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Todayssessionwillcover:

Administrativeissues Assessmentsonthispaper Plagiarism Anoverviewofstrategy Organizationalenvironments Nextweeksrequirements

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My name is Bill Kirkley and I would like to take the opportunity as the Paper Coordinator to welcome you to Strategy & Change 152.341. I hope youre looking forward to the paper and that you find the course a rewarding and valuable learning experience.

Onsuccessfulcompletionof thecoursethestudent

Criticallyanalyseconcepts andtheoriesrelevantto strategicmanagementand organizationalchange. Explainandevaluatethe processesofstrategy formulationand implementationandthe processesfor organizationalchange.

shouldbeableto:

Applyappropriate methodsofstrategicand organizationalanalysis.

Conductastrategicaudit ofanorganizationandits contextaswellasclearly communicatingtheresults inwrittenform. Produceaplanfor organizationalchangeand clearlycommunicatethe planinwrittenform.

Inabroadcontextthe followingareaswillbe

Strategy:History,overviewand introductiontokeyconcepts; DevelopmentoftheMissionand majorgoalsforabusiness; Strategicanalysis; Strategyformulationatvarious levels; Strategyimplementation OrganizationalChange

coveredinthispaper:

Value:

25%

Purpose: Toexamine, synthesizeandassessthe concepts,issuesand implicationsofglobalisation, competitiveadvantageand strategyformulationfroma NewZealandperspective

Duedate: 26th March,2012 Length: Format: 1500words Report

Value:

25%

Purpose: Toconductan organizationalchange analysisandtoproducean organizationalchangeplan thatfacilitatesthe implementationofastrategy

Duedate: 21st May,2012 Length: Format: 1500words ChangePlan

Examdate:TBA June,2012
NOTE:
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50%ofyouroverallpaper weighting

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Correctspelling, punctuationandgrammar. Seebelow. Sticktothetopic dont waffle! Writeincomplete sentences. Useparagraphsand headingswhere appropriate.

Thisisathirdyearpaper. Theexpectationsregarding yourspellingandgrammar arenowatamuchhigher level.Incorrectspellingand grammarwillbepenalised.

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Everystudentisrequiredtosignanhonestydeclarationon thecoversheetoftheirassignmenttoverifythatitisyour ownwork.

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StudytheWritingGuidelinestextbookindetail. Yourlistofsourcesforreferencingshouldalwaysbe doneinAPAformat

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VisittheASAofficeBldg90Oteha Rohe tofindoutmore.

Contact Advocacy Coordinator 09 443 9781 advocacy@asa.ac.nz www.asa.ac.nz

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Understandthedevelopmentof strategicthought

Knowthecurrenttheoretical perspectivesonstrategy

Definingstrategy Understandthelevelsofstrategy withinanorganisation

DerivedfromtheGreekword Strategos meaningthe

500BC

SunWu

(akaSunTzu)TheArtofWar

ArtoftheGeneral

1920s planningsystems 1950s businesspolicy systems 1980s strategic management 1990s strategicthinking 2000s emergentstrategies?

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 Anti-trust

laws encouraged diversified growth and

development of giant conglomerates

This

created a need for corporate strategy tools:

BCG Matrix Profit Impact of Market Strategy (PIMS)

Environmental

uncertainty reduced the value of long-

range planning

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MichaelPorterscontributiontostrategy Firmscaninfluenceboththeconductandstructureoftheir industry ThereareFiveForcesthataffectcompetitionwithinan industry Thereareonlythreegenericstrategies Lowdeliveredcost Differentiation Focus Nationscandevelopcompetitiveadvantage

Industryanalysisandmarketpositioningwerenotenoughto maintaincompetitiveadvantage,because:

USfirmsunabletocompetewithJapanesecompaniesusing efficientandeffectiveoperationalprocessesbasedonTQM Nomeansofstrategyimplementation Adevelopingunderstandingthatstrategycouldbedeveloped fromwithinusingcorecompetencies Heterogeneityoffirmsseenasthesourceofcompetitive advantage

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Industry analysis and RBV provide static analysis of current position

Do not address future competition and development of future resources and capabilities

Internal systems and processes influence development of strategy

Learning organisations are better able to develop dynamic capabilities

Strategyisabout:
decisionmaking longtermimpacts integrationandfocus implementationofdecisions creatingvalueforcustomersandkeystakeholders outperformingcompetitors

NeededbyALLorganisations,notjustcompaniesorprofit makingentities

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Thosedecisionswhichhave highmediumtermtolong termimpactontheactivities oftheorganisation, includingtheanalysis leadingtotheresourcing andimplementationof thosedecisions,tocreate valueforcustomersandkey stakeholdersandto outperformcompetitors.

Strategyasadecision makingprocessis definedas:

Astrategyisa planofaction basedona seriesofmeasures intendedtoaccomplisha longtermgoalorvision.

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Corporatestrategy

Theportfoliomixofbusinessesheldbyamultibusiness

organisation/corporation
Businessstrategy Positioninginanindustryrelativetocompetitorstocreate sustainablecompetitiveadvantage Functionalstrategy Howfunctionsofthebusinesscontributetowardsachieving thebusinessstrategy

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Thesolepurpose ofstrategyisto achieveacompetitiveadvantage.

Firmsneedtostretchthemselvesforthefuture,notsimply createinternalfitthroughimprovedefficiency Innovationisnecessaryforsurvivalinanunpredictable environment Growthisnecessaryjusttomaintainposition Asthespeedofchangeincreases,competitionincreases leadingtohypercompetition Greateracceptancethatfirmsarecomplexadaptivesystems andthatchaostheoryappliestostrategy Thedevelopmentofthebalancedscorecardandstrategy mapstolinkthevarietyofactivitiesandmeasuresimportant toassessperformance

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 Strategiesmaybelookedat

Agenuinestrategyis alwaysneededwhenthe potentialactionsor responsesofintelligent opponentscanseriously affecttheendeavours outcome regardlessof thatendeavours organisationallevelinthe totalenterprise(Mintzberg &
Quinn,1991,p.6).

aseitheraprioristatements toguideactionoraposteriori resultsofactualdecision making

(Mintzberg & Quinn, 1991, p. 6).

Strategyrequiresunique ideasthatcanbequickly convertedintopractical competitiveadvantage.

Thetaskofstrategyisto createacorporate futurebyidentifying, innovatingor exploitingopportunitieswell ahead ofanycompetitors.

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 Information gathering internal external Information analysis Strategy formulation Decision making Implementing Monitoring

} }

Thinking

Analysis

Action

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StrategicManagement istheapplicationof strategicthinking tothejobof leadinganorganization.

1.

Formulationofthe organizationsfuture mission.

Itentailsattentiontothe bigpictureandthe willingnesstoadaptto changingcircumstances.It comprisesthreeelements:

2.

Developmentof competitivestrategy.

3.

Creationofan organizationalstructure.

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ReferencewillbemadetotheStrategicManagement processratherthantheStrategicPlanningprocess.

ThereismoretoStrategicManagementthanjustthe planningprocess.

Implementationofthestrategicplanisequally,ifnotmore importantthantheplan.

1.

Havingadefinitepurposein mind.

Strategicthinkingmeans makinganassessment usingthreekey requirements:

2.

Understanding theenvironment andtheforcesthatwillimpede orfulfilthatpurpose.

3.

Creativity indevelopingeffective responsestothoseforces.

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TheAbstract

ThePast

TheFuture Theaveragepersontoday thinksmainlyinconcrete termsaboutoneissueatatime

Numberof concurrentissues

TheConcrete

The Abstract ThePast Numberof concurrent issues TheFuture

TheConcrete

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Thestartingpointisusuallysomethingthathashappened intheinternalorexternalenvironment.

Afundamentalelementofstrategicthinkingiscreativity. Thereare some basicstepsinvolvedinstrategicthinking.

Strategic thinking cannot be taught because it cannot be broken down into repeatable unchanging steps; A fundamental element of strategic thinking is creativity in itself infinitely complex; Strategic thinking requires a search for patterns in unrelated areas, unique combinations of seemingly contrary conditions and an innovative mind to see the possibilities ahead.

Unlessyourethelead dog,thescenerynever changes(OldAlaskan saying)

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First Youhavetoknowwhereyouwanttoendup. Second Flesh outtheroutes,elaborateonthe possibilitiesandrevisethem.

Third Standbackfromyourplanandlookatit objectively.

StrategicPlanning isadisciplinedeffort toproducefundamentaldecisionsandactionsthat shapeandguidewhatanorganizationis,whatit doesandwhyitdoesit,withafocusonthefuture.

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Strategicplanningassumesthatanorganizationmust beresponsivetoadynamic,changingenvironment.

Longrangeplanningmeansthedevelopmentofaplan toaccomplishasetofgoalsoveraperiodofseveral years,basedoncurrentknowledgeaboutfuture conditions,whicharesufficientlyreliable.

Strategicplanning isonlyuseful ifitsupports strategicthinking and leadsto strategicmanagement thebasisforaneffectiveorganization.

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Itisnotabouttryingtopredictthefuture itIS abouttryingtocreateafuture. Itisnotasubstitutefortheexerciseofgood judgementbyleadership itISabouthavingthe courageofonesconvictionstoseeitthrough. Itdoesnottypicallyflowsmoothlyfromonestage tothenext itisoftendisrupted,derailed,altered orindeedthrownawayentirely.

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Intendedstrategies Emergentstrategies

Businesslevelstrategies Corporatelevel strategies

Global/International strategies

Strategicmanagementisanongoingand iterative(oftenreviewed)process. Itmustbeproactiveandreactivetobeof benefit. Itrequiresstrongleadershipinformulating strategicdirectionforthebusiness. Someaspectsofstrategicthinkingarisefrom intuitionratherthanfromrationalanalysis.

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Wellinformedandwidelyread. Skilledatallocatingtheirtimeandenergy. Goodpoliticians canbuildconsensusinthefaceof stiffoppositionorconflict. Expertsatbeingimprecise theydontgetbogged downindetail. Abletopushthroughprogramsinapiecemeal fashion.

Researchclearlyindicatesthatthemeasureofstrategic successinanorganizationincreasessignificantlywhen onefollowsadisciplinedandhighlyparticipatory strategyformulationandimplementationprocess.

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Bynextweek: 1. Purchaseyourtextbookandreadchapters1&2. 2. DownloadtheHandbookforthiscoursefromStream 3. DownloadlectureonenotesfromStream 4. Readthroughanyrelevantmaterialregarding strategicmanagement.

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