RT FMDS DM Lesson 1 (6Apr11).

8/7/2019 RT FMDS DM Lesson 1 (6Apr11).

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Business Plan Organisation Review

Facilitator:

Richard Toh P K

Lesson 1: 6 April 2011


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Course Objective

To build up the competencies (knowledge,skills, attitude) required of a Professional in

Design Management Business in organisational diagnostics (i.e. review &

analysis)

and prescription for actionable

recommendations leading to improvements upon successful

implementation.


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Recommended Reference

The Definitive Business Plan

2nd Edition Richard Stutely

FT Prentice Hall 2005

Management 8th Edition Stephen Robbins / Mary Coulter

Pearson Education Intl 2005


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What do you want in Life?

MONEYTIMESECURITYFREEDOM


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60,000

Completeness in Life


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Ways to Get Rich

Savings

Insurance Investment

Whats so good about being inBusiness?

Be Yourself!


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Business Planning Generic Approach

What to Plan, Why? Define Business Vision & Activities

Define Current Business Situation

Define External Macro Environments

Define External Micro Environments Define your Core Objectives & Plan Strategy

Identify Risks & Opportunities

Define Strategies to Reduce Risks + Increase

Opportunities Refine Strategies

Project Costs, Revenues, Cash Flow

Finalise Plans


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What environment is the business in?

Review the larger environments impactingon the business

Political (e.g. stable?)

Economic (e.g. high growth?) Social (e.g. lifestyle patterns?)

Technological (e.g. advanced? changing?)

Environmental

Regulatory /Legal


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Five Forces Driving Industry CompetitionNEW POTENTIAL

ENTRANTS

SUBSTITUTES

BUYERSSUPPLIERS

Threat of new entrants

Barriers to entry:

Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages additional to scale Government policy Entry-deterring price Experience

Powerful if: Few suppliers No substitutes Industry not important

customer of suppliers group Supplier groups products are

differentiated Threat of forward integration

Powerful if: Large proportion of sellers

sales High proportion of the buyers

costs Undifferentiated product Low buyer switching costs Threat of backward

integration Sellers product not important

to quality of buyers product

Threat of substitute products or services

INDUSTRY COMPETITORSIntense rivalry if: Numerous or similar-sized competitors Slow industry growth High fixed costs Lack of differentiation

Diverse nature of competitors High strategic stakes High exit barriers

(Rivalry among existing firms)

Bargaining powerof buyers

Bargaining powerof suppliers


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What business is the organisation in?

Business Industry (Industry Life Cycle)

Product or Service (Product Life Cycle)

Customer / Needs Fulfilled

Key Success Factors e.g. capital, innovation

Inception/

Formation

Growth

Maturity

Decline

LIFE CYCLE


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Organization Life Cycle

Formalizationof rules

Stable structure Emphasis on

efficiency

More complexstructure

Decentralization Diversified

markets

High employeeturnover

Increasedconflict

Centralization

Informalcommunication& structure

High

commitment

Ambiguous goals High creativity

Maturity

Dynamic Stage Collectivity StageFormalization &Control Stage

Elaboration of-Structure Stage

Decline Stage

Entrepreneurial Systematization Integration Complacency


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Management Functions

PLANNING: defining goals, establishing strategies forachievement, and developing plans to integrate/coordinateactivities

ORGANIZING: determining the tasks to be done (&grouping), who to do them, who reports to whom, & wheredecisions are made

LEADING: motivating subordinates, influencing individuals

& teams, communicating & dealing with behavioral issues

STAFFING: human resources management & development

CONTROLLING: monitoring actual performance, comparingactual to plan, and taking action


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Management Skills Sets

Conceptual

Human

Technical

Conceptual

Human

Technical

Conceptual

Human

Technical

SUPERVISORYMANAGEMENT

MIDDLEMANAGEMENT

TOPMANAGEMENT


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Exercise 1: Who Will Win

There are 2 groups of animals preparingto compete.

Group 1: A Group of Sheep led by a Lion

Group 2: A Group of Lions led by aSheep

Which group will win? Why?

Quote examples.


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Exercise 1: Learning Outcome

Who are the Leaders?

What are important in Leaders.

Are the attributes born or learnt?


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Strategic Planning & Management

The process of establishing the organizationsoverall goals, and seeking to position the

organization in terms of its environment Combine external environmental factors and

internal resources

Sun Tze: know thy environments/competitors and thyself, and thoushalt not encounter defeat in a

hundred battles (,)


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Exercise 2: Know Yourself

How many behaviours do you

demonstrate? Which one is the Real one?

Test it now. To Know Yourself Better!


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Exercise 2: Learning Outcome

What have been the drivers that

brought you Results in Life? What have been the factors that

slowed you down?

Think, Reflect and then Improve!


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Practice Assignment

Review the lesson and practices today,against your own experiences

Identify / re-visit the contents youve learnt& skills you demonstrated.

Set your Business / Career Goals & deviseAction Plans for achieving them

Share with the class in the next lesson

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RT FMDS DM Lesson 1 (6Apr11).

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