Trent Hemann James Yost Bunde Walker
When managed strategically, able to exploit: ◦ Resources ◦ Capabilities ◦ Core Competencies How decision makers formulate and implement organizational strategies
Puzzle pieces represent the organization’s functional strategies Move in desired direction Move towards goals Functional strategies are developed while taking into account the organization’s: ◦ Overall vision ◦ Mission ◦ Corporate and Competitive strategies
When organization is founded, overall strategic direction and goal are formulated Capabilities and Core competencies are developed Support business and corporate level strategies Decision makers look at various functional un its to see what is and isn’t working
Have information about positive and negative aspects Exploit Strengths Changes in functional strategies can be used to counteract threats and weaknesses Analyze, Decide, Act, Evaluate
Goal-directed plans and actions of the organization’s functional areas Help ensure that resources and capabilities are used efficiently and effectively Three functional concerns ◦ Product ◦ People ◦ Support Processes
Important strategic choice in R&D involves “who” ◦ Separate R&D of product designers, engineers… ◦ Cross-Functional team ◦ Something in between
Important strategic choice in R&D involves “how” ◦ Formal/informal process for creating ideas ◦ Type and amount of research ◦ Use of product prototypes, test markets….
Obvious for physical goods ◦ Toyota… Less distinct for services ◦ Google…
Main decisions includes how and where products will be produced. Also includes: ◦ Designing layout, locations, capacity… ◦ Managing supply chain, inventory, planning… Goal: ensure that products are available when, where, and how they are needed by customers.
Managing the two “Cs” ◦ Customers ◦ Competitors Other marketing strategies include: ◦ 4 Ps ◦ Differentiation ◦ Building strong brand
HR strategies can contribute to performance ◦ Shows commitment to its employees High-performance work practices lead to both high individual and organizational performance ◦ Organizational: improve knowledge, skills, and abilities ◦ Individuals: Increase motivation, reduce loafing, help retain quality employees
HR Planning, recruiting, and staffing Orientation and straining Performance evaluation and disciplinary actions Compensation and benefits
Free meals from 11 on-site gourmet restaurants and snack rooms all over An on-site fitness center Five on-site doctors On-site childcare. A founders award, up to millions of dollars (literally), for new program ideas and designs. Receive 1.1 million resumes a year with only 2,229 jobs available Google ranked 1st on the 10th annual '100 Best Companies to Work For' list of Fortune Is it to really attract and motivate the employees or a business motive?
Information affects how effectively organizational members can do their work Information is essential to making decisions and carrying out work duties Corporate blogs are becoming more popular for getting information to outsiders
Harrah’s Information System was improving knowledge about customer service impact Getting the right information is critical to managing strategically It is common to have many different Information Systems
Critical in planning future strategies Strategic decisions include: ◦ Choices about collecting and using financial and accounting data ◦ When and how to evaluate financial performance ◦ How financial forecasting will be done ◦ Equity or debt, long or short term
Self checkouts and impulse buys Qualitative and Quantitative for each functional area Feedback is essential What was done vs. what was supposed to be done What changes need to be made Google implementing tablet OS to combat iPad
Self checkouts and impulse buys Qualitative and Quantitative for each functional area Feedback is essential What was done vs. what was supposed to be done What changes need to be made
Google Android sales surpassed IPhone AdWord Sales No censorship in China ◦ Great Firewall ◦ Shaky access
Must consider other organizational strategies compatibility Organizations are systems What will changes do to other departments? How will it change their functional strategy? All resources must be pooled to obtain a strategic competitive advantage
Consider other departments when implementing and evaluating other programs When making strategic decisions, first consider functional strategies