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Questions and Answers
What is the primary objective of scanning the internal environment?
What is the outcome of completing the internal analysis?
What is the purpose of conducting a SWOT analysis?
What is the role of corporate-level strategy?
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What is the primary focus of business-level strategy?
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What is the role of functional-level strategy?
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What is a characteristic of mechanistic organizations?
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Which of the following is a contingency factor that influences an organization's structural choice?
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What is the traditional view regarding the relationship between strategy and structure?
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What is a characteristic of large organizations?
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Why do organizations adapt their structures to their technology?
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What is the purpose of technology in an organization?
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What is the primary objective of a stability strategy?
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When does a company typically employ a turnaround strategy?
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What is the key characteristic of a differentiation strategy?
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What is the primary goal of a cost leadership strategy?
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What is the purpose of a retrenchment strategy?
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What is the result of a stability strategy?
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Which type of organizations are more likely to adopt contemporary organizational designs?
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What is a major advantage of a design team structure in contemporary organizations?
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Which of the following is a disadvantage of a matrix structure in contemporary organizations?
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What is a characteristic of a virtual organization in contemporary organizations?
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What is a benefit of a hybrid structure in contemporary organizations?
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Which of the following is a disadvantage of a contemporary organizational design?
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What is the primary objective of HR planning in an organization?
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Which of the following is a method of derecruitment?
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What is the purpose of selection devices in the hiring process?
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What is the criteria for a correct selection decision?
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What is the primary difference between layoffs and firings?
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What is the primary benefit of using internal recruits in the hiring process?
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Study Notes
Internal Analysis
- Provides strategic decision makers with an inventory of the organization's existing functions, skills, and resources as well as its overall performance level.
- Includes looking at the firm's resources and core competencies.
- Identifies organizational strengths and weaknesses.
SWOT Analysis
- Combines external and internal analyses to identify strengths, weaknesses, opportunities, and threats.
- Helps managers formulate strategies that exploit strengths, buffer against threats, and correct weaknesses.
Strategy Formulation
- Involves corporate level strategy (what business are we in?), business level strategy (how do we compete?), and functional level strategy (how do we support the business level strategy?).
- Strategies should exploit strengths, buffer against threats, and correct weaknesses.
Organizational Structure
- Mechanistic organizations are rigid and tightly-controlled, with high specialization and departmentalization.
- Organic organizations are highly adaptive and flexible, with cross-functional teams and free flow of information.
- Contingency factors affecting structural choice include strategy, size, and technology.
Growth Strategies
- Stability strategy: continues to do what it is currently doing.
- Renewal strategy: pursued in the face of challenges or declining performance, including retrenchment and turnaround strategies.
Business Level Strategy
- Differentiation: builds competitive advantage by being unique in its industry or market segment.
- Cost leadership: builds competitive advantage by being efficient and offering a standard, no-frills product.
Organizational Designs
- Team structure: employees are more involved and empowered.
- Matrix structure: reduces barriers among functional areas.
- Hybrid structure: combines different organizational designs.
- Virtual organization: utilizes talent wherever it's found and has reduced expenses.
Human Resource Planning
- Involves planning for future HR needs based on the organization's mission, goals, and strategies.
- Includes planning for recruiting, laying off, training, and development of employees.
Recruitment and Derecruitment
- Recruitment involves locating, identifying, and attracting capable applicants.
- Derecruitment involves reducing an organization's workforce through firing, layoffs, attrition, transfers, reduced workweeks, early retirement, and job sharing.
Selection
- Involves screening job applicants to ensure the most appropriate candidates are hired.
- Selection devices should be valid and reliable.
- A correct decision is when the applicant was predicted to be successful and proved to be successful on the job.
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Description
Assess your understanding of internal environment analysis, a crucial step in strategic management that involves identifying an organization's strengths, weaknesses, resources, and core competencies. Test your knowledge of this essential concept in business planning and management.
