Stakeholders can be primary or secondary. Primary stakeholder groups comprise of employees, customers, investors, suppliers, government, and community with whom the corporation may have a formal, official or anybody who has claimed on the firm’s even though it is not significant. They consist of both internal and external stakeholder groups. Internal stakeholders comprise of employees and investors which are shareholder or bondholder, external stakeholders are the customers, communities, suppliers, government, and the environment which claimed on the firm’s if any damage occurs. Secondary stakeholders are media and special interest groups towards a firm where they didn’t have any contact with the firm, they just act like a spectators. Stakeholder theory has a number of strengths and weaknesses in its capacity to address issues of low-wage work. Classifying a group as a stakeholder has moral import and significant outcomes which means that the classifying the stakeholder can ensure that their problems Continue reading
Strategic Management
Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It involves the systematic identification of specifying the firm’s objectives, nurturing policies and strategies to achieve these objectives, and acquiring and making available these resources to implement the policies and strategies to achieve the firm’s objectives. Strategic management, therefore, integrates the activities of the various functional sectors of a business, such as marketing, sales, production etc. , to achieve organizational goals. It is generally the highest level of managerial activity, usually initiate by the board of directors and executed by the firm’s Chief Executive Officer (CEO) and executive team.
The Strategic Position and Action Evaluation Matrix (SPACE)
Strategic Position and Action Evaluation Matrix (SPACE) is “an approach to hammer out an appropriate strategic posture for a firm and its individual business.” SPACE is an analysis of the following four dimensions in as in a two-dimensional portfolio analysis and involves a consideration of: Company’s competitive advantage Company’s financial strength Industry strength Environmental stability Various factors are evaluated for determining each of the dimensions and they are summarized below: Dimensions Factors Evaluated Company’s competitive advantage Market Share Product Quality Product life cycle Product Replacement cycle Customer Loyalty Competitor’s Capacity Utilization Technological knowhow Vertical integration Company’s Financial Strength Return on investment Leverage liquidity Capital Required/Available Cash Flow Ease of exit from market Risk involved in business Industry Strength Growth potential Profit potential Financial Stability Technological know how Resource utilization Capital intensity Ease of entry into market Productivity Capacity Utilization Environmental Stability Technological charges Rate if inflation Demand variability Prices of Continue reading
Basic Concepts of Organizational Change
The change means the alteration of status quo or making things different. It may refer to any alteration which occurs in the overall work environment of an organization. When an organizational system is disturbed by some internal or external force, the change may occur. The change is modification of the structure or process of a system, that may be good or even bad. It disturbs the existing equilibrium or status quo in an organization. The change in any part of the organization may affect the whole of the organization, or various other parts of organization in varying degrees of speed and significance. It may affect people, structure, technology, and other elements of an organization. It may be reactive or proactive in nature. When change takes place due to external forces, it is called reactive change. However, proactive change is initiated by the management on its own to enhance the organizational Continue reading
Strategy Implementation
Business Strategy can be described as the plan which guides organizations in the selection and application of resources that will help them obtain a competitive advantage. It is more concerned with how a business competes in a particular market. It consists of strategic decisions about the choice of products, meeting the needs of customers, exploiting/creating opportunities, etc. In simple terms, it can be defined as a plan that says where a business/organization wants to go and how it envisages getting there. Often the difference between the market leaders and other players in the industry is the ability to execute strategy. Effective strategy implementation involves getting people’s buy in, choosing the right metrics and tracking performance on an ongoing basis. Much of strategy implementation involves managing change. So the behavioral issues involved, must not be overlooked. Effective strategy implementation allows the company to be more successful in pursuing a cost leader Continue reading
Importance of Change in an Organization
One can try to predict the future. However, predictions produce at best a blurred picture of what might be, not a blueprint of future events or circumstances. The effective and progressive management of change can assist in shaping a future which may better serve the enterprise’s survival prospects. Change will not disappear or dissipate. Technology, civilizations and creative thought will maintain their ever accelerating drive on-wards. Managers, and the enterprises they serve, be they public or private, service or manufacturing, will continue to be judged upon their ability to effectively and efficiently manage change. Unfortunately for the managers of the early twenty-first century, their ability to handle complex change situations will be judged over ever decreasing time scales. The pace of change has increased dramatically; mankind wandered the planet on foot for centuries before the invention of the wheel and its subsequent “technological convergence” with the ox and horse. In Continue reading
The Innovation Ambition Matrix
An interesting evolution of the Ansoff matrix, the Innovation Ambition Matrix, coined in an article from Harvard Business Review by two recognized consultants, Bansi Magji and Geoff Tuff, entitled ‘Managing Your Innovation Portfolio’. Innovation Ambition Matrix is a simple six-cell model with the vertical axis concerned with where an organisation is competing (ranging from serving existing markets/customers at the bottom, entering adjacent markets in the middle, and creating new markets at the top end of the axis) and the horizontal axis referring to type of products/assets used (using existing products, adding incremental products, and developing new products/assets). The axes of the matrix are labeled as follows: “How to Win.” This is designated for the novelty of the product that you are offering to customers. Are you using existing, adding incremental, or developing new products? “Where to Play.” This measures the novelty of your customers. Will the innovation serve an existing, Continue reading