...Introduction Louw and Venter (2010:20) explain that strategic management is concerned with the overall effectiveness and choice of direction in a dynamic, complex and ambiguous environment. The success of an organisation is mainly determined by the effectiveness and efficiency of its management. In the words of Peter Drucker, efficiency is concerned with ‘doing things right’, while effectiveness is concerned with ‘doing the right thing’. Strategic management is the deliberate effort to allocate resource and get above average returns through competitive advantage so that in the long run the organisation can generate wealth maximization for its stakeholders. There are a number of advantages of strategic management as stated by Pearce and Robinson (2009:10), it helps reduce resistance to change therefore getting buy in from all stakeholders is critically important. It also results in better decisions because it facilitates group interaction. Group based strategic decisions generate a variety of specialized input which involves all the different areas in the organisation and an in depth range of alternatives and makes it more likely that the best solutions will be chosen. Strategic management enhances the organisation’s ability to prevent problems. It creates a framework through which managers can encourage their staff to focus on planning, monitoring and evaluating the success of these plans. There are also disadvantages of strategic management as Pearce and Robinson (2009:10) identified...
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...organizational performance (Hough et al. 2008:4). Strategy is all about how the anticipated goals will be achieved. It works like a recipe where different elements are used in a more or lesser manner to achieve an end result. In an organisation the leader ensures all members are heading in the right direction and completing their goals and objectives. Organisations lacking leadership quickly implode as members scatter in all directions attempting to achieve conflicting goals in a silo-orientated environment. However, this can be overcome if leaders communicate and execute business strategies. A business strategy is a leadership plan that achieves a specific set of goals or objectives such as: * Developing new products or services. * Entering new markets. * Increasing customer loyalty. * Attracting new customers. * Increasing sales. * Decreasing costs. (Baltzan, 2013:16) Leaders also work with the realities of their environments and anticipate possible risks and implement measures to minimise the risks. When they plan, they consider different options that give them the leverage in time of misfortune and challenges. Strategic plans should always be updated to adapt to the ever changing environment (Baltzan, 2013:16). Strategic information management and technology...
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...Strategic financial management can be described as the allocation of scarce resources to identified possible strategies among competing opportunities and taking necessary actions to monitor the progress of the chosen opportunity so as to achieve set objectives. The Chartered Institute of Management Accountants of UK (CIMA) defines Strategic Financial Management as “the identification of the possible strategies capable of maximizing an organization’s net present value, the allocation of scarce capital resources between competing opportunities and the implementation and monitoring of the chosen strategy so as to achieve stated objectives”. In order to understand what Strategic Financial Management is about, it is necessary to know the meaning of the two words ‘strategy’ and ‘strategic’ as provided by Oxford Advanced Learner’s Dictionary, 6th edition. Strategy: This is the process of planning something or carrying out a plan in a skilful way. STRATEGIC FINANCIAL MANAGEMENT Strategic: This is done as part of a plan that is meant to achieve a particular purpose. If the above definitions are used as a guide, the strategic financial management can be defined, as those aspects of the overall strategic plan of an organization that concern the financial managers. For example, there are many aspects of a business plan (to be discussed later under Corporate Strategy): marketing and sales plan, production plan, personnel plan, capital expenditure plan, etc. All these plans have far-reaching...
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...supply and demand patterns. Kraljic (1983) asserts that purchasing calls for a total change of perspective: from a mere operating function to a strategic management of supply. In an intricate supply environment, simple monitoring of current developments is inadequate for a growing organisation like, OMITTED. Rather, the risks and complexities associated with purchasing should undergo comprehensive pre-evaluation and be curbed under extensive management strategy. In 1983, Peter Kraljic delved deeper into this issue by devising a simple but effective technique in assessing supply conditions with the intention of formulating effective supply strategies. To this day, the method is widely regarded as one of the most powerful supply management tools and has acted as the backbone of many organisations, bringing long established success to large companies - most notably, Shell, Alcatel and Philips (Van Weele 2000). The two phase Kraljic approach The approach devised by Kraljic follows a simple two step procedure in formulating different supply strategies. First, all purchased items and services are classified in a matrix form with respect to their profit impact and supply risk as displayed in Figure 1 below. Second, purchasing strategies and action plans are developed according to the classifications. High Leverage Strategic Profit impact Non-critical Bottleneck Low Kraljic 1983 Low Supply Risk High Fig 1 Classification of materials As mentioned, the...
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...some of the definitions, theories and concepts underpinning strategy. As such it is intended to introduce the key concepts involved, or to form an overall reminder of the various issues relating to these areas. 1. What is strategy about and why is it so important? ‘Every company needs a strategy – either explicit or implicit.’ Costas Markides (1995) ‘An effective strategic management process has become the essential norm for businesses.’ Richard Hanscombe and Philip Norman (1993) ‘Effective strategic management is the ultimate aim of all managers.’ Financial Times, 1997 ‘The survival, growth and prosperity of any organisation depends on the quality and viability of the strategy the organisation is pursuing.’ Andrew Kakabadse, Ron Ludlow and Susan Vinicombe (1988) Indeed, such is the importance attached to the subject of strategy that one commentator on the subject, Richard Whittington (1993), reports that ‘there are thirty-seven books in print with the title Strategic Management’. Similarly a leading strategy thinker, Henry Mintzberg, and his colleagues (1998) note that ‘The literature of strategic management is vast – the number of items we reviewed over the years numbers close to 2,000 – and it grows larger every day.’ However, despite the importance given to them, thinking, writing and talking about ‘strategy’-related topics are subject to two main challenges, as is acknowledged by the warning issued by a leading thinker on marketing strategy, Paul Fifield. ‘The word...
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...market position within the motorcycle sector (Innovation Leaders 2011). According to Linkedln (2012) the company aims to create profitable growth and returns that are above-average by focusing on the premium segment of the automobile market internationally. 2. Approptiate Measures for Success 2.1 Revenue and Profit According to the BMW animal report (2011), the company sold 1_668.982 automobiles and the overall revenue for the compan y was e68.8 billion at the end of the 2011 financial year, with the net profit standing at 64_9 billion, Furthermore the report shows that the 2011 fiscal year was the best in the history of the company, with sales volumes, revenues and profits reaching, new highs and exceeding annual targets set by the BMW Group. This is reinforced when comparing current profits to those before the worldwide economic recession; net profit in 2007 was E3,14 billion, meaning 2011 showed a 51_7% increase in profit from that year. This is a clear indication of the recent success of the BMW Group on a financial basis, as the company is outperforming their set targets and seem able to sustain sales revenue and profit growth over time. Although the sales and profit figures discussed are obviously large in volume, to be appropriately measured as success, it is appropriate to compare these figures against competitors within the luxury car market. Tony Paterson (2011) indicates that BMW currently rates as the world's best-selling premium car-maker...
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...Omega journal homepage: www.elsevier.com/locate/omega Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard E. Grigoroudis n, E. Orfanoudaki, C. Zopounidis Technical University of Crete, Department of Production Engineering and Management University Campus, Kounoupidiana, 73100 Chania, Greece a r t i c l e i n f o Article history: Received 5 July 2010 Accepted 11 April 2011 Processed by Triantaphyllou Available online 20 April 2011 Keywords: Health service Multicriteria analysis Case study Performance measurement Balanced scorecard Business strategy a b s t r a c t The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the...
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...chapters respectively. Directors of Jessop ltd wants to know how a management accountant can contribute on Jessop’s continuous growth. I find on my study strategic management is very likely forward looking not like traditional cost accounting. Strategic management accounting is considering external factors like competitors and management accounting contributes not only strategy developing also critically evaluates the current strategy of any organisation. In addition, management accountant can assist to control costs by implementing activity based costing methods, offer competitive pricing, budgeting process etc. Also, by applying benchmarking process, management accountant can discover strengths and weakness of Jessop ltd and way to overcome these weaknesses and keep their steady growth by exploiting all strengths. In the second chapter of this study has described various types of relevant and irrelevant cost as well as tells which costs should management of Jessop be included on total cost calculation and why should not consider. Overall impacts of relevant and irrelevant costs (revenue) on decision making has depicted on that chapter in brief form. Focal point of final chapter is on how Jessop will be beneficiary by successful implementation of activity based costing (ABC) and various problems of execution of ABC which may offset all those benefits. Concluded in concise small or medium sized organisation should use ABC or not. Chapter one 1.0 Introduction ...
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...action, or a set of decisions creating a pattern or a common link. All the successful business enterprises today constantly take in new information about their markets, customers, and operating environments. Then, management uses that knowledge and data to shape new strategic directions, to reorganise how they respond to marketplace demands, and to ensure that their views regarding all aspects of the business are fresh and viable. Strategy is the direction and scope of an organisation over the long-term, which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholder expectations. What is the difference between Tactics and Strategy? Strategy differs from tactics. Tactics are schemes for specific manoeuvres, whereas strategy is the overall plan for deploying resources to establish a favourable position. An organisation’s strategy consists of the combination of competitive moves and business approaches that managers employ to please customers and achieve organisational objectives. Strategy is a plan or course of action denoting a pattern which evolves a direction for the organisation. It relates to pursuing those activities which move an organisation from its current position to a desired future state. It is concerned with the resources necessary for implementing a plan or following a particular course of action. It describes an organisation’s activities for the...
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...HUMAN RESOURCES MANAGEMENT 1. Explain the concept of human resources management and discuss the role of human resources management function in an organisation. According to Bratton and Gold (1999:11) Human resources management is described as the process that specialises in the management of people in work organisations. Human resources management emphasis that employees are critical in achieving sustainable competitive advantage, that human resources practices need to be integrated with the corporate strategy. Human resources specialist helps organisational controllers to meet both the efficiency and equity strategic objective. Human resources management seeks to achieve two sets of objectives which are to improve employee’s performance and enhance organisational efficiency. The major role of human resources management in an organisation is the hiring and firing of employees which involves attracting the best employees on the market, keeping them in their positions and ensuring that they perform according to the organisational expectation and enhance overall strategic goals of the organisation. Recruitment of employees is the major role performed by the human resources department. This ensures that the organisation selects the most skilful and competent people. This role involves evaluation of the ability and competence of potential employees in relation to the goal of the organisation. Human resources Management is an approach to management of people based...
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...Strategic management analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in internal and external environments It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. What Is the Difference between a Policy and a Strategy? Policy is the spheres or scope within which decisions are taken by the subordinates in a company or organisation. Strategy is an action that managers and directors take to achieve one or more of the company's goals. The difference between strategy and policy is that policy is a set of guiding rules intended to influence decisions and actions that reflect agreed practice in terms of power while strategy is a high level of approach to an issue that is designed to deliver change by implementing policies. The major difference between Policy and strategy is that Policy refers to a guide to the thinking and action of those who make decisions while strategy...
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...ATHE-Level-6 Diploma in Management Strategic Marketing Unit 6.5 Submitted to: London Churchill College Submitted by: Student ID: Date of Submission: Table of Contents: Introduction: 2 Task 1 3 1.1 Assessment on the role of strategic marketing in an organization: 3 1.2 Analysis on the relationship between corporate strategy and marketing strategy: 3 1.3 Analysis on how marketing strategy is developed: 5 Task 2 6 2.1 Evaluation on approaches to internal environmental analysis 6 2.2 Evaluate approaches to external environmental analysis: 7 2.3 The integration of Internal and external environment analyses: 8 Task 3 9 3.1 Analysis on decisions and choices to be made at a corporate level: 9 3.2 Assess how these decisions influence marketing at business unit and functional level: 10 3.3 Analyze approaches to competitive positioning of organization: 11 Task 4 12 4.1 Identify a range of strategies that can contribute to competitive advantage 12 4.2 Analyze marketing communications strategies 13 4.3 Analyze marketing strategies, their application and implementation for an organization 14 References: 15 Introduction: Marketing is one of the most critical and vital functional area. According P. Kotler & A. Chernes, (2012) Marketing is a managerial process for offering products and services for consumption in...
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...Chapter 1: business organisation Organisation: * Social arrangements: have structure which enables people to work together towards the common goals. Larger organisation have formal structure, small organisations divide up the responsibilities between the concerned people. * Controlled performance: have systems and procedures to ensure that goals are achieved. * Collective goals: school main goal is to educate pupils while company goal is to make profits. “Organisations are social arrangements for controlled performance of collective goals”. (Buchanan and Huczynski) Need of the organisation: Organisation enables people to: * Share skills and knowledge * Specialise and * Pool resources Types of organisation: A. PROFIT/NON-PROFIT a) Profit seeking organisation: Organisation like partnerships and company’s main objective is to maximise the wealth of their owners. The objective of wealth of maximisation is to: Continue its existence Maintain growth and development Make a profit. b) Not for profit organisation( NFP OR NPO): SEEK to satisfy particular needs of their members or the sector of the society. NFP include: Government departments and agencies Schools Hospitals Charities Clubs Specific category of NFP is a mutual organistion. Mutual organisation is voluntarily not-for-profit association formed for the purpose of raising funds by subscriptions of members. Mutual organisation includes: Building societies Trade unions ...
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...Introduction In today world, many organisations have established their divisional offices in several countries and most organisations are going into decentralisation structure whereby each divisional manager can make his/her own decision. A control system is required to improve and consolidate control in their operating, revenue and cost activities. Budgetary control is described as the process of planning, controlling, coordinating and motivation through money values and departments within an organization. (Ryan, 2007) Budgetary control is a major feature of management control system in most organisations. The use of budgetary control in performance management has become more significant especially as a more integrative control mechanism in most organisations (YÜCEL and GÜNLÜK, 2007). Thus, this essay will assess the claim on the effectiveness of the budgetary control as a more integrative control mechanism for the organisations and how non-financial performance tool can be used to complement the budgetary control to provide accurate reporting on the performance of the organisation. Organisational and Budgetary Control In an organisation, the goals and objectives may differ in within each department, division and individual. It is important that every individual has to change their behaviour towards achieving organisation’s objective. (Flamholtz, Daz and Tsui, 1985). The organisation’s primary objective is to earn profits. The management uses financial measurement...
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...Human Resource Management Introduction 200 Assessment 2 Black Coalition for AIDS Prevention Case Study Black Coalition for AIDS Prevention Black Coalition for AIDS prevention is a non-for profit organisation, which is also volunteer- driven and a community based organisation. Their vision is to promote awareness and prevention of HIV/AIDS in Toronto’s Black African and Caribbean Canadian communities through education, community outreach programs and by offering support to people living with and/or affected by HIV/AIDS (Toronto Community Foundation, 2011). This organisation has two missions, first is to reduce the spread of HIV infection within Toronto’s Black communities and second is to enhance the quality of life of people living with or affected by HIV/AIDS (Black Cap, 2014). “Because all black people’s lives are important” is their motto that guides them and stands as their reminder of the importance of their commitment to the community (Black Cap, 2014). This organisation was founded in 1989 and has worked to meet their missions in the black community in Toronto, Canada, which they give support and awareness to those who are affected with the disease. The purpose of this essay is to analyse the challenges that are present in the organisation especially on recruitment and on how they dealt with the strategic issues through HR planning. This essay will also give a set of recommendations on how to overcome the challenges and help improve the recruitment process with...
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