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It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy. Strategic management process has following four steps: 1. Environmental Scanning- Environmental scanning refers to a process of collecting, scrutinizing and providing information for strategic purposes. It helps in analyzing the internal and external factors influencing an organization. After executing the environmental analysis process, management should evaluate it on a continuous basis and strive to improve it.
Strategy Formulation- Strategy formulation is the process of deciding best course of action for accomplishing organizational objectives and hence achieving organizational purpose. After conducting environment scanning, managers formulate corporate, business and functional strategies. Strategy Implementation- Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action. Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making process, and managing human resources.
Strategy Evaluation- Strategy evaluation is the final step of strategy management process. The key strategy evaluation activitie are: appraising internal and external factors that are the root of present strategies, measuring performance, and taking remedial corrective actions. Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizat iona objectives.
These components are steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situation’s requirement, so as to make essential changes .
Components of Strategic Management Process Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with the other components and that this interaction often happens in chorus.
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management.
First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and
However. communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Performance measurement h. Product development and commercialization d. Successful organizations use the following steps to build customer relationships: . It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. which include the following: a) Internal and external collaboration b) Lead time reduction initiatives c) Tighter feedback from customer and market demand d) Customer level forecasting One could suggest other key critical supply business processes which combine these processes stated by Lambert such as: a. Procurement c. Customer service management b. Warehousing management a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Business process integration Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. Best-in-Class companies have similar characteristics. joint product development. The key supply  chain processes stated by Lambert (2004) are: Customer relationship management Customer service management Demand management style Order fulfillment Manufacturing flow management Supplier relationship management Product development and commercialization Returns management Much has been written about demand management. Customer service is the source of customer information. Information shared between supply chain partners can only be fully leveraged through process integration. operating an integrated supply chain requires a continuous information flow. An example scenario: the purchasing department places orders as requirements become known.external environment of the organization. responding to customer demand. Supply chain business process integration involves collaborative work between buyers and suppliers. common systems and shared information. in many companies. Physical distribution f. According to Lambert and Cooper (2000). The marketing department. Outsourcing/partnerships g. Manufacturing flow management/support e. management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business.
As product life cycles shorten. coordinate with customer relationship management to identify customer-articulated needs. develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. select materials and suppliers in conjunction with procurement. f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components. and the availability of the product/service is a vital part of each channel participant's marketing effort. Activities related to obtaining products and materials from outside suppliers involve resource planning. 2. e) Physical distribution This concerns movement of a finished product/service to customers. and 3. and research into new sources or programs. Also. changes in the manufacturing flow process lead to shorter cycle times.. many of which include the responsibility to coordinate with suppliers on matters of scheduling. customers and suppliers must be integrated into the product development process in order to reduce time to market. the customer is the final destination of a marketing channel. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing. Manufacturing processes must be flexible to respond to market changes and must accommodate mass customization. such as electronic data interchange (EDI) and Internet linkage to convey possible requirements more rapidly. scheduling and supporting manufacturing operations. According to Lambert and Cooper (2000). the purchasing function develops rapid communication systems. but also outsourcing of services that traditionally have been provided in-house. supply continuity. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. and time phasing of components. storage. handling and quality assurance. hedging. such as work-in-process storage. The desired outcome is a win-win relationship where both parties benefit. managers of the product development and commercialization process must: 1. and a reduction in time required for the design cycle and product development. meaning improved responsiveness and efficiency in meeting customer demand. d) Manufacturing flow management process The manufacturing process produces and supplies products to the distribution channels based on past forecasts. transportation. In firms where operations extend globally. wholesalers.g. sourcing should be managed on a global basis. inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. negotiation. the appropriate products must be developed and successfully launched with ever shorter time-schedules to remain competitive. order placement. Activities related to planning. handling. thus it links a marketing channel with its customers (e. In physical distribution. retailers). links manufacturers. Also. c) Product development and commercialization Here. inbound transportation. supply sourcing. determine mutually satisfying goals for organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers b) Procurement process Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products. and . The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage.
g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. loading & unloading facilities with proper area. Taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can both be correlated with firm performance.T. strategic decisions need to be taken centrally. dispatching authority with on time delivery. Cost 2. and 5. h) Warehousing management As a case of reducing company cost & expenses.outsource everything else. warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. stock management system etc. According to experts. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. . Hence. Asset measurement. managing and controlling this network of partners and suppliers requires a blend of both central and local involvement. area for service station. External performance measurement is examined through customer perception measures and "best practice" benchmarking. internal measures are generally collected and analyzed by the firm including 1. warehousing management is carrying the valuable role against operations. reducing manpower cost. and 2) best practice benchmarking. In case of perfect storing & office with all convenient facilities in company level. A. Productivity measures 4. logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage. Also. Customer Service 3. and includes 1) customer perception measurement. Quality. with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level. This movement has been particularly evident in logistics where the provision of transport.
quality and time. Materials. These are 4 M's :. These inputs are to be used to full extent to result minimum cost. Manpower and Money. To produce right quality goods and services as per the established standards and specifications. 4. 2. 3. Minimize the use of resources to the optimum level. To produce goods and services as per the estimated manufacturing cost and minimum inputs of resources.Porters five forces Competitive Rivalry Bargaining Power of Customer Bargaining Power of Supplier Threat of Substitutes Threat of New Entrants Ans 3 )) • Competition is stiff and at a local level • End user has limited bargaining power • Enjoy a relatively commanding bargaining power • No real threat • Virtually no entry barriers Objectives of Production Function 1.like Machinery. . To produce goods and services as per the decided time schedule.
where employees desire jobs that allow them to make good use of their skills and talents. By the nature of systems. when an organization is faced with moderate threat or opportunity. Performance management also serves to focus employee efforts and attention on critical tasks through the use of performance feedback. values. goals rules and norms into actions. Minimizing the total cost of production with continuous elimination of non-value added activities and improwing labour productivity on the production shop floor. Production Management Objectives. academics. ubiquitous . is based on the belief that an effectively designed. structure involves how people make decisions-the operating values whereby people translate perceptions. the absence of rater training. envisioned future. There are several enduring issues relative to performance management system implementation. The literature on performance management generally suggests that the management process can increase employee motivation and productivity. and consultants who proclaim that performance management is a critically needed tool for effective human resource management (1984). that is. the lack of organizational commitment and top-level support. facilitate discussions concerning employee growth and development. vision statement and vivid description of what the business would look like. In the world of big international business industries where transactions and other business operations are governed by law. implemented. and the employee a myriad of benefits (1987). Reaching a common understanding about the inherent beliefs in the organization provides a platform for further explorations on the norms of behavior that help define the organization's culture. people began to replace old behavioral patterns with new ways of thinking and behaving. These questions are often about the core ideology. increasing employees' perceptions and understanding of job tasks and subsequently their job satisfaction. and administered performance management system can provide the organization. efficiency counts largely as a common entrepreneurial aim.5. leading to a clear sense of direction. Life has changed since the invention of the computer which dictated man to deal with things in the most efficient way possible. People often focus only on their own decisions and ignore how their decisions affect others. In today's fast and technological modern world. Every business person is determined to know what kind of work they would and would not do for their customers and. More often than not. and Training and Development Plans t is common knowledge that every one of the successful companies today sought and found a precise understanding of how it could create advantage in the operations system and delivery options of the business organization in order to address detailed customer specifications. This can be attributed to human resource specialists. Frequently. This. Performance. in turn. provide data for human resource decisions. cultural differences and mutual trust. purpose. and provide managers with a useful communication tool for employee goal setting and performance planning (1989). elements of performance management may provide the employee with a more accurate understanding of job tasks (task identity and task significance) through objective setting. leaders plunge into a long-term strategic planning process without first deliberating on certain fundamental questions related to beliefs and values. which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. provide a solid basis for wage and salary administration. This exploration can also help reveal the impact that the organization's structure (system) has on behaviors. the challenge that the Information Man faces is time's nature of putting things in order and in place in the best and most effective way. Performance Goals Performance management is an important process for influencing both the extrinsic and intrinsic motivations of employees. 6. the manager. In addition. performance management increases job task "fit" (skill variety) through the identification of training and development needs that are consistent with individual and organizational goals. Maximize the utilization of manpower. in turn. they carefully learn how to fulfill the needs of each kind of customer in their target markets. For example. Priorities. They include the controversy over combining developmental and administrative purposes.
whether dealing with the context by which planning is occurring. business control should be its very objective. particularly the production arm of the company can readily attend to the commitments of the organization in order to maintain the satisfaction and loyalty of our customers. should be able to determine first and identify the resources that are available in the company. Included are several emerging implementation issues related to the need for increasing the sources of performance information and problems raised by inadequate literacy levels. skills become increasingly fragmented and specialized and positions become more functionally differentiated. budgeting methods. Studying and examining the opportunities of the available resources will help in constructing a business plan which will be profitable. it is inherent for any organizations to plan. Stocking. On the other hand. selection procedures. and product quality assurance. Coordinating the volume of orders into the specified deadline of clients and customers. harmonious entities celebrated in managerial theory nor the arenas of apocalyptic class conflict projected by Marxists (1980). 1. Communicating product volume and specifics to the members of the production teams. and people). While it is true that people do not always plan their actions. Leavitt had defined three approaches to organization. 2. these monthly goals and processes ensure that the organization. Identification of monthly production target in terms of product volume. the following are the general process I normally utilize in the organization in order to establish my personal goals within a month. Planning is commonly known as the process of formulating in advance as organized behaviour action. technology and people (1964). 4. Thus. In addition. New formal guidelines and procedures like organization chart. product testing. In an area of my work where the focus is of managing the integrity of the business.rating errors. warehousing. and performance appraisal schemes. technology. The business. it is important to develop and implement appropriate business controls through an assurance process based on a publish statement of compliance with relevant laws and business principles. . rules and regulations can also be structural approaches on inducing change. However. 3. Implementation of statement compliance will help to develop and manage key business risks. which includes structure. whether on the individual or organizational level. The characteristics of the business should be clearly laid out and the ideas that will be made available should be thoroughly researched. and the absence of specific performance documentation. these production goals and objectives serve as motivation to every individual staff and employee in the production department of the organization. its needs and demands equal efficiency and effectiveness on managing the business. work methods. Any commercial. beliefs and goals involved. Business control is crucial to maintaining business integrity especially when the business is developing and growing. Assessment and evaluation of inherent and inevitable shortcomings in the production process (product. is faced with the objective of maximizing the shareholder wealth and not the profit as was stated in the theory of financial management. This will provide relevant information that the general management can utilize so as to be able to allocate the funds of the company in the most effective way. Work Plans Organizations are neither the rational. among others. My duties under the control systems operation involves lowering the company's stock level. Hardy and Clegg (1996) believe that modern organizations passed by the guild structures and as organizations grew larger. Moreover. in order to effectively execute any business strategy or plan. entrepreneurial. and 5. to maintain business' efficiency and effectiveness. This can be done through new training programs. the process takes shape according to the prevailing attitudes. employee dissatisfaction with the amount of performance feedback received. private as well as public organizations and institutions who has a financial arm to manage the funds of the group. motivation and behavioral skills. inventory and delivery options and other supply management considerations of finished goods Generally. rearrangements in work flow through new physical layouts. Some organizations stress on people approaches which includes alterations in attitudes. Along with the considerations discussed above. job descriptions and work standards can be done as technological approaches. Planning also bears different meaning to different social groups.
Along with the duties and responsibilities assigned to me. sales exp report are provided regularly along with the staff's discrepancy report and analysis which presents the difference between the forecast report and the actual record. decision-making is essential. it could be noticed that in such modification and formulation. I prepare reports that will provide solutions on liquidating and managing the surplus available. For effective and efficient monitoring and control system of the business operations and transactions. All. quarterly and annually in order to keep track on the flow of goods and services rendered by the company. Other responsibilities include updates of records. monthly. Information system plays a crucial role and is a contributory factor in the success of an organization for the modification of present plans and strategies of an organization and the formulation of future goals. these are executed while keeping in mind the available selling plans that were constructed and stock status of each item. collaborating and effective management of priorities in the production constantly pose challenges and beset the operations management of the company. Management of Competing Demands and Priorities An information system is indispensable in every organization as reflected in its role. it is inevitable that the organization implement programs and production systems that will best suit the needs of the company and its clients. Furthermore. Management and sales reports are prepared daily. weekly. In cases of negative profit. The regular reports and sales analysis are constantly examined so as to adjust the business strategies for the succeeding business transactions. cancellation of P/O balance. and sources of information. The discussion below presents the IT system and techniques used in the company along with the lean management initiative to add value to the production process and overall operations of the business organization. ensuring that the purchased products will be sold. Hence. selling and purchasing deals with agents as well as cost adjustments. With the ever-increasing demands by the clients and customers. approaches. . As such. evaluation of the distributors system. and steps the organization will undertake are based on the data obtained in the past and converted to information organized in the system. I am tasked to prepare reports that will explain and support the reasons that led to such incidents which are approved and signed by the General Manager. I was able to meet the performance standards set by the company through the following evidences: ü I was able to design as well as modify the existing report format of our computer system which made it possible for us to utilize the functions more effectively and efficiently. In line with these tasks. These are made possible by categorizing the purchased products into three classifications: (a) regular forecast demands. ü I suggested ways which helped the company optimizer the function of the departments in order to minimize the cost and expenses of the operations. Adjustments of stocks are made using the computer system to coordinate the products available for resale and that of the forecasted volume of goods that needs to be ordered to supply the customers. These reports likewise present the performance of the people housed by the company. evaluating the job of each employee and redesigning his or her responsibilities to fit the changes. (b) additional allocation or back to back order. In line with this need. I have been able to put up with the expected performance of my position in the business organization. This process enables the management to device plans of how to lower the stock level by selling the surplus in which the recommendations and suggestions from the Sales Administration Department.minimizing purchase of goods from other agents. and (c) orders to other agents or suppliers. Such reports are utilized to analyze and investigate on the demand of the products that should tally with the records provided by the other company departments so as to decide and make necessary actions on the needs and conditions of the business industry particularly the demands of the clients. as well as the pressure from the upper management of the organization for increased efficiency and profit. raw materials suppliers. and maximizing the profit of the company. making accurate forecasts of demands. The sales representatives are then required to act accordingly in order to clear the stock of surplus. information system influences decisions thereby affecting the status of the organization at the present and in the future. ü I have been able to rearrange some job specifications to adapt to the needs of the complicated business environment. ü I have likewise contributed to the creation of new operations system as well as the improvements made on the rules that govern the system for more efficient work output. purpose.
The development of Lean Quality Management System is one of the quality management approaches that address the business setting at present. (d) marketing and sales. as well as in the entire the distribution and sales of finished goods. communicated and focused. The lean machine is known in the ease of its use and installation as well as its cost effectiveness in dealing with wastes in most quality systems thereby saving time and money for the software. IT system has disadvantages also because information that will be transferred can be access by someone if it is not secure enough. using manual system generates limited information for processing. what and when. processing. and other tools that work together to simplify and deliver information for improved business operations which minimize the time spent on other software programs (). It was developed to (1) save thousands of dollars each year by avoiding the waste associated with a paper quality system. information processing improves with several benefits such as lower costs capital management. recording. ü With the use of manual system. In just a click. no matter how far the business area or the country. Training and Development Plan Business organizations nowadays offer two-way learning experience within the company between . (6) provide a management system that provides the who. As we all know. Although efficiency and effectiveness is proven and accuracy and validity is tested. Here. Especially when the information requires confidentiality. (3) perform tasks that are clearly assigned. using manual system perceive as slow as compare to IT systems. and (e) customer service. In effect. its human resources management. In just a click. reduces pressure and hassles in the workplace among others. On the other hand. and the technology it uses (2005). However. information processing is more meticulous and requires a lot of effort but produces good end results. ü Information Technology system benefited the transferring of information. ü With the use of Information technology. all through out the manufacturing and production process. ü It is not a problem in the workplace to store information using IT system. The Lean Value Chain of Production System Model below illustrates how companies at present gain competitive advantage by adding value to the overall operation of the organization through efficient production system (2006). In just one click. the value-generating activities are supported by the infrastructure of the firm. business transactions are more on the advantage position. there are still activities in the workplace that practice manual system to secure information or confidentiality. namely: (a) inbound logistics. and (7) provide the metrics to drive your organization to ever-higher levels of performance and success which works just as well for small as large companies (Lean Software Quality Management). (b) operations. information can be saved or retrieved. confidential information and records are not too safe using the IT system because somebody may access it. from the receiving and warehousing of raw material from the suppliers. (c) outbound logistics. businesses rely on information technology to get the work over and done. ü Using manual system for storing relevant information is still considered as a safe procedure. It can integrate information. With the rise of globalization. Here. Nowadays with the advent of information technology. storing and transferring information. (2) harness the creativity of employees while maintaining control of their projects. graphs. transferring information and records requires more time. reports. defined. IT system Through the advent of information technology. all the information can be viewed through computers. record processing takes different stages before going to final stage.Generating manual and IT systems in the workplace provides a more advantage in terms of receiving. information processing is not an easy job because it entails processing of vast amount of information that is usually needed immediate attention. information and records are kept for future use. Business firms that utilize the value chain management strategy also consider increasing the companies' relationship with its shareholders by separating the business system into a series of value-generating activities. Manual system ü With manual system of work. fastest time. (4) spend less time managing the quality system and more time improving the value stream. information is sent through up to date and powerful technology. (5) reduce training costs by integrating procedures with training. However.
Bonding activities like out of town trips can be psychologically helpful to all the employees that will elicit bond among the people inside the company as well as for the employers to know their work team. Possibilities of promotion through their acquired knowledge and improved skills as competitive employees should always be reminded to the staff as a form of motivation to encourage productive outputs. In developing a training program to enhance the productivity of employees the manager will look at the competency problems of the employees and fashion the program to enable the employees to reach and even exceed the competency standard established for their work. This is the measure to be used by managers in determining compliance with the standard and in identifying problems met by the employees in meeting the standard. Employees on the other hand. Encouragement of wider work responsibility of basic skills such as development and learning courses should be given to employees on specified times of the year. will provide harmonious relationship inside the business organization. internet-based training and self teaching by encouraging innovativeness in the workplace (1998). In the case of newly hired staff. This requires a great amount of perceptiveness on the part of the manager in determining what method of training will be most effective in improving employee competence. more trust should be given to the work team of the company. are given the opportunity to improve on their work capabilities as qualified and productive members of the modern and information age work force. Since workplace learning and training programs in business organizations is a common practice nowadays.the employers and the employees. the organization will gain competitive attitude in the business world by housing in competitive and qualified workers. Team building exercises wherein work peers as well as the supervisors will be participating should be regularly held. Entertaining and respecting solicited opinions and ideas of ordinary employees will be of help in setting the corporate goals of the company since the staff is encouraged to think as owners of the business enterprise. Employers need to enroll their staff in annual or quarterly training courses to upgrade their skills and enrich their knowledge so as to foster individual and personal development and improvement. It is also apparent that equal relations between the employer and the employees should be practiced to encourage productivity in the business organization. Incentives in the form of financial aids like bonuses and other material compensations as well as intrapersonal rewards such as positive critical feedbacks and recognition should be endorse by the company to boost confidence and motivate the employees. Ensuring employee performance requires establishing a level of competence which the employee should be aware of as a target to be achieved. This in turn will also be profitable to the organization itself due to increased output of the work force. Maintaining such condition within the office will elicit productivity from the employees as they enjoy their duties of accomplishing their tasks and will help in reducing stress and eventual burnout in the workplace. This will restore fresh knowledge to old employees. Promoting individual competence and competitiveness among the staff and other members of the organization will be of benefit to the company since this will uphold and advance the initiative work attitude. At the best possible results. . more comprehensive and rigorous training exercises should be applied to better prepare them of the workloads they will be responsible of in the actual business transaction and work process. Enhancing good working relations among all the employees and preserving a good working environment and atmosphere ideally. Some of the training includes computer software training. Employers benefit largely from trainings that they offer to staff and members of the firm given that the expected knowledge and skills were learned through the organizations venture on their human resources.
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