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МИНИCTEPCTBO ОБРАЗОВАНИЯ И НАУКИ РОССИЙСКОЙ ФЕДЕРАЦИИ
Федеральное государственное автономное образовательное учреждение
высшего профессионального образования
«СЕВЕРО-КАВКАЗСКИЙ ФЕДЕРАЛЬНЫЙ УНИВЕРСИТЕТ»
УТВЕРЖДАЮ
Проректор по учебной работе
ФИО
________________
(подпись)
«___»_________________201_ г.
УЧЕБНОЕ ПОСОБИЕ
ОСНОВЫ СТРАТЕГИЧЕСКОГО МЕНЕДЖМЕНТА
(Basics of strategic management)
(Наименование дисциплины)
Иностранный язык (английский)
Направление подготовки (специальность) –
080200.62 - Менеджмент
Профиль подготовки (специализация)
_______________________________________________
Квалификация (степень) выпускника
Бакалавр
Изучается в 1-3 семестрах
|
«СОГЛАСОВАНО»: |
«РАЗРАБОТАНО»: |
|
Зав. выпускающей кафедрой (название) ____________ ФИО "__" _____________ 20______ г. Директор института (название) ____________ ФИО "__" _____________ 20______ г. Рассмотрено УМС СКФУ "__" _____________ 20_____ г. протокол N____________ Председатель УМС ________ |
Зав. кафедрой (название) ____________________/Шибкова О. С./ "__" ____________ 20_____ г. Должность и ФИО разработчика Доцент кафедры ИЯГЕС ____________________/Данилова Т. А./ "__" ____________ 20_____ г. |
Ставрополь, 201_
МИНИCTEPCTBO ОБРАЗОВАНИЯ И НАУКИ РОССИЙСКОЙ ФЕДЕРАЦИИ
Федеральное государственное автономное
образовательное учреждение высшего профессионального образования
«СЕВЕРО-КАВКАЗСКИЙ ФЕДЕРАЛЬНЫЙ УНИВЕРСИТЕТ»
УЧЕБНОЕ ПОСОБИЕ
Основы Стратегического Менеджмента на английском языке
(BASICS OF STRATEGIC MANAGEMENT)
Направление подготовки (специальность) –
080200.62 - Менеджмент
Профиль подготовки (специализация) -
Квалификация (степень) выпускника
Бакалавр
Ставрополь, 20__
Печатается по решению
Учебно-методического совета
Северо-Кавказского федерального
университета
Наименование дисциплины: Иностранный язык (английский язык) – Основы стратегического менеджмента на английском языке - учебное пособие / Данилова Т. А. — Ставрополь: Изд-во СКФУ, 2013. – _64 с.
Данное учебно-методическое пособие предназначено для студентов, обучающихся по направлению «Менеджмент». Его цель – сформировать иноязычную коммуникативную компетенцию у студентов экономических специальностей. Учебно-методическое пособие состоит из 7 модулей, каждый из которых включает следующие блоки:1) текстовый (Reading Skills); 2) лексический (Word Power); 3) грамматический (Grammar Focus); 4) коммуникативный (Communication Workshop).
Материал учебно-методического пособия структурирован через систему моно- и полифункциональных условно-речевых и речевых упражнений, что подразумевает последовательное распределение градуированных по степени трудности действий, направленных на совершенствование иноязычных вербально-коммуникативных умений и навыков, лежащих в основе коммуникативной компетенции, а также на обогащение словарного запаса студентов профессионально-ориентированной лексикой на иностранном языке.
Автор
Данилова Т. А., к.п.н., доцент кафедры иностранных языков для гуманитарных и естественнонаучных специальностей
Рецензент
© Издательство Северо-Кавказского
федерального университета, 201_
Протокол заседания кафедры - № 2 от 20 сентября 2012г.
Contents
MODULE 1: DEFINING STRATEGIC MANAGEMENT…….……………………….5
MODULE 2: Key Terms to Strategic Management (1)…………..………14
MODULE 3: Key Terms to Strategic Management (2)………………......23
MODULE 4: The Strategic-Management Model…………….…………...32
MODULE 5: Benefits of Strategic Management (1)…………………...…....39
MODULE 6: Benefits of Strategic Management (2)………………...………47
MODULE 7: Factors Important in Strategic Decisions Making………………………………..………………………..……………………...…...…55
MODULE 1: DEFINING STRATEGIC MANAGEMENT
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objects. As this definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success. The term strategic management is used at many colleges and universities as the title for the capstone course in business administration, Business Policy, which integrates material from all business courses.
The strategic-management process consists of three stages: strategy formulation, strategy implementation and strategy evaluation. Strategy formulation includes developing a business mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies and choosing particular strategies to pursue. Strategy-formulation issues include deciding what new businesses to enter, what business to abandon, how to allocate resources, whether to expand operations or diversify, whether to enter international markets, whether to merge or form a joint venture and how to avoid a hostile takeover.
Since no organization has unlimited resources, strategists must decide which alternative strategies will benefit the firm most. Strategy-formulation decisions commit an organization to specific products, markets, resources and technologies over an extended period of time. Economists believe strategies to determine long-term competitive advantages. For better or worse, strategic decisions have enduring effects on an organization and major multifunctional consequences. Top managers have the best perspective to fully understand the ramifications of formulation decisions; they have the authority to commit the resources necessary for implementation.
Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees and allocate resources so that formulated strategies can be executed; strategy implementation includes developing a strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems and linking employee compensation to organizational performance.
Strategy implementation is often called the action stage of strategic management. Implementing lets mobilizing employees and managers put formulated strategies into action. Strategists think implementation to be the most difficult stage in strategic management, that’s why it requires personal discipline, commitment and sacrifice. Successful strategy implementation hinges upon managers’ ability to motivate employees, which is more an art than a science. Strategies formulated but not implemented serve no useful purpose.
Interpersonal skills are especially critical for successful strategy implementation. Strategy-implementation activities affect all employees and managers in an organization. Every division and department must decide on answers such as, “What must we do to implement our part of the organization’s strategy?” and “How best can we get the job done?” The challenge of implementation is to stimulate managers and employees throughout an organization to work with pride and enthusiasm toward achieving stated objectives.
Strategy evaluation is the final stage in strategic management. Managers desperately need to know when particular strategies are not working well; strategy evaluation is the primary means for obtaining this information. All strategies are subject to future modification because external and internal factors are constantly changing. Three fundamental strategy-evaluation activities are (1) reviewing external factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions. Strategy evaluation is needed because success today is no guarantee of success tomorrow! Success always creates new and different problems; complacent organizations experience demise.
Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional. By fostering communication and interaction among managers and employees across hierarchical level, strategic management helps a firm function as a competitive team. Most small businesses and some large businesses do not have divisions or strategic business units; they have only the corporate and functional levels. Nevertheless, managers and employees at these two levels should be actively involved in strategic-management activities.
Task 2. Answer the following questions:
What is Strategic Management?
What are the stages of Strategic Management?
What is strategy formulation?
Why are strategy-formulation decisions so important?
What is strategy implementation?
Why is strategy implementation the most difficult stage?
What is the most difficult thing in implementation?
What is the final stage of strategic management?
What are the 3 fundamental strategy-evaluation activities?
What are the 3 hierarchical levels in a large organization?
How does strategic management help a firm to function as a competitive team?
Task 3. Mark these statements T (true) or F (false) according to the information in the text. If a statement is wrong find the part of the text that gives the correct information:
Strategic management is the art of communicating with company management.
Strategy formulation, strategy implementation and strategy evaluation are the main stages of the strategic-management process.
Strategists are responsible for strategies that will enable the firm to benefit most.
Strategy implementation is the easiest stage in strategic management.
Interpersonal skills are important only for top managers.
Linking employee compensation to organizational performance is an important thing in strategy implementation.
All strategies of a firm can never be changed.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions and learn them by heart:
проводить постановление в жизнь, оценивание, достигать цели, подразумевать, исследование, ключевой (профилирующий), состоять из, опознавать, внешняя возможность, определять, внутренние сильные и слабые места, долгосрочный, определенный, следовать по намеченному пути, вопрос (проблема), отказываться от ч-л, размещать (распределять) ресурсы, развивать (расширять), вкладывать в различные предприятия (разнообразить), сливаться, совместное предприятие, избежать чужого захвата, выгода, совершать (вводить в дело), конкурентноспособный, последствие, продолжительный (постоянный) эффект, разветвление, требовать, ежегодный, исполнять, культура поддерживающей стратегии, вознаграждение, воплощать ч-л на практике, жертва, зависеть от ч-л, ни к чему не привести, межличностный, оказывать влияние, сложная задача (проблема), работать с упоением и энтузиазмом, намеченные цели, отчаянно (безрассудно), главное средство для ч-л, быть подверженным ч-л, текущий, соразмерное (адекватное) исполнение, удовлетворительная (благополучная) организация, потерпеть крах, иерархический уровень, поощрять общение, взаимодействие между, тем не менее, быть вовлеченным (задействованным) во ч-л.
Task 2. Fill in the blanks with prepositions where necessary:
Our managers must put all the plans … action during next month.
Their strategy-formulating decisions were realized … an extended period of time.
The success of their business totally hinges … natural resources.
You’ll face … less difficulties if you choose this organizational structure.
In strategy implementation you should link employ compensation … organizational performance.
Task 3. Supply the English equivalents for the Russian words given in brackets. Translate the sentences from English into Russian:
Such a strategy will enable our firm (достигнуть поставленные цели).
I think we should not (отказываться от) this business.
Strategic managers must foresee all (последствия).
Strategy implementation requires (жертвы) and personal discipline.
(Главное средство) for obtaining this information is evaluation.
Task 4. Translate the sentences from Russian into English:
Благополучная организация подразумевает культуру поддерживающей стратегии.
Каковы преимущества и недостатки размещения ресурсов в этой зоне?
Прежде чем начинать свой собственный бизнес, вам следует оценить внешние возможности и риски.
Сотрудники организации всегда зависят от внутренних решений руководства.
Все решения подвержены изменению в будущем, верно?
В этой компании поощряют межличностное общение между сотрудниками.
Почему оценивание является последним этапом в стратегическом менеджменте?
Если вы не хотите потерпеть крах, определите внутренние сильные и слабые места.
Section 3: Grammar Focus
Task 1. Find in the text the sentences with “The Complex Object” construction and translate them into Russian.
Task 2. Translate the sentences from English into Russian paying attention to “The Complex Object” construction:
a) with “to”
We know many newly industrialized countries to have weak trade unions.
The developing countries want the rich countries to stop imposing tariffs on imports from the Third World.
Economists consider land to be the factor of production supplied by nature.
As the prices of fuels rise, we expect their production to expand.
Some businessmen think trade union regulations to result in fewer jobs.
b) without “to”
A rise in the price of a unit of labour will make the firm start using a more capital-intensive technology (капиталоемкая технология).
Higher prices for oil make research laboratories work at substitutes for oil.
The command economy does not let an individual make free economic decisions.
Increased output per worker in agriculture lets more workers be transferred from agriculture to industry.
Allocation of additional capital lets a high level of production be maintained with fewer workers.
Task 3. Match the suitable parts to make up sentences with “The Complex Object” construction. Translate the sentences into Russian:
Economists believe the price of a) to be a disincentive for potential
land investors.
2. Economists expect the price of ore b) to lease the land as he has enough money to purchase it.
3. We expect rising prices for mineral c) to be high enough to scare off
resources (отпугнуть) all potential tenants.
4. Economists believe a low wage d) to meet the requirements of
level potential investors.
5. We expect farmers e) to be too high to make the
industry profitable.
6. We don’t believe the rent in the f) to change due to a change in its
area condition.
7. Economists don’t believe the g) to rise as its supply reduces.
present-day condition in mining
8. We don’t believe cost of production h) to apply fertilizers on this poor
in mining soil.
9. Economists believe profitability of i) to be a disincentive for business-
housing men to look for capital-intensive
technologies.
10. We don’t expect the farmer j) to be a strong enough incentive for people to look for their substitutes.
Task 4. Paraphrase the sentences using “The Complex Object” construction according to the pattern.
Pattern: It is known to every economist that an increase in the price of a factor will reduce demand for it. – Every economist knows an increase in the price of a factor to reduce demand for it.
The rate of unemployment in tourist areas is higher than in highly industrialized ones. Economists know this.
It is well known to economists that the motives for nationalization are political as well as economic.
As prices for fuel and electricity have risen, we expect an increase in all prices.
The degree of profitability in private enterprises is higher than in the public sector. Some economists think so.
Many experts think that the growing use of fertilizers and other chemicals presents a danger to the environment.
Experts expected that the Iran-Iraq war would cause a sharp rise in oil prices in 1979-1980.
Task 5. Translate the sentences from Russian into English paying attention to the Complex Object:
Экономисты считают, что процесс стратегического менеджмента состоит из трех этапов: формулирование, воплощение, оценка.
Специалисты полагают, что воплощение – самый сложный этап стратегического менеджмента.
Наши менеджеры предполагают, что новые стратегии формулирования определяют долгосрочные конкурентоспособные преимущества.
Мы считаем, что менеджеры высшего звена имеют полномочия задействовать ресурсы, необходимые для воплощения.
Менеджеры нашей фирмы полагают, что все стратегии должны подвергаться изменениям.
Section 4: Communication Workshop
Task 1. Discuss in your group the following situation:
You are members of the global strategy team of US Motors, an American multinational car maker/ The company currently has production units in the UK, Germany, France and Spain for European market. But with the opening you of the markets in Central and Eastern Europe, you are considering whether to set up a production unit in Poland. Hold a meeting to discuss the advantages and disadvantages of this strategy and try to come to a decision.
Task 2. Discuss in your group the list of personal qualities necessary to be a global manager. You can choose among the following qualities:
calm, considerate, cordial, determined, even-tempered, flexible, sociable, skilled, sensible, understanding, intelligent, a good psychologist, competitive, creative, able to work in a team, tactful, patient, reserved, quick, responsible, hard-working, persistent, tolerant, able to read people.
MODULE 2: Key Terms to Strategic Management (1)
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Before going any further in discussing strategic management, one should define eight key terms: strategists, mission statements, external opportunities and threats, internal strengths and weaknesses, long-term objectives, strategies, annual objectives, and policies.
Strategists are individuals who are most responsible for the success or failure of an organization. Strategists have various job titles, such as chief executive officer, president, owner, chairman of the board, executive director, chancellor, dean or entrepreneur. Jonas, Fry and Srivasta recently reported that strategists’ three principal responsibilities in organizations are creating a context for change, building commitment and ownership, and balancing stability and innovation.
Strategists differ as much as organizations themselves and these differences must be considered in the formulation, implementation and evaluation of strategies. Strategists differ in their attitudes, values, ethics, willingness to take risks, concern for social responsibility, concern for profitability, concern for short-run aims and management style. Some strategists will not consider some types of strategies due to their personal philosophy. For example, David Wickins, who replaced Colin Chapman as chairman of the board of Lotus, the car manufacturer, says: “Lotus has never been run with the objective of being a profitable company. Colin Chapman was quite simply interested in making cars go fast. I have a different viewpoint.”
Some strategists agree with Ralph Nader, who proclaims that organizations have tremendous social obligations. Others agree with Milton Friedman, an economist, who maintains that organizations have no obligation to do any more for society than is legally required. Most strategists agree that the first social responsibility of any business must be to make enough profit to cover the costs of the future, because if this is not achieved, no other social responsibility can be met. Strategists should examine social problems in terms of potential costs and benefits to the firm, and address issues that could benefit the firm most.
Mission statements are thought to be “enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm’s operations in product and market terms.” It addresses the basic question that faces all strategists: “What is our business?” A clear mission statement describes the values and priorities of an organization. Developing a business mission compels strategists to think about the nature and scope of present operations and to assess the potential attractiveness of future markets and activities. A mission statement broadly charts the future direction of an organization.
Research suggests that 60 percent of all organizations have developed a formal mission statement and that high-performing firms have more well-developed mission statements of Adolph Coors Company below should, but does not, reveal that Coors is in the brewery business:
“We are a highly successful, innovative company of stand alone and self-sustaining businesses. We are leaders in technology, quality products and services that provide recognizably superior customer satisfaction. We are growth and profit oriented, developing new businesses from internally generated technology and synergistic acquisitions. Our business is known for quality relationships which are honest, ethical and caring. Our employees grow personally as the company grows. Our work life is exciting, challenging and rewarding in a friendly atmosphere of teamwork and mutual respect. We are socially responsible and strive for the betterment of society.”
Other key terms in our study of strategic management are known to be external opportunities and external threats. These terms refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological and competitive trends and events that could significantly benefit or harm an organization in the future. Opportunities and threats are largely beyond the control of a single organization, thus the term external. The computer revolution, biotechnology, population shifts, changing work values and attitudes, space exploration, recyclable packages, and increased competition from foreign companies are examples of opportunities or threats for companies. These types of changes are supposed to create a different type of consumer and consequently a need for different types of products, services and strategies. As indicated in the Information Technology Perspective, the high investment in adding phone lines in underdeveloped countries is an opportunity for many companies.
Other opportunities and threats may include the passage of a new law, the introduction of a new product by a competitor, a national catastrophe, or the declining value of the dollar. A competitor’s strength could be a threat. Unrest in Eastern Europe, rising interest rates, or the war against drugs could represent an opportunity or a threat.
A basic tenet of strategic management is that firms need to formulate strategies to take advantage of external opportunities and to avoid or reduce the impact of external threats. For this reason, identifying, monitoring and evaluating external opportunities and threats is essential for success. This process of conducting research and gathering and assimilating external information is sometimes called environmental scanning or industry analysis.
Internal strengths and internal weaknesses are controllable activities within an organization that are performed especially well or poorly. Management, marketing, finance/accounting, production/operations, research and development, and computer information systems activities of a business are areas where internal strengths and weaknesses arise. The process of identifying and evaluating organizational strengths and weaknesses in the functional areas of a business is an essential strategic-management activity. Organizations strive to pursue strategies that capitalize on internal strengths and improve on internal weaknesses.
Task 2. Answer the following questions:
What is mission statement?
What does a clear mission statement describe?
What does the term external imply?
What factors may be used as the examples of opportunities and threats?
Why are identifying, monitoring and evaluating external opportunities and threats essential for success?
In what areas do internal strengths and weaknesses arise?
Who and what may strengths and weaknesses be determined relative to?
Why are different types of surveys rather important?
Task 3. Agree or disagree giving your reasons:
Strategists are individuals who are most responsible for recruiting employees.
Most strategists agree that the first social responsibility of any business must be to make enough profit.
A mission statement broadly explains the previous direction of an organization.
Adolph Coors Company is in the toy manufacturing business.
The passage of a new law and the introduction of a new product by competitor are external factors.
Industry analysis is the process of conducting research and gathering external information.
The essential strategic management activity is the process of making money.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
неудача (провал), название должности, председатель правления (совета директоров), президент университета, предприниматель, обеспокоенность (забота о ч-л), краткосрочный, и наоборот, с целью ч-л, быть заинтересованным ч-л, невероятный (умопомрачительный), обязательство, по закону, покрывать расходы, тщательно изучать, отличать одно от другого, ясное (четкое) изложение, заставлять, наносить на карту, обратить внимание, самодостаточный, множественные ценные приобретения, взаимоуважение, тенденция (направление), смена, освоение, изготовленный из вторичного (переработанного) сырья, конкуренция, потребность в ч-л, принятие нового закона, снижение курса доллара, процентная ставка, принцип (доктрина), извлечь выгоду, окружение (среда), неотъемлемый, дефицит, превосходство, репутация качества, товарооборот, распродавать, подсчет соотношения, обзор, товаропроизводительность, реклама, смягчить (уменьшить), устранить.
Task 2. Fill in the blanks with prepositions where necessary:
Unfortunately, this situation is … the control of our firm.
Their strategists are interested … high production efficiency.
The board of this organization shows growing concern … management style.
If you want to be a success, you should distinguish external opportunities and threats … internal strengths and weaknesses.
A different type of consumer creates a need … different types of products.
Task 3. Supply the English equivalents of the Russian words given in brackets:
What is your (процентная ставка) in this business?
(Снижение курса доллара) will lead to crisis in the US economy.
If you want (извлечь выгоду) of the campaign you should examine the situation carefully.
I think such small investments will never (покрывать расходы).
Who was the ex-(председатель правления)?
Task 4. Translate the sentences from Russian into English:
Если вы хотите сделать свой бизнес успешным, то вам следует увеличить товаропроизводительность.
Наша главная цель – освоение нового рынка.
Как вы обычно устраняете конкурентов?
Подсчет соотношения поможет вам понять увидеть все преимущества и недостатки.
Стратегия вашей фирмы подразумевает охрану окружающей среды?
Культура поддерживающей стратегии включает взаимоуважение.
Что заставило вас взять на себя подобные обязательства?
Section 3: Grammar Focus
Task 1. Translate the sentences from English into Russian paying attention to “The Complex Subject” construction in the Passive Voice:
The budget deficit is known to be the excess of government expenditure over government revenue.
Markets are said to bring together buyers and sellers of goods and services.
The massive influx (включение) of women into the labour force is sometimes assumed to result in unemployment.
Alcohol and tobacco are usually believed to be products with a very inelastic demand.
An increase in the wage rate is expected to reduce the quantity of labour demanded.
A subsidy is known to be money or other resources provided by the government to support a business activity or a person.
Demand for imports is expected to rise when domestic income and output rise.
Task 2. Find in the text the sentences with “The Complex Object” construction and translate them into Russian.
Task 3. Choose the sentences with “The Complex Subject” construction and translate them into Russian:
High unemployment rate in Europe is assumed to result from high unemployment benefits.
The private sector is normally considered to use resources more productively than the government.
Social security payments and unemployment benefits are known as transfer payments.
It is known that taxes raised at the national level, such as income tax or VAT (value added tax), are usually supplemented by local taxes.
More people have been found to choose to stay unemployed in countries with very high tax rates.
The UK government is known to take nearly 40 percent of national income in taxes.
Macroeconomics is concerned with demand for goods by households or the total spending on machinery and buildings by firms.
Task 4. Paraphrase the sentences using “The Complex Subject” construction according to the pattern:
Pattern – Economists believe unemployment benefits to stop people from looking for a job. – Unemployment benefits are believed to stop people from looking for a job.
Economists think youth employment to be low in Germany because education is subsidized by the state.
Economists consider government spending cuts to be necessary in order to cut taxes.
Economists say economic system to be the particular way in which the economic activity in a country is organized.
Economists believe workers in poor countries to be much less productive as a result of bad working conditions.
Statistics say the 16 percent of world population living in the industrial countries receive nearly 80 percent of the world income.
We know public goods to be paid for out of general taxation.
We know a subvention to be money given by government, a person or an organization to help somebody do something for the good of the public, for example, in education or sciences.
We consider a subsidy to be money given by a government to certain producers to help them to produce at a low price goods and services needed by the public.
Task 5. Translate the sentences from Russian into English paying attention to the Complex Subject:
Полагают, что доля налогов в цене товара не может зависеть от покупательной способности населения.
Считается, что дополнительный доход от государства является отрицательным стимулом для поисков работы с более высокой заработной платой.
Незначительная доля государственных расходов Японии обусловливается, как известно, чрезвычайно низким уровнем расходов на национальную оборону.
Общественные расходы – это, как считается, те расходы, которые финансируются из налогообложения и государственных заимствований.
Полагают, большой государственный сектор делает экономику неэффективной, снижая количество товаров и услуг, которое может быть произведено и в конечном итоге распределено потребителям.
Известно, что в Великобритании взносы в фонды социального страхования составляют почти треть от общей суммы, которая направляется на социальные расходы.
Section 4: Communication Workshop
Task 1. Role-play.
You are a member of the strategic planning team of a company that produces PCs. Till now, the company has produced most of the components for the PCs itself. Hold a meeting to discuss the arguments for and against outsourcing the production of some of these components, so that your company becomes only an assembler and distributor of the finished PCs.
Task 2. Make up a dialogue with your classmate using the hints given.
Your company, a well known multinational producing components for the car industry, has production plant in southern Italy, an area of high unemployment. The plant received Italian government and EU financial assistance when it was built three years ago. Now due to poor productivity levels at the plant, the company is considering closing it down. However, there could be social, economic and political problems if it does so. Discuss the situation with the top manager presenting the case in favour of not closing it. Give as many reasons as possible.
MODULE 3: Key Terms to Strategic Management (2)
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Strengths and weaknesses are determined relative to competitors. Relative deficiency or superiority is important information. Also, strengths and weaknesses can be determined by elements of being rather than performance. For example, a strength may involve ownership of natural resources or a historic reputation for quality. Strengths and weaknesses may be determined relative to a firm’s own objectives. For example, high levels of inventory turnover may not be a strength to a firm that seeks never to stock-out.
Internal factors can be determined in a number of ways that include computing ratios, measuring performance, and comparing to past periods and industry averages. Various types of surveys can also be developed and administered to examine internal factors such as employee morale, production efficiency, advertising effectiveness and customer loyalty. Robert H. Short, chief executive officer of Portland General Corporation, describes his firm’s strategy in terms of strengths and weaknesses:
“First and foremost we are an energy company for the people of Oregon. Indeed, energy is our fundamental strength, and we intend to pursue growth aggressively in this business. To build on our strengths, however, we must mitigate or eliminate our weaknesses. I am proud of the way Portland general is drawing on its strengths to build for another century of success.”
Objectives can be defined as specific results that an organization seeks to achieve in pursing its basic mission. Long-term means more than one year. Objectives are essential for organizational success because they provide direction, aid in evaluation, create synergy, reveal priorities, allow coordination and provide a basis for effective planning, organizing, motivating and controlling activities. Objectives should be challenging, measurable, consistent, reasonable and clear. In multidimensional firm, objectives should be established for the overall company and for each division. Minnesota Power’s long-term objectives are to achieve a 13-percent return on equity (ROE) in their core electric utility, 14-percent ROE on water resource operations, and 15 percent on support businesses. Minnesota Power also strives to stay in the top 25 percent of electric utilities in the United States in terms of common stock’s market-to-book ratio and to maintain an annual growth in earnings per share of 5 percent.
Strategies are the means by which long-term objectives will be achieved. Business strategies may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation and joint venture.
Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives. Like long-term objectives, annual objectives should be measurable, quantitative, challenging, realistic, consistent and prioritized. They should be established at the corporate, divisional and functional levels in a large organization. Annual objectives should be stated in terms of management, marketing, finance/accounting, production/operations, research and development, and information systems accomplishments. A set of annual objectives is needed for each long-term objective. Annual objectives are especially important in strategy implementation, whereas long-term objectives are particularly important in strategy formulation. Annual objectives seem to represent the basis for allocating resources.
Campbell Soup Corporation has an annual objective to achieve 20-percent growth in earnings, a 20 percent return on equity and a 20-pecent return on invested cash. The company calls this ERC, for earnings, returns and cash.
The Tribune Company (the nation’s fifth-largest publisher of newspapers and owner of the Chicago Cubs baseball team) is another firm that has clear annual objectives. Stanton Cook, president and chief executive officer of Tribune, emphasizes annual objectives. Tribune strives to have an 18-percent annual return on equity (net income divided by average stockholders’ investment) and a 30-percent debt to total capital ratio.
The final key term to the highlighted here is policies – the means by which annual objectives will be achieved. Policies include guidelines, rules and procedures established to support efforts to achieve stated objectives. Policies are guides to decision making and address repetitive or recurring situations.
Policies are most often stated in terms of management, marketing, finance/accounting, production/operations, research and development, and computer information systems activities. Policies can be established at the corporate level and apply to an entire organization, at the divisional level and apply to a single division, or at the functional level and apply to particular operational activities or departments. Policies, like annual objectives, are sure to be especially important in strategy implementation because they outline an organization’s expectations of its employees and managers. Policies allow consistency and coordination within and between organizational departments.
Most firms have policies against drinking at work. The Centers for Disease Control recently reported that states with the highest alcohol consumption per employee were Wisconsin, New Hampshire, Minnesota, Montana, the Dakotas, Texas and Hawaii.
Substantial research suggests that a healthier workforce can more effectively and efficiently implement strategies. The National Center for Health Promotion estimates that more than 80 percent of all American corporations have No Smoking policies. No Smoking policies seems usually to be derived from annual objectives that seek to reduce corporate medical costs associated with absenteeism and to provide a healthy workplace. Pullman Company in Garden Grove, California, charges smokers $10 more each month for health insurance than it charges nonsmokers.
Task 2. Answer the following questions:
What is an objective?
Why are objectives essential for organizational success?
What do business strategies include?
What do annual objectives represent?
Why are policies especially important in strategy implementation?
Why do most firms have No Drinking and No Smoking policies?
What is the logical starting point for strategic management?
The strategic-management process is static, isn’t it?
Why do many organizations hold so-called retreats?
What is a key factor in performing strategic-management tasks?
Task 3. Mark these statements T (true) or F (false) according to the information in the text. If a statement is wrong find the part of the text that gives the correct information:
A firm’s own objectives are sure to determine strengths and weaknesses.
Policies are guidelines to decision making.
Only industry averages seem to be included into internal factors of strategic management.
Long-term means more than 10 months.
ROE means “right of equation”.
Annual objectives are necessary to achieve long-term objectives.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
прибыль по, полезность, пробивная способность, экономия (сокращение расходов), веха (опора), последовательный, в то время как, прибыль по капиталовложениям, общий коэффициент по капиталу, придавать большое значение, генеральная линия (директива), методика проведения (технологический процесс), рецидив, потребление, обширное исследование, происходить от, структура (система), развернутая модель, отправная точка, устранять, сознательно созданный, неизбежно привести к ч-л, например, по полугодиям, обособленно, компромисс (взаимные уступки), модернизировать, не в помещении, разумное объяснение (основная причина), рабочее место, беспристрастие (искренность), обратная связь, сложность.
Task 2. Fill in the blanks with prepositions where necessary:
These factors can necessitate … a change in productivity.
Such policies are derived … short-term objectives.
If you want to be successful in this business you should go … all the hierarchical levels.
This firm experienced demise because they functioned … lockstep fashion.
Unfortunately, there is little coordination … their departments.
Task 3. Supply the English equivalents of the Russian words given in brackets:
Their strategy can be presented in the (сознательно созданный) model.
Thanks to such a policy his (прибыль по капиталовложениям) is 35 percent.
According to the latest (обширное исследование) this business will bring the most profit.
I think (обратная связь) is needed throughout the management process.
Such meetings encourage more (искренность) among participants.
Task 4. Translate the sentences from Russian into English:
В нашей фирме менеджеры-стратеги проводят собрания с сотрудниками раз в полугодие.
Мы модернизируем краткосрочные цели нашей организации в соответствии с изменениями на рынке.
Вы всегда следуете генеральным линиям, обозначенным вашим руководством?
В успешной фирме всегда есть компромисс между иерархическими уровнями.
В понедельник вы должны представить развернутую модель всего процесса.
В наши дни большинство крупных и мелких фирм придерживаются политики против курения.
Каковы основные вехи вашего бизнеса?
Section 3: Grammar Focus
Task 1. Translate the sentences from English into Russian paying attention to “The Complex Subject” construction:
An increase in the wage rate is sure to reduce the quantity of labour demanded.
Individual labour supply seems to be inelastic.
Demand for import is unlikely to fall when domestic income and output in the country fall.
New methods of economic analysis to be required in the near future.
Most Western economies do not appear to have reached cpnsiderable production growth due to tax cuts.
New bank services prove to be constantly coming into life.
Western economies are sure to have rapidly recovered from the 1980-82 crisis, the worst in post-war years.
Although such factors of production as capital and land appear to be owned by firms, they are actually owned by households.
Task 2. Find in the text the sentences with “The Complex Subject” construction and translate them into Russian.
Task 3.Translate into English parts of the sentences given in Russian using “The Complex Subject” construction:
They (вряд ли выплатят) the loan in time.
With a rise in wages the net quantity of capital demanded (по-видимому увеличится).
Whenever the tax rate rises over 45 percent, people (вряд ли будут платить налоги).
Lending money to customers, the bank earns interests, and this interest (безусловно будет выше) than the interest paid to depositors.
Depositors (вряд ли получат) high interest on sight deposits.
The bank has proved to be unable to meet its liabilities. The Central Bank (безусловно отзовет) its license in the near future.
A person (по-видимому получит) some additional money depositing assets with a bank for a certain period of time.
As banks lend out money people deposit with them, the public (как оказалось, является) a net supplier of loans.
Task 4. Paraphrase the sentences using “The Complex Subject” construction instead of the underlined words according to the pattern.
Pattern – 1) It seems to us the bank to make the transaction within a day. – The bank seems to make the transaction within a day.
2) I think they can get a loan. – They are likely to get a loan.
With a financial panic, you can be sure/certain that most depositors will want to withdraw their deposits all at one time.
It seems banks are able to offer interest on checking accounts in some countries.
Each individual‘s expenditure necessarily adds to some other individual’s income.
It seems to me that banks started offering trust services in the early 1980s.
It appears/seems new services are being constantly developed by commercial banks.
I think nearly 80 percent of all money in the USA is in the form of chequing accounts.
We know for sure/certain that government bonds in the USA are sold and bought by the Federal Reserve System almost every working day.
Task 5. Translate the sentences from Russian into English paying attention to the Complex Subject:
Похоже, что балансовый отчет содержит информацию о фондах и задолженностях этой фирмы на последний день истекшего периода.
Скорее всего, банк получает свою основную прибыль, ссужая часть денег, отданных на хранение.
Проценты, которые банк назначил за ссуды, оказались выше процентов, предлагаемых вкладчиками.
Этот финансовый капитал обязательно будет использован для покупки акций другой компании.
Похоже, что цель переговоров состояла в том, чтобы урегулировать долги правительства иностранным банкам.
Оказалось, что банк отказался открыть счет «до востребования».
Section 4: Communication Workshop
Task 1. Act out a dialogue on the following topic.
You are going to apply for a job in a big advertising company. You have been invited to an interview. Make up this situation with a partner: one of you is an interviewer and the other one is an interviewee.
Task 2. Discuss the problem in the group.
Differences in pay levels between the two companies in a merger can cause problems. Imagine you are members of the Human Resources departments of the two companies. Hold a meeting to discuss this problem and try to suggest some solutions.
MODULE 4: The Strategic-Management Model
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
The strategic-management process can best be studied and applied using a widely accepted, comprehensive model of the strategic-management process. This model does not guarantee success, but it does represent a clear and practical approach for formulating, implementing and evaluating strategies. The model shows relationships among major components of the strategic-management process.
Identifying an organization’s existing mission, objectives and strategies is the logical starting point for strategic management because a firm’s present situation and condition may preclude certain strategies and may even dictate a particular course of action. Every organization has a mission, objectives and strategy, even if these elements are not consciously designed, written or communicated. The answer to where an organization is going can be determined largely by where the organization has been!
The strategic-management process is dynamic and continuous. A change in any one of the major components in the model can necessitate a change in any or all of the other components. For instance, a shift in the economy could represent a major opportunity and require a change in long-term objectives and strategies; or a failure to accomplish annual objectives could require a change in policy; or a major competitor could announce a change in strategy that requires a change in the firm’ mission. Therefore, strategy formulation, implementation and evaluation activities should be performed on a continual basis, not just at the end of the year or semiannually. The strategic-management process never really ends.
The strategic-management process is not as cleanly divided and neatly performed practice as the strategic-management model suggests. Strategists do not go through the process in lockstep fashion. Generally, there is give-and-take among hierarchical levels of an organization. Many organizations conduct formal meetings semiannually to discuss and update the firm’s mission, opportunities/threats, strengths/weaknesses, strategies, objectives, policies and performance. These meetings are commonly held off-premises and called retreats. The rationale for periodically conducting strategic-management meetings away from the work site is to encourage more creativity and candor among participants. Good communication and feedback are needed throughout the strategic-management process.
A number of different forces affect the formality of strategic management in organizations. Size of organization is a key factor; smaller firms are less formal in performing strategic-management tasks. Other variables that affect formality are management styles, complexity of environment, complexity of production process, nature of problems and purpose of planning system.
Task 2. Answer the following questions:
What does strategic management model represent?
How can one characterize the strategic management process?
When is strategic management process usually over?
Why is identifying an organization’s existing mission the logical starting point of strategic management?
Why do many organizations conduct their retreats off-premises.
Task 3. Agree or disagree giving your reasons:
The strategic management model always guarantees success.
If you want to know a company’s future you should know its past.
Strategy formulation, implementation and evaluation should be performed semiannually.
Feedback is very important for the strategic management process.
Complexity of environment and purpose of planning system are the constants that affect formality.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
общепринятый, понятный, практический подход, отправная точка, устранять, сознательно созданный (сконструированный), например, неизбежно повлечь за собой, сдвиг (изменение), достигать цель, конкурент, постоянная основа, медленно («черепашьим шагом»), взаимные уступки (компромисс), проводить собрание, не в помещении, стимулировать творчество, беспристрастие, обратная связь, влиять на ч-л.
Task 2. Fill in the blanks with prepositions where necessary:
A good strategic manager must perform his duties quickly but not … a lock step fashion.
… instance, this strategic management model helped us to survive two years ago.
Any strategist knows what factors affect … the stability of a company.
We’ll hold our next retreat … the end of this month.
Informal meetings are very important for encouraging candour … employees.
Task 3. Supply the English equivalents of the Russian words given in brackets:
If you want to create comfortable atmosphere at your company you should be ready for (взаимные уступки).
What was (отправная точка) of your business?
A person should perform their activities on (постоянная основа) if they want to be a success.
The more creativity they (стимулировать) in their employees the greater their profits will be.
You shouldn’t underestimate your (конкурентов).
Task 4. Translate the sentences from Russian into English:
Что помогает вашему бизнесу избежать чужого захвата?
Хороший стратегический менеджмент дает возможность любому бизнесу достигнуть цели.
Их бизнес удачный, потому что они вкладывают много денег в рекламу.
Согласно недавнему обзору, товарооборот этой фирмы значительно вырос.
Вы можете дать этому разумное объяснение?
Каждая долгосрочная цель требует целого набора ежегодных целей.
Один из принципов нашего стратегического менеджмента – сохранение репутации качества.
Section 3: Grammar Focus
Task 1. Find in the text the sentences with gerunds and translate them into Russian.
Task 2. Translate the sentences from English into Russian paying attention to gerund:
The difference in the results obtained appears to be due to the equipment depreciation having been calculated by different methods.
A new firm can’t enter the market without its goods being distinguished from others by means of an original trademark.
A bank loan enabled the company to protect its real estate from being sold for the debts.
Accountants don’t mind a technical term “net assets” being used instead of the term “equity”.
The firm was able to increase output produced by having adjusted the amount of man-hours used.
Such countries as Mexico and Brazil are satisfied with having increased their exports of manufactured goods to industrialized countries.
Investors insisted on being informed about the financial position of the project they supported.
Task 3. Translate into English parts of the sentences given in Russian using gerund and paying attention to prepositions:
The stockholders suspect the company of (имеет долги).
The employee thanked the manager for (повышение зарплаты).
It is known that the author’s copyright prevents publishers from (публикации его книги) without (получения разрешения).
In the 1970s the Rover Group, the major UK car producer, approved of (ограничение импорта машин в Великобританию), as it could lead to job losses in the country’s car industry.
Being limited by resources, the company should concentrate on (решении самых важных задач).
Many countries of the former Soviet block think of (присоединении к Европейскому Союзу).
A common agricultural policy of the EC members is to protect domestic producers against (импорта дешевых сельскохозяйственных продуктов) from non-member countries.
When a country entirely relies on (получение иностранной финансовой помощи) it can lose its independence.
Task 4. Paraphrase the underlined parts of the sentences according to the pattern using gerundial construction:
Pattern – The manager knows that the company is suffering losses now. – The manager knows of the company suffering losses now.
The manager knows that the losses are being suffered by the company now.
The bankers were informed that Mr. Black had paid the interest on the loan a few days ago.
The author insists that the publisher should make a copyright agreement.
The stockholder doesn’t mind that the investment interest is sent to his account in the bank.
At the general meeting the stockholders agreed that the company should employ a new Production Manager.
The manager knows that the company has suffered losses recently.
The bankers suggested that the interest on the loan should be paid by Mr. Black a within three days.
Task 5. Translate the sentences from Russian into English paying attention to gerund:
В Настоящее время система финансового учета, как известно, состоит из семи ступеней, причем бухгалтерский учет проводится на первых трех этапах.
Менеджеры должны иметь свободный доступ к бухгалтерской информации, чтобы планировать и контролировать деятельность компании.
Существует несколько способов повысить экономический прирост, но рост приносит как проблемы, так и преимущества.
Вести свой собственный бизнес, значит иметь много проблем.
Приобретение акций – хороший способ вложения денег.
Определение главных целей компании – это отправная точка стратегического менеджмента.
Section 4: Communication Workshop
Task 1. Share your opinions with your group mates on the problem of the post-merger integration. Use the ideas given.
The post-merger integration is the hardest but most important part of the deal. Here is a list of some issues that must be considered to enable things to work well after merger has taken place. Which are the most important? Can you add others? What factors need to be taken into account when coming to decision?
Who will be the chief executive of the new company?
Where will the HQ be?
If it is a merger between companies from different countries with different languages, what should the company language be?
Should key managers be moved to different parts of the merged company to speed up integration?
Task 2. Make a report on the topic given below.
You are a consultant specializing in economic and political fields. You have been asked by a client, a European computer manufacturer, to summarize in a report the difficulties and challenges of setting up a production operation in one of the following countries: Columbia, Russia or Indonesia.
MODULE 5: Benefits of Strategic Management (1)
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Strategic management allows an organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence (rather than just respond to) activities, and thus to exert control over its own destiny. Small business owners, chief executive officers, presidents and managers of many for-profit and nonprofit organizations have recognized and realized the benefits of strategic management.
Historically, the principal benefit of strategic management has been to help organizations make better strategies through the use of a more systematic, logical and rational approach to strategic choice. This certainly continues to be a major benefit of strategic management, but research studies now indicate that the process, rather than the decision or document, is the more important contribution of strategic management. Communication is a key to successful strategic management. Through involvement in the process, managers and employees become committed to supporting the organization. Dialogue and participation are essential ingredients. The chief executive officer of Rockwell International explains: “We believe that fundamental to effective strategic management is fully informed employees at all organizational levels. We expect every business segment to inform every employee about the business objectives, the direction of the business, the progress towards achieving objectives, and our customers, competitors and product plans.”
The manner in which strategic management is carried out is thus exceptionally important. A major aim of the process is to achieve understanding and commitment from all managers and employees. Understanding may be the most important benefit of strategic management, followed by commitment. If managers and employees understand what the organization is doing and why, they will feel a part of the firm and become committed to assisting it. This is especially true if employees also understand linkages between their own compensation and organizational performance. Managers and employees become surprisingly creative and innovative when they understand and support the firm’s mission, objectives and strategies. A great benefit of strategic management, then, is the opportunity that the process provides to empower individuals. Empowerment is the act of strengthening an individual’s sense of effectiveness. It means encouraging and rewarding employees to exercise initiative and imagination.
More and more organizations are decentralizing the strategic-management process, recognizing that planning must involve lower-level managers and employees. The notion of centralized staff planning is being replaced in organizations by decentralized line manager planning. The process is a learning, helping, educating and supporting activity, not merely a paper-shuffling activity among top executives. Strategic-management dialogue is more important than a nicely bound strategic-management document. The worst thing strategists can do is to develop strategic plans themselves and then present them to operating managers to executive. Through involvement in the process, line managers become “owners” of the strategy. Ownership of strategies by the people who have to execute them is a key to success!
Although making good strategic decisions is the major responsibility of an organization’s owner or chief executive officer, managers and employees both must also be involved in strategy formulation, implementation and evaluation activities. Participation is a key gaining commitment for needed changes.
An increasing number of corporation and institutions are using strategic management to make effective decisions. Over 75 percent of all companies now use strategic management techniques, compared to less than 25 percent in 1979. But strategic management is not a guarantee for success; it will be dysfunctional if it is conducted haphazardly. William Dearden of Hershey Food Corporation attributes his company’s success strategic management: “There is the strategic-management process. Planning for the long-term future has been entrenched as a way of life at Hershey, and we certainly plan to strengthen and rely on the process going forward.”
Task 2. Answer the following questions:
What has been the principal benefit of strategic management?
What is a key to successful strategic management?
Why is the manner in which strategic management is carried out exceptionally important?
Under what circumstances do managers and employees become extremely creative and innovative?
Why are more organizations decentralizing the strategic-management process?
How can line managers become “owners” of the strategy?
What is the major responsibility of an organization’s owner?
Task 3. Mark these statements T (true) or F (false) according to the information in the text. If a statement is wrong find the part of the text that gives the correct information:
Help is the principle benefit of strategic management.
Making profits is a key to successful strategic management.
It makes no difference in what manner strategic management is carried out.
Empowerment means encouraging and rewarding employees to exercise initiative and imagination.
In strategic management nicely bound document is more important than a dialogue.
Understanding is supposed to be the most important benefit of strategic management.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
выгода (польза), реагировать на, обеспечить контроль над ч-л, коммерческий, подход к ч/к-л, показывать (отражать), вклад (вложение), ключ к ч-л, вовлекаться во ч-л, составляющая (компонент), клиент (потребитель), осуществлять, исполнение (выполнение), связь между, поощрение, творческий, уполномочивать (наделять властью), проявлять инициативу, понятие, вымещать (замещать), перекладывание бумаг, руководитель высшего звена, отлично составленный (оформленный), принятие решений, ответственность, растущий (повышающийся), учреждение, по сравнению с, гарантия ч-л, случайно (наобум), приписывать (объяснять ч-л), усиливать, полагаться на ч/к-л.
Task 2. Fill in the blanks with prepositions where necessary:
Such measures are not a guarantee … success in this business.
Our strategists rely … the long-term objectives.
The productivity of the company has increased compared … the same period of the previous year.
I think, they should respond …the problem immediately to overcome the difficulties.
If you don’t exert control … the situation, your firm will experience demise.
Task 3. Supply the English equivalents of the Russian words given in brackets:
Managers of many (некоммерческий) organizations have realized these benefits.
Our top executive is characterized by a rational (подход к) strategic choice.
If conducted (случайно) strategic management can be dysfunctional.
All our (работники) are very intelligent and hardworking.
What has been (основная польза) of strategic management?
Task 4. Translate the sentences from Russian into English:
Каковы обязательные составляющие успешного бизнеса?
Вы не занимаетесь ничем кроме перекладывания бумаг.
Именно руководитель высшего звена должен обеспечить контроль над ситуацией.
С какой стати мы должны уступать нашим конкурентам?
Если вы хотите усилить свою позицию на рынке, то должны реагировать на малейшие изменения.
Общение, а не правильно составленный документ – ключ к успешному стратегическому управлению.
Стратегический менеджмент важен как для коммерческих, так и некоммерческих организаций.
Section 3:Grammar Focus
Task 1. Find in the text Real Conditional sentences and translate them into Russian.
Task 2. Translate Real Conditional sentences from English into Russian:
If planned investment is greater than planned saving, it will help the economy to expand.
There will be excess supply if prices are above equilibrium price.
Workers will be attracted from other industries if the wage is paid in a certain industry rise.
Managers and employees will become surprisingly creative and innovative if they understand and support the firm’s mission, objectives and strategies.
You will be able to evaluate the company’s competitiveness if you carry out a survey of consumer demand.
Task 3. Combine two sentences into one using Real Conditional sentences:
The immigration barriers will be eliminated in advanced countries. Wages of resident workers in such countries will fall.
The production cost will be lower. The obsolete equipment will be replaced.
The managers will consider all aspects of business activity. The company will earn more revenue.
The total expenses will exceed the total revenues during the exact period. The difference will be the net loss of the company.
This department store will be provided with all modern facilities. It will be able to serve more than 1000 customers a day.
Task 4. Open the brackets using the verbs in the right form to make Real Conditional sentences:
If this computer programme for bookkeeping (to be) more convenient, it (to be adopted) by our managers.
Equity (to decrease) if the owners (to withdraw) funds from the business.
If there (to be) a change in the amount for one item in a balance sheet, an equal change in some of the other item (to accompany) it.
The company (to earn) enough revenue to stay in business if it (to choose) proper ways to use its assets for producing goods and rendering services.
If the company (to introduce) a new product, it (to increase) the company’s future cash flows.
The same amount of depreciation (to evaluate) each year if the accountant (to choose) the straight-line method.
The revenue (to be recorded) in accounts receivable if a customer (to receive) commodities.
Task 5. Translate the sentences from Russian into English paying attention to Real Conditional sentences:
Ваша компания получит больше прибыли, если вы будете придерживаться этой схемы стратегического планирования.
Если бизнес компании будет прибыльным, он привлечет больше вложений от кредиторов и акционеров.
Если не будет жесткого правительственного контроля за движением наличности на рынке, то подобная ситуация приведет к гиперинфляции.
Продукция компании не будет конкурентоспособной на рынке, если не будет заменено морально устаревшее оборудование.
Эффективность руководства будет меньше, если вы заранее не разработаете долгосрочный план развития производства.
Если основные активы будут использоваться рационально, то чистый убыток этой компании будет меньше.
Section 4: Communication Workshop
Task 1. Discuss the problem of corporate culture in the group.
Wal-Mart’s corporate culture “has become a legend in retailing”. It includes such things as employees chanting the Wal-Mart cheer each day before the store opens. How well do you think Wal-Mart’s corporate culture would “travel” across national cultures, especially outside the UK and the USA? Would you feel comfortable with it?
Task 2. Make a presentation on the topic given.
Chose two large retailing, restaurant or hotel groups that you are familiar with. If you have time, go and observe the way they present themselves to customers. Then give a presentation comparing the two organizations’ approaches to customers.
MODULE 6: Benefits of Strategic Management (2)
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Financial Benefits. Research studies indicate that organizations using strategic management concepts are more profitable and successful than those that do not. For example, a longitudinal study of 101 retail, service and manufacturing firms over a 3-year period concluded that businesses using strategic-management concepts showed significant improvement in sales, profitability and productivity compared to firms without systematic planning activities; another study reported that up to 80 percent of the improvement possible in a firm’s profitability is achieved through changes in a company’ strategic direction; Cook and Ferris reported that the practices of high-performing firms reflect a more strategic orientation and longer-term focus. High-performing firms tend to do systematic planning to prepare for future fluctuations in their external and internal environments. Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.
High-performing firms seem to make more informed decisions with good anticipation of both short- and long-term consequences. On the other hand, firms that perform poorly often engage in activities that are shortsighted and do not reflect good forecasting of future conditions. Michael Allen found that strategic management demonstrated impressive power by dramatically improving the performance of a number of major companies that had implemented it, including General Electric, American Express, Allied Corporation, Dun & Bradstreet and Pitney Bowes. Strategists of low-performing organizations are often preoccupied with solving internal problems and meeting paperwork deadlines. If they estimated their competitors’ and their own firm’s strengths in a proper way they would be more successful. They often attribute weak performance to uncontrollable factors such as poor economy, technological change or foreign competition.
Dun & Bradstreet reports that more than 100000 businesses in the United States fail annually. If companies’ strategic management were effective there wouldn’t be so many business failures include bankruptcies, foreclosures, liquidations and court-mandated receiverships. Although many factors besides a lack of effective strategic management obviously can lead to business failure, these statistics suggest that strategic-management concepts could yield substantial financial benefits for many organizations.
Nonfinancial Benefits. Besides helping firms avoid financial demise, strategic management offers other tangible benefits, such as an enhanced awareness of external threats, an improved understanding of competitors’ strategies, increased employee productivity, reduced resistance to change and a clearer understanding of performance-reward relationships. Strategic management enhances the problem-prevention capabilities of organizations because it promotes interaction among managers at all divisional and functional levels. Interaction can enable firms to turn on their managers and employees by nurturing them, sharing organizational objectives with them, empowering them to help improve the product or service, and recognizing their contributions. According to Tom Peters, the difference between a turned-on and a turned-off worker is not 5 percent or 10 percent, but 100 percent to 200 percent.
In addition to empowering managers and employees, strategic management often brings order and discipline to an otherwise floundering firm. It can be the beginning of an efficient and effective managerial system. Strategic management may renew confidence in the current business strategy or point to the need for corrective actions. The strategic-management process provides a basis for identifying and rationalizing the need for change to all managers and employees of a firm: it helps them view change as an opportunity rather than a threat.
Greenley stresses that strategic management offers the following benefits:
1. It allows for identification, prioritization and exploitation of opportunities.
2. It provides an objective view of management problems.
3. It represents a framework for improved coordination and control of activities.
4. It minimizes the effects of adverse conditions and changes.
5. It allows major decisions to better support established objectives.
6. It allows more effective allocation of time and resources to identified opportunities.
7. It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc decisions.
Task 2. Answer the following questions:
Why do high-performing firms reflect a more strategic orientation and longer-term focus?
How can it be explained that low-performing firms sometimes experience demise?
What are so-called uncontrollable factors that affect a firm’s performance?
What are business failures?
What tangible benefits does strategic management offer?
In what way may strategic management change the business?
What does strategic management minimize?
Task 3. Agree or disagree giving your reasons:
In strategic management it is not necessary to do a research.
To do systematic planning is a usual thing for high-performing firms.
Companies that underestimate their competitors’ and overestimate their own strengths are never a success.
An efficient and effective managerial system is of no use in a floundering firm.
Strategic management can offer only financial benefits.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
прибыльный; продольный; делать заключение (вывод); с высокой производительностью; отражать, неустойчивость (колебание); иметь сходство с ч-л; выставлять на показ; относительно ч-л; недальновидный (близорукий); прогнозирование (предвидение); быть озабоченным ч-л; крайний срок; недооценивать; переоценивать; лишение права выкупа закладной; лицо, управляющее спорным имуществом, переданным по суду; уступать; ощутимый (реальный); повышенное осознание ч-л; устойчивость, сопротивляемость к ч-л; способность предотвращать проблемы; обучать; вклад; включенный/не включенный во ч-л; барахтающаяся (нестабильная) фирма; возродить уверенность.
Task 2. Fill in the blanks with prepositions where necessary:
Does this planning system resemble … strategic-management theory?
If you are not preoccupied … these problems you will cope with the situation better.
As a rule high-performing firms display better productivity relative … their industry.
A lack of planning system in a company leads … its demise.
Employees should understand the linkage … their own compensation and organizational performance.
Task 3. Supply the English equivalents of the Russian words given in brackets:
What is the (крайний срок) for performing this task?
Their business has failed because they (переоценить) their firm’s strengths.
If you had stopped this stupid (перекладывание бумаг) you would have finished the work long ago.
In strategic management compromise means the ability (уступать).
What is your (вклад) to the success of this business?
Task 4. Translate the sentences from Russian into English:
Мы проинформировали персонал нашей фирмы об изменениях в политике на всех организационных уровнях.
Благодаря стратегическому менеджменту работники организации получили уникальную возможность участвовать в принятии важных решений.
Хорошее прогнозирование – половина успеха.
Вы были недальновидны, поэтому потерпели крах.
Если между отделами нет взаимодействия, то такая организация потерпит крах.
По сравнению с предыдущим годом производительность выросла более чем на 40 процентов.
Даже успешные компании постоянно сталкиваются лицом к лицу с различными проблемами.
Section 3:Grammar Focus
Task 1. Find in the text Unreal Conditional sentences and translate them into Russian.
Task 2. Translate the following Unreal Conditional sentences from English into Russian:
If strategic management didn’t promote interaction among managers at all divisional and functional levels it wouldn’t enhance the problem-prevention capabilities of organizations.
If the available resource were used economically, it would cover all the expenses.
The company could employ more qualified workers if it had higher reputation than her competitors.
The agriculturists would have had smaller losses if the weather hadn’t been so dry in summer.
You business wouldn’t have failed if you had done what I told you then.
Task 3. Complete Unreal conditional sentences given:
If our strategic management expected any losses in future, he … .
If we had prepared financial statements, all useful information … .
If the income were calculated? The matching principle … .
If there were any relations between the entity and the external parties, they … .
If a transaction had occurred, the exchange price … .
If we planned to estimate the company’s performance for some years, the same accounting methods … .
Only if the entity were engaged in this transaction, the data about this economic event … .
Task 4. Change each sentence from Real into Unreal condition of the second and third types:
If too much money is available, its value will decrease and it will result in inflation.
If the company doesn’t earn a reasonable profit, the share price will fall and it will be difficult to attract additional capital.
If government reduce restrictions and tariffs, it will promote the expansion of world trade.
If prices are above the equilibrium price, there will be excess supply.
If the company issues new stocks, it will be possible to replace the obsolete equipment.
Task 5. Translate the Unreal Conditional sentences from Russian into English:
Многие компании утратили бы свою прочную позицию на рынке, если бы в прошлом году продолжился спад производства.
Компания могла бы выплачивать более высокую зарплату своим сотрудникам, если бы упала розничная цена.
Если бы в сентябре снизился конечный выход продукции, то затраты, которые несет компания на производство одной единицы продукции, возросли бы.
Если бы пассивы компании превышали бы ее активы, то она была бы вынуждена распродать активные фонды, чтобы расплатиться по долгам.
Если бы зарплата, выплачиваемая в отдельных сферах промышленности, росла, это привлекало бы рабочих из других областей промышленности.
Section 4: Communication Workshop
Task 1. Make a short report on the topic.
Look at the websites of some well-known international companies. Describe their approach to recruitment using the Internet.
Task 2. Write a letter of application.
You have seen a list of jobs advertised on the Internet by an international manufacturing company – they want to recruit people for technical, commercial and administrative positions. Write a letter of application specifying which kind of vacancy you are interested in and mentioning your relevant qualifications and experience.
MODULE 7: Factors Important in Strategic Decisions Making
Section 1: Reading skills
Task 1. Read the text carefully paying attention to the words given in italics.
Integrating Intuition and Analysis. The strategic-management process can be described as an objective, logical, systematic approach for making major decisions of an organization. It attempts to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. Yet, strategic management is not a pure science that lends itself to a nice, neat, one-two-three approach.
Based on past experiences, judgment and feelings, intuition is essential to making go strategic decisions. Intuition is particularly useful for making decisions in situations of growing uncertainty or little precedent. It is also helpful when highly interrelated variables exist, where there is immense pressure to be right, or when it is necessary to choose from several alternatives. These situations describe the very nature and heart of strategic management.
Some managers and owners of businesses profess to have extraordinary abilities using intuition alone in devising brilliant strategies. For example, Will Durant, who organized General Motors Corporation, was described by Alfred Sloan as “a man who would proceed on a course of action guided solely, as far as I could tell, by some intuitive flash brilliance. He never felt obliged to make an engineering hunt for the facts. Yet at times was astoundingly correct in his judgment.” Albert Einstein acknowledged the importance when he said: “I believe in intuition and inspiration. At times I feel certain that I am right while not knowing the reason. Imagination is more important than knowledge because knowledge is limited, whereas imagination embraces the entire world.”
Although some organizations today may survive and prosper because they have intuitive geniuses managing them, most are not so fortunate. Most organizations can benefit from strategic management, which is based upon integrating intuition and analysis in decision making. Choosing an intuitive or analytic approach to decision making is not an either–or proposition. Managers at all levels in an organization should inject their intuition and judgment into strategic-management analyses. Analytical thinking and intuitive thinking complement each other.
Operating from the “I’ve already made up my mind, don’t bother me with the fact” is not management by intuition; it is management by ignorance. Drucker says: “I believe in intuition only if you discipline it. “Hunch” artists, who make a diagnosis but do not check it out with the facts, are the ones in medicine who kill people, and in management kill businesses.” In a sense, the strategic-management process is an attempt to duplicate what goes on in the mind of a brilliant intuitive person who knows the business. Success of strategic management hinges upon effective integration of intuition and analysis, as Henderson notes:
“The accelerating rate of change today is producing a business world in which customary managerial habits in organizations are increasingly inadequate. Experience alone was an adequate guide when changes could be made in small increments. But intuitive and experience-based management philosophies are grossly inadequate when decisions are strategic and have major, irreversible consequences.”
Adapting to Change. The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. The rate and magnitude of changes that affect organizations are increasing dramatically. Consider, for example, palmtop computers, color fax machines, voice mail, monoclonal antibodies, completion of the English Channel tunnel, the aging population, the Hong Kong annexation and normalization of relation between the United States and Vietnam. To survive, all organizations must be capable of astutely identifying and adapting to change. The strategic-management process is aimed at allowing organizations to effectively adapt to change over the long run.
In today’s business environment, more than any preceding era, the only constant is change. Successful organizations effectively manage change, continuously adapting their bureaucracies, strategies, systems, products and cultures to survive the shocks and prosper from the forces that decimate the competition.
Information technology and globalization are external changes that are transforming business and society today. On a political map, the boundaries between countries are as clear as ever, but on a competitive map showing the real flow of financial and industrial activity, the boundaries have largely disappeared. Speedy flow of information has eaten away at national boundaries so that people worldwide readily see for themselves how other people live. People are travelling abroad more; ten million Japanese travel abroad annually. People are emigrating more; Germans to England and Mexicans to the United States are examples. As the Global Perspective indicates, U.S. firms have become second-tier competitors in many industries. We are becoming a borderless world with global citizens, global competitors, global customers, global suppliers and global distributors!
The need to adapt to change leads organizations to key strategic-management questions, such as “What kind of business should we become? Are we in the right fields? Should we reshape our business? What competitors are entering our industry? What strategies should we pursue? How are our customers changing? Are new technologies being developed that could put us out of business?”
Task 2. Answer the following questions:
What is strategic management process for?
Why is intuition helpful in decision making process?
What things complement each other in decision making?
What does success of strategic management hinge upon?
What should an organization be like to survive?
Why is imagination more important than knowledge?
Task 3. Mark these statements T (true) or F (false) according to the information in the text. If a statement is wrong find the part of the text that gives the correct information:
Some owners of businesses have extraordinary abilities using intuition alone in devising perfect strategies.
Analytical thinking and intuitive thinking are always in contradiction.
Nowadays people are becoming a borderless world.
On a competitive map showing the real flow of financial and industrial activity, the boundaries are as clear as ever.
Managers at all levels in an organization should always be very reasonable and never use their intuition in decision making process.
Section 2: Word Power
Task 1. Find in the text the English equivalents of the following Russian words and expressions:
Подход; качественный и количественный; переменная величина; делать вид (открыто признаваться в ч-л); сверхъестественные способности; задумывать, изобретать; озарение; работа инженерной мысли; вдохновение; временами; заключать в объятья; процветать; удачливый; принятие решений; дополнять друг друга; незнание, невежество; интуитивный (действующий по наитию); прирост, приращение; необратимые последствия; отслеживать, контролировать; тенденция, направление; масштабность, значимость; карманный компьютер; завершение; присоединение, аннексия; проницательно, хитро; приспособиться к ч-л; окружение, среда; абсолютно очевидный; не основной (второй очереди) конкурент; мир без границ; поставщик; распространитель; вести к ч-л; придавать новый вид; клиент, потребитель.
Task 2. Fill in the blanks with prepositions where necessary:
Even the most brilliant strategists make mistakes … times.
To make an engineering hunt … the facts is half of success.
In strategic management process it is very important to be able for adapting … change.
Management … ignorance ruined this small company.
Great profits largely hinge … good strategic management.
Task 3. Supply the English equivalents of the Russian words given in brackets:
Many prosperous businessmen believe in intuition and (вдохновение).
Albert Einstein acknowledged that imagination (заключает в объятия) the entire world.
Quick strategic decisions may have (необратимые последствия).
Such (подход) for decision making will fail your business.
We have a lot of regular (клиенты).
Task 4. Translate the sentences from Russian into English:
По сравнению с предыдущим годом производительность выросла более чем на 40 процентов.
Наши поставщики никогда нас не подводят.
Я считаю, что эта современная тенденция ни к чему не приведет в бизнесе.
Распространители этого товара не получат большой прибыли.
Эта фирма специализируется на выпуске карманных компьютеров.
Section 3:Grammar Focus
Task 1. Translate the sentences from English into Russian paying attention to the Absolute Participial construction:
Monetary policy affects prices, the aggregate level of output and employment being independent of it.
Interest rate being the opportunity cost of holding money, higher inflation reduces the demand for real money.
Building societies now issuing cheque books to their depositors, it is difficult to decide whether these societies are building organizations or banks.
The Central Bank acting as banker to commercial banks, the financial system works steadily.
Interest rates can effect aggregate demand, equilibrium level of output and employment adjusting correspondingly.
Task 2. In the following sentences find the Absolute Participial construction and translate them into Russian:
An increase in price of one percent resulting in an increase in supply of more than one percent, the supply is called elastic.
Goods may find their way to the black market, ceiling prices being controlled by the government.
In the next 25 years or so, the average age in the United States increasing, problems of the aged rather than young people will be of importance.
With a financial panic everyone wanting their money at the same time, the bank is unable to pay.
People feel that a bank account is as good as or even better than money in their pocket, cheques being accepted in payment of purchases
Task 3. Change the sentences with the Absolute Participial construction into complete ones according to the pattern:
Pattern – The government intending to provide incentives to developing an industry, subsidies are offered. – When the government intends to provide incentives to developing an industry, subsidies are offered.
The Central Bank requires every commercial bank to hold a certain percentage of its deposits as reserves, the percentage being different for current accounts and time deposits.
The price level rising, the value of money decreases.
Inflation occurring, there are more disadvantages than advantages in holding money.
Depositors making deposits and withdrawing money at different times, any bank can get along with an amount of cash to cover withdrawals.
There existing a traditional suspicion in the USA of “big bankers”, the United States has given rise to the growth of a great number of local banks.
Task 4. Complete the sentences with the Absolute Participial construction:
Full employment having been achieved … .
Imports being reduced at the same time … .
Profits being negative … .
Inflation increasing … .
Import tariffs having gone down … .
Task 5. Translate the sentences from Russian into English using the Absolute Participial construction:
Считается, что существуют две основные экономические системы – капитализм и социализм, а между ними находится смешанная экономика.
Природные ресурсы – один из трех факторов производства, два других – труд и капитал.
Если будет полная занятость, то увеличение количества денег ускорит инфляцию.
Когда повышается темп инфляции, процентные ставки растут, а совокупный спрос падает.
Когда компания использует стратегический менеджмент при определении своих долгосрочных целей, она является конкурентоспособной.
Section 4: Communication Workshop
Task 1. Discuss in the group the situation given.
John and Mary Cooper are a high-flying couple in their early 30s. Both have very good jobs, but in different companies. John, who is an audit manager for an international firm of accountants, has just been offered an expatriate posting in Poland for two years, which he feels is essential for his career development. Mary, who is an investment analyst in an American bank in London, is also career minded. What are their options? What would you do in their position.
Task 2. Do a project on the following topic.
Imagine you work in the management development department of one of the six multinationals which take part in the London Business School programme. Write a description of the programme, asking for applications from managers in the company: this will be circulated on the company’s intranet around the world.
Рекомендуемая литература
1. Основная:
1. Агабекян, И. П. Английский для менеджеров / И. П. Агабекян. – Изд. 8-е, исправ. – Ростов н/Д : Феникс, 2008. – 414 с.
2. Глушенкова, Е. В. Английский для студентов экономических специальностей: учебник / Е. В. Глушенкова, Е. Н. Комарова. – 2-е изд., испр. – М.: ООО «Издательство АСТ»: ООО «Издательство Астрель», 2004. – 350 с.
3. Голицынский, Ю. Б. Грамматика : сборник упражнений / Ю. Б. Голицынский. – 3-е изд., – СПб. : КАРО, 2003. – 512 с.
4. Pilbeam, Adrian. Market Leader. International Management / Adrian Pilbeam. England : Pearson Education Ltd, 2003
2. Дополнительная литература:
Англо-русский экономический словарь / под ред. И. Ф. Ждановой, Э. Л. Вартумян. Изд.3-е – М., 2000.
Applied Economics. Princeton, USA, 1990.
Cobuild, Collins. Student’s Grammar Practice Material / Collins Cobuild. England : Dave Willis Harper Collins Publishers Ltd, 1991.
David, Fred R. Strategic Management / Fred. R. David. Prentice-Hall International.
Evans, Virginia. Round-Up. English Grammar Practice / Virginia Evans. England : Addison Wesley Longman Ltd, 2001.
Учебное издание
Татьяна Александровна Данилова
СТРАТЕГИЧЕСКИЙ МЕНЕДЖМЕНТ
(на английском языке)
Учебно-методическое пособие
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