KLSs Institute of Management Education and Research Belgaum

Module :1

Ptd By :: Abhishek Kulkarni (753)) Sachin Shet (770)0)

 Management, essentially, is the art and scien ce of optimum utilization of Resources with maximum benefit to the society. Resources

Management

Control Systems

strategic planning
budgeting resource allocation performance measurement evaluation and reward

Elements of the control process:

Control device
2.Assessor:
Comparison with standard

1.Detector:
Information about what is happening

3.Effector:
Behavior alteration, If needed

Entity Being controlled

The standard is not preset. Management control is not automatic. Management control requires coordination a mong individuals. The connection from perceiving the need for a ction to determining the action required to o btain the desired result may not be cear. Much management control is selfcontrol.

The management control process is the process by which managers at all levels ensure that the people they supervise implement the intended strategies.

Management control is the process by which managers influence other members of the organization to impleme nt the organizations strategies. Management Control Activities are:
Planning Coordinating

Communicating Evaluating Deciding Influencing

Strategy describes the general direction in which an organization plans to move to attain its goals.

A firm develops its strategies by matching its core competencies with industry opportunities.

Strategies can be found at two levels (1) strategies for whole organization and (2) strategies for business units within the organization.

Strategy formulation is the process of deciding on the goals of the organization and the strategies for attaining these goals.
Goals- are broad & long overall aim.

Objectives- are the specific steps.

Strategy formulation is unsystematic that means opportunity and threats change the condition of making strategy. However MCS contains a well defined sequence of steps.

Environmental analysis

Internal analysis

Competitors Suppliers Regulators/politicians

Tech know how Manufg know how Marktg know how Distbn know how Logistics know how
Strengths/weaknesses

Opportunities/threats

Identify opportunities

Identify core competences

Fix internal analysis with external analysis

STRATEGY

Strategy for the whole organization / corporate level strategy Strategy for the business units

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Here u decide

The right mix of the businesses

Where to compete
With whom to compete What resources are to be deployed Which busi to add, de-emphasize, retain, divest etc
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Corporate Level Strategy

High

Single Industry: committed to one industry, core

competency, high investment

Eg: McDonalds
Degree of relatedness

Related Diversification: operate in no of industries &

their businesses are connected Eg: P&G (distribution channel)

Unrelated Diversification: operate in a no of different industries Eg: Textron, ITT

Low Extent of Diversification High

Business unit strategies deal with how to create and maintain competitive advantage in each of the industries in which a compan has chosen to participate.
The strategy depends upon : Its missionOverall objectives Its competitive advantagehow should it compete to achieve its overall objectives

In a diversified firm important task is resource deploymentusing of cash generated from some business units to finance growth in other business units. Planning models used are:

BCG:TwobyTwo growth share matrix GE/McKinsey:ThreebyThree industry attractive-ness business strength matrix

Before you build a competitive advantage pay imp to 3 factors 1. Structure of the industry 2. How can the structure be exploited 3. What will be the basis of the competitive advantage

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Two approaches to develop a good competitive advantage

Industry analysis Value chain analysis

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1. 2. 3.

The industry plays an important role in profitability

Five factors determine the structure of the industry; viz Intensity of rivalry among the existing players Bargaining power of customers Bargaining power of suppliers

4.
5.

Threat of substitutes
Threat of new entry
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This anallysis says that u can build a competitive adv by giving better customer value
BCV can be delivered in two ways Low cost differentiation

1.

2.

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