AEC & RI, KUMULUR, TNAU - 62171204/18/23

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MANAGEMENT MANAGEMENT APPROACHESAPPROACHES

Management Approaches

Management By Objectives (MBO) Quality Circles (QC) Profit Center (PC) Strength, Weakness, Opportunities and

Threats (SWOT)

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MBO A comprehensive approach Focusing on objectives Providing guide lines Joint goal setting Subordinates assume the

responsibility Positive motivation among all people Encourages self-appraisal & self-

development Attainment of desired results.

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Quality Circle (QC)

QC is group of people, from the same organizational area

Usually a facilitator works with each group, which normally consists of six to twelve members.

Members meet regularly to solve problems they experience at work.

Leads to TQM

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Profit Center

It exists in a decentralized organizationDivisionalised on Product / Region Given all physical facilities like a self contained unit

Eg: Regional Managers / Product Managers

Accountable for profit or loss

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SWOT Analysis

Most of the firms adopt

To stimulate the flow of ideas, ‘SWOT’ analysis approach will be useful.

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Contd.. SWOT analysis represents conscious,

deliberate, and systematic effort by an organization to identify opportunities that can be profitably exploited by it.

Periodic SWOT analysis facilitates the generation of ideas.

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Agribusiness organization Weakness

StrengthsOpportunities

Threats

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Strength & Weakness

Internal Shareholders Employees Products (range, quality) Pricing Policies

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Opportunities & Threats

External Government (State, Central) Customers Suppliers Subsidy / Incentives Political situation

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Internal / external factors

Internal Strength (S) e.g.,Finance,Marketing, R&D, New product

Internal weakness (W)e.g., weaknesses in the box of “strengths”

External opportunities (O)e.g., Current & future economic conditions, Political & Social changes,

SO Strategy (Maxi-Maxi)Most successful strategy, Utilizing the organization's strengths to take advantages of opportunities

WO Strategy (Mini-Maxi)e.g., Developmental strategy to overcome weaknesses in order to take advantage of opportunities

External Threats (T) e.g., areas similar to those shown in “opportunities” as above

ST Strategy (Maxi-Mini)

e.g., use of strengths to cope with threats or to avoid threats

WT Strategy (Mini-Mini)e.g., retrenchment, liquidation, or joint venture to minimise both weakness & threats

SWOT Matrix

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Functional Areas of Agribusiness Organisation

Production Marketing Finance Human Resource (HR) / Personnel

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Production

Strength New good machineries High capacity Dedicated workforce Ability to produce in time High technology

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Production

Weakness Old machineries Less capacity Discouraged workforce Late in supply Low technology

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Marketing

Strength Company is well known Strong market share Good quality Good service Low production cost Low distribution cost Effective sales force Good R & D More geographical coverage Availability of new product

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Marketing

Weakness Company is less known Less market share Poor quality Poor service High cost More distribution cost Less sales force Poor R & D Less geographical coverage Less availability of new product

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Marketing

Opportunities Company develops more powerful

system Company develops lower cost product Develops software to evaluate

consumers System to measure the performance

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Marketing

Threats Competitor develops superior system High cost Economic depression Legislation to control

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Finance

Strength Low cost of capital High capital availability High profit Stable finance

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Finance

Weakness High cost of capital Less capital availability Low profit Unstable finance

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Human Resource (HR) / Personnel

Strength Visionary leaders Capable managers Dedicated workers Flexible & Adaptable Change management

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Human Resource (HR) / Personnel

Weakness Poor leaders Incapable managers Discouraged workers Rigid Poor change management

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Thank youThank you04/18/2324