affects power structure

reseacrh & development

1. get the big picture right
production, marketing functional
Strategic planning works 2. Direct resource accordingly
Finance, accounting
3. remember Sir William Burrell & steamships
Easier to measure profitability than functional
Divisional
be aware al all time competitve position
Principal / Agent problem
matrix unit cost
lack of direction & control & focus organisational structure
Resources & structure integrate models competitive reactions
scale & scope market share
transaction cost
balance of trade-offs between integrate process modell - analytic
agency cost ideas/models - structure - competitiveness
information flows assessed
applying strategic models & ideas Id areas where company is particularly strong / weak
objectives
id areas which have contributed to success or failure
competitive environment method of resource allocation relevant for
Module 8 Analysing the ongoing
strategy competitive market
competitive position external
scan general environment for changes
analysis & diagnosis cost structure
internal
more than investing, retooling & hiring
survey feedbacks responsive to change
management of change
team building but also change what people do pursued as originally intended?
confrontation & transactional analysis Choice still appropriate?
A structured approach coupled
sequential network of events to ID "critical path" align chosen strategy with subsequent events
with id of relevant models is the
events which must occure key to strategic insight - THE company structure & resource allocation
Critical success factors MOST IMPORTANT LESSON alignment
things which must be done implementation & feedback felxible enough ?
must understand avaiable resources &
reaction of change to change
attitude to change
hierarchical
company approach to leadership willingness to listen to information
democratic 1. Company adaptability
admit mistakes & be proactive
management skilss - match requirements management style
for strategic change part of culture - cannot change quick
GAP analysis of management skills - Feedback
upward and downward
planned and current org. requirements Implentation plans 2. Company communications
what is the most appropriate structure
no budget constrains exist
able to learn from past experience?
market disagree with company projections 3. Company learning
re-invent the whole each time
poor track record
unwilling to reveal strategy - comp situation unable to raise money
select a few appropriate objectives
strategy difficult to define 1. decide what to be measured
Corporate derive suitable targets
budget constraint likely
benchmark
Id profitable budget allocations Budgets Identify suitable milestones
resource allocation 2. decide how to measure early warning
4 steps
across the board budget limit
Finance techniques
short term only capital rationing subjective evaluation
cut training, research & maintenance 3. Interpret outcome
Not share holder wealth!
4. convert into policies
few guidelines
distribute investment to different functions
efficient use? SBU achieve planned sales
adjust plan
monitoring market performance
reward for adding value ivestigate different scenarios based on
additional market information
barrier if not aligned Incentives
Evaluation & control depend on how cost is calculated
use incentives to implement change
profit
depend on how overhead is included
Is MR > MC ?
Is add expected net revenue > add how effective input is converted to output
expected cost ? sale from inventory
marginal analysis
economies of scale net contribution not necessary a good indicator vary over PLC
lower unit cost how much can be sold
experience effects higher sales
setting sales targets BCG for variations by products
monitoring profitability
matrix approach - powerful tool
Scenarios
sensitivity analysis all outflows & inflows
opportunity cost
aggregate view of profitability ultimate constraint on operations is
target market share
available cash
cash flow
efficient use of resources Not short- term profit
prod & marketing undependable measure of profitability
effective communication between departments resource planning

JIT reduce inventory cost

mod 8.mmap - 30/11/2011 - - - prepared by Carl Olav Staff / Rune Fjellvang

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