Posts

The impact of Porter’s five forces model

Image
Introduction Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis is frequently used to identify an industry's structure to determine corporate strategy. Porter's model can be applied to any segment of the economy to understand the level of competition within the industry and enhance a company's long-term profitability. The Five Forces model is named after Harvard Business School professor, Michael E. Porter. Source: You tube How to use the model The Porter’s five forces model is often used as a starting point to evaluate a company’s position in its industry and to assess its level of competitiveness. Though this framework is generic and applicable to any industry, it is only effective if it is used in a specific context that applies directly to the company undertaking the evaluation. Porter also emphasized the...

Pros and cons of McKinsey 7s Model

Image
Introduction McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools. It sought to present an emphasis on human resources (Soft S), rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance. The goal of the model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be aligned together to achieve effectiveness in a company. The key point of the model is that all the seven areas are interconnected and a change in one area requires change in the rest of a firm for it to function effectively ( Jurevicius, 2013). Source: You tube Below you can find the McKinsey model, whic...

The link between strategic management and leadership

Image
Introduction The company’s overarching vision statement directly determines the strategic decisions of a firm and cannot be achieved or measured instantly. All the strategic decisions such as policies, resource allocation, annual objectives, organizational structure   come from the top most level of management for example, the  CEO's  (Fuller, 2005) . The management always focus on the continuous improvements of the status quos. They implement planes and they direct the organization for their vision and mission. And the management have to well organize with the available resources to produce good outcome. The management always works on the organizational vision they sets strategic planes to achieve the organization objectives. The management passes the work load to their second line to accomplish the tasks through employees. When the management sets the goals the leadership has the full of responsibilities to implement by aligning employees, inspire and motiv...

Transformational vs Transactional leadership

Image
What is Leadership? A brief definition of leadership is as “the ability of encouraging a set of subordinates to perform towards the achievement of a common goal”. If expanded, then leadership is in fact a persuasion process, so that subordinates perform the tasks which are needed for the accomplishment of organizational objectives, as well as an inspired effort to be communicated to others. Transformational leadership Transformational leadership The idea of transformation leadership was initially coined by Downton 1973 the first   t o invent the word "Transformation leadership“ a definition further defined by presidential biographer and leadership expert James MacGregor Burns 1985. Transformational leadership is a leadership style in which leaders encourage, inspire and motivate employees to innovate and create change that will help grow and shape the future success of the company. According to Bass (1999) Suggested four dimensions of transformational  ...