MGT200ch4 - MGT200 Chapter 4: Planning Ahead Recession:...

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MGT200 Chapter 4: Planning Ahead Recession: when the economy isn’t doing as well as it should be - To shrink, decline Base costs: energy Inflation: causes economy to recede Trust: what is needed, customer loyalty, Manage shareholder wealth short term or long term What is a customer-driven organization ? - The customer is the number one stakeholder of the organization - Customer-focus (high quality, reasonable price, on time delivery, service) - Parker & Gamble - CRM: communication with customers to gather and utilize data regarding their needs/desires What is a quality-driven organization? - Level of quality of the product - Surround the people and technology towards it - Delivering a high quality product - GM, Toyota - Total quality management (TQM) - Lean production: streamline system - Flexible manufacturing: processes that can change quickly for modifications to existing products What is organizational culture? - Interactions between employees within an organization - Formal vs informal - Sharing beliefs and values How is diversity managed in a multicultural organization? - Unavailability due to faith/culture Toyota Corolla - Predicted in 2008 to surpass GM, for number one car company - Provides both vehicles, products, that is needed - And the products are of good value All time goal: create wealth If the decisions we make short term negatively affect the long term, then it’s the wrong decision What is the external environment of organizations ? - Competitive advantage is a core competency - Finding an advantage over competition - Sets an organization apart - Products, Pricing, Customer Service, Cost Efficiency, Quality - Customer Service, ie. delivery, free, 24 hrs
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Background conditions (always changing): - Economic - Socio-cultural o population growth, age, population needs, - Legal-political o social responsibility, ethics - Technological o advancements - Natural environment o how we perceive it o ie. serious environmental concerns o reducing company impacts to environment Stakeholders The specific (task) environment, actual organizations, groups, and persons with whom an organization interacts and conducts business - customers - suppliers - competitors - regulators - investors/owners - society/public Figure 4.1 Stakeholder analysis of value creation for key constituencies of a business firm Input-Output Model Input: raw materials, labour, ideas Transformation: organization, knowledge Output: finished goods/services Environmental uncertainty : lack of complete info regarding what exists and what developments may occur in the external environment Two dimensions: 1) Complexity a. Number of different factors in environment 2) Rate of Change a. Rate of change of factors Business risk increases, expected return increase (from shareholders) Higher risk, need for more flexibility and adaptability - Respond quickly to new circumstances Figure 4.2
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How is information technology changing the workplace? -
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MGT200ch4 - MGT200 Chapter 4: Planning Ahead Recession:...

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