Lecture 2: Functional dimensions which shape the organization and its strategy THE INTERNATIONAL...

Lecture 2: Functional dimensions which shape the organization

and its strategy

THE INTERNATIONAL BUSINESS ENVIRONMENT

DR (PROF) M AMBASHANKAR - GBE

Environment HRM Marketing Operations Accounting Organization Corporate Central Innovation Strategy Management Consumers

Business functions in the organizational environment


Feedback Customers Inputs (Resources): Outputs Materials Transformation Process Products Staff Services Energy *------*------*------* Customers Profits Environment

Operations: The transformation process model


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


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.


Product

- new products - brands

Price Marketing Place - costs Mix - distribution networks - value for money - logistics Promotion - advertising - sales management

Marketing Mix


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


Political and legal environment Social and cultural environment Employee Employee Relations Goals HR Development Organizational Organizational Goals Culture Recruitment & Reward Selection Systems Economic environment

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


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


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


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?


Lecture 2: Functional dimensions which shape the organization and its strategy THE INTERNATIONAL...

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