VMOS_SLIDES.pptx
- 2. STRATEGIES • Best means by which an organization can achieve its desired goals • Four types of strategizing: – Adaptive strategizing – Ideological strategizing – Creative strategizing – Rational, sequential, and analytical strategizing
- 3. Adaptive Strategizing • Assess opportunities as they come along, evaluate the risks of pursuing these opportunities, and make decisions according to set criteria • Examples: building blocks, locomotive train, hub and spokes, molecules, chess game, amoeba, niching
- 4. Ideological Strategizing • Basis for strategies are espoused set of beliefs, philosophies or ideologies • Examples: Christianity and Islam, Capitalist and Socialist, Republicans and Democrats, cause-oriented groups, NGOs
- 5. Creative Strategizing • Concerned about inventing new products and services, innovating on new technologies, and processes and discovering or uncovering new markets
- 6. Best Practices of Highly Creative Enterprises • How are the enterprises organized and structured? • How are creative people hired and nurtured? • What kinds of environment is needed to foster creativity and innovation? • What creative thinking tools or techniques are used? • What are the processes employed to generate, evaluate, and choose creative ideas? • How are the creative teams motivated and rewarded? • What kind of organizational culture do these organizations possess? • Who in the organization promotes and champions creativity?
- 7. Rational, Sequential and Analytical Strategizing • Follows step-by-step process using logical reasoning – Top down • starts from futuristic vision of the organization -> mission statement -> objectives -> key result areas -> performance indicators -> strategies -> objectives/action plans ->activities -> tasks – resources required – Bottom up • Realities of the external (O and T) and internal (S and W) environments • Matching OT with SW SWOT analysis allows development of strategic options
- 8. SOURCE: MORATO, E.(2006), Strategic Planning and TOP DOWN & BOTTOM UP PLANNING
- 9. Vision • Futuristic picture of the enterprise, described in words or a vision statement • Timebound, ambitious but realistic, and with geographical and target market (customer and product) focus
- 10. Mission/Goals • Proclaims the basic purpose for the existence of the organization • Specifies product or service to be rendered, defines the market. • For whose benefit is it being established? • Two main stakeholders are the owners and the employees whose desire for better lives must be satisfied
- 11. Objectives • Measurable end results, usually center around major ends: – Increasing profits – Expanding markets – Satisfying customers with quality products and services – Providing reasonable compensation and benefits to employees
- 12. Key Result Areas (KRAs) • Attainment of objectives or measurable end results can be manifested and measured by KRAs • KRAs are qualitative manifestations or proofs that the objectives are being achieved
- 13. Performance Indicators (PIs) • KRAs must be converted into numerical performance indicators • PIs are exact quantifications of the KRAs • PIs or outcomes fall into any of the six R’s – Reach – Recognition – Ratings – Revenues – Returns – Responsiveness
- 14. Strategies • In how many ways can the performance indicators be attained? – ALTERNATIVE STRATEGIC OPTIONS SHOULD BE SUBSTANTIALLY DIFFERENT FROM ANOTHER (MUTUALLY EXCLUSIVE) – MAJOR MOVE OR SIGNIFICANT CHANGE IN THE OVERALL DIRECTION OF THE ORGANIZATION
- 15. Types of Strategies • Generic Strategies – Cost leadership – Differentiation – Focus-Cost Leadership – Focus-Differentiation • Functional Area Strategies – Marketing Strategies – Operations/Production Strategies – Financial Strategies – Information Systems Strategies – Human Resource Strategies
- 16. Functional Strategies • Marketing strategies – Segmentation strategies – Target market selection strategies – Differentiation strategies – Marketing Mix strategies
- 17. Functional Strategies • Operations Methods – Production process strategies – Capacity strategies – Location strategies – Work Design strategies – Layout strategies
- 18. Functional Strategies • Financial and Accounting Strategies – Evaluating financial performance – Financial forecasting, planning and budgeting – Financing mix
- 19. Functional Strategies • Information System Strategies – Manual – Computer Based • Types of Information Systems for Entrepreneurial Ventures – Transaction Processing System (TPS) – Office Automation System (OAS) – Management Information System (MIS) – Decision Support System (DSS) – Executive Support System (ESS)
- 20. Activities • Undertakings of groups within an organization to accomplish the programs assigned to different group – Specify what the various groups must do to accomplish the program – Include all important actionable work plans that must be achieved
- 21. Tasks • What individuals in the organizations do to ensure that the activities are done. • An activity is a set of tasks – details of what must be executed within a specific time frame
- 22. Resources • Tasks demand certain amounts of resources • Resources are the inputs required to deliver tasks, activities, programs and strategies • Resources can be stated in terms of 3 P’s of People, Pesos and Physical Assets • Alternatively, resources can be in terms of the six M’s of input: money, manpower, machinery and equipment, materials, methods and management