1、Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementChapter 4Strategic ManagementFundamentals of ManagementEnglish Course forBrainstorming Most western corporations top down decision making managers responsible for decision making and accountable for the decisions
2、 reached Japanese system focuses more on the performance of the entire team collective decision making by individual teamsIf you were an employee,would you prefer the company is characterized by top-down or collective decisions?And why?Fundamentals of ManagementEnglish Course forEnglish Course forFu
3、ndamentals of ManagementText A The Core Competence of the CorporationFundamentals of ManagementEnglish Course forThe Core Competence of the Corporation Core Competence is communication,involvement,and a deep commitment to working across organizational boundaries.Fundamentals of ManagementEnglish Cou
4、rse forThe Core Competence of the Corporation The real sources of advantage are to be found in:Managements ability to consolidate corporatewide technologies Production skills into competencies that empower individual businesses to adapt quickly to changing opportunities.Fundamentals of ManagementEng
5、lish Course forThe engine for new business developmentFundamentals of ManagementEnglish Course forHow Not to Think of Competence Cultivating core competence does not mean:Outspending rivals on research and development.Shared costs,as when two or more SBUs use a common facilitya plant,service facilit
6、y,or sales forceor share a common component.Integrating verticallyFundamentals of ManagementEnglish Course forIdentifying Core CompetenciesAnd Losing Them Three tests to identify core competencies:Potential access to a wide variety of markets.A significant contribution to the perceived customer bene
7、fits of the end product.Difficult for competitors to imitate.Fundamentals of ManagementEnglish Course forIdentifying Core CompetenciesAnd Losing Them Ways to lose Core Competencies:Cut internal investment while in favor of outside suppliers.Focusing too much on outsourcing.Without a choice about whe
8、re it will build competence leadership.Forgoing opportunities to establish competencies that are evolving in existing businesses.Fundamentals of ManagementEnglish Course forFrom Core Competencies to Core Products From Core Competencies to Core Products:The tangible link between identified core compe
9、tencies and end products is the core productsthe physical embodiments of one or more core competencies.Fundamentals of ManagementEnglish Course forFrom Core Competencies to Core Products From Core Competencies to Core Products:It is essential to make this distinction between core competencies,core p
10、roducts,and end products because global competition is played out by different rules and for different stakes at each level.Fundamentals of ManagementEnglish Course forFrom Core Competencies to Core Products At the level of core competence:The goal is to build world leadership in the design and deve
11、lopment of a particular class of product functionalitybe it compact data storage and retrieval.Fundamentals of ManagementEnglish Course forFrom Core Competencies to Core Products At the level of core products:It can consistently reduce the cost,time,and risk in new product development.In short,well-
12、targeted core products can lead to economies of scale and scope.Fundamentals of ManagementEnglish Course forThe Tyranny of the SBU The implications of the two alternate concepts of the corporation:Two Concepts of the Corporation:SBU or Core Competence.Fundamentals of ManagementEnglish Course forThe
13、Tyranny of the SBU The need for new principles is most obvious in companies organized exclusively according to the logic of SBUan organizational dogma for a generation.Fundamentals of ManagementEnglish Course forThe Tyranny of the SBU The costs of distortion:Underinvestment in Developing Core Compet
14、encies and Core Products.Imprisoned Resources.Bounded Innovation.Fundamentals of ManagementEnglish Course forDeveloping Strategic Architecture The fragmentation of core competencies:When a diversified companys information systems,patterns of communication,career paths,managerial rewards,and processe
15、s of strategy development do not transcend SBU lines.Fundamentals of ManagementEnglish Course forDeveloping Strategic Architecture A strategic architecture is:A road map of the future that identifies which core competencies to build and their constituent technologies.Fundamentals of ManagementEnglis
16、h Course forDeveloping Strategic Architecture A strategic architecture can:Dramatically reduce the investment needed to secure future market leadership.Provide a logic for product and market diversification.Make resource allocation priorities transparent to the entire organization.Fundamentals of Ma
17、nagementEnglish Course forDeveloping Strategic Architecture To sink sufficiently strong roots,a company must answer some fundamental questions:How long could we preserve our competitiveness in this business if we did not control this particular core competence?How central is this core competence to
18、perceived customer benefits?What future opportunities would be foreclosed if we were to lose this particular competence?Fundamentals of ManagementEnglish Course forRedeploying to Exploit Competencies Once overarching competencies are identified:Ask businesses to identify the projects and people clos
19、ely connected with them.Direct an audit of the location,number,and quality of the people who embody competence.Make the positive contribution of the SBU manager visible across the company.Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText BStrategic Manageme
20、nt of EBAYFundamentals of ManagementEnglish Course forStrategic Management of EBAY External Analysis:Political factors:Chance of depreciation of Sterling due to exit of UK from EU.Political turmoil can affect EBAY business.Strong restrictions from the United States.Fundamentals of ManagementEnglish
21、Course forStrategic Management of EBAY External Analysis:Economic factors:Economic slowdown in UK.Global recession decreases the sales.Inflation,tariff rate imposed by different importing country.Imposition of high rate of corporation tax by government affects the business.Fundamentals of Management
22、English Course forStrategic Management of EBAY External Analysis:Social factors:Number of unemployment may rise Decrease in the standard of living of peopleFundamentals of ManagementEnglish Course forStrategic Management of EBAY External Analysis:Technological factors:Latest and user-friendly techno
23、logy is required Display the products in a more attractive way to the customers Management can use an extensive database to manage information regarding supplies and customer The proprietary information would be at risk with security breachFundamentals of ManagementEnglish Course forStrategic Manage
24、ment of EBAY External Analysis:Environmental factors:Needs to maintain Environment safety law in packaging,importing and shipping the goods.Environmental factors such as changing regulation for energy use can affect the business.There are more benefits achieved by people rather than spending.Fundame
25、ntals of ManagementEnglish Course forStrategic Management of EBAY External Analysis:Legal factors:Environmental safety law,Sales of Goods Act 1979,Work and Safety Act 1974 are required to be maintainedFundamentals of ManagementEnglish Course forStrategic Management of EBAY Internal Analysis:Developm
26、ent of online auction model Information management technology and supply chain management is very strongFundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText CApples Profitable but Risky StrategyFundamentals of ManagementEnglish Course forApples Profitable but
27、Risky Strategy Please read Text C and finish the discussion:Using the concepts in this article,undertake a competitive analysis of both Apple and Nokia who is stronger?What are the problems with predicting how the market and the competition will change over the next few years?What are the implications for strategy development?
