001 ch1-exploring-corporate-strategy.pptx

7/27/2019 001 CH1-Exploring-Corporate-Strategy.pptx

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Slide 1.1

Strategic Management (Fall 2013)

Prof. Dr Jovan Zubovi


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Course outline (1)

This module is the major integrative element in the final phase of business studies courses. Itbuilds on the knowledge and skills acquired in earlier modules to enhance critical awareness ofsenior management decision-making. It addresses strategic management as a complexagenda of fundamental questions and problems that concern organisations and their futuredevelopment. In order to address this complexity and generate a richer picture of organisations,the module also considers the context or environment in which an organisation performs andthe individuals whose actions help shape organisational performance.

Upon successful completion of the subject, students will be able to:

analyse the aims, concept and role of strategic management

evaluate the debates surrounding contemporary strategic issues

synthesise between the different levels of strategy

critically analyse how the different perspectives of social science disciplines inform strategic

management evaluate the implications of various perspectives for theory and management practitioners


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Course outline (2)

Assessment Methods

Assessment Type Duration/Length of

Assessment Type

Weighting of

Assessment

Approximate

Date

A group

presentation 15 minutes 25% December 12thIndividual

assignment2500 maximum

words (turnitin) 25% December 26thAn unseen written

examination 2 Hours 50% JanuaryYou are required to select a case study of a company of your choice that has implemented aturnaround strategy in recent years to cope with the recession, and as a result of which it hasbeen able to compete more effectively and create more value. Using relevant academicmodels explain why you think that the company has been able improve its strategic position.


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Course outline (2)

Boo ks (curr ent edit ions): Core Text:

Johnson, G. and Scholes, K, (2008), Exploring Corporate Strategy, (8th edn),London: Prentice Hall

Recommended Reading: Lynch, R. (2009), Corporate Strategy, 5th edn, London: Prentice Hall

Berman, B. and Evans, J. (2006) Retail Management, A Strategic Approach,London: Prentice Hall

Jenkins, N. and Ambrosini, V. (eds) (2002), Strategic Management: A multi-perspective approach, Basingstoke: Palgrave

Clegg, S.R. and Hardy, C. (1999), Studying Organization: Theory and Method,London: Sage

Ansoff, H. (1990), Implementing Strategic Management, London: Prentice Hall


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Strategic Management (Fall 2013)

Lecture 1

Strategy, StrategicManagement andConcepts


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Introducing Strategy Outline

1. What is strategy and strategicmanagement?

2. Strategic priorities at corporate, business

and operational level3. Vocabulary of strategy

4. Exploring Corporate Strategystrategic

management model


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Strategic issue

A Strategic Issueis any issue thatsignificantly influences a persons, a workgroups or an organizations ability to develop

and maintain a competitive advantage.


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Strategy defined

Strategy is the art of creating value. Strategy in business is the directionand

scope of an organisation over the long

term, which achieves advantage in achanging environment through its

configuration of resources and

competences with the aim of fulfillingstakeholder expectations.


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Slide 1.9Exhibit 1.1

Strategic decisions


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Slide 1.10

Advantage

A competitive advantage has three keycharacteristics:

1. it provides superior value to customers

2. it is hard to imitate

3. it enhances ones ability to respond to

changes in the environment.


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Slide 1.11

LEVELS OF STRATEGY

Corporate level

Determine overall scope of the organisation

Add value to the different business units

Meet expectations of stakeholders Business level (SBU)

How to compete successfully in particular markets

Operational How different parts of organisation deliver strategy


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The vocabulary of strategy


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Slide 1.13

Organization Charters

Mission Vision

Capabilites and values

Goals

LEADERSHIP

1. Mission Statement

2. Vision Statement

3. Capabilites and Values

4. Strategy

5. Operating Goals and Objectives

6. Leadership

Strategy


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Slide 1.14

Elements of Strategic Management

Understanding the strategic position of anorganisation (strategic analysis and purpose)

Making strategic choices for the future(developing strategy)

Turning strategy into action (implementationprocess)


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A model of the elements of strategic management


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Slide 1.16

Strategic Position (1)

The Organisations Environment (ch.2) Political Economic Social Technological Legal

Environmental

Sources of Competition

Opportunities and Threats

Strategic Capability of the Organisation (ch.3)

Resources and Competences

Strengths and Weaknesses


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Slide 1.17


Expectations and Purposes (ch.4) Stakeholders, Corporate Governance, Ethics

Sources of Power and Influence

Communication of Purpose: Mission and Objectives

Cultural and Historical Influences (ch.5)

Culture: organizational, sectoral, national

History: strategic drift, inability to adapt to change


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WHATMIGHT

WE DO?

(external opportunities

and threats)WHAT

CAN

WE DO?

(strengths and

weaknesses)

WHAT DO WE

WANT

TO DO?(organizational and

individual values)WHAT DO OTHERS

EXPECTUS TO DO?(stakeholder

expectancies)

STRATEGY


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Strategic Choices

Bases of competitive advantage at businesslevel (ch.6): pricing, differentiation

Scope of activities at corporate level (ch.7)

Portfolio, Scope

Market spread, e.g. international

Value added by corporate parent (parenting)

International strategy (ch.8)

Inovation (ch.9) lead vs follow

Evauating methodologies (ch.10)


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Slide 1.20

Strategy intoAction (1)

Organizing: strategy development intendedvs emergent


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Strategy intoAction (2)

Structuring the organisation (ch.12)

Marshalling resources (people, information,finance, technology) (ch.13)

Managing change (ch.14) Practice of strategy (ch.15)

The future is not the result of choices among alternativepaths offered in the present -- it is a place that is created-- created first in the mind and will; created next in theactivity.


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SM Concepts (1)

1) Strategic management involves decidingwhat is important for the long-range successof your business and focusing on it.

2) Strategic management asks, How should Iposition my business to meet managementand business goals?

3) A business strategy is a series of businessdecisions that lead to achieving a businessgoal.


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SM Concepts (2)

4) Strategic management involves the big

picture of your business.

5) Strategic management involves planning,

analyzing and implementing a businessstrategy.

6) Strategic management is most effective if

you can step back far enough and say allthings are possible.


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SM Concepts (3)

7) The essence of strategic management ismatching business resources to marketopportunities.

8) Strategic management involves seekingand identifying opportunities and threats inthe market and industry and the outside worldin general.

9) Strategic management is based on thepremise that all businesses are not thesame.


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SM Concepts (4)

10) Strategic management involvesassessing the strengths and weaknesses ofyour business.

11) When assessing strengths andweaknesses, personal skills and abilities arelikely to be more important than businessassets.

12) Strategic management involves lookinginto the future rather than dwelling on thepast.


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SM Concepts (5)

13) Strategic management is proactive ratherthan reactive.

14) Strategic management involves antici-

pating change and taking advantage of it. 15) Strategic thinking involves assessing how

decisions made today will affect my businessin the future.

16) Strategic management is more of a state-ofmind than a rigid process.


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SM Concepts (6)

17) A military connotation of strategicmanagement is it hasnt won every war, but ithas avoided a lot of ambushes.

18) Strategic management is most useful forbusinesses with unique or differentiatedproducts for niche, specialty or differentiatedproduct markets.


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SM Concepts (7)

19) Strategic planning comes before businessplanning. Strategic planning is used to identifyand assess alternative business strategies.Business planning is used to implement abusiness strategy.

20) Strategic planning is more words and lessnumbers than business planning.

21) A strategic plan is a living document that

changes as your goals and resources evolve.


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Slide 1.29

SM development


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Theories of SM

Intended Industry and envirnoment based

Resource based

Game based

Co-operation and network based Emergent

Survival based

Uncertainty based

Human resource based Innovation and knowledge based

I&E argue that profits are delivered by selecting the most attractiveindustry and then competing better than othersResource based focus on chief resources and capabilities especialy

those where it has competitive advantageGame based focus on decision making that surrounds the selection ofthe best strategic optionCOOP - At least 2 independent companies work together to achieveobjectives. NET focus on sharing networkds, contacts, knowledge


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Assignements

By using Exploring Corporate Strategymodelmap key issues relating to Strategic Position,Strategic Choices and Strategy in Action ofone familiar organization

001 ch1-exploring-corporate-strategy.pptx

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