Control of Global Business-definition. pptx

Control of Global Business

1. CONTROL OF GLOBAL BUSINESS

2. Strategy Formulation In formulating strategy , global businesses formulate their overall goals. Often this is done initially in a corporate mission statement, One major strategic goal formulation is whether to adopt an overall shareholder or stakeholder orientation.

3. Mission Statement A written statement of why a company exist and what it plans to accomplish.

4. Shareholder versus Stakeholders Strategy formulation model that operates from the basic premise that the key strategic purpose of a business is to maximize financial returns for its owners/shareholders.

5. Stakeholder Model of Strategy Formulation Strategy formulation model that believes that businesses exist to benefit not just their shareholders, but also various groups, such as employees and customers, that have meaningful stake in their operation.

6. StakeholderModel of Strategy Formulaton Global Business How Does Strategy Formulation Affect ? Shareholders

7. Stakeholder Model of Strategy Formulation How Does Its Strategy Formulation Affect ? Consumers/Customers Employee Global Business Suppliers/Vendors Creditors Communities Where II Does Business Shareholders

8. Strategy Implementation Operational Plans Tactical Plans

9. Operational Plans Very short-term, less than one year, plans formulated for implementing strategic goals.

10. Tactical Plans One-to-three-years plans formulated for implementing strategic goals.

11. Prospectors Organizations whose basic strategic implementation involves extending their success through global expansion and finding new market opportunities.

12. Defenders Organizations that implement a basic market strategy of concentrating in existing operations and generally defending their home turf.

13. Reactors Organizations whose strategic implementation involves responding to strategic actions initiated by competitors.

14. Analyzers Organizations that take a middle group between being prospectors and defenders.

15. Coordination Impediments to Coordination Knowledge Management and Systems

16. Knowledge Management and Systems Tacit Knowledge – knowledge that is informal in nature and difficult to communicate. Explicit Knowledge – knowledge that is codifiable and easy to communicate or write down.

17. Control Systems Bureaucratic Controls Interpersonal Controls Output Controls and Measurement

18. Absorptive Capacity The ability of organizations to recognize, assimilate, and apply new knowledge.

19. Bureaucratic Controls Systems of rules and regulations promulgated within a global business.

20. Interpersonal Controls Involves executives engaging in personal contact with subordinates as a way of managing an organization.

21. Output Controls and Measurement Involves establishing specific goals on given metrics and then measuring to what extent these goals are being achieved at certain time intervals.

22. Output Controls and Measurement Profits Growth Productivity Market Share Quality/Six Sigma Initiatives Corporate Social Responsibility

23. Organization Culture and the Change Control Function Organizational Culture – the personality of a given organization, its shared norms and values. Organizational Change – involves implementation of a different business or cultural path for an organization.