...book deals with the following. • A strategic decision-making model based on the underlying process of environmental scanning, strategy formation, strategy implementation and evaluation and control. • Michael Porter’s approach to industry analysis and competitive strategy • Functional analysis and functional strategies. R & D and R & D strategies which emphasize the importance of technology to strategy and product-market decisions. • Executive leadership and succession, reengineering, total quality management, MBO and action planning. • Social responsibility in terms of its importance to strategic decision making. © www.hrfolks.com All Rights Reserved 2 Basics concepts of strategic management The study of strategic management Strategic management is the set of managerial decision and action that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long range planning), strategy implementation, and evaluation and control. The study of strategic management therefore emphasizes the monitoring and evaluating of external opportunities and threats in lights of a corporation’s strengths and weaknesses. Evolution of strategic management From his extensive work in the field, Bruce Henderson of the Boston Consulting Group concluded that intuitive strategies cannot...
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...Managing Culture and Change An academic essay: "What is a 'successful corporate culture'? Do successful cultures invariably contain seeds of their own destruction?" Introduction This essay aims to critically analyze and explain the phenomenon of 'successful corporate cultures'. We will first define what corporate cultures are and how they align the values of employees with that of an organization and its goals, vision and mission. We will be then discussing the key elements of successful corporate cultures and what practices businesses can adopt in order to achieve that. This essay will highlight the necessary cultural traits which positively contribute towards achieving organization goals and targets and cultural effectiveness. We will then proceed to examine the different types of cultures and relate them to specific market conditions . Also, how organizational cultures can help corporations gain a competitive advantage by improving financial performance, improving productivity and increasing job satisfaction of its employees. Finally, we will discuss limitations faced by successful corporate cultures and how they can hinder creativity in some cases. The role of changing environmental (social, political and economic) conditions in making good cultures become obsolete will be discussed before reaching a conclusion. Defining corporate culture Culture is a broad and complicated term with a number of possible definitions and meanings. No one term can be used...
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...the Principality of Liechtenstein. Some 22,000 employees, in more than 120 countries around the world, enthuse their customers and build a better future. The corporate culture is founded on integrity, courage, teamwork and commitment. Hilti excels through outstanding innovation, top quality, direct customer relations and effective marketing. Two-thirds of the employees work directly for the customer in sales organizations and in engineering, which means a total of more than 200,000 customer contacts every day. Hilti has its own production plants as well as research and development centers in Europe, Asia and Latin America. Founded in 1941, the worldwide Hilti Group evolved from a small family company. Since 2000, the Martin Hilti Family Trust holds all shares and, since January 2008, all participation certificates of Hilti Corporation. This safeguards the further development of the company founder Martin Hilti’s life’s work in the long term. Hilti upholds a clear value orientation and pursues a policy of stakeholder value. Integrating the interests of all the company’s partners – customers, suppliers and employees – into its strategy and actively honoring its social and ecological responsibility creates the foundation of trust that makes possible the long-term success of the company. Hilti Corporate culture Mission statement Enthusiastic customers Create success for the customers by identifying their needs and providing innovative and value-adding solutions. ...
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...defined in many ways, but most commonly a leader is person who influences the thoughts and behaviors of others and a leader is one who establishes the direction for others to willingly follow. Leaders come in many styles; from the hard-nosed, strictly discipline oriented person, to the soft-spoken easygoing man, the product always seems to be a person that all subordinates can emulate. It appears as if a good leader is a person that is comprised of many principles and traits. Leaders play a vital role in standardizing performance. Leaders can influence other to perform beyond even their own expectations. Developing a sense of responsibility in your subordinates seems to play a very important role in a leader's actions. Leaders set vision, strategies, goals, and values in order to guide their followers and to set desired action and behavior. As a whole, any organization must have strong leadership as the basis for its successes, and that is the principle reason why leadership is such an important factor in the overall business plan. Without an effective leader an organization might not take the steps required or have the clear vision necessary to be successful. Today’s leaders are responsible for guiding employees and responding to the needs of customers. Whether the goal is to be an employer...
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...Patagonia Case Study - Harsha Narravula Patagonia has a unique culture when compared to other corporate companies. They seem to simplify their values around 3 key cultural elements, caring about environment through corporate responsibility and furnishing profits by producing high quality and innovate products. These values were not just a marketing campaign but were well established/ visible throughout the company through visual artifacts, communication and pursuing business strategy in line with the values. It is these strong values that have set the company apart from competition and helped the company during economic down turns (values create identity, Lencioni, Pg6). These corporate values were so strong and dominant that it affected day to day business (Concept of core values, Lencioni, Pg6). Top level management, CEO’s and board members were hired in line with the culture and shared the same values that have existed. Deviation from the values sometimes has resulted in rapid turnover of top level management. This strong culture stemmed from its founder Yvon Chouinard establishing strong set of values that had initially worked well for the company (Strong Culture, Greenberg, 371). Due to the continued success, these values permeated through the company even without Yvon being involved in a formal position (Organizational memory, Greenberg, Pg 375). As stated above the corporate responsibility to environment is a core value that the company practices. The described...
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...SAS * Employment security The company culture and working environment lend itself to a warm friendly place to work. Along with this the corporate strategy of making software that customers want ensures that new products are in line with consumer needs. These things create a very stable work environment where people enjoy coming to work. SAS experiences only a 4% turnover rate a year far lower than the industry average due to the work environment they create. This atmosphere allows for a great deal of security and makes employees enjoy coming to work and as a result their work is higher quality. * Selective hiring The hiring practices at SAS are a major reason for its success. SAS goes about recruiting people based a great deal on how they fit within the corporate culture. Due to the fact that the company headquarters is located in the south much of the recruiting is targeted at people who want to live in the south. Along with this the turnover rate for the company is extremely low because the employees like working for the company. This selection process allows SAS to get skilled employees that enjoy their work environment and don’t want to work somewhere else. * Self managed teams When it comes to management strategy SAS has a simplistic approach built on trust and responsibility. The company follows a motto of “give people the tools they need to do their job and get out of the way.”The training of employees allows the company to mentor and coach employees and...
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...Faculty of Engineering & the Built Environment Bachelor in Civil Engineering SUBJECT CODE: BUS 4053 Business Ethics Date of Submission: 11-07-2013 Lecturer’s Name: Miss Hazlina Table of contents Title Page Number Definition of CSR------------------------------------------------------------------------------------- 3 The 4 strategies---------------------------------------------------------------------------------------- 4 The Toyota Example as Proactive Corporate Social Responsibility --------------------------- 6 References --------------------------------------------------------------------------------------------------- ----------- 8 Definition of Corporate Social Responsibility Corporate social responsibility (CSR) is known under various terms used in the industry such as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business or corporate social performance. In spite of some variations in some cases, they basically share the same philosophy and aim towards the same goal. The primary function of Corporate social responsibility is to act as a corporate self-regulating mechanism which in integrated...
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...Situation: During the 1980s and 1990s, PepsiCo’s business strategy was to increase its presence in the casual dining segment of the restaurant industry, initiated through the purchase of Carts of Colorado and California Pizza Kitchen. While on paper the acquisition plan stood to be lucrative and position PepsiCo as a major competitor in the restaurant industry, relationships between corporate and franchisee became strained. The source of the fracture in PepsiCo’s business strategy was decentralization led by the CEO’s of the company. For example, David M. Kendall set a tone for a competitive and ambitious business acquisition strategy. The strategy endorsed an aggressive stance for purchasing and with regard to employees’ culture, one employee in the following statement noted his aggressive tone, “The controlling management style brought in by Kendall in 1963 had completely changed the cultural emphasis at PepsiCo from passivity to aggressivity” (p. 24, Magnani). The business strategy appeared beneficial and able to generate large profits, yet relationships with the franchisee component suffered due to decentralized communication. In short, the lack of synergy and competition between franchisee and corporate, resulted in divisive franchisee culture and major communication errors from the top down. II. Define the Problem: The core issue is the decentralized business model, which spawned a corporate culture characterized by miscommunication and competitive turf wars rather...
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...Abstract The purpose of this paper is to identify and examine social and ethical issues within the global market. This document will also review how international management and cultural diversity are pertinent to the success of an organization that is operating in a foreign country. Based upon the above mention, this paper will focus on examining and providing frameworks and strategies that implement the concept of corporate social responsibility and cultural diversity. A number of factors are identified in the study, using literature reviews and numerous online research engines. Introduction Business firms that operate in foreign countries face an assortment of ethical and social challenges. These challenges run from fair treatment of employees, stakeholders, and customers, product safety, plant safety, advertising practices, human resources management, environmental problems, business practices, corruption, bribery, kidnapping, torture, and even murder. Therefore, organizations are increasingly concerned about how their actions affect the environment and social welfare. This in turn creates a demand by employees, consumers, investors, lenders, governmental agencies, and other stakeholder groups for demanding firms to operate in an ethical and socially responsible manner. Nevertheless, organizations cannot wantonly abandon their profit maximization aims while internalizing societal goals. As with other organizational decisions, ethical and social...
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...have adapted their corporate strategies (not tactics) to incorporate sustainability. With the rising importance of sustainability initiatives, it has become increasingly important for companies to incorporate sustainability practices into their corporate strategies. Corporate strategies have undergone significant changes with the inclusion of sustainability. Public perception of corporate brand has had a significant impact on business. Companies can no longer consider only profit. Other factors must now be included in strategy such as the environment and society. Companies must adapt their strategy and incorporate sustainability into their culture. Companies are also forced to consider ethics, community citizenship and human rights. Consumers are not the only perceptions that matter, however. Studies are showing that employees want to work for a company that is environmentally friendly and that they feel they can make an impact. Businesses are now finding themselves embedding sustainability into their corporate culture. A large reason for this is short tenure for CEOs. By embedding this initiative into the culture, the sustainability strategies don’t lose momentum when there is a position change at the top of the company. Companies also have to adapt with the inclusion of sustainability due to the scarcity of resources. Resource scarcity is becoming a major issue that is forcing companies to include sustainability in their corporate strategies. Many companies are...
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...Applying trompenaars typology of organizational culture to implementation of csr strategy 1. Introduction Nowadays many authors declare Corporate Social Responsibility (CSR) in strategic terms as it is no longer seen as the invention of some social activist but important source of competitive advantage. However various researchers still struggle to figure out what shape and utility should the tools of CSR have and what implementation model could be the best to fulfill the business objectives. The study aims to demonstrate whether Trompenaars bipolar model of organizational culture could prove useful while implementing CSR strategy and to propose some good practice in this case. 2. Theoretical framework Culture A lot has changed in world of management since 80s and many leaders tend to ask a question whether corporate culture is still important. However high interest in that area seems to be a sufficient prove that it still is. According to a recent survey by management consultancy Bain & Company, 9 of 10 senior executives believe that corporate culture is as important as strategy for business - - - - - Electronic PDF security powered by www.IndexCopernicus.com 114 Adrian Pyszka, Michał Piłat success1. Corporate culture is described as general constellation of beliefs, mores, customs, value systems and behaviors that are unique for each corporation (Tunstall, 1983). By Schein (199) organization culture is the pattern of basic assumptions that a given...
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...maintain flexibility and empower others to create strategic change as and when necessary. Strategic leaders are the lynchpin in the strategic management process. Among the strategic leaders, we have managers operating at different levels of an organisation: corporate-level, business-level, functional-level and operational-level. • Corporate-level managers include the chief executive officer (CEO), senior executives and the corporate staff. The corporate-level managers manage the strategic management process for the whole organisation. These managers may carry designations such as CEO, managing director, executive director or president. • Business-level managers are the strategic leaders at the business, division or SBU levels. These managers manage the strategic management process at the business-level. These may carry designations such as the general manager or vice-president. • Functional-level managers are the strategic leaders of a specific function such as marketing or operations. They are called marketing managers or operations managers. The functional managers manage the strategic management process at the functional level. • At the operational-level, there are managers who are responsible for the implementation of strategies within their assigned functional areas. They occupy positions such as deputy...
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...Management Process 11 Strategic Management as a Process 16 Summary 18 Key Terms 19 Questions for Discussion 19 2 3 PART TWO STRATEGY FORMULATION 2. SM_Prelims.indd 17 Company Mission What is a Company Mission? 23 The Need for an Explicit Mission 24 Formulating a Mission 24 Basic Product or Service; Primary Market; Principal Technology Company Goals: Survival; Growth; Profitability 26 Company Philosophy 28 Public Image 29 Company Self-Concept 33 Newest Trends in Mission Components 33 An Exemplary Mission Statement 35 Boards of Directors 37 Agency Theory 38 22 25 2/8/2012 10:17:09 AM Contents How Agency Problems Occur 39 Problems That Can Result from Agency 39 Solutions to the Agency Problem 40 Summary 41 Key Terms 41 Questions for Discussion 41 Appendix A: Company Vision 43 Appendix B: BB&T Vision, Mission, and Purpose 3. 4. SM_Prelims.indd 18 44 Corporate Social Responsibility and Business Ethics The Stakeholder Approach to Social Responsibility 52 The Dynamics of Social Responsibility 54 Types of Social Responsibility 57 Corporate Social Responsibility and Profitability 60 Sarbanes-Oxley Act of 2002 66 The New Corporate Governance Structure 69 Privatization as a Response to Sarbanes-Oxley 70 CSR’s Effect on the Mission Statement 71 Social Audit 71 Satisfying Corporate Social Responsibility 72 The Core of the CSR Debate 73 Mutual Advantages of Collaborative Social Initiatives 75 Five Principles of Successful...
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...Introduction * Current business environment: Responsible business is good business Both of us used to consider that if we become rich someday, what we can do or do something significant after I read some articles on corporate social responsibility. It is true that most of great companies always contribute to their wealth and to overall societal wealth by considering the effective on their employee, customers, the environment they existed, they competitors, shareholders and others to maximum the both wealth and improve their overall value when they making the decision in the current world. Not only consider about the money any more, they’ve move the main point to the both sides. Most of great companies are move their strategies on the understanding of the relationship between responsible business and good business. The external investors and market will measure the company’s strategies and performance based on their corporate social responsibility. It is a good approach that the CSR activities will help the company to build an effectively relationship with their customers and employees to acting responsibly towards then both of them will create more and more additional value for the company’s shareholders, stakeholders, and overall sides of company. Somehow, the company need to working close with their stakeholders to better develop their innovative and economically viable products, processes and services in order to improved environmental protection and social conditions...
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...McShane−Von Glinow: Organizational Behavior, Second Edition Part Four Organizational Processes Organizational Culture © The McGraw−Hill Companies, 2002 C H A P T E R 15 Organizational Culture AFTER READING THIS CHAPTER , YOU SHOULD BE ABLE TO : Learning Objectives I Describe the elements of organizational culture. I Discuss the importance of organizational subcultures. I List four categories of artifacts through which corporate culture is communicated. I Identify three functions of organizational culture. I Discuss the conditions under which cultural strength improves corporate performance. I Discuss the effect of organizational culture on business ethics. I Compare and contrast four strategies for merging organizational cultures. I Identify five strategies to strengthen an organization’s culture. McShane−Von Glinow: Organizational Behavior, Second Edition Part Four Organizational Processes Organizational Culture © The McGraw−Hill Companies, 2002 C arly Fiorina is taking Hewlett-Packard back to the future by reformulating the California-based technology company’s legendary culture, known as the H-P Way. “The H-P Way is about innovation; trust and respect and integrity; contribution to community; and performance,” says Fiorina, H-P’s first CEO hired from outside the company. The problem, she argues, is that employees have distorted these values over the years. “The H-P Way has been misinterpreted and twisted as a gentle bureaucracy...
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