BMGT 682BMGT 682

Welcome to Welcome to Strategic ManagementStrategic Management

My name is Ray Van Ness Please call me “RayRay”

Please take a minute Please take a minute and introduce yourselfand introduce yourself

To the people sitting around youTo the people sitting around you

Greetings & IntroductionsGreetings & Introductions

… the prism through which all information I give you is filtered

My background…My background…

ACCOUNTANT to EXECUTIVE to ENTREPRENEUR to PROFESSOR

20+ years20+ years in business followed by 30+ years30+ years of teaching:

• Began as general accountant then…

• Traveling Internal Auditor for International shoe manufacturing Corp.

• Cost Accountant

• Controller then entered finance and became …

• Vice President of Finance, elected to board of directors, later elected as Executive VP, then President & CEO, then

• Branched into business acquisitions (entrepreneurship)

• Later, retired for a few days and decided to begin a second career

• Here I am, 30 + years into my second career

It is – It is –

MoreMore about PROCESSPROCESS

and and

LessLess about about NEW NEW CONTENTCONTENTFocus on thinking and acting in unique ways…

Daring to challenge the status quo and still be likeable…

• It will be EXPERIENTIALEXPERIENTIAL with competing with competing OPINIONSOPINIONS and and energeticenergetic

DISCUSSIONSDISCUSSIONS and you should expect to experience and you should expect to experience CREATIVE TENSIONCREATIVE TENSION

• Strategic Concepts will be presented by Strategic Concepts will be presented by youyou

• Case Studies will be presented by Case Studies will be presented by youyou

• Merger Activities & Strategic Debates will be by Merger Activities & Strategic Debates will be by youyouThis course will be conducted as a This course will be conducted as a

Professional Development Professional Development WorkshopWorkshop

How will How will YourYour CourseCourse

be conducted?be conducted?

It is about It is about assessingassessing corporate strengths, weaknesses, opportunities and threats.corporate strengths, weaknesses, opportunities and threats.  

It is about It is about contemplatingcontemplating effective corporate strategies for capitalizing on effective corporate strategies for capitalizing on strengths to take advantage of opportunities and minimizing weaknesses and strengths to take advantage of opportunities and minimizing weaknesses and threats.threats.

  

It is about refining It is about refining TEAM WORK ABILITYTEAM WORK ABILITY  

It is about refining It is about refining PEOPLE SKILLSPEOPLE SKILLS  

It is about refining It is about refining CRITICAL THINKING SKILLSCRITICAL THINKING SKILLS  

It is about refining It is about refining COMMUNICATION SKILLSCOMMUNICATION SKILLS Practice communicating technical informationPractice communicating technical information Practice communicating sometimes “dry” but important dataPractice communicating sometimes “dry” but important data Practice capturing and holding the attention of othersPractice capturing and holding the attention of others

  

It is about refining It is about refining POWER OF PERSUASIONPOWER OF PERSUASION SKILLSSKILLS Effective managers must develop strong persuasion skillsEffective managers must develop strong persuasion skills Aristotle, the Greek philosopher, identified three methods of persuasion and effective Aristotle, the Greek philosopher, identified three methods of persuasion and effective

managers have mastered each:managers have mastered each: Logos = Persuasion by Logos = Persuasion by REASONINGREASONING Pathos = Persuasion by Pathos = Persuasion by EMOTIONAL APPEALEMOTIONAL APPEAL Ethos = Persuasion by Ethos = Persuasion by CHARACTERCHARACTER

You are encouraged to practice each of these You are encouraged to practice each of these persuasion skillspersuasion skills

Course Purposes and ObjectivesCourse Purposes and ObjectivesCRITICAL THINKINGCRITICAL THINKING To create an environment that supports critical thinking and encourages

creative problem solving

CREATIVE TENSIONCREATIVE TENSION To provide an environment where differing opinions are seen as a valuable and productive source for CREATIVE TENSION. Thought: Thought: You learn more from the person who disagrees with you than from the one who agrees.

SKILLS & TOOLSSKILLS & TOOLS To add to your arsenal of management skills and abilities.

PEER LEARNINGPEER LEARNING To support and encourage the process of peer-to-peer (coworker) learning. Thought: Thought: Asking for and listening to opinions of coworkers offers not only a rich opportunity for learning but also the likely benefit of endearment.

EFFECTIVE EXPRESSION & PERSUASION EFFECTIVE EXPRESSION & PERSUASION To encourage and support the practice of expressing appropriate personal opinions, thoughts, concerns, and ideas in a persuasive manner.

Syllabus -- click

Syllabus: Distribution & Discussion

Formation of 6 TeamsFormation of 6 Teams

The Professor has divided the class into 6 distinct Teams

Teams will elect (3) leaders for their team (President, VP, & Secretary)

BONUS: Pres earns 200 points, VP earns BONUS: Pres earns 200 points, VP earns 150 points; Secretary earns 250 points150 points; Secretary earns 250 points

Team Assignments Team Assignments (see syllabus)(see syllabus)

Team 1:Team 1:Team 2:Team 2:Team 3:Team 3:Team 4:Team 4:Team 5:Team 5:Team 6:Team 6:

Team 6:Team 6: You will be presenting Chapter 2: Charting A Company’s Direction. Power Points are on the course website to help you with your planning. Select a MAXIMUM of 20 slides for your presentation.

Team 1:Team 1: You will be presenting Case 10: Chipotle – SEE pages 13-17 of your SYLLABUSSYLLABUS for directions.

Teams 2, 3, 4, & 5:Teams 2, 3, 4, & 5: Read Chapter 2 in the text AND read Case 10 – page C-114)

Members of teams 6 and 1 please see me immediately after class

Brief points…Brief points…

Thoughts about StrategyThoughts about Strategy

Strategic QuestionsStrategic Questions

1. What’s the company’s present situation?

2. Where does the company need to go from here?

3. How should it get there?

A company’s answer to

“How it will we get there?” is its strategystrategy

ConsistsConsists of Management’s competitivecompetitive movesmoves and business approachesbusiness approaches

CombinesCombines planning, decision-makingplanning, decision-making,, and actionsactions

Strategies can be:

OFFENSIVE OFFENSIVE (primary goal:primary goal: grow market share; pressure competitors)

CONSERVATIVECONSERVATIVE (primary goal: primary goal: avoid risks; minimize confrontations with strong competitors)

How to grow the business

How to please customers

How to outcompete rivals

How to manage each functional division (R&D, production, marketing, HR, finance, and so on)

How to respond to changing market conditions

How to achieve a competitive advantagecompetitive advantage and targeted levels of performance

Strategy is HOW

to . . .

Successful firms develop bases for competitive advantageSuccessful firms develop bases for competitive advantage

1. Cost leadership (Advantage: Known for low prices)(Wal-Mart)(Wal-Mart)

2. Differentiation (Advantage: Distinctive, desirable features to product or service) (Harley-Davidson)(Harley-Davidson)

3. Narrow market niche (Advantage: able to satisfy the need and desires of customers within a micro market)

(Antique Car parts companies)(Antique Car parts companies)4. Developing superior expertise and resources (Advantage: able to make it

difficult for competitors to replicate products or services)

(Microsoft(Microsoft))2 and 4 are very closely related

Shifting market conditions Technological breakthroughs New actions by competitors Evolving customer preferences Emerging market

opportunities Creative thinking Crisis situations

Strategies are always works in progress…Strategies are always works in progress…

Company strategies are generally partly Proactive and partly Reactive

Strategies planners ask: Strategies planners ask:

In summary,In summary,Strategic planners think, plan, and act…. Now it’s your turn…Strategic planners think, plan, and act…. Now it’s your turn…

(1)Movie: Are Consumers Living beyond their means?

What are the consequences of different consumer behavior?

Case 11: In a Slumping Economy: A Shift in Shopping Habits

[5.13min]

(2) Closing comments

(3) Professor meeting with Team 6 and Team 1

Movie, Meeting, Closing commentsMovie, Meeting, Closing comments