Chapter 17 - Leadership, Organisation and CSR Flashcards
Who is the former CEO of HP?
Carly Fiorina
What is a leader’s task?
To articulate
- intended geographical scope of activities
- beliefs
- values
- policies
Who’s in charge in 2015?
3M
ABB
Chrysler
Dow Chemical
Eastman Kodak
3M Inge G. Thulin (Sweden, CEO)
ABB Joe Hogan (U.S., CEO)
Chrysler Sergio Marchionne (Italy, CEO)
Dow Chemical Andrew Liveris (Australia, CEO)
Eastman Kodak Antonie Perez (Spain, CEO and Chairman)
Core Competences of leadership and how they developed from 1980 to 1990
Executives were judged on their ability to identify, nurture, and exploit the organization’s core competencies in the 1990s as opposed to the focus on reorganization in the 1980s
Core competencies must:
– Provide potential access to a wide variety of markets
– Make a significant contribution to the perceived customer benefits
– Be difficult to imitate
How does organizing for global marketing work
The goal is to find a structure that:
– Enables the company to respond to relevant market environment differences
– Ensures the diffusion of corporate knowledge and experience throughout the entire system
Organizations must balance:
– How to balance between autonomy & integration
– The need for individualized response to local markets
In global marketing there is not a single best structure
Leading‐edge global competitors share one key organizational design characteristic:
– Structure is flat and simple
In the 21st century corporations will have to find new, more creative ways to organize
– Must be flexible, efficient, and responsive to meet the demands of globalizing markets
Patterns of International Organizational Development
Organizations vary in:
– Size
– Potential of targeted global markets
– Local management competence
Conflicting pressures may arise
– For product and technical knowledge
– Functional area expertise
– Area and country knowledge
Which four factors lead to the international division structure?
– Top management’s commitment to global operations has increased enough to justify the position
– Complexity of international operations requires a single organizational unity
– The firm has recognized the need for internal specialists to deal with the demands of global operations
– Management recognizes the importance of proactively scanning the global horizon for opportunities and threats
Explain the Matrix Design
- Product or business, function, area, and customer know‐how are simultaneously focused on the organization’s worldwide marketing objectives
- Management must achieve organizational balance that brings together different perspectives and skills to accomplish organizational objectives
Name the advantages / things that derive from a matrix design
Geographic knowledge
–understanding of economic, social, political, and governmental market and competitive dimensions
Product knowledge and know‐how
–product managers that have a worldwide responsibility can achieve new levels of product competency
Functional competence in areas like finance, production, and marketing
Customer, industry and needs
Functional competence
– corporate staff with worldwide responsibility contributes toward the development of functional competence on a global basis
Knowledge of customer or industry and its needs
– staff with responsibility for serving industries on a global basis assist organizations in their efforts to penetrate specific customer markets
Compare craft production, mass production and lean production in the context of “Lean Production - Organising the Japanese Way”
Craft Production:
- one worker creates one product
Mass Production:
- one worker can do far more specialised work due to the moving assembly line
Lean Production:
- uses less factory space, smaller inventories, and quality control methods
- increased efficiency by 50% over typical mass production
Describe Assembler Value Chain and Downstream Value Chain in context of lean production
AVC:
- Skilled employees, KAIZEN - continuous improvement enables quality control
- flexible mechanisation is th hallmark of lean production
DVC:
- eliminates conflict between producer and intermediaries, spirit of cooperation
What is the responsibility of CEOs regarding Ethics, CSR and social responsiveness?
Today’s CEO must be a proactive steward of the firm
He or she must respond to:
– Stakeholders—managers, employees, customers, stockholders, suppliers
– Secondary stakeholders—general business community, local community groups, and nongovernmental organizations (NGOs)
Explain the term CSR
- An obligation to pursue goals and practices that are in the best interest of society
- Many companies create a formal Code of Ethics that summarize core ideologies, corporate values, and expectations
How can companies learn from Starbucks’ CSR
- employees work for companies with strong values
- Shareholders invest in businesses with outstanding corporate reputation
-> Being socially responsible can lead to competitive advantage
Who’s the CEO of Starbucks?
Howard Schultz
