Unfreezing – Individuals must be shown why the change is necessary.
Implementing change – The change itself is implemented
Refreezing – Involves reinforcing and supporting the change so that it becomes a permanent part of the system.
Steps in the Change Process A Comprehensive Approach to Change Establishment of goals for the change Recognition of the need for change Evaluation and follow-up Diagnosis of relevant variables Planning for implementation of the change Selection of appropriate change technique Actual implementation
Force-Field Analysis for Plant Closing at General Motors
Figure 7.2 Outmoded production facilities Excess capacity Need to cut costs Reasons for Closing Possible future needs Concern about worker welfare Resistance from unions Plant closing Reasons Against Closing
Certification Study Group Logical Thinking Patters
Unlike deductive reasoning, Inductive reasoning is not designed to produce mathematical certainty. Induction occurs when we gather bits of specific information together and use our own knowledge and experience in order to make an observation about what must be true. Inductive reasoning does not use syllogisms, but series of observations, in order to reach a conclusion.
A deductive argument offers two or more assertions that lead automatically to a conclusion. Though they are not always phrased in syllogistic form, deductive arguments can usually be phrased as "syllogisms," or as brief, mathematical statements in which the premises lead inexorably to the conclusion. The following is an example of a sound deductive sullogism.
As long as the first two sentences in this argument are true, there can be no doubt that the final statement is correct--it is a matter of mathematical certainty. Deductive arguments are not spoken of as "true" or "false," but as "sound" or "unsound." A sound argument is one in which the premises guarantee the conclusions, and an unsound argument is one in which the premises do not guarantee the conclusions. A deduction can be completely true, yet unsound. It can also be sound, yet demonstrably untrue.
Certification Study Group Organizational Planning
The set of processes involved in creating or determining the organization’s strategies; it focuses on the content of strategies.
The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.
Formulation and Implementation Across Strategic Alternatives Corporate Strategy Formulation Decisions about which markets to compete in Business Strategy Formulation Decisions about how to compete in each market Functional Strategy Formulation Decisions about how to address each function within the organization Implementation Carrying out the functional-level strategies chosen for each business function Implementation Carrying out the business-level strategies chosen for each business Implementation Competing in the markets via existing operations, mergers, acquisitions, new ventures, divestitures
Mission An organization’s fundamental purpose Best Strategies SWOT Analysis To formulate strategies that support the mission Those that support the mission and • exploit opportunities and strengths • neutralize threats • avoid (or correct) weaknesses Internal Analysis Strengths (distinctive competencies) Weaknesses Threats External Analysis Opportunities
Evaluating an Organization’s Opportunities and Threats
Organizational opportunities are areas in the organization’s environment that may generate high performance.
Organizational threats are areas in the organizations environment that make it difficult for the organization to achieve high performance
Using a SWOT Analysis to Formulate Strategy … An Example Opportunities High growth in market for low-cost lodging Strengths Solid hotel business Solid food services Weaknesses Poor performance in cruise ship, travel agency, and theme parks Weak cash position Threats Low growth in the market for high-cost lodging Environmental Analysis Organizational Analysis
It helps managers to develop a better understanding of how different strategic business units contribute to the overall organization.
By assessing each SBU on the basis of its market growth rate and relative market share, managers can make decisions about whether to commit further financial resources to the SBU or to sell or liquidate it.
SBU stands for …………………………….
The BCG Matrix Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by permission from The Boston Consulting Group, Inc., 1970. Relative market share Cash cows Dogs High Low High Low Question marks Stars Market growth rate
A method of evaluating business in a diversified portfolio along two dimensions, each of which contains multiple factors:
Competitive position (strength) of each firm in the portfolio.
In general, the more attractive the industry and the more competitive a business is, the more resources an organization should invest in that business.
The GE Business Screen In general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business. Competitive position Low Winner Medium High Good Competitive position 1. Market share 2. Technological know-how 3. Product quality 4. Service network 5. Price competitiveness 6. Operating costs Industry attractiveness 1. Market growth 2. Market size 3. Capital requirements 4. Competitive intensity Poor Medium Winner Profit producer Winner Average business Loser Question mark Loser Loser Industry growth rate
Developing tactical plans • Recognize and understand overarching strategic plans and tactical goals • Specify relevant resource and time issues • Recognize and identify human resource commitments Executing tactical plans • Evaluate each course of action in light of its goal • Obtain and distribute information and resources • Monitor horizontal and vertical communication and integration of activities • Monitor ongoing activities for goal achievement
The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate.
The Contingency Planning Process - An Ongoing Process Action Point 1: Action Point 2: Action Point 3: Action Point 4: Develop plans, considering contingency events Implement plans and formally identify contingency events Specify contingency event indicators and develop plans for each event Successfully complete each plan or contingency plan