japanese style of management & strategy implementation & evaluation

7/31/2019 Japanese Style of Management & Strategy Implementation & Evaluation

1/34

:Subhajit Talukdar.

Diptendu Dutta.Nikhil Parashara.

Avinash devangan.Arpit singh


2/34

Also Known as Theory Z. Developed by William Ouchi.

Combines both US & Japanese Management

Styles. Assumes that the best management style

involves employees at all levels of theorganization.

Importance of quality as a strategic variable.


3/34

Long Term Employment. Less Specialized career paths.

Informal Control.

Group decision making. Concern for the individual rises above work-

related issues.


4/34

Looking out for employees well beingsatisfies the lower-level needs.

Including group processes in decision makingsatisfies middle-level needs & encouragesemployees to take responsibility for theirwork decisions, which in turn satisfieshigher-level needs.


5/34

Firms are increasing productivity by placingmore emphasis on group decision makingand teams.

Firms are showing more concern for family-related issues like childcare, flexible workschedule and telecommuting.


6/34


7/34

Based on the idea that those feeling theimpact of the decision should be involved inmaking it.

Employees are trained in the analysis ofquality problems and then other problems arealso dealt with, such as, cost reduction,workshop facilities improvement, safetyproblems, employee moral and the educationof employees.


8/34

Resulted in high manufacturing productivityand cost reduction.

Supplier delivers the components and partsto the production line Just-in-Time to beassembled.


9/34

Quality of the parts must be very high.

There must be dependable relationships and

smooth co-operation with the suppliers. Suppliers should be located near the

company with dependable transportationfacilities.


10/34


11/34

Strategy implementation is the translation ofchosen strategy into organizational action so as toachieve strategic goals and objectives.

Strategy implementation is also defined as themanner in which an organization should develop,utilize, and amalgamate organizational structureand culture to follow strategies that lead to

competitive advantage and a better performance.


12/34

A key role of a CEO is to communicate a vision andto guide strategic planning.

Levels of strategic planning are:

(1)corporate level

(2)business level (3)functional level

(4)operational level


13/34

Dimensions of strategic planning(the dimensionscan tell us the ways in which competitors candifferentiate from one another within an industryand can form the basis for strategic groups within

an industry.): (1)specialization

(2)brand identification

(3)push vs. pull etc.


14/34

successfully implementing strategic plans involveteams at all levels in strategic planning and helps

to build a shared vision. To ensure that the vision is shared, teams need to

know that they can voice opinions, challengepremises, and suggest alternatives without fear ofreprimand.

Implementing strategic plans may require leaderswho lead through inspiration and coaching .

Recognizing and rewarding success, inspiring, andmodeling behaviors is more likely to result in true

commitment


15/34


16/34


17/34

Mathematical models are based on a small no. of highlyaggregated factors that are most imp. In explaining the way asystem works & determining outcome of different actions.

The limitation of modeling is that the inclusion of too fewalternative possibilities from which most satisfactory is to be

selected . It therefore follows that a model permittingcalculation of a larger number of alternatives should yield acloser approximation to ideal solution.

This can be achieved via simulation models(analogue andsymbolic).


18/34

Building of any model should be carried out by following asystematic method such as:

1.specify objectives to be achieved.

2.formulate problem to be solved.

Analytical decision models(based on programming

technique)can result in selection of best marketing mix toadopt for both trade and consumer.

Simulation models, on the other hand, attempt to evaluateeffect of alternative marketing mix combinations oncompanys sales and profits.


19/34

On account of difficulties involved in many industries in accuratelypredicting volume of business that may be expected during aforthcoming planning period. It is a wise policy to consider cost-volume-profit picture. This can be done by means of a breakevenchart which illustrates profit emerging from different revenue/costcombinations.

In above modeling technique it is assumed that:

1.F.costs are constant and var. cost vary at constant rate

2.All costs can be broken into either fixed or variable categories.

LIMITATION: Cost-vol-profit analysis can only accommodateobjectives that relate to profits,costs and sales levels

It tends to treat costs,vol,and profit as if they are independent ofeach other.


20/34

IRR approach along with PV index Decision tree analysis.


21/34

It assumes that cash receipts are reinvested, giving a bias in favor ofshort lived projects.

The selection of a particular proposal should follow a carefulappraisal of both alternatives use for funds and alternative means ofperforming a particular project.

The choice of a particular alternative will depend on how it accordswith enterprises established investment objectives, &choice ofprojects will depend on both corporate objectives and availabilityof funds.

When several competing strategies are being evaluated in a situationwhere there are insufficient resources to undertake all available

strategies that meet the specified economic criterion, recommendedbasis for ranking acceptable strategies is by use of PV INDEX.

PV INDEX=PV OF STRATEGY/INVESTMENT REQUIRED.

In using this approach cash inflow and cash outflow forecastsrelating to each alternative strategy should be available.


22/34


23/34

Final phase of strategic management. Process of determining the effectiveness of a

given strategy in achieving organizationalgoals.

Keeps the organization in right track.

Capacity to co ordinate the task performedby managers, groups , departments etc.

through control of performance.


24/34

Developing input for new strategic planning. Absence of evaluation may lead managers to

pursue goals which are inconsistent.

Need for feedback, Appraisal and reward

Successful conclusion of the strategicmanagement process

To exercise proper strategic choice.

similarity between decisions and futurestrategy.


25/34

Setting standards for performance.

Measurement of performance.

Analyzing variances

Taking corrective action


26/34

Quantitative criteria:-It has performed as compared to its

past performance.-Its performance with industry

average or that of major competitors.Qualitative criteria:

-There has to be special set ofqualitative criteria for a subjective

assessment of factors like capabilities,competencies, risk bearing capacity, strategicclarity,flexibalaty and workability.


27/34

The evaluation process operates at theperformances level as action takes place.

Standards of performance act as the benchmarkagainst which the actual performance is to be

compared. The measurement should be done at the right

time else evaluation will not meet its purpose.

For measuring performance financial statements

like- balance sheet , profit and loss accountsmust be prepared at right time1


28/34

The measurement of actual performance andits comparison with standard or budgetedperformance leads to an analysis of variances.

Broadly the following three situations may

arise- - the actual performance matches the

budgeted performance. -the actual performance deviates positively

over the budget performance. -the actual performance deviates negatively

from the budget.


29/34

The measurement of actual performance andits comparison with standard or budgetedperformance leads to an analysis of variances.

Broadly the following three situations may

arise- - the actual performance matches the

budgeted performance. -the actual performance deviates positively

over the budget performance. -the actual performance deviates negatively

from the budget.


30/34

END


31/34


32/34


33/34


34/34

japanese style of management & strategy implementation & evaluation

Documents