Lecture 2: Functional dimensions which shape the organization and its strategy THE INTERNATIONAL BUSINESS ENVIRONMENT DR (PROF) M AMBASHANKAR - GBE

Business functions in the organizational environment DR (PROF) M AMBASHANKAR - GBE

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

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

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