Managing People and
Organization in New Era
Managing in New Era
• Today’s environment is fast-paced &
internet-driven
• Innovative ideas & concepts emerge
• Organizations experiment with new ways of
managing
• Innovations in managerial thinking has
become absolutely necessary
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Managing in New Era
Example:
• American companies were world leaders
• They have now become obsolete & isolated :
a) Failed to see changing needs
b) Lack of foresight
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Managing in New Era
Shifting to a new learning environment
• Manager must understand environment &
develop new strategies to take competitive
advantage
Introducing new technologies to improve
quality
• Quality - a strategic weapon in global market
• “Maintaining product as long as it gives profit”
- outdated
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Competitive Advantage
• Favourable position an organization seeks in
order to be more profitable than its
competitors
• Greater focus to a target market than
competitors
• Achieved through:
Offering better quality products or
services
Lowering prices
Increasing marketing efforts
• Sustainable competitive advantage 5
3 Essentials for Competitive
Advantage
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Managing for Competitive
Advantage
• Coca-Cola 1892
• Sweet drink developed by a pharmacist
• Company is still going strong :
Continuing developing new products &
redesigning
Good supply & distribution
Well developed production techniques
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Managing for Competitive
Advantage
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Factors for Competitive
Advantage
1. Brand Equity: Strong brand name (eg:
Colgate, Maggi)
2. Barriers to Entry: High production, equipment
or distribution cost (eg: Coca-Cola, Cell Phone
Industry)
3. Cost Advantages: Altering existing product to
produce similar product at lower cost
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Factors for Competitive
Advantage
4. Distribution: Deliver products to all customers
on demand (eg: Flipkart, Amazon)
5. Innovation: Superior innovative ideas,
technology & design (eg: Apple)
Comput
iPod iPhone iPad
er
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Challenges in Management
1. Economic Pressure:
• As long as there is profits, management is not
bothered
• Properly managed in stiff financial conditions
• Management should identify & execute right
strategy to survive
• Eg: Nintendo (Super Mario, Pokemon)
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Challenges in Management
2. Impact of Globalization:
• Resulted in business transactions across
countries & time zones
• Companies benefit through outsourcing & off-
shoring
• Companies have to present their products in a
global scale
• Eg: Google, Microsoft, TCS, Wal-Mart
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Challenges in Management
3. Impact of Innovation:
• Innovation is the use of a better novel idea or
method
• Better advertisement of products or services
• Innovative perspective – A must to survive
• Eg: Apple
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Challenges in Management
4. Customer Satisfaction:
• An organization cannot exist without
customers
• Meeting needs & demands of customers is a
challenge
• Proper service to be provided to satisfy &
retain them
• Targeting customers through web portals
• Eg: e-commerce, Internet banking
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Challenges in Management
5. Employee Satisfaction:
• Only a satisfied workforce produces more
profit
• Employee satisfaction improves productivity &
loyalty towards company
• New techniques to be employed to keep them
happy
• Eg: Google is 1st in employee satisfaction
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Challenges in Management
6. Security Issues:
• Advanced technologies like powerful data
processing & networking technologies
• Increased use of IT increases risk of a security
breach
• Security measures must be employed to
safeguard data
• Eg: WannaCry ransomware attack
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Challenges in Management
7. Organization Ethics:
• Ethics of an organization
• Organization responds to an internal/external
stimulus
• Behaving ethically is a good business practice
• Eg: Johnson & Johnson’s Tylenol capsule
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