The Mckinsey’s 7S Framework suggests that there is a multiplicity of factors that influence an organization’s ability to change and its proper mode of change. Because of the interconnections of the variables, it would be difficult to make significant progress in one area without making progress in the others as well. There is no starting point or implied hierarchy in the shape of the diagram, and it is not obvious which of the seven factors would be the driving force in changing a particular organization at a certain point of time. The critical variables would be different across organizations and in the same organizations at different points of time. History of Mckinsey’s 7S Framework The 7S Framework was first mentioned in “The Art Of Japanese Management” by Richard Pascale and Anthony Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same time 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.
How to Develop a Mission Statement
The most common initial act in establishing organizational direction is an organizational mission. The statement that describes the mission talks about the target market and also talks about its strategy to be profitable by providing good customer service through friendly and knowledgeable people. It is essential to look into external influences like labor, conditions, competitors, government rules while considering mission statement. Company’s mission statement should define stakeholders expected return along with the measurement of the performance of the company through those returns. The expected profit too should be included in the organization’s mission. Moreover, the company should come to consensus as to what all areas should be measured like margin growth, efficiency, competitive cost position, product quality, market share etc. A mission statement sets the boundaries for how resources should be allocated and what strategic and operational goals should be set. The mission statement should acknowledge the company’s strength and Continue reading
Different Types of Mergers
In perspective of merger and acquisition there are different types of mergers that host a difference between each one it. Each merger derived with specific reasons depending on the fitting characteristics in cross boarder operation. Each type of merger will be discussed in detail to know the differences and their characteristics. 1. Horizontal Merger It is a merger of two or more companies that compete in the same industry. It is a merger with a direct competitor and hence expands as the firm’s operations in the same industry. Horizontal mergers are designed to produce substantial economies of scale and result in decrease in the number of competitors in the industry. The merger of Tata Oil Mills Ltd. with the Hindustan lever Ltd. was a horizontal merger. In case of horizontal merger, the top management of the company being meted is generally, replaced, by the management of the transferee company. One Continue reading
Ten Schools of Strategy
Strategy is considered as one of the interesting and engaging subject to discuss in business management schools. The strategy can be described or can be explained as a detail and systematic plan of particular action that has to be performed when it is required or when a requirement is envisaged. Different types of strategic problems form part of the strategic management process. Is it necessary for the companies or the organizations to focus more on the market share or focus on the revenue capital of the company or the organization? What are the plans and the processes required and necessary for the organization to focus on as to reach its goal and to reach the market shares? The great authors of Strategy Safari like Henry Mintzberg, Bruce Ahlstrand, and Joseph Lampel have explained strategies in their own words with their experiences. The strategy is explained in different approaches which includes Continue reading
Technology Adoption Life Cycle
Geoffrey Moore, An American organizational theorist, management consultant and author, in his books Crossing the Chasm (1991) and Inside the Tornado (1995), draws on marketing theory and high-tech experience to describe the elements of the product life cycle for technology innovations. His work examines how communities respond to discontinuous innovations – or any new products or services that require the end user in the marketplace to dramatically change their past behavior. He describes how companies must position their products differently through the cycle to reach their full sales potential and become an industry standard instead of a novelty. Many new technologies start along a classic new product diffusion curve, but fail soon thereafter. Through the various phases of the technology adoption life cycle, very different strategies for product and service offering and positioning are called for. The basis of the technology adoption life cycle is similar to the Continue reading
Merger Approaches
Irrespective of the type of merger, there are at least two firms involved. One, the buying company that acquires the other company, and survives after merger. This firm is known as an acquiring firm or transferee company. The other is the company, which is merged and loses its identity in the process. This is called the acquired company, or transferor company or the target firm. There are various modes in which the acquiring firm can attempt a merger move and therefore, merger can also be classified on the basis of initiative style or the procedure adopted by the acquiring firm. The most important merger approaches are as follows: 1. Negotiated Merger It is also called friendly merger. In this case, the management/owners of both the firms sit together and negotiate for merger. The acquiring firm negotiates directly with the management of the target firm. So, the willingness of the management Continue reading