Module 3 - Case



Module 3 - Case

Case: Inputs Diagnosis, SLP: Time Warp 2

Porter's Generic Strategies

A category scheme has been described by Michael Porter that consists of three common kinds of strategies that are mostly used by business organizations for the purpose of achieving and maintaining their competitive advantage in the market. Such three distinctive strategies are revolved around two dimensions , i.e. strategic strength and strategic scope.

Strategic strength is a dimension of supplies and puts consideration on the core competencies or the strength of the organization. Strategic scope is a dimension related to demand and puts consideration on the composition and size of the market that is intended to be targeted by the firm. Particularly, the two competencies that were defined by Porter as the most significant from any organizational perspectives are, product differentiation and product cost-efficiency. Originally, he ranked three different dimensions such as, scope of target market, relative product cost, and product differentiation level in a matrix that also has three dimensions. That three dimensional matrix is given below:

Figure - Porter's Generic Strategies (Peter, 1980).

This model is influential enough as it helps analyzing the useful variables in the organization that impact its performance and also this model is very simple to applied on any business. Thus, this model of Porter does not emphasis on the effect of environment on the operations and effectiveness of any organization.

Open Systems Theory

This theory considers as an enterprise as a social system that is impacted by its immediate environment. In an organization, this theory can be very useful as it assists in analyzing the organizational culture and also the external environmental factors that has impact on the organizational performance. The key characteristic of this theory is that the internal variables of an organization are not overly-emphasized by it and, also it provides useful feedbacks that are gathered from the environment (Leadersphere, 2008).

Leavitt's Model

This model holds structural variables, technological variables, human variables, and task variables. This model is useful for evaluating the occurrence of change in any variables as, one variable affect other variables. This model is applicable in the analysis that is related to human resources and organizational structure. The key characteristic of this model is its simplicity to use, but this model can also be regarded as a weak model in terms of its inefficiency to provide causal statements directly which are related to the variables.

Likert System Analysis

This model is used in the organization for examining the concerns that are relevant to communication, motivation, decision making, goal setting, interaction, performance, and control. This model in significant apparently for the analysis of management systems within any organization and also affect the organizational performance (Leradersphere, 2008). Employee perceptions are also evaluated by this model and also influence their ability to perform in groups and individually. A drawback of this model is that it is used for examining the social perspective that affect an organization and does not emphasize the impacts of organizational structure, processes, and the ...