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Strategic decision making
The implication of change in organization
Why skills are important in management
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I. Summary of the case. Komatsu, the largest Japanese corporation that manufactures heavy equipment, was established in 1921 as a specialized producer of mining equipment. In this case, the company had been through a lot of circumstances, some of them had raised the company status and some of them not. Initially, when the Japanese government allowed the foreign investors to roll and share the market in the region. In the other hand, before that situation happened, Komatsu was held a market share of more than 50%, despite the low quality of its equipment at that time. In my opinion, most of the changes that took place within the organizational structure and strategies of the company over the years had caused instability in the development …show more content…
Operational problems. Back to 1985 when Nogawa rejected and refused the shareholders and their proposals outright, followed that rejection a tide of problems. However, Tanaka responded quickly to the crisis competitive situation in the domestic market before turning to the larger strategic goals of internationalization. I believe what Tanake have made to the company is an intelligent behavior and he act perfectly to prevent the problem caused before he placed as a precedent of Komatsu. Another fact, I would strongly recommend is to make a new pricing sales policies, and eliminate the loss and competitors at the same time.
C. Strategic problems.
Each entrepreneur has to have the full feature, and he or she must know how to plan, take what he or she does seriously, and take the risk. Personally, I believe that a company must always be innovative, and that wont happen if the entrepreneur using a bad strategy that may lead the whole organization down. Smart manager how knows and learned from the past and from old heads. Therefore, the organization will keep its success to the end.
V. Case questions
-How feasible was the new strategy?
- This was to be the company’s major globalization task, and Katada predicted that by the year
Therefore, from the analysis provided in this report the strategic decision to implement the restructure was sound. Through the consideration of the economic climate both before and after the restructure we can see a clear trend of cost reduction and an increase in profitability. Major investments in companies such as Nippon have allowed all areas of the business to profit and have opened a range of new markets in areas previously difficult to access. Movement towards future growth and profitability have also been evidenced locally in the acquisition of Orrcon and OneSteel which have allowed for product diversification and more lucrative supply chains. Thus, it is apparent that BANZ is completing its strategic goals, increasing profits and moving towards a more prosperous future.
...resent diversity within the labor force and “each of them will also have networks of professional associates whose knowledge they can tap in order to solve problems and accomplish tasks. Needless-to-say, diverse people will have diverse networks and provide your company with a vast and diverse meta-network at your disposal” (p.1). In short, in supporting of creativity, innovators essentially need the backing from top leaders, and without that support, many initiatives may break down or die on the vine (Harvard). For any idea to be successful, it is vital that it is aligned with company strategy; there is more likely to occur naturally when top executives involve and take the lead with a idea or creativity initiative and this is a main reason why management commitment is a key factor in the accomplishment of any idea or innovation process (Baumgarther, 2010).
Management is the ability to get a job done using appropriate processes, models and systems to achieve an objective. Managers think radically, abide by principles, rules and use experience in their respective fields to make things work. A good manager goes about the ordinary activities such a staffing, organizing, planning (Robert, 2007). The very ability of his/her colleague to discover the uniqueness in each of the subordinates, capitalize on it, harnessing the best out of them to accomplish goals clearly distinguishes such a person as great when compared to others. Great managers develop people and enthusiastically transfer acquired skills to others, work progress is constant and usually by leaps and bounds. In addition, a great manager outlines and strategizes his/her team for project plans such that there is a “buy in” on delivered commitments. In contrast, the former just transfers the required skills to subordinates; work progress is notable, vice versa of the latter. Rupert Murdoch of the News Corporation is ...
Both companies’ changing strategic postures and organizational capabilities led to the major restructuring each company was forced to undertake as its competitive position was eroded. However, it is extremely difficult to overcome deeply set administrative heritage. Although Matsushita and Philips followed different strategies - classic "global" and "multinational" models respectively, both of them proved to have limitations.
GM had experienced a level of success that developed a reputation as the world’s preeminent producer of automotive products. Because of its success, which produced substantial fiscal resources, the company was awash in cash flow, cash reserve, and lines of credit. GM’s management was the victim of 50 years of industry success. Management was characterized by a bloated, bureaucratic structure that impeded any attempt to improve the corporation. Top management established a fixed objective in the closed decision-making process towards GM’s strategic objectives. There was little to create a realistic Gap analysis, which made is easy to overlook the need to reinvent its management before undertaking the reinvention of the entire corporation.
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.
This case depicts about the success stories of the collaboration in the automobile industry by the Japanese and US firm though they were obviously competitors. One significant success story emerging from the alliance involves Ford probe and Mazda MX-6. There were swapping of resources and capabilities between the two firms. Mazda designers design the basic platform, engine and drive train for the cars. Mazda then design the outside of the MX-6 and Ford does same for the probe. Finally both cars are assembled at a factory owned by the two firms. Ford escort was another successful offspring of the alliance where again the Mazda engineers designed the car and Ford made it. But the alliance was not without spots. Mazda Navaho one of the offspring of the alliance which was basically build upon the on of the Ford popular product Ford explorer and build by the Ford makers. Ford made an opposite step by denying to provide the Japanese partners Navaho production to continue production of its own product line. The partner Mazda in addition fell into financial distress and Ford got the effective management control of Mazda and took some bold steps which eventually went against the collaboration.
How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
According to Williams, 2014, “when companies look for employees who would be good managers, they look for individuals who have technical skills, human skills, conceptual skills and the motivation to manage,” (Williams, p. 14).
Entrepreneurship incorporates unconstrained imagination and a readiness to settle on choices without strong information. The entrepreneur may be driven by a need to make something new or assemble something unmistakable. As new ventures have low achievement rates, the business person should have impressive tirelessness. Because of this, the entrepreneur may have the best risk of achievement by concentrating on a business sector corner either too little or too new to have been commanded by built up organizations.
It is true that most entrepreneurs typically have a flair for the creative and a lot of energy. They are born with it. But having these characteris...
Entrepreneur's should have a strong drive to successes and overcome obstacles. Confidence and strong will are must. An entrepreneur should be sharp and always think of ways to run their business flexibly .Another important quality of a successful entrepreneur is being adaptable to
The leaders in businesses can take Bill Gates as their role model and follow the top 10 qualities that make a good manager based on his experience.1.Choose a field thoughtfully as it’s hard to be productive without genuine enthusiasm,2.Hire carefully and be willing to fire,3.Create a productive environment,4.Define success by making it clear to your employees what constitutes success and they should measure their achievements,5.You have to like people and be good at communicating,6.Develop your people to do their jobs better than you,7.Build morale,8.Take on projects yourself,9.Don’t make same decision twice,10.Let people know whom to please.(Bill Gates, New York Times)
Successful entrepreneurs have a clear image of what they want their future to be like. They hold a clear picture of the direction the company should take and have a clear plan of how they will make their vision a reality (9 essential traits of successful entrepreneurs, 2013)