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Telecommunications & Strategic Planning I
Telecommunications & Strategic Planning I
Strategic Planning
Strategic Planning
Triggering Event
Triggering Event
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Competitive Factors
Political/Legal Factors
Political/Legal Factors
Economic Factors
Economic Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Technological Factors
Sociocultural Factors
Sociocultural Factors
Sociocultural Factors
Sociocultural Factors
Organizational Culture
Organizational Culture
Organizational Culture
Organizational Culture
Management / Labor Relations
Management / Labor Relations
Operational Issues
Operational Issues
GE and Six Sigma
GE and Six Sigma
GE and Six Sigma
GE and Six Sigma
What is Six Sigma
What is Six Sigma
What is Six Sigma
What is Six Sigma
What is Six Sigma
What is Six Sigma
Walt Disney and Customer Service
Walt Disney and Customer Service
Walt Disney and Customer Service
Walt Disney and Customer Service
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Telecommunications Strategic Planning I

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1Telecommunications & Strategic 20Total Quality Management. Total
Planning I. Richard A. Gershon, Ph.D. Quality Management (TQM) represents an
School of Communication Western Michigan approach to management, whereby, the
University. entire organization is fully engaged in
2Strategic Planning. Strategic planning delivering quality products and services
is the set of managerial decisions and to its customers. The principles of Total
actions that determine the long term Quality Management date back to the 1940's
performance of a company or organization. to the work of American business
3Strategic Planning: 4 Steps. consultants W. Edwards Deming and Joseph
Researchers Wheelen and Hunger (1998) Juran, who were involved in helping to
suggest that there are four steps involved resurrect Japanese industry in the
in the strategic management process. They aftermath of WW II. There are four
include: 1. Environmental Scanning 2. important elements that characterize TQM
Strategy Formulation 3. Strategy in action. They include: 1. Employee
Implementation 4. Evaluation and Control. Involvement 2. Focus on the Customer 3.
4I. Environmental Scanning. Benchmarking 4. Continuous Improvement.
Environmental scanning is the ability to TQM.
identify strategic factors (both external 21TQM in Action. Employee Involvement
and internal to the organization) that can TQM infuses the value of quality
significantly impact the firm's business throughout every activity within an
operations. Environmental scanning organization. TQM requires company wide
requires the ability to assess the participation in quality control. Workers
internal strengths and weakness of the must be trained, involved and empowered.
organization as well as the external Employee involvement in key decisionmaking
opportunities and threats to the helps promote a sense of ownership in the
organization. Environmental scanning is outcome. Focus on the Customer One of the
the ability to identify strategic factors underlying principles of TQM requires that
(both external and internal to the everyone be considered a customer.
organization) that can significantly Customers fall into two basic categories;
impact the firm's business operations. external and internal. External customers
Environmental scanning requires the are those people including suppliers and
ability to assess the internal strengths buyers who engage the organization from
and weakness of the organization as well the outside. Internal customers are the
as the external opportunities and threats various people and departments within an
to the organization. organization who depend on each for
5SWOT Model. Table 1. Strengths, materials and logistical support. Example:
Weakness, Opportunities and Threats (SWOT) Marketing.
Model Internal 1. strengths of the 22TQM in Action. Benchmarking
organization 2. weaknesses of the Benchmarking takes into consideration the
organization External 3. opportunities for idea that one can and should learn from
the organization 4. threats to the the competition. The competition, for
organization example, may have a superior product,
______________________________. service or work process. Benchmarking
6Triggering Event. The need for presupposes the ability to find out how
strategic planning is sometimes caused by others do things and then tries to imitate
a triggering event. A triggering event can or improve upon it. Continuous Improvement
be caused by: Changes in the competitive TQM emphasizes the importance of
marketplace Changes in the management continuous improvement as the basis for
structure of an organization Changes producing long term results. It is the
associated with internal performance and counter opposite to the quick fix
operations. solution. Everyone within the organization
7The External Environment. The external from senior management to the worker on
environment can include a number of the floor has a responsibility to improve
different forces that can impact the product and service quality.
performance and operations of an 23Six Sigma. In 1986, Bill Smith at
organization, including: 1. Competitive Motorola Corporation developed a set of
Factors 2. Political/Legal Factors 3. process improvement strategies known as
Economic Factors 4. Technological Factors Six Sigma. The term Six Sigma refers to a
5. Sociocultural Factors. highly capable process designed to produce
8Competitive Factors. Competitive outputs within highly demanding
factors are the business strategies and specifications. The goal of Six Sigma is
actions of one’s competitors. The to systematically improve processes by
competition may have designed a better eliminating defects. Six Sigma is first
product or service. Examples: Sony vs. and foremost "a business process that
Microsoft Videogame Nokia vs. Motorola enables companies to increase profits
Cellular Verizon vs. AT&T Telephony. dramatically by streamlining operations,
9Political/Legal Factors. improving quality and eliminating defects
Political/legal factors represent changes or mistakes in everything a company does.
in the political and regulatory Six Sigma's implicit goal is to improve
environment that can significantly all processes to that level of quality or
influence the business operations of a better. The principles of Six Sigma are
company or organization. Examples: Cable especially important to companies engaged
Communications Policy Act of 1984 The in the manufacture of high-end computer
AT&T Divestiture (breakup), 1984 The and communications equipment.
Cable Television Act, 1992 The 24GE and Six Sigma. In the early 1990s,
Telecommunications Act of 1996. then GE CEO, Jack Welch was told was told
10Economic Factors. Economic factors are that Six Sigma, the quality program
marketplace changes that can help or pioneered by Motorola, could have a
adversely affect your business operations. significant effect on improving GE’s
1. Spiraling inflation 2. Economic operational performance. Although
recession 3. Natural calamity 4. The skeptical at first, Welch initiated a
availability of a product substitute. major strategy initiative to infuse Six
11Technological Factors. Technological Sigma thinking into every aspect of GE’s
factors represent advancements in new business operations. He made quality the
technologies that can help or adversely responsibility of every employee on the
affect one’s business. 1. Direct Broadcast shop floor. All senior managers were
Satellite 2. Apple iPhone 3. MP3 File expected to undertake Six Sigma training.
Sharing 4. Cable Modems 5. High Definition Their promotions and bonuses were directly
Television. tied to Six Sigma results within the
12Sociocultural Factors. Sociocultural company. Six Sigma, in Welch’s view, did
factors are social/ cultural changes in more to change the DNA of how GE did
the environment that may affect a business than any other program.
consumer's buying habits, product usage 25What is Six Sigma? Six Sigma is a
etc. Examples: 1. Consumer reaction to highly disciplined process that helps a
animal furs, etc 2. Student attitudes business (or organization) focus on
about software piracy 3. Privacy and developing and delivering near-perfect
security while purchasing merchandise on products and services. Why
the Internet. "Sigma"? The word is a
13The internal environment can include a statistical term that measures how far a
number of different forces that may affect given process deviates from perfection.
organizational performance: 1. Core The central idea behind Six Sigma is that
Competency 2. Organizational if you can measure how many
Decisionmaking 3. Organizational Culture "defects" you have in a process,
4. Management / Labor Relations 5. you can systematically figure out how to
Operational Issues. Internal Factors that eliminate them and get as close to
Can Influence Business Operations. "zero defects" as possible. In
14Core Competency. The term core order to realize the exacting standards of
competency describes something that an Six Sigma, a business process should not
organization does well. The principle of produce more than 3.4 defects per million
core competency suggests that a highly opportunities. A “defect” is defined as a
successful company is one that possesses a failure to deliver what the customer want.
specialized production process, brand An "opportunity" is defined as a
recognition or ownership of talent that chance for nonconformance, or not meeting
enables it to achieve higher revenues and the required specifications. This means
market dominance when compared to its that an organization needs to be nearly
competitors. Core competency can be perfect in executing its key processes.
measured in many ways: brand identity 26What is Six Sigma? cont. Central to
(Disney, ESPN, CNN) technological the discussion of Six Sigma are three
leadership (Cisco, Intel, Microsoft) important elements: the customer, the
superior research and development (Sony, process and the employee. The Customer.
Philips) customer service (Dell, The customer should form the center of the
Amazon.com). universe for a business. Their
15Organizational Decisionmaking. To what expectations include, a high quality
extent does an organization and its product or service, on-time delivery,
management structure make well informed competitive prices, reliability and good
and timely decisions? Does the customer support. The Process. Achieving
organization promote initiative,creative Six Sigma level of performance presupposes
thinking and foster an entrepreneurial the ability to look at business process
spirit or does it adhere to a rigid from the perspective of one’s customers.
bureaucracy? They understand better than anyone what
16Organizational Culture. Organizational works best and least in terms of their
culture (or corporate culture) refers to interaction with the company or
the collection of beliefs, expectations organization. The customer’s routine
and values shared by an organization's feedback provides the basis for making
members and transmitted from one on-going improvements as a whole. The
generation of employees to another. Employee. People make the difference. One
Examples: 1. Sony – co-founder Akio of the important goals of Six Sigma
Morita; strong commitment to high quality training and thinking is to empower
engineering and design products 2. managers and employees to make decisions
Bertelsmann – founder Reinhard Mohn; on the shop floor. Quality is the
strong adherence to decentralized responsibility of every employee.
management 3. Google – less structured 27What is Six Sigma? cont.
environment; strong adherence to 28Walt Disney and Customer Service. The
innovation and experiment. Walt Disney Company is first and foremost
17Organizational Culture (cont.). in the business of family entertainment.
Organizations (even large ones) are always Walt Disney Attractions is responsible for
human constructions; that is, they are the operation of the company's theme parks
made and transformed by individuals. and corresponding venues. The two primary
Culture is embedded and transmitted theme parks are Disneyland in Anaheim
through both implicit and explicit California and Walt Disney World located
messages such as formal statements, in Lake Buena Vista, Florida. The Walt
organizational philosophy, design of Disney World resort features 4 major theme
physical space, deliberate role modeling parks: the Magic Kingdom Epcot Center MGM
and teaching by leaders. The more highly Studios Animal Kingdom.
successful companies are those that 29Team Disney. Creating the Disney
exhibit a strong organizational culture. experience is largely dependent upon the
There are several component parts to a 35,000 Walt Disney staff members. They are
strong organizational culture, including: responsible for translating the Team
1) values, 2) heroes, and 3) rites and Disney approach into action. The Walt
rituals Deal & Kennedy, 1982. Disney Company employs one of the most
18Management / Labor Relations. sophisticated employee training programs
Management / labor relations involves the in the world. Training begins with an
working relationship between management appreciation for the fact that appearance
and the people who work for the is everything. Disney employees are
organization. There are several important referred to as cast members. The
considerations: Is the organization presentation includes everything from the
unionized? Are staff salaried or paid by way in which Disney employees interact
the hour? What kind of benefits does the with the public to the clothes they wear.
organization offer its employees? Do In creating the right appearance, cast
employees have the proper equipment in members are taught to be polite. They are
which to their jobs? taught to understand that park attendees
19Operational Issues. Operational issues are to be treated as guests. And that
involves developing the optimum conditions helping a guest often means going the
for creating and producing quality extra mile. In addition, Disney employees
products and services in a cost effective are expected to follow a dress code and
manner. 1. Staffing levels 2. Employing are not permitted to eat, drink, smoke or
talented people 3. Providing the proper chew gum in front of guests. At all
equipment and support services. 4. Good levels, Walt Disney World is about
internal and external communication 5. creating an impression that the park is
Quality Control The goal is to achieve safe, accessible and fun.
Total Quality Management (TQM).
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