1

Grammar Who – People That –ThingsThey’re – TheirSubject-Verb Disagreement (those kind, profits has)Preposition at end of sentence: (several possible examples)He lead his people well.Sentence fragments.Careless errors (punctuation, capitalizing in middle of sentence, apostrophes, commas (too many or too few)Overly-long paragraphs

MGT 4153Dr. Jimmy Richardson

Strategy & Effectiveness

Long

Role in Strategic Direction

3

Organizational goal is a desired state of affairs that the organization attempts to reach. Top executives decide organizational goals. Q1: A company’s strategic intent or direction reflects managers’ systematic analysis of organizational and environmental factors. Agree or Disagree? Organizational design is the administration and execution of the strategic plan.

Long

Strategic Intent

4

Means that all the organization’s energies and resources are directed toward a focused, unifying and compelling overall goal. Three aspects related to strategic intent are the mission, core competencies and competitive advantage.Mission – reason for existence.Mission statement communicates to current and prospective employees customers, investors, suppliers and competitors what the organization stands for and is trying to achieve.

Long 5

"The Coca-Cola Promise: The Coca-Cola Company exists to benefit and refresh everyone it touches. The basic proposition of our business is simple, solid, and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business."

Long 6

Our Mission StatementThe mission of Southwest Airlines is dedicationto the highest quality of Customer Servicedelivered with a sense of warmth, friendliness,individual pride, and Company Spirit.

Long 7

Question 2: The best business strategy is to make products and services as distinctive as possible to gain an edge in the marketplace. (Agree or Disagree)

Long 8

Core Competence or Competencies

Something the organization does especially well in comparison to its competitors. (Ex: superior R&D, tech skills, exceptional customer service)

Long 9

Competitive Advantage

What sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace. (Walgreens)

Operative Goals represent the primary tasks of the organization where official or overall goals describe more of a value system.

Long 10

Framework for Selecting Strategy and Design

A strategy is a plan for interacting with the competitive environment to achieve organizational goals. Goals are where the organization wants to go and strategies define how it plans to get there.

Two models for formulating competitive strategies are the Porter model and Miles and Snow’s strategy typology.

Long

Porter’s Competitive Strategies(page 60-63)

11

Low-Cost Leadership: Concentrates internally on cost reduction and efficiency

Differentiation: Concentrates externally on quality and customer perceptions

Focus: Concentrates cost or differentiation by geographic or buyer group

Miles & Snow’s Strategy Typology

12

Prospector: Innovation, risks, new opportunities, and growth (Nike, Facebook, Google, MySpace)

Defender: Risk avoidance, stability/retrenchment, efficiency, and control (Paramount)

Analyzer: Core stability, peripheral innovation, diverse approach depending on product (Midway between Prospector and Defender – [Amazon.com])

Reactor: No mission, goals, strategy (No strategy at all!) (Dell)

(Porter’s Competitive Strategies & Miles and Snow’s Strategy Typology compared on page 65)

Long 13

Question 3: The best measures of business

performance are financial. (Agree or Disagree)

(page 76)

Contingency Approaches to the Measurement of Organizational Effectiveness

14

Organization

Internalactivities

andprocesses

ResourceInputs

Product andServiceOutputs

Resource-based

approach

Internalprocessapproa

ch

Goalapproa

ch

External Environment

Four Models of Effectiveness Values

Long 15

Human Relations Emphasis

Primary Goal: human resource developmentSubgoals: cohesion, morale, training

Internal Process Emphasis

Primary Goal: stability, equilibrium

Subgoals: information management, communication

Rational Goal Emphasis

Primary Goal: productivity, efficiency, profit Subgoals: planning, goal setting

Open Systems Emphasis

Primary Goal: growth, resource acquisitionSubgoals: flexibility, readiness, external evaluation

Flexibility

Control

Internal External

STRUCTURE

FOCUS