http://www.bized.co.ukCopyright 2006 – Biz/edCorporate Culture• The beliefs and values shared by peoplewho work in an organisation– How people behave with each other– How people behave with customers/clients– How people view their relationship withstakeholders– People’s responses to energy use,community involvement, absence, workethic, etc.– How the organisation behaves to itsemployees – training, professionaldevelopment, etc.
http://www.bized.co.ukCopyright 2006 – Biz/edCorporate Culture• May be driven by:• Vision – where the organisationwants to go in the future• Mission Statement – summaryof the beliefs of the organisationand where it is now
http://www.bized.co.ukCopyright 2006 – Biz/edCorporate Culture• May be reflected in:– Attitude and behaviour of the leadership– Attitude to the role of individuals in theworkplace – open plan offices, team basedworking, etc.– Logo of the organisation– The image it presents to the outside world– Its attitude to change
http://www.bized.co.ukCopyright 2006 – Biz/edCorporate CultureWhat corporateculture do you thinkthe followingbusinesses havemanaged todevelop?Virgin GroupCopyright: Joshua2150,http://www.sxc.huThe Body ShopCopyright: fadaquiqa,http://www.sxc.huMcDonaldsCopyright: alexalliedhttp://www.sxc.huNikeCopyright: alexbolhttp://www/sxc.hu
http://www.bized.co.ukCopyright 2006 – Biz/edStrategic Planning• First Stage of StrategicPlanning may involve:• Futures Thinking– Thinking about what thebusiness might need todo 10–20 years ahead• Strategic Intents– Thinking about keystrategic themesthat will informdecision making• “The thicker the planningdocument, the more uselessit will be”– (Brent Davies: 1999)Taking time to think and reflectmay be more important than manybusinesses allow time for!Copyright: Intuitives, http://www.sxc.hu
http://www.bized.co.ukCopyright 2006 – Biz/edStrategic Planning• The Vision– Communicating to all staff where theorganisation is going and whereit intends to be in the future– Allows the firm to set goals• Aims and Objectives:– Aims – long term target– Objectives – the way in which youare going to achieve the aim
http://www.bized.co.ukCopyright 2006 – Biz/edStrategic Planning• Example:• Aim may be for a chocolatemanufacturer to break intoa new overseas market• Objectives:– Develop relationships with overseassuppliers– Identify network of retail outlets– Conduct market research to identifyconsumer needs– Find location for overseas sales team HQ
http://www.bized.co.ukCopyright 2006 – Biz/edStrategic Planning• Once the direction is identified:Analyse positionDevelop and introduce strategyEvaluate:– Evaluation is constant and the resultsof the evaluation feed backinto the vision
http://www.bized.co.ukCopyright 2006 – Biz/edSWOT• Strengths – identifying existingorganisational strengths• Weaknesses – identifying existingorganisational weaknesses• Opportunities – what marketopportunities might there befor the organisation to exploit?• Threats – where might the threatsto the future success come from?
http://www.bized.co.ukCopyright 2006 – Biz/edPEST• Political: local, national and internationalpolitical developments – how will they affectthe organisation and in what way/s?• Economic: what are the main economicissues – both nationally and internationally –that might affect the organisation?• Social: what are the developing social trendsthat may impact on how the organisationoperates and what will they mean for futureplanning?• Technological: changing technology canimpact on competitive advantage very quickly!
http://www.bized.co.ukCopyright 2006 – Biz/edPEST• Examples:• Growth of China and India as manufacturing centres• Concern over treatment of workers and theenvironment in less developed countries who may besuppliers• The future direction of the interest rate, consumerspending, etc.• The changing age structure of the population• The popularity of ‘fads’ like the Atkins Diet• The move towards greater political regulation ofbusiness• The effect of more bureaucracy in the labour market
http://www.bized.co.ukCopyright 2006 – Biz/edFive-Forces• Developed by Michael Porter: forces that shape andinfluence the industry or market the organisationoperates in.– Strength of Barriers to Entry - how easy is itfor new rivals to enter the industry?– Extent of rivalry between firms – how competitiveis the existing market?– Supplier power – the greater the power, the less controlthe organisation has on the supply of its inputs.– Buyer power – how much power do customersin the industry have?– Threat from substitutes – what alternative productsand services are there and what is the extentof the threat they pose?
http://www.bized.co.ukCopyright 2006 – Biz/edRequired Inputs• Changing strategy will impact on the resourcesneeded to carry out the strategy:• Specifically the impact on:– Land – opportunities for acquiring land fordevelopment – green belt, brownfield sites,planning regulations, etc.– Labour – ease of obtaining the skilled andunskilled labour required– Capital – the type of capital and the cost ofthe capital needed to fulfil the strategy
http://www.bized.co.ukCopyright 2006 – Biz/edEvaluation• Data from sales,profit, etc. usedto evaluate theprogress andsuccess of thestrategy and toinform of changesto the strategy inthe light of thatdataInformation from a wide variety of sourcescan help to measure and inform the impactand direction of the strategy.Copyright: Mad7986, http://www.sxc.hu
http://www.bized.co.ukCopyright 2006 – Biz/edTypes of Strategy
http://www.bized.co.ukCopyright 2006 – Biz/edTypes of Strategy• Competitive Advantage – somethingwhich gives the organisation someadvantage over its rivals• Cost advantage – A strategy to seekout and secure a cost advantageof some kind - lower average costs,lower labour costs, etc.
http://www.bized.co.ukCopyright 2006 – Biz/edTypes of Strategy• Market Dominance:• Achieved through:– Internal growth– Acquisitions – mergers and takeovers• New product development: tokeep ahead of rivals and set the pace• Contraction/Expansion – focus onwhat you are good at (core competencies) orseek to expand into a range of markets?
http://www.bized.co.ukCopyright 2006 – Biz/edTypes of Strategy• Price Leadership – throughdominating the industry – others followyour price lead• Global – seeking to expandglobal operations• Reengineering – thinking outside thebox – looking at news ways of doingthings to leverage the organisation’sperformance
http://www.bized.co.ukCopyright 2006 – Biz/edTypes of Strategy– Internal business level strategies –• Downsizing – selling off unwantedparts of the business – similarto contraction• Delayering – flattening themanagement structure, removingbureaucracy, speed up decision making• Restructuring – complete re-thinkof the way the business is organised