Prepared by group No. 2: Natalia Trunova (M004610026) Domingo Lee (M994610011) Libby Shun-Chi Chiang (M014020007)

The primary responsibility of top management is to determine an organization’s

goals, strategy, and design,

thereby adapting the organization to a

changing environment

The primary responsibility of top management is to determine an organization’s

goals, strategy, and design,

thereby adapting the organization to a

changing environment

CEOTop management

Internal SituationInternal

Situation

Strategic Intent

Effectiveness Outcomes

Organization Design

External Environment

External Environment

Opportunities Threats Uncertainty Resource availability

Strengths Weaknesses Distinctive competence Leader style Past performance

Define mission Official goals

Select operational goals Competitive strategies

Structural form Learning Efficiency

Information and control systems Production technology Human resource policies, inventives Organizational culture Interorganizational linkages

Goal attainment Resources Efficiency Strategic constituents

Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm

Low Cost High Cost

BroadOverall CostLeadership

Differentiation

NarrowCost

FocusDefferentiation

Focus

Competitive Advantage

Com

petit

ive

Sco

pe

Source: http://www.vectorstudy.com/management_topics/strategy_typology.htm

Source: http://www.emeraldinsight.com/journals.htm?articleid=1411048&show=html

Bad strategy Good strategy

• It fails to define the problem;• It is based on weak or fussy objectives;• It is mostly fluff.

• Diagnosis;• A guiding policy;• Coherent action steps.

DefinitionEffectiveness

degree to which an organization realizes its multiple goals.

Efficiency the amount of resources used to

produce outputs.

Overall effectiveness is difficult to measure in organizations.

4 approaches to the measurement of organization effectivenessGoal approachResource-based approachInternal approachStrategic constituents approach

Resource-based Approach

Internal ProcessApproach

Goal Approach

Strategic Constituents Approach

ResourceInput

Product and ServiceOutputs

OrganizationInternal

Activities & Processes

Employees

Government

Owners

Customers

Community

Suppliers

Creditors

Exhibit 3.9

Consists of identifying an organization’s output goals and assessing how well the organizations has attained those goals. Activities the organization is really performing.

E.g. output, profit, or client satisfaction Indicators – operative goals – easy to

measure

Evaluates the ability of the organization to obtain valued resources from the environment.

Indicators bargaining position, ability to correctly interpret properties of the

environment, ability to use resources to achieve superior

performance, ability to respond to environmental changes.

An evaluation of human resources and their effectiveness is important. internal organizational health and efficiency

Indicators Positive corporate culture and work climate Confident between employees and management Operational efficiency Communication Growth and development of employees Coordination among organization’s parts

measures efficiency by focusing on satisfaction of key stakeholders. e.g. owners, employees, customers, creditors,

community, suppliers, government Indicators - Criteria of constituents groups Usefulness - Constituencies have

powerful influence on the organization, and it has to respond to demands

Developed by R. Quinn and J. Rohrbaugh

Tries to balance a concern with various parts of the organization rather than focusing one part.

Combines several indicators into a single framework.

NASA example – different viewpoints

Competing values model

Exhibit 3.10

Case study: Horizon

Business concept/strategyCore competenciesCustomersCompetitorsFuture perspective

John Lu founded Horizon Yacht in 1987

Horizon has endeavored to create and build yachts that embody each client’s dreams.

Integrated Company Structure. Horizon Group Management Center

functions by supervising the Horizon Group network: delivery center; mold center; human resources center; marketing center and IT center.

Source: Horizon Company’s official presentation materials

Taiwan Australia China Europe Greece/Cyprus Hong Kong Japan New Zealand Russia Singapore South Korea Turkey United States

Source: Horizon Company’s official presentation materials

Advanced Technology Sophisticated CraftsmanshipExtraordinary DesignExcellent EngineeringQuality Assurance State-of-the-art Facilities

2006 Awarded “Best Asian Super Yacht” Award and “Best Asian Yacht Builder” Award at the Christofle Asia Boating Awards 2006

2007 Awarded “Best Asian Yacht Builder (under 100 feet)” by Christofle Asia Boating Awards 2007

2007 Won the “2007 Taiwan Superior Brand” competition 2010 Horizon E88 motoryacht and SC46 solar power boat won

the “Taiwan Excellence 2010” Awards 2011 Awarded “Best Asian Motor Yacht Builder ( 81 feet and

up)” by Asia Boating Awards 2012 Awarded “Best Asian Yacht Builder (15-30 meter)” by Asia

Boating Awards

Source: Horizon Company’s official presentation materials

2012 Rank Company Total (m) Total (ft) Projects Avg. (ft)1 Azimut-Benetti (Italy) 2,640 8,661 75 1152 Ferretti Group (Italy) 2,427 7,961 76 1053 Sanlorenzo (Italy) 1,413 4,635 42 1104 Lürssen (Germany) 753 2,471 7 3535 Sunseeker (UK) 649 2,127 21 1016 Feadship (Netherlands) 567 1,860 8 2337 Westport (USA) 548 1,798 16 1128 Heesen Yachts (Netherlands) 535 1,754 11 1599 Horizon (Taiwan) 519 1,704 17 10010 Amels (Netherlands) 495 1,625 8 20311 Fipa Group (Italy) 482 1,581 15 10512 Overmarine (Italy) 461 1,512 13 11613 Trinity Yachts (USA) 432 1,417 8 17714 Perini Navi Group (Italy) 426 1,398 8 17515 Princess Yachts (UK) 378 1,239 13 9516 Palmer Johnson (USA) 303 993 5 19917 Christensen (USA) 259 848 6 14118 Proteksan-Turquoise (Turkey) 257 843 4 21119 Kha Shing (Taiwan) 240 787 8 9820 Dream Ship Victory (Turkey) 238 781 3 260

Top 20 Builders

Main competitors

Dedicated to customer satisfaction.

Horizon strives to improve and advance upon every aspect of the boat building process.

Horizon also invests in the future, developing new models and series (focus on environmental friendly designs).

Perception of environment

Underlying values

unstable

stable

efficiency innovation

Prospector

Defender

Horizon

Dimensions

Horizon’s reality

Stable market

• Ability of customization within smooth production process.• Yachts of average 100 ft. on European (40%) and Australian (26%) markets.

New market

•Risk diversification, creating more markets.•Recently, plans have been made to expand to India.•Expand into China through dealership.

Emphasis on efficiency

•Employment of high-quality talent.•Ability of group specialization and integration.•Strengthen services.

Emphasis on innovation

•CNC (Computer numerical control) milling system •SCRIMP (Seemann’s Composites Resin Infusion Molding Process) for producing one -piece yacht hull (longest in the world in 2006).•Yachts equipped with solar-power panels .

The competitive advantage of Horizon is customization. stability and equilibrium. Growth and resource acquisition Productivity, efficiency

Invests in the future, integrated enterprises to Horizon Group Co. - Open Systems Model

Improve process, developed internal communication - Internal Process Model

Horizon Yachts

Human RelationsEmphasis

Internal ProcessEmphasis

Rational Goal Emphasis

Open Systems Emphasis

STRUCTURE

FOCUS

FLEXIBILITY

CONTROL

INTERNAL EXTERNAL

Horizon Group

Horizon YachtsSince: 1987

Employees:340

Atech CompositesSince: 2000

Employees: 250

VISION YachtsSince: 2001

Employees: 250

PRIMIER YachtsSince: 2003

Employees: 110

CNC Mold WorkshopSince: 2005

Horizon FurnitureSince: 2000

4 Yacht Factories Total employees: 1000

Internal Process Emphasis

Horizon

Group

Horizon

Group

Customers

Customer

Service Center

Marketing

Center

Purchasing

Dep.

Suppliers

R & DFinancial Dep.

Human Resourc

eCenter

Information

Technology Center

Knowledge Manageme

ntCenter

Yachts Manufacture Factories

ProfessionalTask Force

Center

Marketinformati

on

United DeliveryCenter

joint purchasing

joint marketing

Yacht information

Fast service

Ord

er a

ssig

nmen

t

Task assignment

Think tank

IT platform

join

t R&D s

harin

gF

inan

cial

con

trol

HRassignm

ent

Orders /Need

Joint delivering

Open Systems Emphasis

US. → Europe Market OEM → OBM 80~110ft → 120 ft Customize (High Value add)

Ex. BMW motor MIT = Made in Taiwan

Manufactory base – High Quality Relatively low cost ( vs. Italy)

Differentiation

Low Cost

Competitive Advantage

CEOTop management

Internal Situation- Weak of Design- No brand image- Low Cost & High Quality

Internal Situation- Weak of Design- No brand image- Low Cost & High Quality

Strategic Intent- Branding- EU market- Customize- Risk diversification

Strategic Intent- Branding- EU market- Customize- Risk diversification

Effectiveness Outcomes- Top 10 Brand Effectiveness Outcomes- Top 10 Brand

Organization Design-Efficiency but FlexibleOrganization Design-Efficiency but Flexible

External Environment- Decline of US market- OEM limitation- 120ft Yacht

External Environment- Decline of US market- OEM limitation- 120ft Yacht