Professional Documents
Culture Documents
Company Structure
Pyramidal structure (hierarchical or line structure):
Top-down system Small organisation
Functional structure
Divided into departments Specialized set of tasks
Company Structure
Matrix structure:
arranged according to project and group employees by both function and product. both vertical and horizontal employee works as a team member and reports to two bosses
employees who advise and assist the responsibility of providing information and advice to personnel in the line position combines the flow of information from the line structure with the staff departments that service, advise and support them
Staff position:
Company Structure
Organization by function: Different departments Organization by product: Different products Organization by customer type: Different sectors Organization by geographical area: Different regions
Strategic Management
Strategy is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carry out these goals.
Strategic Management
Strategic management is the set of managerial decisions and action that determines the long-run performance of a corporation. The process of strategic management includes:
Strategic planning Strategic implementation
3
Identify the opportunities & threats
1
Identify the organizations current mission, objectives & strategies
7
Formulate strategies Implement strategies
8
Evaluate results
SWOT Analysis
4
Analyze the organizations resources & capabilities
5
Identify the strengths & weaknesses
Corporate Strategies
Corporate strategy deals with three key issue facing the corporation as a whole:
1. The firms overall orientation toward growth, stability or retrenchment (directional strategy)
Directional Strategy
Growth Strategies Stability Strategies Retrenchment Strategies
Portfolio Analysis
High Industry growth rate (%)
Stars Question Marks
10 Cash cows
Dogs
Low
High
Low
Business Strategy
Business strategy focuses on improving the competitive position of product/service within specific industry or market segment.
Business strategy can be:
Competitive strategy
Cooperative strategy
Competitive strategies
Competitive strategies address questions: Should the firm compete on the basis of lower cost (and thus price), or should it differentiate its products/services on some basis other than cost? (Types of competitive advantage) Should the firm compete head to head with its major competitors or should it focus on a niche? (Competitive scope)
after-sales service
Competitive Advantage
Lower Cost
The ability of a firm or business unit to design, produce and market a comparable product more efficiently than its competitors
Focus strategies
Cost leadership and Differentiation strategies aim at the broad market. Focus on a particular buyer group or geographic market. Cost-based focus strategy. Differentiation-based focus strategy.
Competitive Scope
Cost Leadership
Differentiation
Narrow target
Costbased Focus
Differentiationbased Focus
References
Emmerson, P. (2007) Business English handbook Advanced, Macmillan. Mackenzie, I. (1997) Management & Marketing, Heinle Cengage Learning. Mr. Ngo Quy Nham Lecture series on Management Faculty of Business Administration - FTU.