Homework #4 for MGT3000

Organization Management
HW # 4
Chapter 5
Matthew Henderson

1. What strategic plans could be adopted by MSU at which you are taking this management course to compete for students in the marketplace?  Would these plans depend on the school’s goals?

MSU could adopt several strategic plans to improve their competitive advantage.  If MSU could identify and exploit what sets them apart from other schools (core competency), it might produce a more efficient business model and they could offer their services for a more competitive price.  MSU could build a stronger synergy between their various departments and outside vendors.  This would create a more diverse business model and they could offer more services for a more competitive price.

These plans take into account the school’s goals.  They are methods used to achieve those goals.  The plans should be developed with goals in mind.

MSU could also adopt one of Porter’s Competitive Strategies of Differentiation, Cost Leadership or Focus.  Differentiation would set MSU apart from other schools, Cost Leadership would make classes available at a lower cost, and Focus would increase MSU’s customer loyalty.

Any of Porter’s Competitive Strategies would depend on MSU’s goals.  These strategies are put in place to reach a specific goal.


2. One of the benefits of a strategy map is that goals and how they are linked can be clearly communicated to everyone in the organization.  Does a minimum wage maintenance worker in a hospital really need to understand any goals beyond keeping the place clean?  Discuss.

A minimum wage hospital maintenance worker does not need to understand the goals of the organization to perform his/her duties.  However, it might be beneficial to both the organization and the worker if they were to understand the goals.  Not only does it give the worker a sense of purpose and direction, but it also helps the maintenance worker make decisions in the best interest of the hospital’s goals.  The maintenance worker can do his/her required duties without understanding the goals of the hospital, but he/she can go above and beyond required duties if he/she understands the goals of the hospital.

Perform a SWOT analysis for Metro State University of Denver.  Do you think university administrators consider the same factors when devising their strategy?

Strengths	Opportunities		Ideas
Quality Education	Consumers		Exceed Accreditation and Curriculum Standards to preempt unpredictable changing environment and help improve US Worldwide Education Standings
Communications	Investors		Exploit strengths for broader scale of academic recognition
Student Involvement	Diversity of Programs		Market various locations and public transportation to help eradicate parking threat
Community Involvement	Expansion of Programs		Market Federal Grants/Loans and Competitive Costs to Unemployed
Competitive Costs	Competitive Costs		Market Quality of Education and Accreditation to offset higher costs
Transportation	Community Involvement		Use communication strengths in student outreach
Partnership w/ other schools	Government Funding		Use communication, partnerships and community and student involvement to offset crime
Facility Locations	Low National Employment		Use Communication and outreach to educate students about school/curriculum
Federal Grants/Loans	Federal Student Incentives		Ensure availability of Student Financing
Accredited	National Regard for Education		Partner with Primary Schools to improve education (tutors, in-class help, guest speakers, etc…)
Reputation	Partnerships
Weaknesses	Threats
Higher costs than some	Academic Recognition
Parking	Program Costs
Educating about Curriculum	Parking
Outreach	Government Funding
Academic Recognition	High National Employment
	School Shootings/Crime
	Worldwide Education Standings (US is low)
	Substandard Primary Education
	Accreditation Standards
	Curriculum Standards

I would imagine that MSU Administrators consider these factors and more when devising strategic plans (or at least I would hope they do).

3. In order for companies to remain competitive, their strategies must focus on three things. Describe these three focuses.

Core Competencies: These are the things that set a company apart from its competitors.  These are the things at which the company excels.  Exploiting Core Competencies can give a company a competitive advantage because they acquire a certain expertise more so than competitors.

Build Synergy:  Departments and Partners all working together toward a common goal.  This can give the company a competitive advantage in cost, market power, and technology or management skill.  This can add value to existing resources.

Deliver Value: Value is benefits vs. cost of what the company is offering (service or product).  A consumer will generally shop for the most benefits at the lowest cost.  By exploiting core competencies and building synergy, companies can increase the benefits of what they offer and also offer it at a lower cost.


4. Explain how Porter's competitive strategies may be useful to an organization. List the common characteristics of each strategy.

Porter’s competitive strategies say that an organization may adopt one of three strategies to generate a competitive edge.  An organization can use one of these strategies in combination with a SWOT analysis and strategic planning to develop a strategy to pull ahead of the competition.

Porter’s Competitive Strategies are:

Differentiation: Creative “outside the box” thinking, strong marketing, flexible yet coordinated, strong research ability, reputation for quality or innovation.

Cost Leadership: Efficient procurement and distribution, central authority, tight cost control, standard operating procedures, easy to use manufacturing.

Focus: Flexible, customer relationships, empowered lower employees, measures cost of service and maintaining customer loyalty, frequent/detailed control reports, can use combination of differentiation and cost leadership.