Part 1


 


1)      A handful of companies on the Fortune 500 list are more than 100 years old, which is rare. What organizational characteristics do you think might explain 100-year longevity? Word 70   


Security and tenacity are the two organizational characteristics that I have in mind. Security, because organisations have their own commercial secrets and only strict adherence to safety measures can protect these secrets from industrial espionage for instance especially that modern organizations thrive for innovation. And tenacity, because organizations with long-term goals has the tendency to be more driven and effective. To attain its desired ends, these organizations submit to utilising various means.


 


2)      What are the primary difference between an organization designed for efficient performance and one designed for learning and change? Which type of organization do you think would be easier to manage? Discuss. Words 100 – 150


A performance-based organization is basically inclined in putting value in every process and emphasize quality whereas a knowledge- and/or change-driven organization is more tended on being reactive and puts emphasis on expedient criteria. The former is also driven by individual and organizational competencies while the latter by knowledge and technology-centric focus. From a personal standpoint, those organizations that are performance-based are much difficult to manage. This is because, although clear-cut strategy are existing, competency developing, distinguishing and communicating KSAs (knowledge, skills and abilities) to all core and non-core components of the organization is not without difficulties. Measuring performance is also hard considering the emotional, motivational and behavioural, which includes individual attitudes, must be considered. Since performance is tied up with the job design, reward and/or punishment and career enhancement, evaluating the effects of performance based on employee morale and satisfaction is also tedious.                           


                       


Part 2


 


1)      Suppose you have been asked to evaluate the effectiveness of the police department in a medium-sized community. 1- Where would you begin, and how would you proceed? Words 70 – 100; 2- What effectiveness approach would you prefer? Words 70 – 100


In evaluating department effectiveness, I will first review the roles, responsibilities and authority through consulting the department’s organizational structure and then its goals and objectives. This will be carried out to determine whether the department is being strategic and proactive and how the department sustains its efficiency. I will proceed by collecting informations and feedbacks on how the department communicate goals and priorities, share information, develop and empower leaders and members, organize work and manage processes and resolve problems and conflicts. Further, their customer service orientation should be also reviewed.


I would choose the competing values approach which measures the multiple dimensions of focus, determining effectiveness on the basis of which desired values are pursued. Competing values evaluates the focus and the structure of the department in terms of internal and external and stability and flexibility, respectively. Through this approach, I would be able to determine whether the department is being effective when it comes to managing police officials and staff and how the department fits with the environment. I could also assess the effectiveness in terms of management value for top-down control and learning and change.


 


2)      What are the advantages and disadvantages of the resource-based approach versus the goal approach for measuring organizational effectiveness? Words 70 – 150


Organizational effectiveness could be measured based on outcomes, processes and structures. On the one hand, organizational effectiveness could be measured through a resource-based approach. Through such approach, the organization would be able to determine its effectiveness based on how successful it is in obtaining and managing valued resources from the environment. This would be significant when other indicators of performance effectiveness are difficult to obtain. Another advantage is through examining the input side of the transformation process. However, a disadvantage is the fact that resource-based input does not necessarily link with the needs of the customers in the external environment. The goal approach measure effectiveness in terms of the extent of goal realization as well as missions and purposes. A strong advantage is its capability to measure product and service outputs, and on the basis of achieving operative goals. There are two disadvantages, however, such as its application on multiple goals and as a subjective indicator.  


 


3)      Choose three companies, either in the same industry or in three different industries. Search the internet for information on the companies, including annual reports. In each company look particularly at the goals expressed. Refer back to the goals in Exhibit 2.8 and also to Porter’s competitive strategies in Exhibit 2.4.


 


 


Goals from Exhibit 2.8 articulated


Strategies from Porter used


Coca-Cola Company


Our Mission


Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.


To refresh the world…


To inspire moments of optimism and happiness…


To create value and make a difference.


Market share, product quality and service, social responsibility and diversification,


Low-cost leadership and differentiation


PepsiCo


Our Mission


Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.


Growth, market share, employee welfare, diversification, profitability, social responsibility, financial stability and management development


Low-cost leadership and differentiation


Cott Corporation


At Cott, we believe that success is achieved by maintaining a disciplined focus on just a few critical things.


To realize our vision of being the global leader in value beverages, we continue the refocus on our private label business customers, while concentrating on controlling the 4 C’s:
     1. Customers
     2. Cost
     3. CapEx
     4. Cash flow


Growth, market share, financial stability and profitability


Focused differentiation


 


Questions 1 to 4 Total Words 600


1)      Which goals seem most important?


Market share. Market share refers to the portion or the percentage of sales of the products or services in a given location controllable to a company.


 


2)      Look for differences in the goals and strategies of the three companies and develop an explanation for those differences.


Based on the illustration, only Coca-Cola emphasizes product quality and service but it shares diversification and social responsibility goal with its perennial rival PepsiCo. Cott Corporation shares goals of growth, profitability and financial stability with Pepsi but with no similar goals with Coca-Cola. PepsiCo, nevertheless, is explicit with its employee welfare and management development goals that Coca-Cola and Cott Corporation strategically lack. As well all know, Coke is very particular with consistently extending its brand portfolio, and considering the profitability, perhaps there is no need to put it in the list of goals. Since Coca-Cola and PepsiCo are considered as the cola giants, strategies of each is closely being followed, which may explain the similarity in goals. Cott Corporation, a US-based company, could be also taking the lead of PepsiCo as it is more popular in the US.


In terms of strategies, Coca-Cola and PepsiCo shared the same strategies of low-cost of the product and differentiation. As such, the companies compete in terms of product design, quality and after-sales service support. Although this maybe costly, their differentiation strategy makes possible the recouping of higher costs. For the case of Cott, it is clear that it made no attempt to follow the strategies of either Coke or PepsiCo. Instead it focused its energy on serving only one segment.    


 


3)      Which of the goals or strategies should be changed? Why?


For Coke, it would be plausible if it will make its mission more explicit, and which may encompass its passion to innovate hence research and development goal must be put in the writing and be included. Rather than focusing on the affective stance of the mission, Coke could deal with how they could create or add value. It is a common knowledge that the goal of soda or softdrink companies is refreshment. Nonetheless, social responsibility goal should be furthered. Management development could have been included, stating the important of the Coca-Cola System. Given the fact that Coke acquired its industry leadership status today through its low cost strategy and differentiation, there is no need to change them but just continue to advance them, if possible.


Same with Coke, PepsiCo should include how it could acquire competitive advantage through its research and development as well as efficiency and resource conservation goals. On the other hand, the goals of PepsiCo are explicit, straightforward and informative hence there is no need to change them. However, PepsiCo should think of new ways of strategizing so that it can draw away from the shadow status of Coke. For instance, PepsiCo could start contemplating on the profitability of focused differentiation. Specialization is a key for product development that can be offered on few select segments.     


For Cott, goals should reflect its social responsibility to have a balance. Cott is explicit in mentioning profitability and financial stability goals. In terms of strategy, there is no need to change because this is what Cott does best.


 


4)      Which companies seem to articulate and communicate their goals and strategies best?


Evidently, PepsiCo had been able to depict its goals. PepsiCo’s mission statement includes eight goals including growth, market share, employee welfare, diversification, profitability, social responsibility, financial stability and management development. For those goals that the company lacked in disclosure, it could be easily comprehended through knowing the brand in-depth.  


 


Part 3 Total words 320


 


1)      Large corporations tend to use hybrid structures. Why?


Hybrid structures for large companies are utilised because of the need to clearly reflect its size, scope, reach and degree of authorities as well as the complexities in tasks, functions and roles. Hybrid structures are used to take advantage of the features of both functional and divisionalised structures. The combination of several organizational forms also manifests diversification and control and coordination which is much needed in modern organizations where distribution of functions is geographically dispersed. Lines of control and reporting relationships could be effectively represented if large companies will not conform into a single structure. Hence, hybrid structures conform to various, several organizational requirements.  


2)      What are the primary differences between a traditional organisation designed for efficiency and a more contemporary organization designed for learning?


Efficient traditional organizations are more mechanistic while learning contemporary organizations more organic. Because traditional organizations emphasize efficiency, they are more tended to be bureaucratic. Traditional organizations are very particular with formal rules and regulations, decision-making centralization, rigid hierarchy of authority and narrow-defined job responsibilities. Toward the end to efficient, the emphasis is on following procedures and rules. On the other hand, knowledge, learning and development are the keys to perform broadly defined job responsibilities. Known as organic, modern organizations are increasingly characterized by low to moderate use of formal rules and regulations, decentralized and shared decision-making and flexible authority structure. As such, a learning organization, contemporary organizations put more emphasis on employee competence more than their position in the structure. Employee empowerment is perceived to be the way to combat uncertainties in the workplace.


3)      Describe the virtual network structure. Why do you think this is becoming a good structural alternative for some today’s organizations?


Because of geographical differences, virtual network structure is an alternative, putting technology into good use through utilizing information and communication.  Virtual structure is a clear manifestation to configure organizations more than what objectively exists. What makes such structure an advantage is its modularity capability which means organizing processes more efficiently through sourcing the right modules. As such, through virtual network structures, it would be possible to determine and analyse customer requirements at the local level and to track possibilities to satisfy customer requirements, allocate tasks among network partners and assess and redesign activities and allocation procedures whenever necessary. Such a process saves time and cost while also addressing customer issues in real-time and in flexible manner, a reason why it is easily accepted by modern organizations.  



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