GOALS ARE DIRECTED BY THE VISION, DEVELOPED BY EXECUTIVE MANAGEMENT AND BASED ON ANALYSIS GOAL DEVELOPMENT PROCESS Vision Statement • Development • Areas for Goals • Analysis • Evaluation • Prioritization • GOALS • Business • Markets • Activities Executive Management Business Environmental Scan Capabilities/ Assessment/ Historical Performance Issues Management Corporate Planning • People • Technology • Cost structure • Assets GOALS STATEMENTS Business Units • Issues and trends • Political factors • Environmental policies Departments
Robby Djohan • Entrepreneurial Mode • Planning Mode • Adaptive Mode • Logical Incrementalism Krakatau Steel Jack Welch
PT. GARUDA INDONESIA, Mr. Robby Djohan Within two months The problems solved • Entrepreneurial Mode • Strength • A lot of planes and assets • Weakness • A lot of grounded planes • needed maintenance • Amount of debt exceeded assets • Opportunities • Not even one, the people in Indonesia wanted to see Garuda to be sold • Threats • Low images, On Time Performance below 75%
Merger New Entity Business Company A Company B
Acquisition Company A Comp. B Comp. B
Internal Factors Strengths (S) Weaknesses (W) S1 Quality Maytag culture W1 Process-oriented R&D S2 Experienced top management W2 Distribution channels S3 Vertical integration W3 Financial position External Factors S4 Employee relations W4 Global positioning S5 Hoover’s international orientation W5 Manufacturing facilities SO Strategies WO Strategies Opportunities O1 Economic integration of European community • Use worldwide Hoover distribution channels to sell both Hoover and Maytag major appliances • Find joint venture partners in Eastern Europe and Asia • Expand Hoover’s presence in continental Europe by improving Hoover quality and reducing manufacturing and distribution cost • Emphasize superstore channel for all non-Maytag brands O2 Demographics favor quality O3 Economic development of Asia O4 Opening of Eastern Europe O5 Trend toward super stores WT Strategies Threats ST Strategies T1 Increasing government regulation • Acquire Raytheon’s appliance business to increase US Market share • Merge with a Japanese major home appliance company • Sell off all non-Maytag brands and strongly defend Maytag’s US niche • Sell off Dixie-Narco Division to reduce debt • Emphasize cost reduction to reduce break-even point • Sell out to Raytheon or a Japanese firm T2 Strong US competition T3 Whirlpool and Electrolux positioned for global economy T4 New product advances T5 Japanese appliance companies
Question? • Why most of SOEs failed?