Review Chapter 9 : Organizational Agility

REVIEW CHAPTER 9

~ORGANIZATIONAL AGILITY~

A. The Responsive Organization
Mechanistic organization  A form of organization that seeks to maximize internal efficiency.
Organic Structure An organizational form that emphasize flexibility.

B. Strategy and Organizational Agility

• Strategic Alliances is a formal relationship created with the purpose of joint pursuit of mutual goals. In a strategic alliance, individual organization share administrative authority, form social links, and accept joint ownership. Such alliance are blurring firms boundaries.

• The Learning Organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

• The High-Involvement Organization In high-involvement organization, top management ensures that there is a consensus about the direction in which the business is heading. The leader seeks input from his or her top management team and from lower levels of the company.

C. Organizational Size and Agility

• The Case for Big Bigger was better after World War II, when foreign competition was limited and growth seemed limitless.

• The Case for Small Smaller companies can move fast, provide quality goods and services to targeted market niches, and inspire greater involvement from their people.

• Being Big and Small Small is beautiful for unleashing energy and speed. But in buying and selling, size offers market power. The challenge, then, is to be both big and small to capitalize on the advantages of each. As large companies attempt to regain the responsiveness of small companies, they often face the dilemma of downsizing.

D. Customers and The Responsive Organization

• Customer Relationship Management is a multifaceted process, typically mediated by a set of information technologies, that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants, and buying patterns.

• Total Quality and Six Sigma Total quality management (TQM) is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. Six sigma quality is a method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction.

• ISO 9001 A series of quality standards developed by a committee working under the international organization for standardization to improve total quality in all business for the benefit of producers and consumers.

• Reengineering Processes such as product development, order fulfillment, customer service, inventory management, billing, and production are redesigned from scratch as if the organization were brand new and just starting out.

E. Technology and Organizational Agility
Types of Technology Configurations :

• Small Batch technology Technologies that produce goods and service in low volume.

• Large Batch technology Technologies that produce goods and service in high volume.

• Continuous Process Technology A process that is highly automated and has a continuous production flow.

Organizing for Flexible Manufacturing

• Computer-Integrated Manufacturing The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes

• Flexible factories Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling.

• Lean Manufacturing An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

F. Organizing for Speed: Time-Based Competition (TBC)

• Logistics The movement of the right goods in the right amount to the right place at the right time.

• Just-in-time A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

• Current Engineering A design approach in which all relevant functions cooperate jointly and producing high-quality products customers needs.

 

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REVIEW CHAPTER 8 :

~ ORGANIZATION AND STRUCTURE ~

A. FUNDAMENTALS OF ORGANIZING

• Differentiation : An aspect of the organization's interal environment ereated by job specialization and the devision of labor. Division of labor means the work of the organizations subdivided into smaller tasks. Specialization refers to the fact that different people or group often perform specific parts of the larger task.
• Integration : Achieved through structural mechanism that enchance collaboration and coordination. The degree to which differentiated work units work together and coordinate their efforts.

B. THE VERTICAL STRUCTURE

• Authority in Organization : Is the legitimate  right to make decisions and tell other people what to do.
• Hierarchical levels : The authority levels of the organizational pyramid.
• Span of Control : The number of subordinates who report directly to an excutive or supervisor
• Delegation : The assignment of new or  additional resposibilities  to a subordinates.
• Decentralization : An Organization in which lower level managers make important decicions.

C. THE HORIZONTAL STRUCTURE

• The Functional Organization : Departmentalization around speacialized activities such as production, marketing, human resouces.
• The Divisional Organization : Departmentalization that groups  unit around product, customer, or geographic regions.
• The Matrix Organization : An organization composed of duel reporting relationship in which some employees report to wo supervisor a functional manager and a divisional manager.
• The Network Organization : A collectionof independent, mostly single function firms that  collaborate on a good or service.

D. ORGANIZATIONAL INTEGRATION

• Coordination by Standardization : Establishing common routines and procedures that apply niformly to everyone.
• Coordination by Plan : Interdependent units are required to meet deadlines and objectives that contribute to a coomon goal.
• Coordination by Mutual Adjustment: Unit interact with one another  to make a accomodations to achieve flexible coordination.
• Coordination and Communication : Huge amounts of organizations flow  from the external environment to the organization and back to the environment.

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Concluding Case : Shoes With Soul: Two Friends Realize a Dream

CHAPTER 7 : ENTREPRENEURSHIP

CONCLUDING CASE:

SHOES WITH SOUL

Two Friends Realize a Dream

Renee Albertelli and Richard Rodriguez shared a dream ever since they met in college,to start their own business.both took business and marketing courses and began their careers in established businesses so they could gain experience about what it takes to turn an idea into a business reality.but as they advanced in their careers,the firms they worked for didn’t offer the types of challenges they wanted to pursue.they decided they wanted to work for themselves,and they saw an opportunity.

for her job in marketing at a telecomunications firm, albertelli had traveled to several regions of the world with developing economies,including africa,asia,and south america.she became increasingly increasingly aware that women in these regions wanted and needed to find new ways to earn a living to support and educate their families . rodriguez on the other hand spent his time working in the financial offices of a major U.S clothing firm that had its own stores nationwide.

During her travels, albertelli met a group of women who were highly skilled at crafting handmade sandals. they prepared the leather by hand, designed their own shoe patterns, and assembled each pair of sandals with simple tools. Albertelli thought the finished products were beautiful. she was also impressed by the women's desire to operate their own businesses. she thought they would make a great team, if enough sandals could be produced for sale even in small numbers in the united state.

Albertelli contacted Rodriguez when she returned from her trip, and two friends met to create a business plan. Both believed in the product and the cause they could build a business based on the desire and craftsmanship of small groups of artisans who wanted to band together to form their own businesses and the market for handcrafted goods in the united state.they new if they could succeed with one group of women and their products,many more would follow.many more would follow. they banked on the assumption that U.S consumers would fall in love with the idea as well and buy the products.

                Albertelli and rodriguez took a huge risk-they decided to cash in their retirement savings to fund the creation of the first batch of sandals.they devised a plan for acquiring more financial backing so they could transport and advertise the product.they developed a marketing plan based not only on the beauty of the sandals but also on the lives of the women who created them,so that consumers would feel a connection with the makers.they named their company shoes with soul.the two entrepreneurs didn’t need to worry initially about locating a manufacturing facility because the shoes would continue to be made in the village where they originated.

Albertelli and Rodriguez worked closely with the woman who had started the shoemaking project in her village.when they had enough prototypes,they began to make the rounds to existing stores.they also considered renting kiosks at certain malls and investigated setting up a booth at specific sporting and cultural events.although they understood the importance of a website,they decided not to sell the sandals directly online until they had a more complete line of products to offer consumers.

                At first,interest in the shoes was limited to small boutiques entrepreneus themselves until a local tv news show heard about the business and decided to do a story albertelli,Rodriguez and the women.

QUESTION:

1.     1.  Describe the personality characteristics that renee albertelli and Richard Rodriguez have that should help them navigate the difficulties of starting a business

Ø  I think difficulties in starting business it is reasonable with Renee and Richard characteristics such as hard worker and they good in seeing an opportunity they will doing fine in the future.

2.     2.  Rodriguez and albertelli decided to focus their marketing efforts on the artisans who made the shoes.do you think this is a wise decisions?why or why not?

Ø  I think the less wise, because to achieve maximum sales we should not only focus on the marketing course, we also have to think about innovation and quality of our products, so that customers do not get bored with our products.

3.     3.  What management challenges might cause shoes with soul to stumble?

Ø  challenges in its business are they willing to take the risk of using all their retirement money to be used as business capital and its businesses thrive if their efforts will be successful and if not, they will go out of business.

4.    4.   Describe several steps that Rodriguez and albertelli could take to avoid these stumbling blocks and guide their new business to success.

Ø  First, They have to maximize their goods production resources.

Ø  Second, Improve business network. How to reproduce the organization's network., one by one network needs to be built and developed.

Ø  Third, Build a culture of learning. Training and training is a concept to learn how fast or how short.

Ø  Fourth, Look for the star, The star here is not just the person or people become actors. but the products and services that you offer to customers or buyers.

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Chapter 4 ~Planning and Strategic Management~

Review Chapter 4 :

~Planning and Strategic Management ~

An Overview of Planning Fundamentals

The Basic Planning Process, because planning is a decision process—you’re deciding what to do and how to go about doing it—the important steps followed during formal planning are similar to the basic decision-making steps:

Step 1: Situational Analysis

Step 2: Alternative Goals and Plans

Step 3: Goal and Plan Evaluation

Step 4: Goal and Plan Selection

Step 5: Implementation

Step 6: Monitor and Control

Levels of Planning

1.      Strategic Planning: Involves making decisions about the organization’s long-term goals and strategies.

2.      Tactical and Operating Planning: Tactical planning translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization, such as a functional area like marketing. Operating planning identifies the specifics procedures and process required at lower levels of the organization.

3.      Aligning Tactical, Operational and Strategic Planning: One method for aligning the organization’s strategic and operational goals is a strategy map. A strategy map provides a tool managers can use to communicate their strategic goals and enable members of the organization at every level to understand the parts they will play in helping to achieve them. The map illustrates the four key drivers of a firm’s long-term success: the skills of its people and their ability to grow and learn; the effectiveness of its internal processes; its ability to deliver value to customers; and ultimately its ability to grow its financial assets.

Strategic Planning

1.      Step 1: Establishment of Mission, Vision, and Goals

The mission is a clear and concise expression of the basic purpose of the organization. It describes what the organization does, whom it does it for, its basic good or service, and its values.

2.      Step 2: Analysis of External Opportunities and Threats

Successful strategic management depends on an accurate and thorough evaluation of the competitive environment and macro-environment.

3.      Step 3: Analysis of Internal Strengths and Weaknesses

As managers conduct an external analysis, they will also assess the strengths and weaknesses of major functional areas inside their organization.

 Resources and Core Competencies: Resources are inputs to production (recall system theory) that can be accumulated over time to enhance the performance of a firm. Core competence is something a company does especially well relative to its competitors.

Benchmarking: The processing of assessing how well one company’s basic functions and skills compare with those of another company or set of companies.

4.      Step 4: SWOT Analysis and Strategy Formulation

A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy

Corporate Strategy: Identifies the set of business, markets, or industries in which the organization compete and the distribution of resources among those businesses.

Business Strategy: defines the major actions by which an organization builds and strengthens its competitive position in the marketplace.

5.      Step 5: Strategy Implementation

Strategic managers also must unsure that the new strategies are implemented effectively and efficiently. By paying closer attention to rhe processes by which strategies are implemented, executives, managers, and employees can make sure that strategic plans are actually carried out.

6.      Step 6: strategic Control

A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action.

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Managing and Performing

Chapter 1 Review :

~Managing and Performing~

A.    Managing in the New Competitive Landscape.

§  Globalization has changed the face of the workface. Management in this new competitive landscape will need to attract and effectively manage a talent pool from all over the globe.

§  Technological Change which is both can create complicates things and new opportunities, Technology is vitally important in the business world.

§  Knowledge management is the set of practices aimed at discovering and harnessing an organization’s intellectual resources.

§  Collaboration across “Boundaries” that occurs even beyond the boundaries of the organization itself. Companies today must motivate and capitalize on the ideas of people outside the organization.

B.        Managing for Competitives Advantage

§  Inovation the introduction of new goods and service.

§  Quality the excellence of your product (goods or services).

§  Service the speed and dependability with wich an organization delivers what customer want.

§  Speed Fast and timely execution, response, and delivery of result

§  Cost Competitiveness Keeping costs low to achieve profits and be able to ofter prices that are attractive to consumers.

§  Sustainability The effort to minimize the use of resources, especially those that are polutting and nonrenewable.

C.        The Functions of Management

§  Planning, the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue. Planning described a top-down approach in which top executives establish business plans and tell others to implement them

§  Organizing, the management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals. Build organizations that are flexible and adaptive, particularly in response to competitives threats and customer needs.

§  Leading, the management function that involves the manager’s effort’s to stimulate high performance by employees. It includess motivating and communicating with employees, individually and in groups.

§  Controlling, the management function of monitoring performance and making needed changes. By controlling, managers make sure the organization’s resources are being used as planned.

D.    Management Levels and Skill

1.      Top-Level Managers

Top-Level Managers are the senior executives of an organization and are responsible for its overall management. Top managers are concerned not only with the organization as a whole but also with the interaction between the organization and its external environment. Top managers are more commonly called on to be not only strategic architecs but also true organizational leaders.

2.      Middle-Level Managers

They are responsible for translating the general goals and plans developed by strategic managers into more spesific objectives and activities. Traditionally, the role of the middle manager is to be an administrative controller who bridges the gap between higher and lower levels. Good middle managers provide the operating skills and practical problem solving that keep the company working.

3.      Frontline Managers

Frontline Managers, or operational managers, are lower-level managers who supervise the operations of the organization. They are directly involved with nonmanagement employees, implementing the specific plans developed with middle managers.

E.     Management Skill

§  Technical skill is the ability to perform a specialized task that involved a certain methods or procces.

§  Conceptual and decision skills involved the ability to identify and resolve problems for the benefit of the organization and everyone concerned.

§  Interpersonal and communication skills influence the manager’s ability to work well with people.

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