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HR STRATEGY, STAGE 3 - IMPLEMENTATION & EVALUATION, STAGE 1 - …
HR STRATEGY
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Strategy Definition
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Look outward: external influences, opportunities and obstacles
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STAGE 1 - FORMULATION
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How leader do?
HR
Align resource, activities with org's mission, vision and value
Leader
- Set long range goals
- Align resource
- Action to archive goals
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System theory
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Change one part can effect other parts --> must address the root cause of problem, If simply treat the symptoms of issue, other unintended issue may be created
Interacting & independent parts together create a dynamic internal environment --> Interplay and interact to each other --> must coordinate to archive goal
STAGE 2 - DEVELOPMENT
Corporate strategies
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Licensing: Local firm has right to produces and sell product --> lower strategy risk, avoids tariffs but little controls of license's activities
Merger/Acquisition:
- Purchasing a local firms --> expanding the employee base and facilities
- Often involve culture, system and management challenge
- Data privacy is big issue
Equity parnership: Partial ownership --> general or limited relationship --> agreement such issue of leadership, P&L
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Strategic alliance: Share asset (technoligy, sales capabilities) to archive goals
Franchising: A trademark, product, or service is licensed for an initial fee and ongoing royalties.
Management contract: Another company manage and run the daily operations of the local business --> financing decision and ownership reside by host-country owners.
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Greenfield operations: builds a new location from the ground up. This represents a major task and a commitment to completely staff and equip the new location.
Brownfield operation: A company repurposes, through expansion or redevelopment, an abandoned, closed, or underutilized industrial or commercial property.
Business Strategy
RED ocean strategy ><BLUE ocean strategy
- Existing market >< uncontested market
- Beat the competition >< make competition is irrelevant
- Existing demand >< new demand
- Make the value cost >< Break the value cost
- Strategy choice of differentiation or low cost >< Pursuit of defferentiation and low cost
Business Fit:
- The consonance of compatibility of an org's strategy with its internal & external environment
- Regards to the goals and values and resource and capacity
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A strategy of differentiation: Offer high price by
- Offering something different
- The same thing but in different way
- Creating the perception through superior marketing
A strategy of cost leadership
- By capturing market share
- By virtue of lowest price
HR Involvement
Divestiture process -->HR roles
Identify candidate --> Perform due diligent
Identify target buyer --> Provide workforce value
Restructure --> Prepare strong leader for subsidiary
Execute the deal --> Assemble transition team
Impact of Business Strategy Choices on HR
STRATEGY PLANNING & MANAGEMENT
Definition
A process of setting goals and designing a part toward a competitive position
Helps create alignment of effort and provide a layer of control