GLOBAL CHALLENGES FOR BUSINESS, MANAGEMENT AND LEADERSHIP

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GLOBAL CHALLENGES FORBUSINESS, MANAGEMENT AND
LEADERSHIPMN1026C/NWeek 3 Lisa Day
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• By now, week 3, you will
• be familiar with the Competing Values Framework
  (CVF)....
• have read chapters 1 and 2 of Boddy and the
  looked at the material on weblearn
• have read the Producer and Director roles on
  Blackboard
• Written an introduction to what management is

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This week's learning outcomes...

• Study Human Relations model
• Analysing Organisations
• Understand the difference between External
  Internal Environment
• Consider PESTEL and Porter's Five Forces
• Corporate Social Responsibility

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Human Relations model
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Flexibility
Human Relations model
Open Systems model
Innovation, Adaptation
Commitment, Morale
Growth, Resource acquisition
Participation, Openness
External
Internal
Documentation, info management
Productivity
Direction, goal clarity
Stability, control
Internal Process model
Rational Goal model
Control
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Human Relations Model

• Mary Parker Follett (1926)
• groups
• Elton Mayo (1924)
• The Hawthorne Plant in Chicago
• Illumination experiments

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Mayo compared with Taylor

• Shift in focus from rational economic to a social
  behavioural perspective
• Focus on social man not man as machine
• Influenced many management practices e.g. modern
  HR, motivation, teams, worklife balance
• Aim to integrate needs of individual with needs
  of organisation

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• Please read the Facilitator and Mentor roles on
  Blackboard during the week.

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Analysing the Environment
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Analysing the Environment

• WHAT IS
• The MACRO Environment?
• The MICRO Environment?
• WHAT DOES the term
• The EXTERNAL Environment include?
• and INTERNAL Environment?

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Boddy, p84 Ed 4 and p78 Ed 5
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Analysing the Macro Environment
Boddy p97 Ed 4 and p89 Ed 5
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Macro-Environment PESTLE (1)

• Political
• Issues that concern politicians e.g. political
  stability, attitudes to competition and
  protectionism, membership of EU

• Economic
• Issues that concern economists e.g. recession,
  economic growth, levels of unemployment and
  disposable income

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Macro-environment PESTLE (2)

• Sociocultural
• Trends that are considered by sociologists and
  marketers e.g. population demographics, lifestyle
  changes, levels of education

• Technological
• Changing trends in IT and technology e.g. the
  impact of the Internet, new discoveries, rates of
  obsolescence

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Macro-environment PESTLE (3)

• Environmental
• Trends and issues that concern environmentalists
  and planners e.g. waste disposal, energy
  consumption, availability of natural resources

• Legal
• Trends and issues that concern legal and
  regulatory compliance teams e.g. nature of
  industry regulation, competition law and
  employment law, differences in laws between
  countries

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Industry Attractiveness - Porters Five Forces
Boddy p86 Ed 5
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• Read the Steel Industry case study
• In recent years, which of the five forces has
  become more positive for steel producers, which
  less so?
• Explain the acquisition strategies of players
  such as Mittal, Tata and Nucor
• In the future, what might change to make the
  steel industry less or more attractive?

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Boddy, p84 Ed 4 and p78 Ed 5
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Internal Environment

• Culture chapter 3 in Boddy
• Objectives chapter 6 8 (Planning)
• Structure chapter 10 in Boddy
• Technology chapter 12 in Boddy
• Power chapter 14 in Boddy
• People chapter 11 15 in Boddy
• Business Processes chapter 18 19 in Boddy
• Finance chapter 20 in Boddy

Boddy, p23 Ed 5
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Corporate Social Responsibility
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Corporate Social Responsibility

• Corporate responsibility refers to the
  awareness, acceptance and management of the wider
  implications of corporate decisions

See Boddy p138 Ed 5
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CORPORATE SOCIAL RESPONSIBILITY
See Boddy p142 Ed 5
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Corporate Social Responsibility

• Irresponsible corporate action
• Madoff, Enron, Arthur Anderson, Parmalat, Ahold,
  Volkswagen, Ford Pinto......

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Ethical Decision-Making Boddy p154
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Exercise

• Read the following case study
• Ford Pinto
• Prepare to answer the case questions on the next
  slide

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• Ford Pinto case study
• As a marketing or production manager at Ford at
  the time, what difficult choices would you face?
• Did Ford Pinto make the right decision be
  ready to support your answer?
• What would you have done? How would you have
  persuaded the company to follow your choice?

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Self-Assessment Questionnaire Scoring

• Self-Awareness
• Add up your numbers for the 30 questions you
  answered. Each of the questions represents
  factors that enhance self-awareness. The
  numerical ratings are in reverse correlation to
  the degree of agreement.
• The lower your total, the better your
  self-awareness skills.
• The higher your total score, the more improvement
  you need in acting to enhance your
  self-awareness.
• In general, if you scored more than 90, you
  should create a plan for improving your
  self-awareness.

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During the week

• Please read Boddy, Chapters 3,4,5.
• Read about the roles of the Facilitator and the
  Mentor on Blackboard
• NEXT WEEK well examine the Internal Process
  Model and well cover Planning which will be very
  important to you for your video.

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end
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• Read the Innocent case study
• Construct a PESTEL analysis to establish the main
  aspects of the macro external environment that
  might affect Innocent
• Consider each of the five forces in relation to
  the Smoothie market. Which forces appear to pose
  the greatest threat to Innocent?

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• BP
• Analyse the forces acting on BP. Which of them
  appear to bring the greatest threat to the
  company?
• Conduct a PESTEL analysis to establish the main
  aspects of the external environment that affect
  BP.
• Make a list of stakeholders for BP. Assess their
  sources of power, and rake them according to the
  likely degree of influence they hold.
• In what ways will managing BP, with such
  international exposure, be different from
  managing in a national company with no
  international business. List the three most
  significant
• What has BP done to indicate that it is acting in
  a socially responsible manner?
• A major issue for the company is to balance
  different stakeholder groups. What argument, from
  an ethical standpoint, could BP use to support
  the case for opening new oilfields in the Alaskan
  Wildlife Reserve?