WELCOME

to the class of
Advanced Strategic Management

Dr. H. Rahman

"THE GREATEST
CALAMITY IS NOT TO
HAVE FAILED ; BUT TO
HAVE FAILED TO TRY"

You and me in Class !!

How I will Teach?

Follow the book

Multimedia presentation
Handouts of class lectures

What I expect from you?

Be regular and participative
Start your work on your Project from Today

Principles of Management
Prescribed Text Book:
Strategic Management -- (3th Edition)
Creating competitive advantages
Authors- Dess / Limpkin / Eisner

Syllabus:
Chapters = 1,2,5,6,7,8,9,13,14
Total = 9 Chapters

Marks Distribution
Sessional Marks
Project/Presentation
Class participation/ Attendance
Midterm test

50
20
05
25

End Term Exam

50

Total
Pass Percentage

100
60%

Important : Assessment
End Term:

Only 50%
Rest of the 50% is Sessional Marks

Advanced
Strategic
Management

Chapter

Strategic Management:
Creating Competitive
Advantages

What is an Organization?

Common Characteristics of Organizations

EXHIBIT 1.1

Copyright 2004 Prentice Hall, Inc. All rights reserved.

What is an Organization?

Break Time
The break is only for 15 Min
All the students are advised to come to class

on time
The class after break is very important

Management?
Aim of Management?

Amin of Management
Effectiveness Efficiency Productivity
PRODUCTIVITY

EFFECTIVENESS

EFFICIENCY

Productivity Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

Productivity Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

EFFECTIVENESS
To achieve objectives within the available resources

Productivity Effectiveness - Efficiency

PRODUCTIVITY
Productivity = Output / Input (within time & quality)

EFFECTIVENESS
To achieve objectives within the available resources

EFFICIENCY
To achieve objectives at the least cost of resources.

Managerial Roles Approach

By Mintzberg of McGill Uni

Based on:
What Managers actually do?
Research of 05 CEOs

Conclusion: Managers fill series

of 10 Roles:

Managerial Roles Approach

Interpersonal roles
Figurehead

Leader
Liaison

Informational roles
Recipient

Disseminator
Spokesperson

Decisional roles
Entrepreneurial
Disturbance handler,
Resource allocator
Negotiator

Managerial Roles Approach

Definition of Strategy and Policies

Strategy is the determination of the mission

(or the fundamental purpose) and the basic

long-term objectives of an enterprise, and the
adoption of courses of action and allocation of
resources necessary to achieve these aims.
Policies are general statements or
understandings that guide managers' thinking
in decision making.

2008 Weihrich and

Cannice

Power

Direction

Two Perspectives of Leadership

Romantic view
Leader is the key

force in organizations
success
External control

perspective
Focus is on external

factors that may affect

an organizations
success

QUESTION
A CEO made a lot of mistakes such as committing
errors in assessing the market and competitive
conditions and improperly redesigning the
organization into numerous business units. Such
errors led to significant performance declines. This
illustrates the __________ perspective of leadership.
A. External control
B. Romantic

C. Internal mechanism
D. Operational

What is Strategic Management?

Strategic

management must
become both a
process and a way of
thinking throughout
the organization

Leaders must be

proactive, anticipate
change, and
continually refine
changes to their
strategies

Defining Strategic Management

Strategic management
Analyses, decisions, and actions an organization

undertakes in order to create and sustain

competitive advantages

Defining Strategic Management

Analysis
Strategic goals
Internal and external environment of the firm

Strategic decisions
What industries should we compete in?

How should we compete in those industries?

Defining Strategic Management

Actions
Allocate necessary resources
Design the organization to bring intended strategies

to reality

Two Fundamental Questions

1. How should we

compete in order to
create competitive
advantages in the
marketplace?

2. How can we create

competitive
advantages in the
marketplace that are
unique, valuable,
and difficult for rivals
to copy or
substitute?

Strategic Management Concepts

Exhibit 1.1

Key Attributes of Strategic

Management
Stakeholders
those individuals, groups, and organizations who

have a stake in the success of the organization,

including owners (shareholders in a publicly held
corporation), employees, customers, suppliers, the
community at large,

1-34

Key Attributes of Strategic

Management
Ambidexterity
The challenge managers face of both aligning

resources to take advantage of existing product

markets as well
as proactively
exploring new
opportunities

Ambidextrous Behaviors in
Individuals
They take time and

They are cooperative

are alert to
opportunities beyond
the confines of their
own jobs
They are brokers,
always looking to
build internal networks

and seek out

opportunities to
combine their efforts
with others
They are multitaskers
who are comfortable
wearing more than
one hat

Strategic Management Process

Intended strategy
Decisions are determined only by analysis

Realized strategy
Decisions are determined by both analysis and

unforeseen environmental developments,

unanticipated resource constraints, and/or changes
in managerial preferences

Strategic Management Process

Exhibit 1.2

The Strategic
Management
Process

Exhibit 1.3

Strategic Analysis
Consists of advance work that must be done in

order to effectively formulate and implement

strategies
Starting point

Strategy Formulation
A firms strategy formulation is developed at several
levels:
Business-level
Corporate level
International
Entrepreneurial

Strategy Implementation
Ensuring proper

strategic controls and

organizational designs

Establishing effective

means to coordinate
and integrate activities
within the firm as well
as with suppliers,
customers, and
alliance partners

Corporate Governance and

Stakeholder Management
Corporate governance
The relationship among various participants in

determining the direction and performance of

corporations
Shareholders
management
board of directors

Corporate Governance and

Stakeholder Management (cont.)
Board of Directors
Elected representatives

of the owners
Ensure interests and
motives of management
are aligned with those
of the owners

Exhibit 1.4

Corporate Governance
Three mechanisms ensure effective corporate
governance:
An effective and engaged board of directors
Shared activism
Proper managerial rewards and incentives

Stakeholder Management
Zero sum view
Stakeholders compete for attention and resources

of the organization
Gain of one is a loss to the other
Rooted in the traditional conflict between workers
and management

Stakeholder Management
Stakeholder symbiosis view
Stakeholders are dependent upon each other for

their success and well-being

Mutual benefits

1-47

QUESTION
Outback Steakhouse has developed a
sophisticated quantitative model and found that
there were positive relationships between
employee satisfaction, customer satisfaction, and
financial results. This is an example of
__________.
A. Zero-sum relationship among stakeholders
B. Stakeholder symbiosis
C. Rewarding stakeholders
D. Emphasizing financial returns

Social Responsibility
Social responsibility
The expectation that businesses or individuals will

strive to improve the overall welfare of society

Social Responsibility
Triple bottom line
Assessment of a companys performance in

financial, social, and environmental dimensions

Example: Social Responsibility

Starbucks Coffee Company defines CSR

as:
Conducting business in ways that produce social,

environmental and economic benefits for the

communities in which we operate and for the
companys stakeholders, including shareholders.
Some tangible benefits include attracting and

retaining our partners, customer loyalty, reducing

operating costs, and creating a sustainable supply
chain.

Strategic Management
Perspective
All managers and employees must:
Take an integrative, strategic perspective

of issues facing the organization

Assess how functional areas and activities
fit together to achieve goals and
objectives

Three Types of Leaders

Local line leaders
Have significant profit-and-loss responsibility
Executive leaders
Champion and guide ideas, create a learning
infrastructure, establish a domain for taking
action

Three Types of Leaders (cont.)

Internal networkers
Generate power

through the conviction

and clarity of their
ideas

Coherence in Strategic Direction

Hierarchy of goals
organizational goals ranging from, at the top, those

that are less specific yet able to evoke powerful and

compelling mental images, to, at the bottom, those
that are more specific and measurable.
Vision, mission statement, strategic objectives

A Hierarchy of Goals

Exhibit 1.6

Coherence in Strategic Direction

Organizational

vision
Goal that is massively

inspiring, overarching,
and long term
Represents a
destination that is driven
by and evokes passion

Why Do Visions Fail?

The walk doesnt

Not the holy grail

match the talk

Irrelevance
Too much focus leads
to missed
opportunities

An ideal future

irreconciled with the

present

Coherence in Strategic Direction

Mission statement
Set of goals that include both the purpose of the

organization, its scope of operations, and the basis

of its competitive advantage
Has the greatest impact when it reflects an

organizations enduring, overarching strategic

priorities and competitive positioning

Coherence in Strategic Direction

Strategic objectives
A set of organizational goals that are used to

operationalize the mission statement and that are

specific and cover a well-defined time frame.

Thank You

Q&A