Saturday, June 16, 2007

Practical Strategical Management

This is basically a tutorial on practical strategy and how to approach this in a top down manner. This tutorial is based on great works by porter, mintzberg and mathur on how to add value to an organization.

This tutorial will not delve into details of each but a brief introduction and the problem solving approaches

There are two types of strategies - 1. Operational Centric Strategies 2. Customer Centric Strategies

I. Operational Centric Strategies-
This is based on how to increase your operational effectiveness to increase the value given to your customers.

This can be achieved by the following -
  • Total Quality Management
  • Business Process Re engineering
  • benchmarking,
  • outsourcing
  • partnering
  • change management
Industry best practices can be adopted by all competitors and no one company can have distinctive competitive advantage from others.

Total Quality Management-
This stratergy has been losing its value in the recent years. But the idea is to bring quality into all phases of the organisation not just QA sampling procedure.

Business Process Re engineering-

Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in and particularly stratergic management, in which organizations evaluate various aspects of their processes in relation to best practise, usually within their own sector. This then allows organizations to develop plans on how to adopt such best practice, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices.

II Customer Centric Strategies-

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