Organization theory and design: Lecture 4 provides students with content about: organizational purpose; strategic management; process of strategic management; porter’s competitive strategies; low-cost leadership;... Please refer to the lesson for details!
Trang 1Organizational Purpose
Lecture 4
Trang 2Strategic Management
• Primary responsibility of top management
is to determine an organization’s goals,
strategy, and design, therein adapting the organization to a changing environment
• Organization design is the administration and execution of the strategic plan
– External and internal environment
• This is the area where role of organization theory comes in
Trang 3Strategic Management
• Internal and External Environment
• SWOT Analysis
• Capability
Trang 4Process of Strategic Management
• Goals/objectives:
– Must be SMART
• Vision
• Mission
• External environmental assessment:
– Opportunities and Threats
– Resources availability
Trang 5Process of Strategic Management
• Internal environmental assessment:
– Strengths and Weaknesses
– Distinctive or core competencies
– Leadership style
– Past performance
• Matching of the two assessments
Trang 6Process of Strategic Management
• Generation of strategies
– Strength threat (ST), strength opportunity
(SO) etc.
• Selection of strategies
• Implementation
• Problems in implementation
Trang 7Strategic Management
• Difference between goals and strategies
• e.g 15% annual sales growth, through
– Advertising
– Motivated sales force
• Two models of formulating strategies:
• Porter’ model
• Miles and Snow model
Trang 8Porter’s Competitive Strategies
• Differentiation
• Low-cost leadership
• Focus
Trang 9• How companies decide the strategy
• Strategy and structure