Learning Unit 2 The Micro Environment. Outcomes Describe vision statement Characteristics of a...
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- Learning Unit 2 The Micro Environment
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- Outcomes Describe vision statement Characteristics of a vision
statement Vision translated to mission statement Describe mission
statement Core components of the mission statement Additional
components of the mission statement Explain organisational values
Construct a Balanced Scorecard Explain: Growth, decline and
corporate combinations
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- StrengthsWeaknesses Internal Environment
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- Managers control the internal environment Vision Mission Values
Goals Strategies Managers control the internal environment Vision
Mission Values Goals Strategies Align with the market and macro
environment Survive over the long run! Align with the market and
macro environment Survive over the long run!
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- Business Environment InternalMicroExternalMarketMacro
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- Internal environment Organisation resources Vision and Mission
Organisational Values Strategic Objectives Strategies
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- Organisational Resources
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- The Vision Statement Dream of the perfect future Mental picture
Criteria: Depict the perfect future Attainable Inspiring Buy-in of
managers and workers Acceptable for stakeholders
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- Mission Statement Additional Components Additional Components
Core Components Core Components Questions
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- The Mission Statement Answer the following questions: What
should we provide? Who is our market? How will we get the products
to the market? Which resources? When is the best time to do it?
Dream Reality
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- The Mission Statement: Core Components
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- The Mission Statement ADDITIONAL components workers will know
what top managements intent is: Profitability, growth and survival
Productivity Stakeholders Philosophy of the organisation Public
image Clients Safety, health and environment
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- The Nandos Mission Statement Our mission at Nandos is to always
deliver the Nandos experience to our customers. The Nandos
Experience We will take you on a journey, your own voyage of
discovery. You will come to discover how special it is to belong to
the Nandos family. You will experience our traditional hospitality,
warmth and fun. Your senses will be fired with the unique products
and tastes of Portugal, all prepared with pride and passion, and
here, you will be touched by the magic that is the Nandos Way.
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- We, as passionate committed retailers, understand and lead our
customers through excellence and a deep knowledge of our products
and services and the world we live in. We live the Woolworths
difference through our values: quality and style deliver the best
value a simple and fair deal service think customer innovation
discover the difference integrity do what you say you will do
energy be passionate and deliver sustainability build for a better
future
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- Organisational Values Often referred to in mission statement.
Core components Additional components Statement of values = Company
Creed = Company Philosophy = State acceptable behaviour and what is
not.
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- Type of values Personal Organisational Motivational
Societal
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- Personal Values Employees with own set of values. Personal
values not in conflict with organisation values. Personal values
from cultural background.
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- Societal Values Direct society business operate in Take into
consideration..
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- Foundational values Organisation built on these values. Guide
behaviour of everyone on every level. Values could be: Integrity
Respect Accountability Fairness Caring
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- Motivational Values Give organisation unique personality. State
expected behaviour. Behaviour Goals achieved. Examples: Make it
happen High Productivity Do it together Teamwork Lets do it Taking
action Do it better every time Continuous improvement
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- Organisational Values Different interpretations What is
integrity? Values linked to specific behaviour
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- The Balanced Scorecard Mission statements gives direction. Not
specific or measureable! Mission clarity Translate Measurable
Organisational goals BALANCED SCORECARD!
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- The Balanced Scorecard BSC Mission statement Measureable goals
Financial and non-financial dimension
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- DepartmentAreas FinanceReturn On Investment Cash Flow Return on
Capital Employed Financial Results (Quarterly/Yearly) Internal
Business Processes Number of activities per function Duplicate
activities across functions Process alignment (is the right process
in the right department?) Process bottlenecks Process automation
Learning & GrowthIs there the correct level of expertise for
the job? Employee turnover Job satisfaction Training/Learning
opportunities CustomerDelivery performance to customer Quality
performance for customer Customer satisfaction rate Customer
percentage of market Customer retention rate Balanced Scorecard:
Factors examples
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- The Balanced Scorecard
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- Strategies Organisations compete Attain strategic objective.
Strategy: Game plan Outwit competitors Attain goals Same industry
Often same goals But different approach! Pep vs. Woolworths
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- Strategies: 3 Possible Game plans Low-cost leadership strategy
All decisions focus on cost Differentiation strategy Cant compete
on low cost Distinguish yourself from the competitor Woolworths:
Quality of products Focus strategy Limited resources Small segment
of market Thus, game plan on specific market Focus Then low-cost or
differentiation strategy
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- Strategies Each strategy Risk Low-cost leadership strategy =
Imitations Differentiation strategy = Not able to differentiate
Focus strategy = Choose to small market segment Choose a strategy
Be more SPECIFIC on competing in industry Grand Strategy
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- Grand Strategies GrowthDecline Corporate Combinations
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- Grand Strategies: Growth Strategy Game plan for the
organisation to grow. Introduce new products to existing customers
Enter a new market Create a new, innovative product for existing
market Take over supplier of raw materials Risk Low Sound knowledge
of: Product Market How to serve the market
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- Grand Strategy: Decline Strategy Organisation unable to grow
Many new competitors enter the market Solution: Cut costs Medium
risk
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- Grand Strategy: Corporation Combination Strategy Strategic
alliances High risk Companies work together People problems
Managers fighting for turf Different systems