management supplementary lecture 1 by minura jinadasa

IS 1005 - INTRODUCTION TO MANAGEMENT

Supplementary Lecture

Saturday, April 8, 2023IS 1005 - Supplementary Lecture

WHY DO WE HAVE AN ORGANIZATION (NOT FOR PROFIT /FOR PROFIT) ?


MISSION & OBJECTIVES

Mission & objectives – Purpose of the company? Profit making org – To make your money

grow (increase profits for share holders/investors)

Not for profit - Social welfare (to provide a service to society)


MISSION & OBJECTIVES

Whether profit making or not for profit, it is necessary to clarify the purpose the organization exists (reason why it is there).

Mission - shows the purpose of the organization

Objectives are derived from the mission (things you need to achieve in reaching your purpose)

Vision – an ideal state/status the company wishes to achieve at a particular date.


SOME EXAMPLES OF MISSIONS AND VISIONS (PROFIT MAKING OR NOT FOR PROFIT)

Missions Ford- “To be relevant and profitable for the future” World Wildlife Fund - “to conserve nature and

reduce the most pressing threats to the diversity of life on Earth.”

Vision Ford- “To become the world's leading consumer

company for automotive products and services” World Wildlife Fund - “to build a future where

people live in harmony with nature.”


STRATEGY

Strategy – “A course of action undertaken to meet a specific objective” It is the plan the company follows in order to perform

its mission. A company may look at several plans, evaluate them,

and decide on one. To make plans and decide the plan to implement,

a company needs to evaluate the Industry External situation Internal situation

For this purpose, some tools can be used


ASSES INTERNAL AND EXTERNAL SITUATION

Some tools that maybe used for this assessment Industry analysis - Five Force Model

(M.Porter)

External Env. Analysis - PESTEL Model

Internal situ. Analysis - SWOT Analysis


FIVE FORCE THEORY - (INDUSTRY ANALYSIS)

What is its purpose? Before entering any industry, the company can

evaluate the industry/industries they plan to enter before deciding whether to enter.

A theory to analyze the industry Is it profitable? Worth putting you money? Risky (Risk - possibility of failure)? Easy to survive in industry? What if the investment fails?

An existing company can also asses the env. to identify forces that act on industry to develop strategy


FIVE FORCE THEORY - (INDUSTRY ANALYSIS)

Intensity of competitive rivalry Bargaining power of suppliers

(labour/material) Bargaining power of customers (buyers) Threat of substitute products or services Threat of new entrants

Refer note uploaded in group for explanation in detail


PESTEL - (EXTERNAL ENV. ANALYSIS)

A PESTEL analysis is an acronym for internal and external environmental factors that include issues from the (P)olitical, (E)conomic, (S)ocial, (T)echnical, (E)nvironment and (L)egislative areas of business.

Companies typically create a framework for their organization that allows them to review factors from each group and how they impact the business, whether positively or negatively.


PESTEL - (EXTERNAL ENV. ANALYSIS)

P - Political E - Economic S - Social T - Technological E - Ecological L - Legal

Please refer note uploaded in group for explanation in detail


INTERNAL APPRAISAL – SWOT ANALYSIS S - Strengths W - Weaknesses O - Opportunities T - Threats


SWOT (INTERNAL APPRAISAL)

Internal factors Strengths - are strong points the company has that gives it

an advantage over others; it can emphasize on strengths when developing strategy. Strengths help the company reach its objectives.

Weaknesses - are weak points of the organization that limit the ability of the company to reach its objective. The company should try to mitigate weaknesses and its strategy should facilitate (help) it.

External Factors Opportunities - are elements that the project could exploit to

its advantage. It can be utilized to help the company to reach its objectives.

Threats - elements in the environment that could cause trouble for the business or project


INTERNAL FACTORS THAT AFFECT THE COMPANY - MCKINSAY 7S


INTERNAL FACTORS THAT AFFECT THE COMPANY - MCKINSAY 7S

Strategy – The organization’s alignment of resources and capabilities to “win” in its market.

Structure – Describes how the organization is organized. This includes roles, responsibilities and accountability relationships.

Systems – The business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals.

Shared Values – A set of traits, behaviors, and characteristics that the organization believes in. This would include the organization’s mission and vision.

Style – The behavioral elements the organizational leadership uses and culture of interaction.

Staff – The employee base, staffing plans and talent management. Skills – The ability to do the organization’s work. It reflects in the

performance of the organization.


Thank You….!

management supplementary lecture 1 by minura jinadasa

Leadership & Management

company mckinsay

existing company

analysis swot analysis

pestel analysis

organization objectives

assessment industry

strategy strategy

asses internal