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Organisational Performance

The document outlines various strategies for enhancing organizational performance through creative problem-solving techniques and strategic management. It discusses methods such as SWOT analysis, value chain analysis, and corporate strategies like mergers and market development. Additionally, it emphasizes the importance of continuous skills development, teamwork, and customer satisfaction in driving business success.

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sekoatikea
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13 views

Organisational Performance

The document outlines various strategies for enhancing organizational performance through creative problem-solving techniques and strategic management. It discusses methods such as SWOT analysis, value chain analysis, and corporate strategies like mergers and market development. Additionally, it emphasizes the importance of continuous skills development, teamwork, and customer satisfaction in driving business success.

Uploaded by

sekoatikea
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Organisational Performance

Creative thinkinging and problem solving


• New problems can’t be solved with old solutions.
• Identifying a problem customers aren’t even aware of yet and solving it.

Possible Steps to solve problems

Identify the resource gap and obtain these resources

Explain the impact on the business and consider solutions

Choose the best solution(s) and explain it in breadth and depth

Creative problem-solving techniques


Pros and Cons chart: Decision Tree: PESTLE:
• Weighs the advantages and • A diagram showing di erent • Analysing the external
disadvantages to make a outcomes to the same event. environment, you can develop
decision. strategies to comabt any
negaitve factors and capitalise
on positive factors.

Value Chain Analysis:


• Value for your customer should alwaus be the aim.
• Looking at the entire business process to decide where value is added SWOT:
in a cost-e ective manner to enhance the quality of the product or • Look at the business strengths
service rendered. and weaknesses opportunities
• If the business is involved in something that isn’t their core strength, it and threats.
probably doesn’t add value and should be eliminated or outsourced.

Delphi Technique: Resource-based analysis:


• Getting the opinion of experts on a topic. • Find out what resources are of strategic
• It is a good idea to keep it anonymous so the importance.
experts can speak freely and critically. • Identify which resources can be used to solve
problems.
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Balanced Scorecard:
• Used to describe the key outcomes the business wants to measure in order to improve these outcomes.
• Forces management to focus on issues that are important because they create value.
• Strategies can be developed to create/maintain/improve the competitive advantage of the business.

Financial Internal
• Maximise the utilisation of assets and • Innovation of products/services.
minimising costs. • Management of operations.
• Social investment.

Customer Learning and growth


• How customers see the business. • How do employees improve to create value.
• What are their expectations? • Looks at the intangible assets in the business.
• Leadership, accountability, culture and
teamwork are important.

Some definitions
Strategic management: Top management analyses events that take place in the business environment.
Decisions and strategies are taken to respond to the analysis.
Trend: something that develops over time.
Crisis: something that comes as a surprise.
Vision: a statement about what your business wants to become.
Mission: A description of what the business does and the purpose of the business.

Generic strategies
Low cost strategy
• Lowest cost in the industry.
• The workforce must be committed to saving costs, by:
1. Having access to cheap raw materials.
2. Costs can be reduced through e ciency, using mass production, technology and re-engineering of
activities.
• Activities that don’t o er cost bene ts should be eliminated or outsourced.

Focus (niche market) strategy


• All e orts are aimed at a unique market segment (based in age, culture, hobbies or anything that makes them a
unique group.
• This group has di erent needs (distinct preferences).
• Must be big enough or have growth potential.
• Businesses often overlook these markets because they are viewed as not “worthwhile”.
• The business must have expert knowledge on the market to produce the products/services.

Differentiation
• Provide a unique product/service to ensure customer loyalty. The business can charge a premium price.
• Uniqueness can be based on:

Quality After-sales Product Distribution or


support features marketing e orts

• Should be di cult to copy AND must be continuously re-developed.


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Corporate Strategies
Corporate Combination

Joint Venture
• Two or more businesses enter into an agreement to join resources to improve the functioning of both
businesses.
• Example: Woolworths in Engen garages.

Merger/takeover
• Two or more businesses become one and no longer exist seperately.

Defensive/decline

Retrenchment
• The business reduces the size of the business by reducing the diversity of products/services. This is done to
reduce expenses and improve the nancial performance of the business.

Divestiture
• Selling o some of the businesses operations because assets are under-utilised and hampers the business’
performance.

Liquidation
• When the business is bankrupt and sells o assets to pay for the debt of the business.
• The business ceases to exist.

Growth

Market penetration
• An existing product is re-introduced to an existing market.

Market development
• An existing product is brought to a new market.

Product development
• A new product is brought to an existing market.

Diversi cation
• A new product is brought to a new market.

Integration strategies
Forward integration
• The business takes over one of it’s distributors to reduce the ultimate selling price.

Farm Business Shop / distributors


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Backward integration
• The business takes over one of its suppliers or creates its own manufacturing plant.

Farm Business Shop / distributors

Horizontal Integration
• The business buys one of its competitors.

Competitor Business

Other strategies
Revision of mission and/or objectives
• If the business supplies products/services that customers no longer want, it is time to revise the mission.
• The business needs to be proactive.
• The objectives need to align with the new mission.

Allocate resources differently


• Resources should be allocated where they are most productive.
• If a task doesn’t add value then it should be eliminated or outsourced and resources should be allocated
somewhere else.

Total quality management and total customer satisfaction


• We need to keep customers satis ed.
• Everyone in the business needs to be committed to thinking about how all actions impact quality and
customer satisfaction.
• Customer satisfaction looks at the internal customers (employees) as well.
• Sampling and inspection are crucial.
• Customer feedback is a great took to monitor quality and customer satisfaction.

Benchmarking
• Looks at the “best practice” in the industry.
• Measure the business’ current performance with the best practice and tries to close that gap.

Financial ratios
• Looking at the ratios as indicators to show where problems exist.
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Performance appraisals (360°) and self-evaluation
• Employee appraisals can be used as a planning, feedback and evaluation tool when looking at an employees
performance.
• Suppliers, customers, peers and subordinates can also be asked to comment on the employees performance.

Continuous skills development


• The business should create a culture where employees are constantly growing and learning.
• New technology, changes in legislation, new products from competitors and changes in customer demands all
need employees to learn new skills.

Teamwork
• Generates new ideas.
• Team members can mentor each other or bounce ideas around.
• Di erent types of intelligence work together.
• Allows for division of labour.
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