Grammar
Who – People
That –Things
They’re – Their
Subject-Verb Disagreement (those kind, profits has)
Preposition at end of sentence: (several to choose from)
1
Long
MGT 4153
Dr. Rebecca Long
Role in Strategic Direction
Organizational goal is a desired state of affairs that the
organization attempts to reach. Top executives decide
organizational goals.
Q1: A company’s strategic intent or direction reflects
managers’ systematic analysis of organizational and
environmental factors. Agree or Disagree? (58)
Organizational design is the administration and execution of the
strategic plan.
3
Long
Strategic Intent
Means that all the organization’s energies and resources are
directed toward a focused, unifying and compelling overall
goal. Three aspects related to strategic intent are the mission,
core competencies and competitive advantage.
Mission – reason for existence.
Mission statement communicates to current and prospective
employees customers, investors, suppliers and competitors
what the organization stands for and is trying to achieve.
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Long
"The Coca-Cola Promise: The Coca-Cola Company exists
to benefit and refresh everyone it touches. The basic
proposition of our business is simple, solid, and timeless.
When we bring refreshment, value, joy and fun to our
stakeholders, then we successfully nurture and protect our
brands, particularly Coca-Cola. That is the key to fulfilling
our ultimate obligation to provide consistently attractive
returns to the owners of our business."
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Long
Our Mission Statement
The mission of Southwest Airlines is dedication
to the highest quality of Customer Service
delivered with a sense of warmth, friendliness,
individual pride, and Company Spirit.
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Long
Question 2: The best business strategy is
to make products and services as
distinctive as possible to gain an edge in
the marketplace. (Agree or Disagree) (pg. 69)
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Long
Core Competence or Competencies
Something the organization does especially well in comparison to its
competitors. (Ex: superior R&D, tech skills, exceptional customer
service)
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Long
Competitive Advantage
What sets the organization apart from others and
provides it with a distinctive edge for meeting customer
or client needs in the marketplace. (Walgreens)
Operative Goals represent the primary tasks of the
organization where official or overall goals describe more
of a value system.
9
Long
Framework for Selecting Strategy and
Design
A strategy is a plan for interacting with the competitive
environment to achieve organizational goals. Goals are
where the organization wants to go and strategies define how
it plans to get there.
Two models for formulating competitive strategies are the
Porter model and Miles and Snow’s strategy typology.
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Long
Porter: Forces that determine a company’s
position in relation to competitors in the
industry:
•
•
•
•
•
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Threat of new entrants (Nike, Under Armour)
Power of suppliers (Nielson Company & TiVo)
Power of buyers (Walmart)
Threat of substitutes (Pharmaceutical companies, telephone)
Rivalry among existing competitors (Coke and Pepsi)
Long
Differentiation strategy – Organizations try to
distinguish their products or services from others in the industry.
(Apple)
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Long
Porter’s Competitive Strategies
(page 68)
 Low-Cost Leadership: Concentrates internally on cost reduction and
efficiency
 Differentiation: Concentrates externally on quality and customer
perceptions
 Focus: Concentrates cost or differentiation by geographic or buyer group
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Long
Porter’s Competitive Strategies
Scope
Broad
Broad
Narrow
Narrow
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Advantage
Strategy
Example
Low Cost
Low-Cost
Leadership
Dell Computer
Uniqueness
Differentiation
Starbucks
Coffee Co.
Low Cost
Focused Low-Cost
Leadership
Enterprise
Rent-a-Car
Rolex
Uniqueness
Focused
Differentiation
Long
Miles & Snow’s Strategy Typology
 Prospector: Innovation, risks, new opportunities, and
growth (Nike, Facebook, Google, MySpace)
 Defender: Risk avoidance, stability/retrenchment,
efficiency, and control (Paramount)
 Analyzer: Core stability, peripheral innovation, diverse
approach depending on product (Midway between
Prospector and Defender – [Amazon.com])
 Reactor: No mission, goals, strategy (No strategy at all!)
(Dell)
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Long
Question 3: The best measures of
business performance are financial.
(Agree or Disagree) (page 79)
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Long
Contingency Approaches to the Measurement of
Organizational Effectiveness
External Environment
Organization
Resource
Inputs
Resource-based
approach
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Long
Internal
activities
and
processes
Internal
process
approach
Product and
Service
Outputs
Goal
approach
Four Models of Effectiveness Values
STRUCTURE
Flexibility
F
O
C
U
S
Human Relations Emphasis
Open Systems Emphasis
Primary Goal: human resource
development
Subgoals: cohesion, morale, training
Primary Goal: growth,
resource acquisition
Subgoals: flexibility, readiness,
external evaluation
Internal
Internal Process Emphasis
Rational Goal Emphasis
Primary Goal: stability, equilibrium
Primary Goal: productivity, efficiency,
profit
Subgoals: planning, goal setting
Subgoals: information management,
communication
Control
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Long
External