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ANU BAJRACHARYA
EMAIL ID: anubajracharya770@gmail.com
Management
Mary Parker Follett. Management, she says, is
the "art of getting things done through
people."
Strategic Management
Agenda
1. Introduction &Concept of Strategy
2. Need of Strategy
3. Dimensions of Strategy
4. Levels of Strategy
5. Strategic Management
6. Strategic Management Process
7. Benefits of Strategic Planning
Strategic Management
Contd……
8. MCKINSEY’S 7S MODEL
9. Strategic Vision
10. Mission
11. Objectives
12. Goals
13. Social Responsibility
14. Business Ethics
15. Social Audit
STRATEGIC MANAGEMENT
What does Strategy mean?
“ art of general”
- form Fr. Strategie, from Gk. Strategia “ office or
command of a general”, from strategos “general,”
from stratos “multitude, army, expedition”
Introduction &Concept of
Strategy
 Strategy is an action that managers take to attain one
or more of the organization’s goals.
 Strategy is a well defined roadmap of an
organization. It defines the overall mission, vision
and direction of an organization.
 A strategy is all about integrating organizational
activities and utilizing and allocating the scarce
resources within the organizational environment so
as to meet the present objectives.
 While planning a strategy it is essential to
consider that decisions are not taken in a
vacuum and that any act taken by a firm is
likely to be met by a reaction from those
affected, competitors, customers, employees
or suppliers.
What does Strategy mean today?
- A plan, method, or series of maneuvers
stratagems for obtaining a specific goal or
result.
Need of Strategy
1. Gives Direction
2. Facilitate Overall Effectiveness
3. Co-ordinate Activities
4. Facilitate optimal Resource Allocation
5. Helps in comparing Courses of Action
6. Programme all organizational Activities
STRATEGIC MANAGEMENT
Dimensions of Strategy
1. Strategy Process
2. Strategy Context
3. Strategy content
STRATEGIC MANAGEMENT
Levels of Strategy
1) Corporate Level Strategy
2) Business-Level Strategy
3) Functional-Level strategy
CORPORATE LEVEL STRATEGY
 Top Management’s overall plan
for the entire organization and
its SBU’s.
 Corporate level strategy
occupies the heights level of
DECISION MAKING.
Forms of Corporate Level Strategy
1. Growth:- Expansion into new products and
markets.
2. Stability:- Maintenance of the status of the
Organization.
3. Retrenchment/Renewal:- Redirection of the
firm into new markets.
Corporate Level Strategy
1. Growth Strategy
-Seeking to increase the
organization’s business by
expansion into new products
and markets.
Two types of Growth Strategies:
 Concentration
-Vertical Integration
-Horizontal Integration
 Diversification
 Concentration:
The company concentrates more resources on the
product line to increase its participation in the value
chain of the product.The two main types of
Concentration strategies are:-
Types of Growth Strategies
Vertical Integration:
1. Backward vertical Integration
2. ForwardVertical Integration
Horizontal Integration:
 Diversification: A company is diversified when it is
in two or more lines of business operating in distinct
and diverse market environments.
Types of Growth
Strategies
Types of Growth Strategies
1. Related Diversification:
Some similar factors can be used by
diversification. For e.g. A tea company starts
producing other food products to take advantage of
its distribution network etc.
2. Unrelated Diversification:
Company enters entirely different product-market
segments.
Why to Pursue Growth?
1. Growth is necessary for survival in future
2. Growth offers large scale of operation
3. Growth strategy is taken up because
motivation to do so
4. Intangible advantage of growth
Corporate Level Strategy
2. Stability Strategy:
In simple words, stability strategy
refers to the company’s policy of
continuing the same business
and with the same objectives.
WHY TO PURSUE THE STABILLITY
STRATEGY?
1. It is less risky
2. The environmental faced is relatively stable.
3. Expansion may be perceived as being threatening.
Retrenchment/Renewal
Strategy
Corporate Level Strategy
Renewal/Retrenchment strategies
are pursued when a company’s
product lines are performing poorly
as a result of finding itself in a weak
competitive position or a general
decline in industry or markets.
Forms of Retrenchment
Strategy
1. Turnaround Strategy
2. Divestment Strategy
3. Liquidation Strategy
Business Level Strategy
 A strategy that seeks to determine
how an organization should compete
in each of its SBUs (strategic business
units).
 At Business-level ALLOCATION
of re- sources among Functional-level
an COORDINATE with the Corporate
level to the ACHIEVEMENT of the
Corporate level OBJECTIVES.
Business Level Strategy
1. Cost leadership: Attaining, and then using the
lowest total cost basis as a competitive advantage.
2. Differentiation: Using product features or services
to distinguish the firm’s offerings from its
competitors.
3. Market focus: Concentrating competitively on a
specific market segment.
Functional Level Strategy
 Focus is on improving the effectiveness of
operations within a company.
 Which is done by:
A. Manufacturing
B. Marketing
C. Materials management
D. Research and development
E. Human resources
STRATEGIC MANAGEMENT
Strategic Management
 Strategic management is an art and science of
formulating, implementing and evaluating cross
functional decisions that enable an organization to
achieve its objectives. - Fred R. David
Strategic Management Process
Step1: Strategic Intent
 Vision- Vision is the statement that expresses organization’s
ultimate long-run objectives. E.g- Microsoft- ’A computer
software on every desk and in every home’.
 Mission- A Mission Statement defines the company’s
business, its objectives and its approach to reach those
objectives. E.g- Microsoft- ‘Empower every person and
every organization on the planet to achieve more’.
 Objectives- Objectives state specifically how the goals shall
be achieved. Following are the areas for setting objectives-
profit objective, marketing objective, production objective,
etc.
Step2: Strategy Formulation
Strategy formulation refers to the process of choosing the most
appropriate course of action for the realization of organizational
goals and objectives.
1. Environmental Appraisal- It is dynamic and consists of
External & Internal Environment .
2. Organizational Appraisal- It is the process of observing an
organizational internal environment to identify the strengths and
weaknesses that may influence the organization's ability to
achieve goals.
Step3: Strategy Implementation
1. Designing structure, process & system
2. Functional Implementation
3. Behavioral Implementation
1. Operationalizing strategy
Step4: Strategy Evaluation & Control
 Strategy evaluation- It is the process in which corporate
activities and performance results are monitored so that actual
performance can be compared with desired performance.
 Strategic control- In this step, organizations determine what to
control i.e., which objectives the organization hopes to
accomplish, set control standards, & measure performance,
Benefits of Strategic Planning
1) Framework for Developing the operating Budget
2) Management Development Tool
3) Mechanism to Force Managers to Think Long-
Term
4) Frame for Short-Run Actions
STRATEGIC MANAGEMENT
Origin of 7s Framework
 It was first mentioned in “The Art of Japanese
Management” by Richard Pascale & Anthony Athos
in 1981.
 They have been investigating how Japanese
Industry has been so successful.
 At around the same time that Tom Peters & Robert
Waterman were exploring what made a company
excellent.
 The 7s model was born at a meeting of these four
authors.
What is it?
 Its a management model that describes 7 factors to
organize a company in an holistic & effective way.
 Managers should take into account all 7 of these
factors, to be sure of successful implementation of a
strategy.
The 7s Framework
The model is most often used as a tool to assess and monitor
changes in the internal situation of an organization.
Why shared values in the middle of the
model?
 Placing Shared Values in the middle of the model
emphasizes that these values are central to the
development of all the other critical elements.
 The company's structure, strategy, systems, style,
staff and skills all stem from why the organization
was originally created, and what it stands for.
The 7s Elements
 The seven interdependent factors are categorized as
either "hard" or "soft" elements.
Hard Elements
Hard" elements are easier to define or identify.
Management can directly influence them.
These are:-
Strategy
Structure
Systems
Soft Elements
 "Soft" elements, on the other hand, can be more
difficult to describe.
 These soft elements are as important as the hard
elements if the organization is going to be successful.
 These are: Shared Values, Skills, Style & Staff.
7s - 1 - Strategy
 The plan devised to maintain and build competitive
Advantage over the competition.
7s - 2 - Structure
The way the organization is structured and who reports to
whom.
A successful organization may make temporary structural
changes to cope with specific strategic tasks without abandoning
basic structural divisions throughout the organization
7s - 3 - Systems
The daily activities and procedures that staff members engage
in to get the job done.
7s - 4 - Shared Values
 Called "super ordinate goals" when the model was first
developed.
 These are the core values of the company that are
evidenced in the corporate culture and the general work
ethic.
7s - 5 - Style
The style of leadership adopted in the Organization.
7s - 6 - Staff
The employees and their general capabilities.
Successful organizations view people as resources who should
be carefully nurtured, developed, guarded, and allocated.
7s - 7 - Skill
 The actual skills and competencies of the
employees working for the company.
Refer to those activities organizations do best and for
which they are known.
Eg. Du Pont is known for research. P&G for product
management. ITT for financial controls. HP for
innovation and quality.
Advantage of 7’s Model
Determines how best to implement a
proposed strategy.
Guides organizational change.
Combines rational and hard elements
with emotional and soft elements.
Managers must act on all Ss in parallel and all Ss
are interrelated.
STRATEGIC MANAGEMENT
STRATEGIC VISION
 Your VISION defines how you want your business to
be seen externally — by clients, suppliers, investors
and even competitors. It's what you constantly strive to
attain, and it becomes your reason for being.
Strategic Vision
 KOTTER description of something (an organization,
corporate culture, a business, a technology, an
activity) in the future. The definition itself is
comprehensive and states clearly the futuristic
position.
Examples
 DHL :- Customers trust DHL as the preferred global
express and logistics partner, leading the industry in
terms of quality, profitability and market share.
 McDonald:-McDonald's vision is to be the world's
best quick service restaurant experience. Being the
best means providing outstanding quality, service,
cleanliness, and value, so that we make every
customer in every restaurant smile.
STRATEGIC MANAGEMENT
Corporate Mission
 It tells who we are and what we do as well as what
we’d like to become.
 E.g- Microsoft- ‘Empower every person and every
organization on the planet to achieve more’.
 Mission is a statement which defines the role that
an organization plays in a society.
STRATEGIC MANAGEMENT
Characteristics
1. Feasibility
2. Precise
3. Clarity
4. Motivation
5. Distinctiveness
6. Indicates major component of Strategy
Mission Statement
 Your MISSION is what you intend to become or
accomplish. It should be challenging but achievable.
A well-written mission statement demonstrates that
you understand your business, have defined your
unique focus, and can articulate your objectives
concisely to yourself and others.
Examples
1. Mary Kay Cosmetics "To give unlimited
opportunity to women.“
2. Google's mission is “to organize the world's
information and make it universally accessible
and useful.”
STRATEGIC MANAGEMENT
Objective
 Objectives represent a managerial commitment to
achieve specified results in a specified period, of
time.
 They clearly spell out the quantity and quality of
performance to be achieved, the time period,
the process and the person who is responsible for
the achievement of the objectives.
Characteristics of good Objective
1. Objectives should be understandable.
2. Objectives should be Concrete &Specific.
3. Objectives should be related to time frame.
4. Objectives should be Measurable & Controllable.
5. Objectives should be Challenging.
6. Objectives should Correlate with each other.
7. Objectives should be Set within Constraints.
8. Objectives have hierarchy.
9. Social sanction
10. Organizational objectives should can be changed.
STRATEGIC MANAGEMENT
Goals
Goal is defined as an “intermediate result to be
achieved by a certain time as part of the grand
plan . A plan can, therefore have many goals.”
Goals should be measurable, quantitative,
challenging, realistic, consistent and prioritized.
Features
1. Issues of goal :Short-term goals and objectives
should be left to lower level managers to identify, plan and
achieve issues like lowering of cost and improving quality
should be included in goals of middle level managers.
2. Should be well constructed, realistic and
challenging: Challenging goals motivates managers
to be innovative, creative and ambitious in
improving operations, marketing, sales, etc.
3. Specific Time Period: In which a given goal is to be
achieved.
Difference b/w goal and objectives
Basics Goals Objectives
1.Meaning The purpose toward which an
endeavor is directed.
Something that one's efforts
or actions are intended to
attain or accomplish;
purpose; target.
2.Example I want to achieve success in the
field of genetic research and do
what no one has ever done.
I want to complete this thesis
on genetic research by the end
of this month.
3.Action Generic action, or better
still, an outcome towards
which we strive.
Specific action - the
objective supports
attainment of the
associated goal.
4.Measure Goals may not be strictly
measurable or tangible Must be measurable and
tangible.
STRATEGIC MANAGEMENT
Social Responsibility
 Social Responsibility of business simply means
Social commitment of business towards different
groups.
Social responsibility is the obligation of the
decision makers to take actions which protect and
improve the welfare of the society as a whole along
with their own interests. - Howard R. Bowen
Need for the Social Responsibility of
Business
Impact of its own Operations.
Long life of business
Employee satisfaction
Fair Pricing & Market dynamics
Demand & Supply of goods & services
Taxation & compliances towards Government
Financial Support to Social & Cultural
activities
Support to Social causes like Poverty,
Education, HealthCare, Environment
Renewable Energy etc.
Social Responsibility towards different
Groups
Responsibilities towards:
Owners
Employees/Workers
Consumers/Customers
Community/Society/Public
Investors/Shareholders
Government
Stakeholders and Business
 All those who participate in someway in the
activities of organization is called stakeholder of a
business.
Responsibility towards Stakeholders/
Investors
Return on Investment
Stability
Information
Proper Disclosure
Full and Factual Information
Proper conduct of Shareholders Meetings
Good Public Image
Manipulation of Share Prices
Maintain Transparency
Handling Grievance
Maintain Solvency and Prestige
Responsibility towards Employees/Workers
 Harmonious Employer-Employee Relation
 Job Security, Promotion & career opportunity
 Division of Labor & recognition to trade unions
 Good Working Conditions
 Protect Health & Provide Safety Measures
 Fair Remuneration and allowances
 Proper personal policies, education & training
 Code of conduct & proper grievance procedures
 Workers Participation in Management
 Opportunities for development
Responsibility towards
Consumers/Costumers
 Supply as per demand
 Charging Fair price
 Honest Advertisement/ Advertisement ethics
 After Sales Service
 Reply to Complaints/ Customer Service Cell
 Good Quality Products & Services
 Avoid Monopolistic Competition
 Avoid Unethical Trade Practices
 Consumer Safety
 Accurate Information
 Consumer Welfare
Responsibility towards
Creditors/Suppliers
1. Maintaining a healthy and cooperative in-ter
business relationship between different
business.
2. Mgt. Should provide accurate and relevant
information to. creditors and suppliers.
1. Payment of price of materials, interest on
borrowings, other charges should be prompt
Responsibility towards Government
 Observance of Law and Order
 Guidelines
 Payment of Taxes
 Avoid Unethical Practices
 Foreign Exchange
 Advice to Government
 Help in Emergencies
 Extent Co-operation
 Respecting Rules & Regulations
 Political Stability
 Implementation of Socio-economic programmes
Responsibility towards
Society/Environment
1. To help the weaker and backward sections of the
society
2. To preserve and promote social and cultural values
3. To generate employment
4. To protect the environment to conserve natural
resources and wildlife
5. To promote sports and culture
6. To provide assistance in the field of developmental
research on education, medical science, technology
Images for CSR (Most suitable Example)
Arguments for Social Responsibility
1. Changed Public Expectations of Business.
2. Better environment for Business.
3. Public Image
4. Avoidance of Government Regulation.
5. Balance of Responsibility with Power.
6. Business has Resources
7. Let business Try
8. Moral Responsibility
9. Duty of Gratitude
10. Citizenship Argument
11. Prevention is better than cure
Arguments against Social
Responsibility
1. Profit Maximization
2. Society has to Pay Cost
3. Lack of Social Skills
4. Business has enough power
5. Social overhead cost
6. Lack of Accountability
7. Lack of broad support
8. Less efficient use of resources
9. Lack of Social skills
STRATEGIC MANAGEMENT
Business Ethics
 Ethics is a set of rules that define right and wrong
conduct.
 Business ethics is the application of general ethical ideas
to business. -Frederick & Lawrence
7 Principles of Admirable Business Ethics:
a. Be trustful
b. Keep an open mind
c. Meet obligations
d. Have clear documents
e. Be respectful
f. Become Community Involved
Importance of Business Ethics
1. High ethical performance also protects the
individuals who work in business.
2. Promoting the ethical behavior is to protect
business from abuse by unethical employees or
unethical competitors.
SocialAudit
 A social audit is a way of measuring, understanding,
reporting and ultimately improving an organization’s
social &ethical performance.
 A social audit helps to narrow gaps between
vision/goal & reality, between efficiency&
effectiveness.
Characteristics of SocialAudit
1. Wide coverage
2. Measure social performance
3. Systematic evaluation
4. Supplement to Social responsibility
5. Acts as a guide
6. Subjective in nature
7. Voluntary in character
TO INCREASE THE PROFIT, CO-ORDINATION AMONG
LEVELS ARE IMPORTANT....

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STRATEGIC MANAGEMENT

  • 1. ANU BAJRACHARYA EMAIL ID: anubajracharya770@gmail.com
  • 2. Management Mary Parker Follett. Management, she says, is the "art of getting things done through people."
  • 3. Strategic Management Agenda 1. Introduction &Concept of Strategy 2. Need of Strategy 3. Dimensions of Strategy 4. Levels of Strategy 5. Strategic Management 6. Strategic Management Process 7. Benefits of Strategic Planning
  • 4. Strategic Management Contd…… 8. MCKINSEY’S 7S MODEL 9. Strategic Vision 10. Mission 11. Objectives 12. Goals 13. Social Responsibility 14. Business Ethics 15. Social Audit
  • 6. What does Strategy mean? “ art of general” - form Fr. Strategie, from Gk. Strategia “ office or command of a general”, from strategos “general,” from stratos “multitude, army, expedition”
  • 7. Introduction &Concept of Strategy  Strategy is an action that managers take to attain one or more of the organization’s goals.  Strategy is a well defined roadmap of an organization. It defines the overall mission, vision and direction of an organization.  A strategy is all about integrating organizational activities and utilizing and allocating the scarce resources within the organizational environment so as to meet the present objectives.
  • 8.  While planning a strategy it is essential to consider that decisions are not taken in a vacuum and that any act taken by a firm is likely to be met by a reaction from those affected, competitors, customers, employees or suppliers.
  • 9. What does Strategy mean today? - A plan, method, or series of maneuvers stratagems for obtaining a specific goal or result.
  • 10. Need of Strategy 1. Gives Direction 2. Facilitate Overall Effectiveness 3. Co-ordinate Activities 4. Facilitate optimal Resource Allocation 5. Helps in comparing Courses of Action 6. Programme all organizational Activities
  • 12. Dimensions of Strategy 1. Strategy Process 2. Strategy Context 3. Strategy content
  • 14. Levels of Strategy 1) Corporate Level Strategy 2) Business-Level Strategy 3) Functional-Level strategy
  • 15. CORPORATE LEVEL STRATEGY  Top Management’s overall plan for the entire organization and its SBU’s.  Corporate level strategy occupies the heights level of DECISION MAKING.
  • 16. Forms of Corporate Level Strategy 1. Growth:- Expansion into new products and markets. 2. Stability:- Maintenance of the status of the Organization. 3. Retrenchment/Renewal:- Redirection of the firm into new markets.
  • 17. Corporate Level Strategy 1. Growth Strategy -Seeking to increase the organization’s business by expansion into new products and markets.
  • 18. Two types of Growth Strategies:  Concentration -Vertical Integration -Horizontal Integration  Diversification  Concentration: The company concentrates more resources on the product line to increase its participation in the value chain of the product.The two main types of Concentration strategies are:- Types of Growth Strategies
  • 19. Vertical Integration: 1. Backward vertical Integration 2. ForwardVertical Integration Horizontal Integration:  Diversification: A company is diversified when it is in two or more lines of business operating in distinct and diverse market environments. Types of Growth Strategies
  • 20. Types of Growth Strategies 1. Related Diversification: Some similar factors can be used by diversification. For e.g. A tea company starts producing other food products to take advantage of its distribution network etc. 2. Unrelated Diversification: Company enters entirely different product-market segments.
  • 21. Why to Pursue Growth? 1. Growth is necessary for survival in future 2. Growth offers large scale of operation 3. Growth strategy is taken up because motivation to do so 4. Intangible advantage of growth
  • 22. Corporate Level Strategy 2. Stability Strategy: In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives.
  • 23. WHY TO PURSUE THE STABILLITY STRATEGY? 1. It is less risky 2. The environmental faced is relatively stable. 3. Expansion may be perceived as being threatening.
  • 25. Corporate Level Strategy Renewal/Retrenchment strategies are pursued when a company’s product lines are performing poorly as a result of finding itself in a weak competitive position or a general decline in industry or markets.
  • 26. Forms of Retrenchment Strategy 1. Turnaround Strategy 2. Divestment Strategy 3. Liquidation Strategy
  • 27. Business Level Strategy  A strategy that seeks to determine how an organization should compete in each of its SBUs (strategic business units).  At Business-level ALLOCATION of re- sources among Functional-level an COORDINATE with the Corporate level to the ACHIEVEMENT of the Corporate level OBJECTIVES.
  • 28. Business Level Strategy 1. Cost leadership: Attaining, and then using the lowest total cost basis as a competitive advantage. 2. Differentiation: Using product features or services to distinguish the firm’s offerings from its competitors. 3. Market focus: Concentrating competitively on a specific market segment.
  • 29. Functional Level Strategy  Focus is on improving the effectiveness of operations within a company.  Which is done by: A. Manufacturing B. Marketing C. Materials management D. Research and development E. Human resources
  • 31. Strategic Management  Strategic management is an art and science of formulating, implementing and evaluating cross functional decisions that enable an organization to achieve its objectives. - Fred R. David
  • 33. Step1: Strategic Intent  Vision- Vision is the statement that expresses organization’s ultimate long-run objectives. E.g- Microsoft- ’A computer software on every desk and in every home’.  Mission- A Mission Statement defines the company’s business, its objectives and its approach to reach those objectives. E.g- Microsoft- ‘Empower every person and every organization on the planet to achieve more’.  Objectives- Objectives state specifically how the goals shall be achieved. Following are the areas for setting objectives- profit objective, marketing objective, production objective, etc.
  • 34. Step2: Strategy Formulation Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives. 1. Environmental Appraisal- It is dynamic and consists of External & Internal Environment . 2. Organizational Appraisal- It is the process of observing an organizational internal environment to identify the strengths and weaknesses that may influence the organization's ability to achieve goals.
  • 35. Step3: Strategy Implementation 1. Designing structure, process & system 2. Functional Implementation 3. Behavioral Implementation 1. Operationalizing strategy
  • 36. Step4: Strategy Evaluation & Control  Strategy evaluation- It is the process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.  Strategic control- In this step, organizations determine what to control i.e., which objectives the organization hopes to accomplish, set control standards, & measure performance,
  • 37. Benefits of Strategic Planning 1) Framework for Developing the operating Budget 2) Management Development Tool 3) Mechanism to Force Managers to Think Long- Term 4) Frame for Short-Run Actions
  • 39. Origin of 7s Framework  It was first mentioned in “The Art of Japanese Management” by Richard Pascale & Anthony Athos in 1981.  They have been investigating how Japanese Industry has been so successful.  At around the same time that Tom Peters & Robert Waterman were exploring what made a company excellent.  The 7s model was born at a meeting of these four authors.
  • 40. What is it?  Its a management model that describes 7 factors to organize a company in an holistic & effective way.  Managers should take into account all 7 of these factors, to be sure of successful implementation of a strategy.
  • 41. The 7s Framework The model is most often used as a tool to assess and monitor changes in the internal situation of an organization.
  • 42. Why shared values in the middle of the model?  Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements.  The company's structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for.
  • 43. The 7s Elements  The seven interdependent factors are categorized as either "hard" or "soft" elements. Hard Elements Hard" elements are easier to define or identify. Management can directly influence them. These are:- Strategy Structure Systems
  • 44. Soft Elements  "Soft" elements, on the other hand, can be more difficult to describe.  These soft elements are as important as the hard elements if the organization is going to be successful.  These are: Shared Values, Skills, Style & Staff.
  • 45. 7s - 1 - Strategy  The plan devised to maintain and build competitive Advantage over the competition. 7s - 2 - Structure The way the organization is structured and who reports to whom. A successful organization may make temporary structural changes to cope with specific strategic tasks without abandoning basic structural divisions throughout the organization 7s - 3 - Systems The daily activities and procedures that staff members engage in to get the job done.
  • 46. 7s - 4 - Shared Values  Called "super ordinate goals" when the model was first developed.  These are the core values of the company that are evidenced in the corporate culture and the general work ethic. 7s - 5 - Style The style of leadership adopted in the Organization. 7s - 6 - Staff The employees and their general capabilities. Successful organizations view people as resources who should be carefully nurtured, developed, guarded, and allocated.
  • 47. 7s - 7 - Skill  The actual skills and competencies of the employees working for the company. Refer to those activities organizations do best and for which they are known. Eg. Du Pont is known for research. P&G for product management. ITT for financial controls. HP for innovation and quality.
  • 48. Advantage of 7’s Model Determines how best to implement a proposed strategy. Guides organizational change. Combines rational and hard elements with emotional and soft elements. Managers must act on all Ss in parallel and all Ss are interrelated.
  • 50. STRATEGIC VISION  Your VISION defines how you want your business to be seen externally — by clients, suppliers, investors and even competitors. It's what you constantly strive to attain, and it becomes your reason for being.
  • 51. Strategic Vision  KOTTER description of something (an organization, corporate culture, a business, a technology, an activity) in the future. The definition itself is comprehensive and states clearly the futuristic position.
  • 52. Examples  DHL :- Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share.  McDonald:-McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.
  • 54. Corporate Mission  It tells who we are and what we do as well as what we’d like to become.  E.g- Microsoft- ‘Empower every person and every organization on the planet to achieve more’.  Mission is a statement which defines the role that an organization plays in a society.
  • 56. Characteristics 1. Feasibility 2. Precise 3. Clarity 4. Motivation 5. Distinctiveness 6. Indicates major component of Strategy
  • 57. Mission Statement  Your MISSION is what you intend to become or accomplish. It should be challenging but achievable. A well-written mission statement demonstrates that you understand your business, have defined your unique focus, and can articulate your objectives concisely to yourself and others.
  • 58. Examples 1. Mary Kay Cosmetics "To give unlimited opportunity to women.“ 2. Google's mission is “to organize the world's information and make it universally accessible and useful.”
  • 60. Objective  Objectives represent a managerial commitment to achieve specified results in a specified period, of time.  They clearly spell out the quantity and quality of performance to be achieved, the time period, the process and the person who is responsible for the achievement of the objectives.
  • 61. Characteristics of good Objective 1. Objectives should be understandable. 2. Objectives should be Concrete &Specific. 3. Objectives should be related to time frame. 4. Objectives should be Measurable & Controllable. 5. Objectives should be Challenging. 6. Objectives should Correlate with each other. 7. Objectives should be Set within Constraints. 8. Objectives have hierarchy. 9. Social sanction 10. Organizational objectives should can be changed.
  • 63. Goals Goal is defined as an “intermediate result to be achieved by a certain time as part of the grand plan . A plan can, therefore have many goals.” Goals should be measurable, quantitative, challenging, realistic, consistent and prioritized.
  • 64. Features 1. Issues of goal :Short-term goals and objectives should be left to lower level managers to identify, plan and achieve issues like lowering of cost and improving quality should be included in goals of middle level managers. 2. Should be well constructed, realistic and challenging: Challenging goals motivates managers to be innovative, creative and ambitious in improving operations, marketing, sales, etc. 3. Specific Time Period: In which a given goal is to be achieved.
  • 65. Difference b/w goal and objectives Basics Goals Objectives 1.Meaning The purpose toward which an endeavor is directed. Something that one's efforts or actions are intended to attain or accomplish; purpose; target. 2.Example I want to achieve success in the field of genetic research and do what no one has ever done. I want to complete this thesis on genetic research by the end of this month. 3.Action Generic action, or better still, an outcome towards which we strive. Specific action - the objective supports attainment of the associated goal. 4.Measure Goals may not be strictly measurable or tangible Must be measurable and tangible.
  • 67. Social Responsibility  Social Responsibility of business simply means Social commitment of business towards different groups. Social responsibility is the obligation of the decision makers to take actions which protect and improve the welfare of the society as a whole along with their own interests. - Howard R. Bowen
  • 68. Need for the Social Responsibility of Business Impact of its own Operations. Long life of business Employee satisfaction Fair Pricing & Market dynamics Demand & Supply of goods & services Taxation & compliances towards Government Financial Support to Social & Cultural activities Support to Social causes like Poverty, Education, HealthCare, Environment Renewable Energy etc.
  • 69. Social Responsibility towards different Groups Responsibilities towards: Owners Employees/Workers Consumers/Customers Community/Society/Public Investors/Shareholders Government
  • 70. Stakeholders and Business  All those who participate in someway in the activities of organization is called stakeholder of a business.
  • 71. Responsibility towards Stakeholders/ Investors Return on Investment Stability Information Proper Disclosure Full and Factual Information Proper conduct of Shareholders Meetings Good Public Image Manipulation of Share Prices Maintain Transparency Handling Grievance Maintain Solvency and Prestige
  • 72. Responsibility towards Employees/Workers  Harmonious Employer-Employee Relation  Job Security, Promotion & career opportunity  Division of Labor & recognition to trade unions  Good Working Conditions  Protect Health & Provide Safety Measures  Fair Remuneration and allowances  Proper personal policies, education & training  Code of conduct & proper grievance procedures  Workers Participation in Management  Opportunities for development
  • 73. Responsibility towards Consumers/Costumers  Supply as per demand  Charging Fair price  Honest Advertisement/ Advertisement ethics  After Sales Service  Reply to Complaints/ Customer Service Cell  Good Quality Products & Services  Avoid Monopolistic Competition  Avoid Unethical Trade Practices  Consumer Safety  Accurate Information  Consumer Welfare
  • 74. Responsibility towards Creditors/Suppliers 1. Maintaining a healthy and cooperative in-ter business relationship between different business. 2. Mgt. Should provide accurate and relevant information to. creditors and suppliers. 1. Payment of price of materials, interest on borrowings, other charges should be prompt
  • 75. Responsibility towards Government  Observance of Law and Order  Guidelines  Payment of Taxes  Avoid Unethical Practices  Foreign Exchange  Advice to Government  Help in Emergencies  Extent Co-operation  Respecting Rules & Regulations  Political Stability  Implementation of Socio-economic programmes
  • 76. Responsibility towards Society/Environment 1. To help the weaker and backward sections of the society 2. To preserve and promote social and cultural values 3. To generate employment 4. To protect the environment to conserve natural resources and wildlife 5. To promote sports and culture 6. To provide assistance in the field of developmental research on education, medical science, technology
  • 77. Images for CSR (Most suitable Example)
  • 78. Arguments for Social Responsibility 1. Changed Public Expectations of Business. 2. Better environment for Business. 3. Public Image 4. Avoidance of Government Regulation. 5. Balance of Responsibility with Power. 6. Business has Resources 7. Let business Try 8. Moral Responsibility 9. Duty of Gratitude 10. Citizenship Argument 11. Prevention is better than cure
  • 79. Arguments against Social Responsibility 1. Profit Maximization 2. Society has to Pay Cost 3. Lack of Social Skills 4. Business has enough power 5. Social overhead cost 6. Lack of Accountability 7. Lack of broad support 8. Less efficient use of resources 9. Lack of Social skills
  • 81. Business Ethics  Ethics is a set of rules that define right and wrong conduct.  Business ethics is the application of general ethical ideas to business. -Frederick & Lawrence 7 Principles of Admirable Business Ethics: a. Be trustful b. Keep an open mind c. Meet obligations d. Have clear documents e. Be respectful f. Become Community Involved
  • 82. Importance of Business Ethics 1. High ethical performance also protects the individuals who work in business. 2. Promoting the ethical behavior is to protect business from abuse by unethical employees or unethical competitors.
  • 83. SocialAudit  A social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social &ethical performance.  A social audit helps to narrow gaps between vision/goal & reality, between efficiency& effectiveness.
  • 84. Characteristics of SocialAudit 1. Wide coverage 2. Measure social performance 3. Systematic evaluation 4. Supplement to Social responsibility 5. Acts as a guide 6. Subjective in nature 7. Voluntary in character
  • 85. TO INCREASE THE PROFIT, CO-ORDINATION AMONG LEVELS ARE IMPORTANT....