Prepared by group No. 2:
Natalia Trunova (M004610026)
Domingo Lee (M994610011)
Libby Shun-Chi Chiang (M014020007)
Chapter
content
Company’s
profile
Integrative
module
• Top management role in Organization Direction, Design, and Effectiveness
• Porter’s Competitive Strategy
• Miles and Show’s strategy typology
• Organizational Effectiveness
• Overview of the company
• Core competencies
• External environment
• Horizon Analysis: Miles and Show’s & Porter’s Strategy
• Effectiveness
• Influence of structure on company’s design
The primary responsibility of top management
is to determine an organization’s
goals, strategy,
and design,
thereby adapting
the organization to a
changing environment
External
Environment
CEO
Top management
Strategic
Intent
Organization
Design
Internal
Situation
Effectiveness
Outcomes
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Opportunities
Threats
Uncertainty
Resource availability

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Strengths
Weaknesses
Distinctive competence
Leader style
Past performance

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Define mission
Official goals
Select operational goals
Competitive strategies

Structural form
 Learning
 Efficiency
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Information and control systems
Production technology
Human resource policies, inventives
Organizational culture
Interorganizational linkages

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
Goal attainment
Resources
Efficiency
Strategic constituents
Differentiation
• Focus on Uniqueness
Low-Cost Leadership
• Focus on efficiency
Competitive Scope
Competitive Advantage
Low Cost
High Cost
Broad
Overall Cost
Leadership
Differentiation
Narrow
Cost
Focus
Defferentiation
Focus
Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm
Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm
Source:
http://www.emeraldinsight.com/journals.htm?articleid=1411048&show=html
Bad strategy
• It fails to define the
problem;
• It is based on weak or
fussy objectives;
• It is mostly fluff.
Good strategy
• Diagnosis;
• A guiding policy;
• Coherent action steps.
Environment
Culture
Organizational
structure and
design
Size / life cycle
Strategy
Technology
Definition
Effectiveness
 degree to which an organization realizes its
multiple goals.
Efficiency
 the amount of resources used to produce
outputs.
Overall effectiveness is difficult to measure
in organizations.

4 approaches to the measurement of
organization effectiveness
Goal approach
Resource-based approach
Internal approach
Strategic constituents approach
Exhibit 3.9
Strategic Constituents
Approach
Employees
Owners
Government
Customers
Suppliers
Community
Creditors
Resource
Input
Organization
Internal
Activities
& Processes
Product and Service
Outputs
Resource-based Internal Process
Goal
Approach
Approach
Approach

Consists of identifying an organization’s output goals
and assessing how well the organizations has attained
those goals.
 Activities the organization is really performing. E.g.
output, profit, or client satisfaction

Indicators – operative goals – easy to measure
Evaluates the ability of the organization to obtain
valued resources from the environment.
 Indicators

 bargaining position,
 ability to correctly interpret properties of the
environment,
 ability to use resources to achieve superior performance,
 ability to respond to environmental changes.

An evaluation of human resources and their
effectiveness is important.
 internal organizational health and efficiency

Indicators






Positive corporate culture and work climate
Confident between employees and management
Operational efficiency
Communication
Growth and development of employees
Coordination among organization’s parts

measures efficiency by focusing on satisfaction of key
stakeholders.
 e.g. owners, employees, customers, creditors, community,
suppliers, government


Indicators - Criteria of constituents groups
Usefulness - Constituencies have powerful
influence on the organization, and it has to
respond to demands




Developed by R. Quinn and J. Rohrbaugh
Tries to balance a concern with various parts
of the organization rather than focusing one
part.
Combines several indicators into a single
framework.
NASA example – different viewpoints
Competing values model
Exhibit 3.10
Case study: Horizon
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Business concept/strategy
Core competencies
Customers
Competitors
Future perspective
John Lu founded Horizon
Yacht in 1987
 Horizon has endeavored to
create and build yachts that
embody each client’s dreams.
 Integrated Company Structure.
 Horizon Group Management Center functions
by supervising the Horizon Group network:
delivery center; mold center; human resources
center; marketing center and IT center.

Source: Horizon Company’s official
presentation materials

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







Taiwan
Australia
China
Europe
Greece/Cyprus
Hong Kong
Japan
New Zealand
Russia
Singapore
South Korea
Turkey
United States
Source: Horizon Company’s official presentation materials



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
Advanced Technology
Sophisticated Craftsmanship
Extraordinary Design
Excellent Engineering
Quality Assurance
State-of-the-art Facilities


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


2006 Awarded “Best Asian Super Yacht” Award and “Best Asian Yacht Builder”
Award at the Christofle Asia Boating Awards 2006
2007 Awarded “Best Asian Yacht Builder (under 100 feet)” by Christofle Asia
Boating Awards 2007
2007 Won the “2007 Taiwan Superior Brand” competition
2010 Horizon E88 motoryacht and SC46 solar power boat won the “Taiwan
Excellence 2010” Awards
2011 Awarded “Best Asian Motor Yacht Builder ( 81 feet and up)” by Asia
Boating Awards
2012 Awarded “Best Asian Yacht Builder (15-30 meter)” by Asia Boating Awards
Source: Horizon Company’s official presentation materials
Main competitors
Top 20 Builders
2012 Rank
Company
Total (m) Total (ft) Projects Avg. (ft)
1
Azimut-Benetti (Italy)
2,640
8,661
75
115
2
Ferretti Group (Italy)
2,427
7,961
76
105
3
Sanlorenzo (Italy)
1,413
4,635
42
110
4
Lürssen (Germany)
753
2,471
7
353
5
Sunseeker (UK)
649
2,127
21
101
6
Feadship (Netherlands)
567
1,860
8
233
7
Westport (USA)
548
1,798
16
112
8
Heesen Yachts (Netherlands)
535
1,754
11
159
9
Horizon (Taiwan)
519
1,704
17
100
10
Amels (Netherlands)
495
1,625
8
203
11
Fipa Group (Italy)
482
1,581
15
105
12
Overmarine (Italy)
461
1,512
13
116
13
Trinity Yachts (USA)
432
1,417
8
177
14
Perini Navi Group (Italy)
426
1,398
8
175
15
Princess Yachts (UK)
378
1,239
13
95
16
Palmer Johnson (USA)
303
993
5
199
17
Christensen (USA)
259
848
6
141
18
Proteksan-Turquoise (Turkey)
257
843
4
211
19
Kha Shing (Taiwan)
240
787
8
98
20
Dream Ship Victory (Turkey)
238
781
3
260
Dedicated to customer
satisfaction.
 Horizon strives to improve and
advance upon every aspect of the
boat building process.
 Horizon also invests in the future,
developing new models and
series (focus on environmental
friendly designs).

Perception of environment
unstable
Prospector
Horizon
efficiency
innovation
Defender
stable
Underlying
values
Dimensions
Horizon’s reality
Stable market • Ability of customization within smooth production process.
•Yachts of average 100 ft. on European (40%) and Australian
(26%) markets.
New market
•Risk diversification, creating more markets.
•Recently, plans have been made to expand to India.
•Expand into China through dealership.
Emphasis on
efficiency
•Employment of high-quality talent.
•Ability of group specialization and integration.
•Strengthen services.
Emphasis on
innovation
•CNC (Computer numerical control) milling system
•SCRIMP (Seemann’s Composites Resin Infusion Molding
Process) for producing one -piece yacht hull (longest in the
world in 2006).
•Yachts equipped with solar-power panels .

The competitive advantage of Horizon is
customization.
 stability and equilibrium.
 Growth and resource acquisition
 Productivity, efficiency


Invests in the future, integrated enterprises
to Horizon Group Co. - Open Systems
Model
Improve process, developed internal
communication - Internal Process Model
STRUCTURE
FLEXIBILITY
F
O
C
U
S
Human Relations
Emphasis
INTERNAL
Horizon
Yachts
Internal Process
Emphasis
CONTROL
Open Systems
Emphasis
EXTERNAL
Rational Goal
Emphasis
Internal
Process
Emphasis
Horizon Group
Horizon Yachts
Since: 1987
Employees:340
Atech
Composites
Since: 2000
Employees: 250
CNC Mold Workshop
Since: 2005
VISION Yachts
Since: 2001
Employees: 250
PRIMIER Yachts
Since: 2003
Employees: 110
Horizon Furniture
Since: 2000
4 Yacht Factories
Total employees: 1000
Open Systems Emphasis
Customers
Customer
Service
Center
Marketing
Center
Yachts
Manufacture
Factories
Market
information
Fast service
Orders
/Need
joint marketing
Horizon
Group
Professional
Task Force
Center
Think tank
Purchasing
Dep.
Information
Technology
Center
R&D
Financial
Dep.
Suppliers
Knowledge
Management
Center
Human
Resource
Center
United
Delivery
Center




US. → Europe Market
OEM → OBM
80~110ft → 120 ft
Customize (High Value add)
Differentiation
 Ex. BMW motor

MIT = Made in Taiwan
 Manufactory base – High Quality
 Relatively low cost ( vs. Italy)
Low Cost
Competitive Advantage
External Environment
- Decline of US market
- OEM limitation
- 120ft Yacht
CEO
Top management
Internal Situation
- Weak of Design
- No brand image
- Low Cost & High Quality
Strategic Intent
- Branding
- EU market
- Customize
- Risk diversification
Organization Design
-Efficiency but Flexible
Effectiveness Outcomes
- Top 10 Brand