Prepared by group No. 2: Natalia Trunova (M004610026) Domingo Lee (M994610011) Libby Shun-Chi Chiang...
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Transcript of Prepared by group No. 2: Natalia Trunova (M004610026) Domingo Lee (M994610011) Libby Shun-Chi Chiang...
Prepared by group No. 2: Natalia Trunova (M004610026) Domingo Lee (M994610011) Libby Shun-Chi Chiang (M014020007)
The primary responsibility of top management is to determine an organization’s
goals, strategy, and design,
thereby adapting the organization to a
changing environment
The primary responsibility of top management is to determine an organization’s
goals, strategy, and design,
thereby adapting the organization to a
changing environment
CEOTop management
Internal SituationInternal
Situation
Strategic Intent
Effectiveness Outcomes
Organization Design
External Environment
External Environment
Opportunities Threats Uncertainty Resource availability
Strengths Weaknesses Distinctive competence Leader style Past performance
Define mission Official goals
Select operational goals Competitive strategies
Structural form Learning Efficiency
Information and control systems Production technology Human resource policies, inventives Organizational culture Interorganizational linkages
Goal attainment Resources Efficiency Strategic constituents
Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm
Low Cost High Cost
BroadOverall CostLeadership
Differentiation
NarrowCost
FocusDefferentiation
Focus
Competitive Advantage
Com
petit
ive
Sco
pe
Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm
Source: http://www.emeraldinsight.com/journals.htm?articleid=1411048&show=html
Bad strategy Good strategy
• It fails to define the problem;• It is based on weak or fussy objectives;• It is mostly fluff.
• Diagnosis;• A guiding policy;• Coherent action steps.
DefinitionEffectiveness
degree to which an organization realizes its multiple goals.
Efficiency the amount of resources used to
produce outputs.
Overall effectiveness is difficult to measure in organizations.
4 approaches to the measurement of organization effectivenessGoal approachResource-based approachInternal approachStrategic constituents approach
Resource-based Approach
Internal ProcessApproach
Goal Approach
Strategic Constituents Approach
ResourceInput
Product and ServiceOutputs
OrganizationInternal
Activities & Processes
Employees
Government
Owners
Customers
Community
Suppliers
Creditors
Exhibit 3.9
Consists of identifying an organization’s output goals and assessing how well the organizations has attained those goals. Activities the organization is really performing.
E.g. output, profit, or client satisfaction Indicators – operative goals – easy to
measure
Evaluates the ability of the organization to obtain valued resources from the environment.
Indicators bargaining position, ability to correctly interpret properties of the
environment, ability to use resources to achieve superior
performance, ability to respond to environmental changes.
An evaluation of human resources and their effectiveness is important. internal organizational health and efficiency
Indicators Positive corporate culture and work climate Confident between employees and management Operational efficiency Communication Growth and development of employees Coordination among organization’s parts
measures efficiency by focusing on satisfaction of key stakeholders. e.g. owners, employees, customers, creditors,
community, suppliers, government Indicators - Criteria of constituents groups Usefulness - Constituencies have
powerful influence on the organization, and it has to respond to demands
Developed by R. Quinn and J. Rohrbaugh
Tries to balance a concern with various parts of the organization rather than focusing one part.
Combines several indicators into a single framework.
NASA example – different viewpoints
Competing values model
Exhibit 3.10
Case study: Horizon
Business concept/strategyCore competenciesCustomersCompetitorsFuture perspective
John Lu founded Horizon Yacht in 1987
Horizon has endeavored to create and build yachts that embody each client’s dreams.
Integrated Company Structure. Horizon Group Management Center
functions by supervising the Horizon Group network: delivery center; mold center; human resources center; marketing center and IT center.
Source: Horizon Company’s official presentation materials
Taiwan Australia China Europe Greece/Cyprus Hong Kong Japan New Zealand Russia Singapore South Korea Turkey United States
Source: Horizon Company’s official presentation materials
Advanced Technology Sophisticated CraftsmanshipExtraordinary DesignExcellent EngineeringQuality Assurance State-of-the-art Facilities
2006 Awarded “Best Asian Super Yacht” Award and “Best Asian Yacht Builder” Award at the Christofle Asia Boating Awards 2006
2007 Awarded “Best Asian Yacht Builder (under 100 feet)” by Christofle Asia Boating Awards 2007
2007 Won the “2007 Taiwan Superior Brand” competition 2010 Horizon E88 motoryacht and SC46 solar power boat won
the “Taiwan Excellence 2010” Awards 2011 Awarded “Best Asian Motor Yacht Builder ( 81 feet and
up)” by Asia Boating Awards 2012 Awarded “Best Asian Yacht Builder (15-30 meter)” by Asia
Boating Awards
Source: Horizon Company’s official presentation materials
2012 Rank Company Total (m) Total (ft) Projects Avg. (ft)1 Azimut-Benetti (Italy) 2,640 8,661 75 1152 Ferretti Group (Italy) 2,427 7,961 76 1053 Sanlorenzo (Italy) 1,413 4,635 42 1104 Lürssen (Germany) 753 2,471 7 3535 Sunseeker (UK) 649 2,127 21 1016 Feadship (Netherlands) 567 1,860 8 2337 Westport (USA) 548 1,798 16 1128 Heesen Yachts (Netherlands) 535 1,754 11 1599 Horizon (Taiwan) 519 1,704 17 10010 Amels (Netherlands) 495 1,625 8 20311 Fipa Group (Italy) 482 1,581 15 10512 Overmarine (Italy) 461 1,512 13 11613 Trinity Yachts (USA) 432 1,417 8 17714 Perini Navi Group (Italy) 426 1,398 8 17515 Princess Yachts (UK) 378 1,239 13 9516 Palmer Johnson (USA) 303 993 5 19917 Christensen (USA) 259 848 6 14118 Proteksan-Turquoise (Turkey) 257 843 4 21119 Kha Shing (Taiwan) 240 787 8 9820 Dream Ship Victory (Turkey) 238 781 3 260
Top 20 Builders
Main competitors
Dedicated to customer satisfaction.
Horizon strives to improve and advance upon every aspect of the boat building process.
Horizon also invests in the future, developing new models and series (focus on environmental friendly designs).
Perception of environment
Underlying values
unstable
stable
efficiency innovation
Prospector
Defender
Horizon
Dimensions
Horizon’s reality
Stable market
• Ability of customization within smooth production process.• Yachts of average 100 ft. on European (40%) and Australian (26%) markets.
New market
•Risk diversification, creating more markets.•Recently, plans have been made to expand to India.•Expand into China through dealership.
Emphasis on efficiency
•Employment of high-quality talent.•Ability of group specialization and integration.•Strengthen services.
Emphasis on innovation
•CNC (Computer numerical control) milling system •SCRIMP (Seemann’s Composites Resin Infusion Molding Process) for producing one -piece yacht hull (longest in the world in 2006).•Yachts equipped with solar-power panels .
The competitive advantage of Horizon is customization. stability and equilibrium. Growth and resource acquisition Productivity, efficiency
Invests in the future, integrated enterprises to Horizon Group Co. - Open Systems Model
Improve process, developed internal communication - Internal Process Model
Horizon Yachts
Human RelationsEmphasis
Internal ProcessEmphasis
Rational Goal Emphasis
Open Systems Emphasis
STRUCTURE
FOCUS
FLEXIBILITY
CONTROL
INTERNAL EXTERNAL
Horizon Group
Horizon YachtsSince: 1987
Employees:340
Atech CompositesSince: 2000
Employees: 250
VISION YachtsSince: 2001
Employees: 250
PRIMIER YachtsSince: 2003
Employees: 110
CNC Mold WorkshopSince: 2005
Horizon FurnitureSince: 2000
4 Yacht Factories Total employees: 1000
Internal Process Emphasis
Horizon
Group
Horizon
Group
Customers
Customer
Service Center
Marketing
Center
Purchasing
Dep.
Suppliers
R & DFinancial Dep.
Human Resourc
eCenter
Information
Technology Center
Knowledge Manageme
ntCenter
Yachts Manufacture Factories
ProfessionalTask Force
Center
Marketinformati
on
United DeliveryCenter
joint purchasing
joint marketing
Yacht information
Fast service
Ord
er a
ssig
nmen
t
Task assignment
Think tank
IT platform
join
t R&D s
harin
gF
inan
cial
con
trol
HRassignm
ent
Orders /Need
Joint delivering
Open Systems Emphasis
US. → Europe Market OEM → OBM 80~110ft → 120 ft Customize (High Value add)
Ex. BMW motor MIT = Made in Taiwan
Manufactory base – High Quality Relatively low cost ( vs. Italy)
Differentiation
Low Cost
Competitive Advantage
CEOTop management
Internal Situation- Weak of Design- No brand image- Low Cost & High Quality
Internal Situation- Weak of Design- No brand image- Low Cost & High Quality
Strategic Intent- Branding- EU market- Customize- Risk diversification
Strategic Intent- Branding- EU market- Customize- Risk diversification
Effectiveness Outcomes- Top 10 Brand Effectiveness Outcomes- Top 10 Brand
Organization Design-Efficiency but FlexibleOrganization Design-Efficiency but Flexible
External Environment- Decline of US market- OEM limitation- 120ft Yacht
External Environment- Decline of US market- OEM limitation- 120ft Yacht