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Knowledge outcomes

Knowledge outcomes. The impact of the external environment on the organisation. Analysis of the external environment. Factors affecting the internal environment. Analysis of the internal environment. Three Layer Model. Macroenvironment.

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Knowledge outcomes

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  1. Knowledge outcomes The impact of the external environment on the organisation. Analysis of the external environment. Factors affecting the internal environment. Analysis of the internal environment.

  2. Three Layer Model Macroenvironment Political Economic Sociocultural Technological Natural Legal (PESTLN) Stakeholders Customers Suppliers Intra-firm (organisation) 7 s Framework Microenvironment  Martin Mulholland 2005

  3. Political Government policy Legislation, taxation Government ownership of industry Economic Inflation Exchange Rates Employment Sociocultural Lifestyle changes Attitudes to work and leisure Demographic changes Internet growth Technological Organisational investment Impact on employees Legal Trade and Competition law Employment legislation Natural Environmental issues Tsunamis, hurricanes Checklist for a PESTLN Analysis

  4. Storm Of Expenses • The cost of cleaning up after the hurricane will make the federal budget deficit even bigger, warns BW's Kathleen Madigan

  5. Unswayed by Storm, Fed Raises Key Rate • WASHINGTON, Sept. 20 - Saying that Hurricane Katrina was unlikely to pose a "persistent threat" to the economy, the Federal Reserve raised interest rates on Tuesday(20/09/05) for the 11th time in a row and signaled that more increases were on the way. • The widespread devastation in the gulf region, the associated dislocation of economic activity and the boost to energy prices imply that spending, production and employment will be set back in the near term," the central bank's Federal Open Market Committee said in a statement.

  6. Porter’s Five Forces Model Potential entrants Industry competitors Suppliers Buyers Substitutes Source: adapted from Porter,M (1980) Competitive Strategy:Techniques for Analyzing Industries and Competition, Simon & Schuster

  7. M A R K E R T A T G E R O W T H Stars Problem Children Boston Consulting Group Matrix High Low Cash Cows Dogs High RELATIVE MARKET SHARE POSITION

  8. Stars: are highly attractive businesses(high market growth), and strong competitive positions(high relative market share). They generate cash but require significant investment. Cash Cows: provide sources of cash for the business in declining markets. Question marks: are possibly major untapped opportunities because of high market growth. Dogs: regarded as unattractive and weak.

  9. Four Links Model Government links and networks – competition law and customer Informal co-operative links and networks –CBI,CIPD The organisation Complementors – Computer hardware/software Formal co-operative links –alliances/J.V.s

  10. Seven S Framework Strategy Structure Systems Skills Staff Superordinate goals Style

  11. Seven S Framework Strategy, Structure, Systems (Hard S’s), Staff, Skills,Style and Superordinate Goals are interrelated and interdependent. If one of the S’s changes it will impact upon the other S’s.

  12. Product/Market Expansion Grid

  13. Product/Market Expansion Grid MARKET PENTRATION:more sales to current customers with unchanged product /service. MARKET DEVELOPMENT: identifying and developing new markets for current products /services. PRODUCT DEVELOPMENT: offering modified or new products / services to current markets. DIVERSIFICATION: new products / services in ‘new’ markets

  14. Organisation Structure Strategic Apex EXTERNAL ENVIRONMENT (Threats and Opportunities) HR FINANCE Middle management (Strengths and Weaknesses) Operating core

  15. Organization as a Goal-seeking OpenSystem STRATEGIC LOGIC Operative rationale for achieving organization’s goals through coordinated deployments of resources Data and revenues Decisions, Policies,Procedures,Budgets MANAGEMENT PROCESSES Coordination mechanisms for acquiring and deploying resources Data on Intangible Assets INTANGIBLE ASSETS Knowledge, intellectual property,reputation, relationships Data on Tangible Assets TANIGBLE ASSESTS Physical assets Data on Operations OPERATIONS PRODUCT OFFERS Market Data, Revenues PRODUCT MARKETS A R D E D S R O E U S R S C A E B S L E Competing Organizations

  16. The Value Chain Firm infrastructure M a Human Resource management Support activities r Technology development g Procurement i Inbound logistics Operations n Outbound logistics Marketing & sales Service Primary activities

  17. Fayol’s Wheel Control Plan Staff Organise Lead COMMUNICATE

  18. Strategy Texts: •  Lynch,Richard,’Corporate strategy’, Prentice Hall, 2003(good overview of the strategy process) • { THIS TEXT IS APPLICABLE TO YEAR ONE AND TWO} • Sanchez,Ron & Heene, ‘The new strategic management’,Wiley,2004(user friendly text) •  Wheelen,Thomas & Hunger, David, ‘Strategic Management and Business policy’,Prentice Hall,2002(supporting CD included – practical orientation) •  Grant,Robert,’Contemporary strategy analysis’,Blackwell,2002(more advanced text- for those interested in ‘deeper’ issues) •  De Wit,Bob & Meyer,Ron,’Strategy’,Thomson,2004(strategy articles) •  Johnson,Gerry & Scholes,Kevan, ‘Exploring Corporate Strategy’,Prentice Hall,1993(‘old’ text preferred – good overview of strategy process) •  Mabey,Christopher, Salaman,Graeme and Storey,John,‘Human Resource Management – A Strategic Introduction’,Blackwell,2003 (excellent text for practical illustrations of the strategic link to functional[HR] strategies) • { THIS TEXT IS APPLICABLE TO YEAR ONE AND TWO AND IS RECOMMENDED FOR YEAR TWO MODULE} • Marketing Texts: • Lancaster, Geoff and Massingham, Lester, ‘Essentials of Marketing’,McGraw-Hill,1988(good coverage of macro/micro issues – also relevant to Managing Activities) •  Kotler, P., et al., ‘Principles of Marketing’,Prentice Hall,2001(good coverage of macro/micro issues – also relevant to Managing Activities) •  Doyle, Peter, ‘Marketing Management and Strategy’, Prentice Hall, 2002 • (good introductory text) •  Gilligan, Colin & Wilson,Richard,’Strategic Marketing Planning’,Butterworth Heinemann,2003(Intermediate text [Degree/MSSc.] •  Keegan, Warren, Schlegelmilch, Bodo, ‘Global Marketing Management’, Prentice Hall,2001(practical orientation with academic leaning) • Doole, Isobel, & Lowe,Robin, ‘International Marketing Strategy’,1997(application of theory and practice)

  19. Explain why an organisation may change over time. • What are the essential characteristics of an organization required to attract and retain participants in its activities? • What are some of the key management processes involved in coordinating the activities of an organization?

  20. Handouts • Worldclass Manufacturing – Richard Schonberger • Hurricane katrina -http://www.businessweek.com/bwdaily/dnflash/sep2005/nf20050913_8975_db082.htm • Vodaphone -By KEVIN J. O'BRIENInternational Herald Tribune Published: May 25, 2005 • Unilever /Colgate -ALAN COWELL,nytimes.comPublished: September 21, 2004

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