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Management Control System-2: J.K.Oke
Management Control System-2: J.K.Oke
CONTROL SYSTEM-2
J.K.OKE
MANAGEMENT CONTROL
21ST CENTURY BUSINESS
CHALLENGES
LPG / WTO
SURVIVING IN A LIBERALISED
ENVIRONMENT
RESEARCH & DEVELOPMENT
TECHNOLOGY UPGRADATION
MANAGEMENT CONTROL
21ST CENTURY BUSINESS CHALLENGES
SYSTEMS IMPROVEMENT
PRODUCT / SERVICE INNOVATION
CUSTOMER SATISFACTION /
DELIGHT / LUV
ORGANISATIONAL STRUCTURE /
CHANGES
PROFESSIONALISATION
MANAGEMENT CONTROL
21ST CENTURY BUSINESS CHALLENGES
LEARNING ORGANISATIONS
( LEARNING – DE-LEARNING /
RE-LEARNING)
CHANGE MANAGEMENT
MIND-SET CHANGE ( COMMITMENT /
GRIT / WINNING/ OUTWARD ATTITUDE)
COMPETITIVE
(COST / PRICE / QUALITY /
TECHNOLOGY/INNOVATION)
WHY STRATEGY?
TO ACHIEVE THESE GOALS &
TO MAKE AN ORGANISATION
GAIN, RETAIN & SUSTAIN
COMPETITIVE ADVANTAGE
IN TODAY’S
COMPETITIVE BATTLEFIELD
THERE IS A NEED FOR STRATEGY
WHAT IS STRATEGY
PUTTING IT
BRIEFLY &
SUCCINCTLY,
STRATEGY CAN
BE VIEWED AS:
‘WHAT AN
ORGANISATION
IS TODAY &
WHAT IT OUGHT
TO BE
TOMORROW’
WHAT IS STRATEGY
STRATEGY IS A
UNIFIED,
COMPREHENSIVE,
INTEGRATED &
INTERPRETATIVE
PLAN
THAT RELATES THE
STRATEGIC
ADVANTAGE OF
THE ENTERPRISE
TO THE
CHALLENGE OF
ENVIRONMENT
WHAT IS STRATEGY
IT IS THE
DETERMINATION
OF THE BASIC
LONG TERM
GOALS &
OBJECTIVES IN
AN ENTERPRISE
& ADOPTION
OF THE
COURSES OF
ACTION,&,..
WHAT IS STRATEGY
…..THE
ALLOCATION
OF RESOURCES
NECESSARY
FOR
CARRYING
OUT THESE
GOALS
(CHANDLER)
STRATEGY:DEFINITIONS
STRATEGY IS THE LONG TERM
DIRECTIONS & SCOPE OF THE
ORGANISATION THAT AIMS AT
GAINING A COMPETITIVE ADVANTAGE
FOR THE ORGANISATION IN THE
COMPETITIVE SETTING
IN THE LIGHT OF THE
ORGANISATION’S
RESOURCES & CONSTRAINTS
IN ORDER TO GENERATE CUSTOMER
DELIGHT & TO MEET & EXCEED
STAKE-HOLDER NEEDS
STRATEGY:CHARACTERISTICS
INTERNAL CONSISTENCY,
EXTERNAL FIT,
RESOURCE FIT,
STRETCH,(EXERCISE ?)
EFFECTIVE COMMUNICATION, &
IMPLEMENTATION
DEVELOPING STRATEGY
STRATEGY IS
“WHAT AN ORGANISATION IS
TODAY, AND WHAT IT OUGHT TO
BE TOMORROW”
STRATEGY IS ALSO ABOUT
DECIDING:
WHERE TO COMPETE
HOW TO COMPETE
DEVELOPING STRATEGY
WHERE TO COMPETE:
CUSTOMER SEGMENT
PRODUCT SEGMENT
CHANNEL SEGMENT
VERTICAL INTEGRATION
DEVELOPING STRATEGY
HOW TO COMPETE
VALUE PROPOSITION
COMPETITIVE ADVANTAGE
PARTNER RELATIONSHIPS
RELATIONSHIPS WITH OTHER
STAKEHOLDERS
STEPS IN
STRATEGY DEVELOPMENT
STEP 1. VISIT THE COMPANY
PURPOSE:VISION / MISSION
STEP 2. ASSESS THE DEMAND
STEP 3. UNDERSTAND THE
COMPETITION
STEP 4. UNDERSTANDING THE
OPERATING ENVIRONMENT
STEP 5. SUMMARISE THE CURRENT /
LIKELY INDUSTRY /
SEGMENT SCENARIO
STEPS IN
STRATEGY DEVELOPMENT
STEP 6. IDENTIFY THE CSF & THEIR
MEASURES
STEP 7. DETERMINE THE COMPANY’S
ABILITY TO COMPETE
w.r.t. THE CSF
STEP 8. DEVELOP STRATEGIC OPTIONS
STEP 9. DEVELOP CHOSEN STRATEGY
STEP 10. DEVELOP KEY INITIATIVES &
SHORT / LONG TERM TARGETS OF
PERFORMANCE, WITH APPROPRIATE
COMPARISONS
PLANNING & CONTROL
RELATIONSHIPS
ILLUSTRATIVE DECISIONS IN
PLANNING/CONTROL FUNCTIONS
STRATEGY MANAGEMENT TASK CONTROL
FORMULATION CONTROL
ACQUIRE AN INTRODUCE NEW CO-ORDINATE
UNRELATED PRODUCT OR ORDER ENTRY
BUSINESS BRAND WITHIN
PRODUCT LINE
ENTER A NEW EXPAND PLANT / SCHEDULE
BUSINESS CAPACITY PRODUCTION
ADD DIRECT MAIL DETERMINE BOOK MEDIA
SELLING ADVERTISEMENT SPACE/SLOT
BUDGET
ILLUSTRATIVE DECISIONS IN
PLANNING/CONTROL FUNCTIONS
STRATEGY MANAGEMENT TASK CONTROL
FORMULATION CONTROL
CHANGE ISSUE NEW DEBT MANAGE CASH
DEBT/EQUITY FLOWS
RATIO
DEVISE DECIDE IDENTIFY / LIST
COMPETITIVE INVENTORY VENDORS &
INVENTORY LEVELS REORDER AN ITEM
POLICY
WHY MANAGEMENT CONTROL?
THERE IS NEED FOR
CONTROL
MANAGEMENT
CONTROL IN
PARTICULAR
IN VIEW OF:
EXECUTE OR BE
EXECUTED,
DELIVER OR BE
DELIVERED,
PERFORM OR PERISH.
WHY CONTROL?
CONTROL PERVADES
& PERMEATES THE
WHOLE SYSYEMS
CONCEPT
IN FACT,
SYSTEMS ARE PUT
IN TOGETHER,
DIRECTLY OR
INDIRECTLY, TO
ENSURE CONTROL
WHAT IS CONTROL?
WHAT IS CONTROL?
IS IT ONLY TO
FIND FAULT?
IS IT A TOOL TO
BE USED ONLY TO
FIX A PERSON?
IS IT A VEHICLE TO
TAKE AWAY
FREEDOM /
POWERS FROM
SUB-ORDINATES?
WHAT IS CONTROL?
CONTROL IS
BASICALLY A
POSITIVE TOOL
WHAT IS CONTROL?
CONTROL IMPLIES
MEASUREMENT OF
ACCOMPLISHMENT
AGAINST
STANDARDS &
CORRECTIONS OF
DEVIATIONS, IF
ANY, TO ENSURE
PLAN ATTAINMENT
WHAT IS CONTROL?
CONTROL,
THEREFORE,
MEANS
BRINGING OR
MAINTAINING:
PERFORMANCE
OF GROUP OR
INDIVIDUAL……
WHAT IS CONTROL?
……
CHARACTERISTICS
OF GROUP OR
INDIVIDUAL
OR VALUE OF A
VARIABLE,
WITHIN
PRESCRIBED
LIMITS.
WHAT IS CONTROL?
CONTROL, THEREFORE, MEANS:
SETTING STANDARDS OF
PERFORMANCE,
MEASURING PERFORMANCE
AGAINST STANDARDS,
TAKING COURSE-CORRECTIVE
ACTIONS TO REDUCE DEVIATION
FROM STANDARDS
FEATURE STRATEGIC MGT. OPS.
PLANNING CONTROL CONTROL