strategic management - i-introduction session - 2013-14

8/12/2019 Strategic Management - I-Introduction Session - 2013-14

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Strategic Management - IAn overview of the coursePROF. SABYASACHISINHA

[email protected]

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Agenda for today

Objectives of SM

How do we achieve the objectives

Major takeaways Key Success Factors

Performance Evaluation

The administrative norms

What is Strategy and Strategic Management Process

January 5,2014

Prof. S. Sinha, Indian Institute of Management - Lucknow

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Objectives of SM

Develop the competencies to practice strategy to develop abilities of ageneral manager

Ability to disintegrate and integrate (microscopic and telescopic views)

Ability to balance between what your mind say (the rational manager), andwhat your heart says ( the emotional leader)

Ability to see, think, and empathize a situation from multiple perspectives, anddecide accordingly, knowing the trade-offs made in the process

Across time (long term and short term)

Across functions

Across hierarchy

January 5,2014

Prof. S.Sinha, Indian Institute of Management - Lucknow

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Objectives of SM

Integrate the learning from various functional management courses (toolsand concepts)

Offer strategy contexts for additional learning in functional courses, anddevelop the ability to think across time, function, and hierarchy

Understand frameworks and check lists helpful in strategy formulation and

review

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How do we achieve these objectives

Involve you in strategic decision making situations (cases) faced by varioustypes of organizations

Prompt you to go through relevant articles and chapters from books

Urge you to build illustrations from contemporary developments

Inspire you to abstract from cases and build your own concepts andframeworks

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How should you involve yourself

Taking Charge and Enacting the Role of the Leader in the situation

Scripting the role yourself and Playing the script

Defending and Improvising

Reflecting on the role played in the context of colleagues efforts , readingsand contemporary developments, and building your own KASH

Applying the lessons learnt to the next situation

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MyInvolvement

Interconnectionwith other

situations I havestudied

Dec isionmaking and

Action Building

Abstractionsinto newconcepts and

frameworks

IllustratingConcepts and

Frameworks

Your involvement and learning in thecourse: isolated or liked efforts

The four-cycle circus

Why circus? balance, co-ordination, innovation, risk-taking, team work


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Organizations

Biocon

Walmart

Nestle

Apple

Easy jet

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Starbucks

Nintendo

Newell

Cemex


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Key takeaways

Strategy is a holistic concept

Each one has his/her own way of defining it

Appreciate the differences and boundaries

Strategy links all resources of the firm with all developments in theenvironment

Recognition that all resources have their own potential and limitations

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Key takeaways

There are trade off with every strategy. There is a need to explicitly statethem

Data for strategic dec ision making is not on the platter. Hence makeassumptions

Day to day developments can be understood through the lens of ourframeworks and concepts

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Key takeaways

When you dec lare your strategy and take it up for implementation ensurethat you are

Clear on your comprehension, analysis, assumptions and ethical implications

Complete on all dimensions of strategy and their linkages with all aspects of theenvironment

Consistent

Within dec isions

With the resources you have

With the opportunities and threats in the environment

Concrete enough to handover the strategy for actions

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Key success factors

Preparation before the class

You are required to

Comprehend the situation

Relate to the concepts and frameworks wherever relevant

Identify all the areasneeding managerial intervention

Decide and develop your strategy sheet

Discuss your strategy sheet with your group members

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Key success factors

Discussion in the class

Contribute as totally as you can

Do not stop with one or two sentences

Build on each others contribution

Compare totality A with totality B and not point x with point y

Complement wherever you can

Be Clear, Complete, Consistent and Concrete

Be patient and optimistic

Post Class Reflection: Review your stra te g y d e c isio n she e t, makemodification and reflect on learning; and make notes on the strategyc irc us she e t*

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Why should we have a structuredapproach to strategic decision making?

Why not rely on intuitive approaches?


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Performance evaluation

Class Presence, Preparation and Participation 10%

Quizzes and individual assignments 20%

Group Project 15%

Mid Term 25%

End Term 30%

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Administrative norms

All students are expected to be seated in their respected seats only

Mobiles and/or any other communicating devices should be switched off

No plagiarism in any of the submissions

Do not miss any session to be eligible for attendance based grade; and

dont be late

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What is strategy

Some definitions

Strategy is an integrated and coordinated set of commitments and actionsdesigned to exploit core competencies and gain competitive advantage

A firms strategy is defined as its theory about how to gain competitiveadvantages

Strategic management is defined as consisting of the analysis, dec isions, and

actions an organization undertakes in order to create and sustain competitiveadvantages

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Purpose of Strategy

Strategy is what makes a firm a winner or a survivor

Quest for sustainable competitive advantage

a unique advantage that is still obtained despite competitorsconstant attempts at replication

Importance of strategy language emphasizing difference and uniquenessnot convergence and similarity

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Timeline of Strategic Management Discipline

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Military origins

Porter (1980)

Porter (1985)

Barney (1991)

Stalk et al (1992)

Grant (1996)

Teece (2007)

Stacey (1995)

Chesbrough and

Appleyard (2007)

Strategy future(s)?

1960s

Planning

1970s80s

Positioning

Chandler (1962)

Ansoff (1965)

Andrews (1971)

1990s

Capabilities

2000s

Networked

innovation/

Dynamic

capabilities


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What is strategy

Its based on assumptions and hypothesis made closer the assumptionsare to reality higher the chances of a good strategy

The concern is firm performance having greater share of the cake

Two major decision it deals with

What business to be in (drawing and managing the boundary)

How be ahead of others in the chosen business

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What is strategy

Some key attributes

Its a question of trade-offs; you cannot have all; resources are limited

Short term vs. long term

Emergent vs. deliberate

Requires integrated view and synchronized actions

Multiple stakeholders interests needs to be taken care

Dealing with strategic issues is becoming more challenging increasinglydynamic environment

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Strategic management process

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Vision/Mission Objectives

External analysis

Internal analysis

Strategic choice StrategyImplementation

SCA Firm

performance

Strategic thinking / formulation Strategic action


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Some challenges of SM

O rien ta t ion c ha llen g e

Tra d e -o ff c ha lle ng e

Releva nc e c ha lleng e

Cont inuous-c ha ng e c ha lleng e

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Thank you

strategic management - i-introduction session - 2013-14

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