lecture 2: functional dimensions which shape the organization and its strategy the international...
TRANSCRIPT
Lecture 2: Functional dimensions which shape the organization
and its strategy
THE INTERNATIONAL BUSINESS ENVIRONMENT
DR (PROF) M AMBASHANKAR - GBE
Environment HRM Marketing Operations Accounting Organization Corporate Central Innovation Strategy Management Consumers
Business functions in the organizational environment
DR (PROF) M AMBASHANKAR - GBE
Feedback Customers Inputs (Resources): Outputs Materials Transformation Process Products Staff Services Energy *------*------*------* Customers Profits Environment
Operations: The transformation process model
DR (PROF) M AMBASHANKAR - GBE
OPERATIONS STRATEGY – PERFORMANCE OBJECTIVES
• Quality – meets expectations of customers• Dependability – meets contractual terms for specification
and delivery• Speed – speed of response to customers’requests• Flexibility – sensitivity to customers’ needs; willingness to
adapt• Cost – controlling costs while meeting other performance
objectives
DR (PROF) M AMBASHANKAR - GBE
THE MARKETING CONCEPT• Achieving organizational goals depends on determining needs and wants of consumers and
satisfying those needs and wants.
• Satisfying the needs of differing groups of consumers and responding to changing consumer tastes is inherent in the marketing concept.
DR (PROF) M AMBASHANKAR - GBE
Product
- new products - brands
Price Marketing Place - costs Mix - distribution networks - value for money - logistics Promotion - advertising - sales management
Marketing Mix
DR (PROF) M AMBASHANKAR - GBE
HUMAN RESOURCE MANAGEMENT (HRM)
• HRM seeks to link individual capabilities and commitment with achievement of organizational goals.
• Elements of HRM:
- Recruitment and selection
- Reward
- HR development and training
- Employee relations
DR (PROF) M AMBASHANKAR - GBE
Political and legal environment Social and cultural environment Employee Employee Relations Goals HR Development Organizational Organizational Goals Culture Recruitment & Reward Selection Systems Economic environment
Strategic HRM
Dr (Prof) M Ambashankar - GBE
ACCOUNTING AND FINANCE• Financial management – processes by which the company raises funds, such as equity
financing and borrowing
• Management accounting – processes by which company decision-makers direct and control funds to achieve the company’s goals
DR (PROF) M AMBASHANKAR - GBE
FINANCIAL REPORTING• Provision of financial information about the company, including profit and loss account,
balance sheet, directors’ report and auditor’s report
• Financial information addressed to:
- shareholders
- regulatory authorities
- the investing public
DR (PROF) M AMBASHANKAR - GBE
INNOVATION• New product development
• Improvements in processes
• New methods of administration and control
• New approaches to marketing
• New developments in distribution and delivery of the product
DR (PROF) M AMBASHANKAR - GBE
CONCLUDING SUMMARY AND QUESTIONS• Business functions perform specialist activities
(operations, marketing, HRM, accounting & finance) necessary to achieve organizational goals.
• Each function exists in the context of overall organizational processes and culture, as well as environmental forces – how does the international dimension impact on these functions?
• Central to the goals of the organization is satisfying the needs and wants of consumers.
• Innovation is key to competitive advantage – how can each functional area contribute to innovative capacity?
DR (PROF) M AMBASHANKAR - GBE