Chapter 3 - Identifying the Right Work - Rutgers Business School - PDF

Introduction to Management 33:620:301 Chapter 3 Identifying the “Right Work” Professor Hamilton  Summary y Part V...

Introduction to Management 33:620:301 Chapter 3 Identifying the “Right Work” Professor Hamilton  Summary y Part V ar 12 m m Su er ad Le as t Manager er Part IV en Leader ag 11 an em As M ag an M ce an t rm en rfo m 10 Pe ge en t ga En em e ag ye an plo sM “Done Well” 9 Em ce Part III ur Where are We Now? so Re an n m sig 8 Hu De n tio za es s ni hip ga sin rs 7 Or Bu eu al en ob pr Gl tre a En ing nd ag ,a an ion 6 M ov at nn “The Right Work” I t h, t” ow i gh 5 Gr “R Part II t’s k” ha or W W in g ht ig Do 4 “R e th g in t ify en ” nt 3 e e m e ll Id ag e W an on M of kD n or u tio tW ol igh 2 Ev “R Part I “Intro” t: en em ag an 1 M Chapter 3 – Learning Goals LG 3-1 Identify and describe the five elements used by organizations to identify the “Right Work” LG 3-2 Depict and explain the Strategy Model LG 3-3 Identify and describe the four Strategy options LG 3-4 Identify and describe the three tools used for External Analysis LG 3-5 Identify and describe the five attributes of an organization that are evaluated in doing Internal Analysis LG 3-6 Identify and describe the 3 key elements for implementing strategy LG 3-7 Explain why Plans are often revised or abandoned Five Elements for Identifying “Right Work” LG 3-1 1. Vision 2. Mission 3. Goals 4. Strategy 5. Plans LG 3-2 Alex Gorsky on Goal Setting The Strategy Model LG 3-2 The “Four” Strategy Options LG 3-3 1. Differentiation 2. Low-Cost 3. Combo 4. Focus The “Four” Strategy Options LG 3-3 Provide Product/Service 1. Differentiation features/benefits that are superior and more attractive to customers than competitive offerings 2. Low-Cost 3. Combo 4. Focus The “Four” Strategy Options LG 3-3 1. Differentiation 2. Low-Cost Have the lowest total cost methods for producing products/services vs. competitors. 3. Combo 4. Focus The “Four” Strategy Options LG 3-3 1. Differentiation 2. Low-Cost 3. Combo Provides some of the “differentiation” features valued by customers at an overall lower price point than competitors’ fully differentiated 4. Focus product/service offerings The “Four” Strategy Options LG 3-3 1. Differentiation Serve the needs of a market segment better than 2. Low-Cost competitors’ offerings for the total market 3. Combo Market segments include: Geographic Demographic Product/Service 4. Focus specialization or customization External Analysis Tools LG 3-4 Porter’s Five Forces Analysis Industry Life Cycle Analysis Macroenvironmental Analysis External Analysis Tools LG 3-4 Threat of New Entrants Porter’s Five Forces Analysis Intensity of Rivalry Industry Life Cycle Analysis Bargaining Power of Buyers Bargaining Power of Suppliers Macroenvironmental Analysis Threat of Substitutes External Analysis Tools LG 3-4 Embryonic Porter’s Five Forces Analysis Growth Industry Life Cycle Analysis Shakeout Mature Macroenvironmental Analysis Decline External Analysis Tools LG 3-4 Macroeconomic Porter’s Five Forces Analysis Global Industry Life Cycle Analysis Technology Demographics Macroenvironmental Analysis Social Values Political/Legal Forces Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Efficiency Innovation Customer Responsiveness Distinctive Competencies Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Customer Perceived Performance relative to alternatives Efficiency Customer Perceived value relative to world-class Innovation standards Customer Responsiveness Distinctive Competencies Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Outputs/Inputs Use of resources relative to Efficiency competitors Relative comparison of overall Innovation cost structure vs competitors Customer Responsiveness Distinctive Competencies Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Success rate at developing Efficiency impactful new products relative to competitors Innovation Success rate at developing improved processes relative to competitors Customer Responsiveness Distinctive Competencies Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Efficiency How well does organization Innovation understand (vs competitors understanding) its customers’ requirements Customer Responsiveness How well does the organization deliver the Distinctive Competencies customers’ requirements vs. competitors Internal Analysis – Attributes Evaluated LG 3-5 Product/Service Quality Efficiency Defined –> The ability to differentiate products/services Innovation and/or to achieve lower costs Do the organization’s Distinctive Competencies Customer Responsiveness (DCs) provide a competitive advantage? Are the organization’s DCs Distinctive Competencies superior to competition’s DCs? How vulnerable are the organization’s DCs to imitation or obsolescence? Strategy Implementation – 3 Elements LG 3-6 Organization Structure Monitoring & Control Culture Strategy Implementation – 3 Elements LG 3-6 Identify, design, and staff the Organization Structure jobs required to complete the necessary tasks to execute the organization’s plans, Monitoring & Control achieve its objectives, and to fulfill its mission Integrate and coordinate the Culture activities of employees by grouping jobs and delegating authority to assure effective and efficient delivery of results. Strategy Implementation – 3 Elements LG 3-6 Create measures to evaluate Organization Structure organizational and individual performance Establish feedback mechanisms Monitoring & Control to share performance results Establish incentives to encourage achievement of goals Culture Implement motivational programs to encourage good performance Strategy Implementation – 3 Elements LG 3-6 Organization Structure Monitoring & Control Defined –> Set of values, norms, believes, and attitudes shared by the organization’s members Culture The culture must be aligned with the strategy of the organization in order to support effective implementation Alex Gorsky on role of Vision and Values Why Plans are Often Revised or Abandoned LG 3-7 Competitor’s Actions/Reactions Limited Resources or Capabilities Lack of Support from Employees Ineffective Competing Priorities New Information/Unexpected Events Chapter 3 – Concluding Comments Some organizations are more structured and more disciplined than others in pursuing the “Right Work” As the business environment changes, organizations need to be flexible and adapt quickly to revise their goals to be more realistic, and to modify strategies and plans to increase the probability of successfully achieving their goals Chapter 3 – Learning Goals LG 3-1 Identify and describe the five elements used by organizations to identify the “Right Work” LG 3-2 Depict and explain the Strategy Model LG 3-3 Identify and describe the four Strategy options LG 3-4 Identify and describe the three tools used for External Analysis LG 3-5 Identify and describe the five attributes of an organization that are evaluated in doing Internal Analysis LG 3-6 Identify and describe the 3 key elements for implementing strategy LG 3-7 Explain why Plans are often revised or abandoned Introduction to Management 33:620:301 Chapter 3 Identifying the “Right Work” Professor Hamilton