success for change strategies, and to provide tools for the reader to apply within his or her organization.
Organizational commitment involves more than just company loyalty; it is the employee intrinsically wanting to defend against criticism both internal and external (Business Daily Review, ).
From an individual perspective, organizational commitment has been linked to intrinsic motivation .