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StrategicManagementinAction8StrategicManagementinOtherOrganizationTypesStrategicManagementinActionLearningObjectives

1.

Differentiatebetweenasmallbusinessandanentrepreneurialventure.

2.

Explainwhysmallbusinessesandentrepreneurialventuresareimportant.

3.

Describehowthestrategicmanagementprocessisusedinsmallbusinessesandentrepreneurialventures.

4.

Discussthespecialstrategicissuesfacingsmallbusinessesandentrepreneurialventures.(continuedonnextslide)LearningObjectives1. DifferLearningObjectives

5.

Definenot-for-profitorganizationandpublic-sectororganization.

6.

Describethevarioustypesofnot-for-profitorganizations.

7.

Describehowthestrategicmanagementprocessisusedinnot-for-profitandpublic-sectororganizations.

8.

Discussthespecialstrategicissuesfacingnot-for-profitandpublic-sectororganizations.

9.

Describetheuniquestrategiesdevelopedbynot-for-profitorganizations.LearningObjectives5. DefineSMALLBUSINESSESAND

ENTREPRENEURIALVENTURESTable8-1CharacteristicsofSmallBusinessversusEntrepreneurialVenture

SmallBusiness EntrepreneurialVenture

Independentlyowned,operated,andfinancedFewerthan100employees Doesn’temphasizeneworinnovativepracticesLittleimpactonindustryInnovativestrategicpractices StrategicgoalsareprofitabilityandgrowthSeeksoutnewopportunities WillingnesstotakerisksSMALLBUSINESSESAND

ENTREPRENWhyAreTheseTypesof

OrganizationsImportant?WheretheNewJobsAreFigure8-1NumberofJobsCreated*6.05.04.03.02.01.0OrganizationSize

1–4 5–19 20–99 100–499 employees employees employees employees5,8102,2741,4172,326*Inthousandsfrom1992–1996.WhyAreTheseTypesof

OrganizTheStrategicManagementProcessin

SmallBusinesses&EntrepreneurialVenturesStrategicManagementProcess

Valueofstrategicplanning

Theoverallapproachtothestrategicplanningprocess

Externalandinternalenvironmentalanalysis

Strategychoices

StrategyevaluationandcontrolTheStrategicManagementProceStrategyEvaluationandControlStrategicManagementProcessforSmallBusinessesandEntrepreneurialVenturesFigure8-2MissionStatementSituationAnalysis•InternalSsandWs•ExternalOsandTs•CompetitiveAdvantage(s)StrategyFormulation•Functional•Competitive}BusinessPlan•Broad,OverallStrategyImplementation•Resources•Capabilities•Budgets•Structure•CultureStrategyEvaluation•PerformanceMeasures•CompaniontoGoals•ComparisontoCompetitorsStrategyEvaluationandControSpecificStrategicIssuesFacing

SmallBusinesses&EntrepreneurialVenturesSpecificStrategicIssues

Global-internationalopportunitiesandchallenges

Humanresourcesmanagementissues

InnovationandflexibilityconsiderationsSpecificStrategicIssuesFaciNOT-FOR-PROFITAND

PUBLIC-SECTORORGANIZATIONSWhatAreNot-for-profitOrganizationsandWhatArePublic-SectorOrganizations?

Not-for-Profit(NFP) Anorganizationthatprovidessomeserviceorgood withnointentionofearningaprofit

PublicSector AnNFPcreated,funded,andregulatedby thepublicsectororgovernmentNOT-FOR-PROFITAND

PUBLIC-SECTWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?Not-for-ProfitOrganizationCharitableReligiousSocialServicePublicSectorAssociationsHealthServiceCulturalCause-RelatedFoundationsEducationalTypesofNot-for-ProfitOrganizationsFigure8-4WhatAreNot-for-ProfitOrganiWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?Public-SectorOrganizationGovernmentalUnitsPoliceProtectionPavedRoadsandOtherTransportationNeedsRecreationFacilitiesCareandHelpforNeedyandDisabledCitizensLawsandRegulationstoProtectandEnhanceLifeWhatAreNot-for-ProfitOrganiWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?EconomicContributionsofNot-for-ProfitandPublic-SectorOrganizationsFigure8-5Employment(1999Figures) Number(inthousands) PercentofTotalEmploymentGrossDomesticProduct(1997Figures) Amount PercentofTotalGDP

PublicSector Not-for-Profits

20,161 15.7%

10,200 6.9%

$1.02Trillion 12.7%

$621.4Billion 6.2%WhatAreNot-for-ProfitOrganiTheStrategicManagementProcessin

Not-for-Profit&Public-SectorOrganizationsTheStrategicManagementProcessInvolves

Externalandinternalenvironmentalanalysis

Strategychoices

StrategyevaluationandcontrolTheStrategicManagementProceSpecificStrategicIssuesFacing

Not-for-Profit&Public-SectorOrganizationsSpecificStrategicIssues

Misperceptionaboutthe usefulnessofstrategicmanagement

Multiplestakeholders

UniquestrategiesdevelopedbyNFP organizationsSpecificStrategicIssuesFaciUniqueStrategies

DevelopedbyNFPOrganizationsCause-RelatedMarketing

Fundsagoodcause BenefitsNFPsthroughpublicexposureandcorporatedonations Enhancestheimageofthesupportingcompany Designedforthestrategicadvantageofthesponsoringcorporation BenefitsNFPsfromthemarketinglinkUniqueStrategies

DevelopedbyUniqueStrategies

DevelopedbyNFPOrganizationsTypesofNFPMarketingAlliancesFigure8-6NFPOrganizationTransaction-BasedPromotionsJointIssuePromotionsLicensingUniqueStrategies

DevelopedbyUniqueStrategies

DevelopedbyNFPOrganizationsStrategicPiggybacking

SpecialOlympicsorganizationsellingclothing SymphonysellingcookbookstosupplementrevenueUniqueStrategies

DevelopedbyChapterEight?QuestionsChapterEight?QuestionsStrategicManagementinAction8StrategicManagementinOtherOrganizationTypesStrategicManagementinActionLearningObjectives

1.

Differentiatebetweenasmallbusinessandanentrepreneurialventure.

2.

Explainwhysmallbusinessesandentrepreneurialventuresareimportant.

3.

Describehowthestrategicmanagementprocessisusedinsmallbusinessesandentrepreneurialventures.

4.

Discussthespecialstrategicissuesfacingsmallbusinessesandentrepreneurialventures.(continuedonnextslide)LearningObjectives1. DifferLearningObjectives

5.

Definenot-for-profitorganizationandpublic-sectororganization.

6.

Describethevarioustypesofnot-for-profitorganizations.

7.

Describehowthestrategicmanagementprocessisusedinnot-for-profitandpublic-sectororganizations.

8.

Discussthespecialstrategicissuesfacingnot-for-profitandpublic-sectororganizations.

9.

Describetheuniquestrategiesdevelopedbynot-for-profitorganizations.LearningObjectives5. DefineSMALLBUSINESSESAND

ENTREPRENEURIALVENTURESTable8-1CharacteristicsofSmallBusinessversusEntrepreneurialVenture

SmallBusiness EntrepreneurialVenture

Independentlyowned,operated,andfinancedFewerthan100employees Doesn’temphasizeneworinnovativepracticesLittleimpactonindustryInnovativestrategicpractices StrategicgoalsareprofitabilityandgrowthSeeksoutnewopportunities WillingnesstotakerisksSMALLBUSINESSESAND

ENTREPRENWhyAreTheseTypesof

OrganizationsImportant?WheretheNewJobsAreFigure8-1NumberofJobsCreated*6.05.04.03.02.01.0OrganizationSize

1–4 5–19 20–99 100–499 employees employees employees employees5,8102,2741,4172,326*Inthousandsfrom1992–1996.WhyAreTheseTypesof

OrganizTheStrategicManagementProcessin

SmallBusinesses&EntrepreneurialVenturesStrategicManagementProcess

Valueofstrategicplanning

Theoverallapproachtothestrategicplanningprocess

Externalandinternalenvironmentalanalysis

Strategychoices

StrategyevaluationandcontrolTheStrategicManagementProceStrategyEvaluationandControlStrategicManagementProcessforSmallBusinessesandEntrepreneurialVenturesFigure8-2MissionStatementSituationAnalysis•InternalSsandWs•ExternalOsandTs•CompetitiveAdvantage(s)StrategyFormulation•Functional•Competitive}BusinessPlan•Broad,OverallStrategyImplementation•Resources•Capabilities•Budgets•Structure•CultureStrategyEvaluation•PerformanceMeasures•CompaniontoGoals•ComparisontoCompetitorsStrategyEvaluationandControSpecificStrategicIssuesFacing

SmallBusinesses&EntrepreneurialVenturesSpecificStrategicIssues

Global-internationalopportunitiesandchallenges

Humanresourcesmanagementissues

InnovationandflexibilityconsiderationsSpecificStrategicIssuesFaciNOT-FOR-PROFITAND

PUBLIC-SECTORORGANIZATIONSWhatAreNot-for-profitOrganizationsandWhatArePublic-SectorOrganizations?

Not-for-Profit(NFP) Anorganizationthatprovidessomeserviceorgood withnointentionofearningaprofit

PublicSector AnNFPcreated,funded,andregulatedby thepublicsectororgovernmentNOT-FOR-PROFITAND

PUBLIC-SECTWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?Not-for-ProfitOrganizationCharitableReligiousSocialServicePublicSectorAssociationsHealthServiceCulturalCause-RelatedFoundationsEducationalTypesofNot-for-ProfitOrganizationsFigure8-4WhatAreNot-for-ProfitOrganiWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?Public-SectorOrganizationGovernmentalUnitsPoliceProtectionPavedRoadsandOtherTransportationNeedsRecreationFacilitiesCareandHelpforNeedyandDisabledCitizensLawsandRegulationstoProtectandEnhanceLifeWhatAreNot-for-ProfitOrganiWhatAreNot-for-ProfitOrganizationsand

WhatArePublic-SectorOrganizations?EconomicContributionsofNot-for-ProfitandPublic-SectorOrganizationsFigure8-5Employment(1999Figures) Number(inthousands) PercentofTotalEmploymentGrossDomesticProduct(1997Figures) Amount PercentofTotalGDP

PublicSector Not-for-Profits

20,161 15.7%

10,200 6.9%

$1.02Trillion 12.7%

$621.4Billion 6.2%WhatAreNot-for-ProfitOrganiTheStrategicManagementProcessin

Not-for-Profit&Public-SectorOrganizationsTheStrategicManagementProcessInvolves

Externalandinternalenvironmentalanalysis

Strategychoices

Strategyevaluatio

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