my story... >3

done with strategic management..now, i time for my story...

chapter 12: Corporate culture and leadership: keys to good strategy execution

let started chapter 12: Corporate culture and leadership: keys to good strategy execution

first of all...

corporate culture is the character of a company's internal work climate—as shaped by a system of shared values, beliefs, ethical standards, and traditions that in turn define behavioral norms, ingrained attitudes, accepted work practices, and styles of operating. A company's culture is important because it influences the organization's actions and approaches to conducting business. In a very real sense, the culture is the company's organizational DNA.

key features of a firm's corporate culture:

Company cultures vary widely in strength and influence. Some are strongly embedded and have a big impact on a company's practices and behavioral norms. Others are weak and have comparatively little influence on company operations.

Strong company cultures can have either positive or negative effects on strategy execution. When they are well matched to the behavioral requirements of the company's strategy implementation plan, they can be a powerful aid to strategy execution. A culture that is grounded in the types of actions and behaviors that are conducive to good strategy execution assists the effort in three ways:

• By focusing employee attention on the actions that are most important in the strategy execution effort.
• Through culture-induced peer pressure for employees to contribute to the success of the strategy execution effort.
• By energizing employees, deepening their commitment to the strategy execution effort, and increasing the productivity of their efforts.

requirements, is a tough and often time-consuming challenge. Changing a culture requires competent leadership at the top. It requires making a compelling case for cultural change and employing both symbolic actions and substantive actions that unmistakably indicate serious commitment on the part of top management. The more that culture-driven actions and behaviors fit what's needed for good strategy execution, the less managers must depend on policies, rules, procedures, and supervision to enforce what people should and should not do.

• Leading the drive for good strategy execution and operating excellence calls for three actions on the part of the manager in charge
• Staying on top of what is happening and closely monitoring progress. This is often accomplished through managing by walking around (MBWA).
• Putting constructive pressure on the organization to execute the strategy. well and achieve operating excellence.
• Initiating corrective actions to improve strategy execution and achieve the targeted performance results.

]z we end here this chapter... thank you so much for reading...JJJ z]

chapter 11: managing internal operations: actions that promote good strategy execution

now we at the end of this chapter which is chapter 11: managing internal operations: actions that promote good strategy execution

implementing a new or different strategy calls for managers to identify the resource requirements of each new strategic initiative and then consider whether the current pattern of resources allocation and budgets of the various subunits are suitable.

companies policies and operating procedures facilitate strategy execution by:

• providing top-down guidance regarding how things need to be done
• helping ensure consistency in how execution-critical activities are performed
• promoting the creation of a work climate that facilitates good strategy execution

employing process management tools:

company strategies cannot be implemented or executed well without a number of support systems to carry on business operation. real-time information systems and control system further aid the cause of good strategy execution.

For an incentive compensation system to work well:

• the monetary payoff should be a major percentage of the compensation package
• the use of incentives should extend to all managers and workers
• the system should be administered with care and fairness
• each individual's performance targets should involve outcomes the person can personally affect
• rewards should promptly follow the determination of good performance
• rewards should be given for results and not just effort.

now i finished updated chapter 11...so, it mean the exam just in the corner..be prepare ok..

gambatte...u can do it..wish me luck..dadada...

chapter 10: building an organization capable of good strategy execution: people, capabilities and structure

we will continue with chapter 10: building an organization capable of good strategy execution: people, capabilities and structure.

10 managerial tasks crop up repeatedly in company efforts to execute strategy: 

staffing the organization well

building the necessary organizational capabilities

creating a supportive organizational structure

allocating sufficient resource

instituting supportive policies and procedures

adopting processes for continuous improvement

installing systems that enable proficient company operations

tying incentives to the achievement of desired targets

instilling the right corporate culture

exercising internal leadership

The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and performing value chain activities in a manner that is conducive to company-wide operating excellence. Shortfalls in performance signal weak strategy, weak execution, or both.

Building an organization capable of good strategy execution entails three types of organization-building actions: 

 staffing the organization

assembling a talented management team, and recruiting and retaining employees with the needed experience, technical skills, and intellectual capital

building and strengthening core competencies and competitive capabilities

developing proficiencies in performing strategy-critical value chain activities and updating them to match changing market conditions and customer expectations

structuring the organization and work effort 

instituting organizational arrangements that facilitate good strategy execution, deciding how much decision-making authority to delegate, and managing external relationships

Structuring the organization and organizing the work effort in a strategy supportive fashion has four aspects:

• deciding which value chain activities to perform internally and which ones to outsource
• aligning the firm's organizational structure with its strategy
• deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees
• facilitating the necessary collaboration and coordination with external partners and strategic allies.

To align the firm's organizational structure with its strategy, it is important to make strategy-critical activities the main building blocks. There are four basic types of organizational structures: the simple structure, the functional structure, the multi divisional structure, and the matrix structure. Which is most appropriate depends on the firm's size, complexity, and strategy.

that all for today..till we meet again..bye2:):)

chapter 9: ethic, corporate social responsibility, environmental sustainability and strategy

i will tell u about chapter 9: ethic, corporate social responsibility, environmental sustainability and strategy.

what do we mean by business ethics?
business ethics

• is the application of general ethical principle to the actions and decisions of businesses and the conduct of their personnel.
• are not materially different from ethical principles in general because business actions have to be judged in the context of society standard of right and wrong.

the school of ethical universalism: 

corporate social responsibility (CSR)

• is a firm's duty to operate in an honorable manner, provide good working conditions foe employees, encourage workforce diversity, be a good steward of the environment and actively work to better quality of life in the local communities where it operates and in society at large.

in other work CSR is important in organization. 

end here..see u soon...:) :)

chapter 8: corporate strategy: diversification and the multi business company

"Make winners out of every business in your company.don't carry loser."

(jack welch-former CEO, General Electric)

let start chapter 8:  corporate strategy: diversification and the multi business company

Today i would like to share another topic that i already learned in my strategic management class last tuesday. Every corporate entities or business have a different strategy. The objective of diversification is to increase and  build shareholder value. Enter into any new businesses can take any of three forms: acquisition, internal start up, or joint venture. Every best choice depends on the firm's resources  and capability, the industry entry barrier, the important of speed, and the relative costs.
There a two fundamental approaches to diversification which related and unrelated diversification.

Related diversification: strong foundation or base for creating shareholder value.
Unrelated diversification : since the specialized resources and capabilities that a leveraged in related diversification to be more valuable competitive assets than the generalized resources and capabilities underlying unrelated, which in most cases are relatively common and easier to imitate.

Business diversification becomes a consideration when :

• Spot opportunities for expanding into industries whose technologies and product complement it's present business.
• It can leverage its collection of resources and capabilities by expanding into business where these resources and capabilities are valuable competitive assets.
• Diversifying into additional businesses opens new avenues for reducing costs.
• Has a powerful and well-known brand name that can be transferred to the product of other business .

In Malaysia, we have many examples of the companies that has been diversified their business into many other sub business unit. We have Sime Darby, Tabung Haji and Khazanah Nasional Berhad. For Sime Darby, they have Sime Darby Property, Sime Darby Plantation, Sime Darby Industrial, Sime Darby Motors and Sime Darby Energy and Utilities. This is how this company diversify their business either in the related business or in unrelated business.

Any firms that wish to have diversification in their business should consider this factors:

• It can expand into business where the technologies and product complement its current product 
• It have enough resources and capabilities to be use 
• Cost can be reduced by cross-business sharing or transfer of resources and capabilities 
• Transferring a strong brand name to the product of other businesses

Good company strategies is consist of 6 step.

• Evaluate the long term attractiveness of the industries into which the company has diversified.
• Evaluate the relative competitive strength of each of the company's business units.
• Check for cross-business fit.
• Check whether the firm's resources fit the resources requirement of it's present business line up.
• Rank the performance prospects of the businesses from best to worst, and determined what the corporate parent's priority should be in allocating resources to its various business.
• Crafting new business strategic moves to improve overall corporate performance.                

see u in the next chapter...<3<3<3

chapter 7: strategies for competing in international markets

now let move to chapter 7: strategies for competing in international markets.

there is several reason why companies decide to enter foreign market:

why competing across national borders makes strategy-making more complex: 

1. porter's diamond of national competitive advantages

   

     2. locating value chain activities advantageously

    

   3. the impact of government policies and economic condition in host countries

    4. the risk of adverse exchange rate shift

strategic option for entering and competing in international markets.

1. maintain a national product base and export goods to foreign market.
2. license foreign firms to produce and distribute the company product abroad.
3. employ a franchising strategy.
4. establish a subsidiary in a foreign market via acquisition or internal development.
5. rely on strategic alliances or joint ventures with foreign companies.

there is three main strategic approaches in competing internationally.

multi domestic strategy 

it strategy is matches to local market needs- think local, act local. different country strategies are called for when

• significant country-to-country differences in customer need exist
• buyers in one country want a product different from buyers in another country
• host government regulations preclude uniform global approach.

two drawbacks

• poses problem of transferring competencies across borders
• works against building a unified competitive advantage

Multi domestic Approach (think local, act local)
advantages	disadvantages
Can meet the specific needs of each market more precisely	Hinders resource and capability sharing or cross-market transfers
Can respond more swiftly to localized changes in demand	Higher production and distribution costs
Can target reactions to the moves of local rivals	Not conducive to a worldwide competitive advantage
Can respond more quickly to local opportunities and threats

global strategy 

strategy for competing is similar in all country markets- think global, act local

involves

• coordinating strategic moves globally
• selling in many, if not all, nations where a significant markets exists.

work best when product and buyer requirements are similar from country to country

Global Approach (think global, act global)
Advantages	Disadvantages
Lower costs due to scale and scope economies	Unable to address local needs precisely
Greater efficiencies due to the ability to transfer best practices across markets	Less responsive to changes in local market conditions
More innovation from knowledge sharing and capability transfer	Higher transportation costs and tariffs
The benefit of a global brand and reputation	Higher coordination and integration costs

transnational strategy

incorporates elements of both of globalization and localization approach to strategy making- think global, act global.

Transnational Approach (think global, act local)
advantages	disadvantages
Offers the benefits of both local responsiveness and global integration	More complex and harder to implement
Enables the transfer and sharing of resources and capabilities across borders	Conflicting goals may be difficult to reconcile and require trade-offs
Provides the benefits of flexible coordination	Implementation more costly and time-consuming

that all for chapter 7...bye JJJ