Documents

For Exam

Description
exam
Categories
Published
of 15
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
  5 Top management —  planning and strategy 2 What should he do now?3 What advice would you give him about how to run the company in the future?4 What problems can arise when someone starts up a high-technology enterprise?  Read the following case study and then answer the questions below Richard Thomas, a brilliant electronics engineer, left the company he had wored with for ten years in order to set up his own business! e felt there was a gap in the maret for low-priced computer components!Richard#s ban manager was impressed by his e$perience and by the  business plan he presented! %n overdraft facility of &2',((( was )uicly arranged! This, together with Richard#s savings of &*'!(((!  provided the start-up capital for the firm, +ompute$! e began by hiring another person to help him develop the components! The two of them spent the ne$t si$ months producing the type of products they felt the maret needed! When they had built up a good supply of components, they set about trying to sell them! To Richard#s surprise, however, this proved very difficult! any potential customers seemed to be suspicious of the low prices of the products! Why were they so much cheaper than those of more famous, well-established competitors, they wanted to now! ther customers clearly saw Richard#s company as a newcomer not to be trusted - a cowboy outfit who would be here today and gone tomorrow!.t was over a year before Richard got his first order! /y that time, he had an overdraft of &4(!((( and no more money to mae further supplies of components! e was spending all his time advertising the  products, running round to meet customers and trying to persuade them to buy!Three months later, a few large orders were received, but Richard realised that he would have to wait two months or so before being  paid!%t that point, the ban manager lost confidence in the business! e informed Richard that he was calling in the overdraft! 0ive me some time to loo around for more capital, Richard said! #%ll right! .#ll give you a month, but no more,# was the ban manager#s reply%fter rushing around and taling to a lot of people, Richard received firm offers from two venture capital companies! The first was prepared to invest &2((!((( in return for an 1( share of Richard#s business thesecond was willing to put up &2'(,((( for a ( share!This was the situation facing Richard Thomas fifteen months after he-had set up his high-technology enterprise!* +ould Richard have avoided the situation he now finds himself in! .f so, how? The top management of a company have certain uni)ue.responsibilities! ne of their ey tass is to mae ma5or decisions affecting the future of the organisation! Thesestrategic decisions determine where the company is going andhow it will get there! 6or e$ample, top managers must decidewhich marets to enter and which to pull out of7 how e$pansionis to be financed7 whether new products will be developedwithin the organisation or a)uired by buying other companies!These and other such decisions shape a company#s future!*( /efore doing any ind of strategic planning, the management must  be sure of one thing! They must decide what is the mission and  purpose of their business! They also need to # decide what it should be in the future! .n other words, they must now why the business e$ists and what its main purpose is! 8eciding the mission and  purpose is the foundation of any planning e$ercise!Two e$amples will mae this point clear - one /ritish, theother %merican! ost people have heard of ars and9pencer, one of the biggest and most successful retailers in the2( world! ichael ars opened his first penny ba2aar in *114, in:eeds, ;ngland! Ten years later there were nine maretstores, and ars had taen into partnership Tom 9pencer, thecashier of one of his suppliers! .n *2< ars and 9pencer  DISCUSSION 52 53     Understanding the main points *  Number the following ideas 1-8, depending on the order in which they appear in the text. a The %merican Telephone and Telegraph +ompanydecided that its principal ob5ective was to providecustomers with an efficient service! b The first step in  planning the =long-term> future of acompany is to decide on its overall ob5ective, c %fter analysing its strengths, weanesses, opportunitiesand threats, an organisation may re-consider itsob5ectives! d The purpose of a corporate plan is to state howmanagement intends to achieve the ob5ectives! e The second planning stage is to establish more specific=medium-term> ob5ectives! f 6inally, management needs todecide what actions itshould tae in order to achieve its ob5ectives! g .t isnecessary for management to analyse the company#scurrent performance as well as e$ternal factors affectingits future before they can draw up a corporate plan! h ars and 9pencer#s aim to provide e$cellent valuefor money has led to their becoming one of the world#smost successful retailers!2 Consider Computex, the high-technology company mentioned in the discussion on page !. Note down some of its strengths, wea nesses, opportunities and threats. 9TR;?0T 9W;%@?;99;9 AARTB.T.;9 T R;%T9 * !!!!!!!!!!!!!!!* !!!!!!!!!!!!!!!* !!!!!!!!!!!!!!!* !!!!!!!!!!!!!!!2 !!!!!!!!!!!!!!!2 !!!!!!!!!!!!!!!2 !!!!!!!!!!!!!!! 2! !!!!!!!!!!!!!!! 3 !!!!!!!!!!!!!!!3 !!!!!!!!!!!!!!3 !!!!!!!!!!!!! 3 !!!!!!!!!!!!!!! 4 !!!!!!!!!!!!!!!4 !!!!!!!!!!!!!!! 4 !!!!!!!!!!!!!!!4 !!!!!!!!!!!!!!   5455  became a public company! %t that point, they could have rested on their laurelsC owever, before deciding strategies, the planners have to loo at the companyDs present performance, and at any e$ternal factors, which might affect its future! To do this, it carries out an analysis, sometimes called a 9WT analysis =9trengths, Weanesses, pportunities and Threats>! 6irst, theorganiEation e$amines its current performance, assessing its strengths and weanesses! .t loos as performance indicators and maret share, sales revenue, outputs and productivity! .t also e$amines its resources F financial, human, products and facilities! 6or e$ample a department store chain may have stores in good locations F a strength F but sales revenue per employee may be low F a weaness! e$t, the company loos at e$ternal factors from the point of view of opportunities and threats! .tDs trying to assess technological, social, economic and political trends in the marets, where it is competing! .t also e$amines the activity of the competitors! The department store chain, for e$ample, may see an opportunity to increase profits by  providing financial services to customers! n the other hand, increasing competition may be a threat to its very e$istence! aving completed the 9W%T analysis, the company and now revaluates its ob5ectives and perhaps wor out new ones! They will as themselves )uestions such as %re we producing the right products? What growth rate should we aim at in the ne$t ' years? Which new marets should we brea into?The remaining tas is to develop appropriate strategies to achieve the ob5ectives! The organiEation decides, what actions it will tae and how it will  provide the resources to support those actions! ne strategy may be to build a new factory to increase production capacity! To finance this, the company maydevelop another strategy, the issuing of a new shares to the public!+ompany planning and strategic decision-maing a ey activities of top management! nce they have been carried out ob5ectives and targets can be set at lower levels of the organiEation!   #nswer the following questions, then, in groups of two or three, compare your answers. * What sort of things motivate people to do their 5ob well?  $ist all the things you can thin of. 2 .f you won a great deal of money, for e$ample in a lottery, would youcontinue woring? .f not, do you thin you would lose anything by giving up wor? The wor of managers is to ensure that staff wor efficiently inan organisation! To achieve this, it is clear that managers mustnow what motivates people! /y understanding the factorsinfluencing motivation, they can create the conditions in whichemployees will perform to their ma$imum!potential,Gne of the best nown theories of motivation was put forward by an %merican psychologist, %braham aslow, in a boo entitled  %oti&ation and 'ersonality =*'4>! .n his theory, he presents a hierarchy of needs! e identified certain basic human needs and classified them in an ascending order of importance! /asic needs were at the bottom of the hierarchy, higher needs at the top! is classification is shown below 8 Motivation DISCUSSIONREADING *(

cfc_19071221.pdf

Jul 23, 2017

4 Introduction

Jul 23, 2017
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks