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Strategy and Effectiveness

Team Turea

Organizational Purpose

•Strategic Intent •The Importance of Goals •Operating Goals

Strategic Intent

•Mission

•Competitive Advantage

•Core Competence

The Importance of Goals

Official Goals(Mission)

vs

Operating Goals(Vision)

Operating Goals

Overall

Performance

Goals

Market Goals

Resource

Goals

Employee

Development

Goals

Productivity

Goals

Innovation and

Change Goals

A Framework For Selecting Strategy and Design

Porter’s Competitive Strategies

1

A differentiation A low-cost leadership

Defferentation

Focus on efficiency Low cost

Example (narrow scope) : Family Dollar

Example (broad scope) : Walmart

Low-cost Leadership

Focus on uniqueness

Example (narrow scope) : Edward Jones Investment

Example (broad scope) : Apple

Managers Choose Which to Emphasize

Miles and Snow’s Strategy Typology 2

Prospector Defender

Analyzer Reactor

Prospector

Defender

Analyzer

Reactor

Assessing Organizational Effectiveness

1)The Goal Approach

2)The Resource-Based Approach

3)The Internal Process Approach

4)The Strategy Constituents Approach

Who Decides?

Goal Resource-based

Internal process Strategic constituents

Effective Approaches

Goals approach =OUTCOME

Resource-based Approach =POWER GAME

=UTOPIA

Internal process Approach

Strategic constituensts Approach

=SNIPE ONE’S TASTE

Intergrated Effectiveness Model

• Rational Goal Emphasis

• Internal Process Emphasis

• Open Systems Emphasis

• Human Relations Emphasis

Flexibility

Internal

Flexibility

External

Control

External

Control

Internal

FOCUS Internal External

STRUCTURE Flexibility

Control

Attention to Essentials!

• Goals!

• Competitive advantage&core competence!

• Choose suitable model(Porter VS Miles&Snow)!

• Define your own “effectiveness”!

• Effectiveness is multidimensional!

• Organization’s identity!

The born Korea

vision

• Globalization of Korean food

• Provide a satisfactory meal for every customers

• So, “The born Korea” selects low price, good taste and

hearty food.

Strength

Strength

Strength

• Low start-up cost

Weakness

• Increase Debt ratio compared with 2011.

• Indiscriminately generate brand or expand franchisee.

• They have brand that don`t have any franchisee.

Opportunities

Threat

• They have an application, but it makes error sometimes, so customers complain.

Poter`s competitive strategy

• <differentiation>

=Specialization(subdivide the menu and assign each brand.

=Continuous research new food and service.

=The interior design is relative to each brand’s

food.

Poter`s competitive strategy

• <low-cost leadership>

lower amount of money and do their best to keep high quality.

Assessing Organizational Effectiveness • 70 billion in annual sales

• The number of the born Korea's brand is 25.

• The franchise is 426 units in Korea.

1933—The "State Airlines Administration" operating under the supervision of the Ministry of National Defense has been established on the 20th of May. 1935--The Administration started operating under the Ministry of Public Works which at the time was called "Nafia Vekâleti« 1946--The State Airlines Department has been renamed as the General Directorate of the State Airlines Administration

1955--On the 21st of May, the title "General Directorate of the State Airlines Administration" has been changed by Law to its current name: Turkish Airlines.

TODAY—The airline which flies to the most countries in the World.

To become the preferred leading European air carrier with a global network of coverage thanks to its strict compliance with flight safety, reliability, product line, service quality and competitiveness, whilst maintaining its identity as the flag carrier of the Republic of Turkey in the civil air transportation industry

To become an air carrier with;

• a continued growth trend over industry average

• zero major accidents/crashes

• most envied service levels worldwide

• unit costs equating with low cost carriers

• sales and distribution costs below industry averages

• Honesty and Fair Dealing

• Customer Satisfaction

• Confidentiality

• Leadership

• Productivity

• Demonstrating Respect to Individuals

• Innovation

• Team Work

• “Open Door” Policy

SUPPLIER POWER

BUYER POWER

THREATS OF NEW ENTRANTS

THREAT OF SUBSTITUTES

• #flytogotham

“first official airline sponsor” UEFA 2016

Total Aircraft: 303 2022: 430 Total passenger has increased 12% between 2014-2015 Profit 32%

• “Best Business Class Lounge Dining” (2014-2015) twice

• “Best Business Class Airline Catering” (2013-2014-2015) three times

• “Best Airline in Southern Europe” (2009-2010-2011-2012-2013-2014-2015) seven times at the Skytrax Passengers’ Choice Awards

• “Best European Cargo Airline”(2014)

• “India Cargo Airline of the year” (2014)

• “Overall Carrier of the Year, Combination Carrier of the Year”(2014)

• “International Award for the Fastest Growing Cargo Airline” (2013)

• “Best Premium Economy Seat” (2012)

• “Best Catering in Economy Class”(2010)

• “National Quality Award” (2007)

SOURCES

• http://www.siyasetekonomiyonetim.org/index.php/seyad/article/view/182/158

• http://investor.turkishairlines.com/en