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Leadership & Management |
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IS 1005 - INTRODUCTION TO MANAGEMENT
Supplementary Lecture
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
WHY DO WE HAVE AN ORGANIZATION (NOT FOR PROFIT /FOR PROFIT) ?
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
MISSION & OBJECTIVES
Mission & objectives – Purpose of the company? Profit making org – To make your money
grow (increase profits for share holders/investors)
Not for profit - Social welfare (to provide a service to society)
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
MISSION & OBJECTIVES
Whether profit making or not for profit, it is necessary to clarify the purpose the organization exists (reason why it is there).
Mission - shows the purpose of the organization
Objectives are derived from the mission (things you need to achieve in reaching your purpose)
Vision – an ideal state/status the company wishes to achieve at a particular date.
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
SOME EXAMPLES OF MISSIONS AND VISIONS (PROFIT MAKING OR NOT FOR PROFIT)
Missions Ford- “To be relevant and profitable for the future” World Wildlife Fund - “to conserve nature and
reduce the most pressing threats to the diversity of life on Earth.”
Vision Ford- “To become the world's leading consumer
company for automotive products and services” World Wildlife Fund - “to build a future where
people live in harmony with nature.”
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
STRATEGY
Strategy – “A course of action undertaken to meet a specific objective” It is the plan the company follows in order to perform
its mission. A company may look at several plans, evaluate them,
and decide on one. To make plans and decide the plan to implement,
a company needs to evaluate the Industry External situation Internal situation
For this purpose, some tools can be used
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
ASSES INTERNAL AND EXTERNAL SITUATION
Some tools that maybe used for this assessment Industry analysis - Five Force Model
(M.Porter)
External Env. Analysis - PESTEL Model
Internal situ. Analysis - SWOT Analysis
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
FIVE FORCE THEORY - (INDUSTRY ANALYSIS)
What is its purpose? Before entering any industry, the company can
evaluate the industry/industries they plan to enter before deciding whether to enter.
A theory to analyze the industry Is it profitable? Worth putting you money? Risky (Risk - possibility of failure)? Easy to survive in industry? What if the investment fails?
An existing company can also asses the env. to identify forces that act on industry to develop strategy
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
FIVE FORCE THEORY - (INDUSTRY ANALYSIS)
Intensity of competitive rivalry Bargaining power of suppliers
(labour/material) Bargaining power of customers (buyers) Threat of substitute products or services Threat of new entrants
Refer note uploaded in group for explanation in detail
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
PESTEL - (EXTERNAL ENV. ANALYSIS)
A PESTEL analysis is an acronym for internal and external environmental factors that include issues from the (P)olitical, (E)conomic, (S)ocial, (T)echnical, (E)nvironment and (L)egislative areas of business.
Companies typically create a framework for their organization that allows them to review factors from each group and how they impact the business, whether positively or negatively.
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
PESTEL - (EXTERNAL ENV. ANALYSIS)
P - Political E - Economic S - Social T - Technological E - Ecological L - Legal
Please refer note uploaded in group for explanation in detail
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
INTERNAL APPRAISAL – SWOT ANALYSIS S - Strengths W - Weaknesses O - Opportunities T - Threats
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
SWOT (INTERNAL APPRAISAL)
Internal factors Strengths - are strong points the company has that gives it
an advantage over others; it can emphasize on strengths when developing strategy. Strengths help the company reach its objectives.
Weaknesses - are weak points of the organization that limit the ability of the company to reach its objective. The company should try to mitigate weaknesses and its strategy should facilitate (help) it.
External Factors Opportunities - are elements that the project could exploit to
its advantage. It can be utilized to help the company to reach its objectives.
Threats - elements in the environment that could cause trouble for the business or project
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
INTERNAL FACTORS THAT AFFECT THE COMPANY - MCKINSAY 7S
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
INTERNAL FACTORS THAT AFFECT THE COMPANY - MCKINSAY 7S
Strategy – The organization’s alignment of resources and capabilities to “win” in its market.
Structure – Describes how the organization is organized. This includes roles, responsibilities and accountability relationships.
Systems – The business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals.
Shared Values – A set of traits, behaviors, and characteristics that the organization believes in. This would include the organization’s mission and vision.
Style – The behavioral elements the organizational leadership uses and culture of interaction.
Staff – The employee base, staffing plans and talent management. Skills – The ability to do the organization’s work. It reflects in the
performance of the organization.
Saturday, April 8, 2023IS 1005 - Supplementary Lecture
Thank You….!