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. It builds on the knowledge and skills acquired in earlier modules to enhance critical awareness of senior management decision-making. It addresses strategic management as a complex agenda of fundamental questions and problems that concern organisations and their future development. 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 and the 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 Weighting of Assessment Type Assessment A group 15 minutes 25% presentation Individual 2500 maximum 25% assignment words (turnitin) An unseen written examination 2 Hours 50% Approximate Date December 12th December 26th January

You are required to select a case study of a company of your choice that has implemented a turnaround strategy in recent years to cope with the recession, and as a result of which it has been able to compete more effectively and create more value. Using relevant academic models explain why you think that the company has been able improve its strategic position.
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Course outline (2)

Books (current editions): 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 multiperspective 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, Strategic Management and Concepts

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Introducing Strategy Outline

1. What is strategy and strategic management? 2. Strategic priorities at corporate, business and operational level 3. Vocabulary of strategy 4. Exploring Corporate Strategy strategic management model

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Strategic issue
A Strategic Issue is any issue that significantly influences a persons, a work groups 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 direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
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Strategic decisions

Exhibit 1.1

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Advantage
A competitive advantage has three key characteristics: 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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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

Exhibit 1.2

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Organization Charters
LEADERSHIP Strategy Mission Goals Vision

Capabilites and values

1. Mission Statement
2. Vision Statement 3. Capabilites and Values

4. Strategy
5. Operating Goals and Objectives 6. Leadership

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Elements of Strategic Management

Understanding the strategic position of an organisation (strategic analysis and purpose) Making strategic choices for the future (developing strategy) Turning strategy into action (implementation process)

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A model of the elements of strategic management

Exhibit 1.3

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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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Strategic Position (2)

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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Strategic Position (3)

WHAT CAN WE DO? (strengths and weaknesses) WHAT MIGHT WE DO? (external opportunities and threats) STRATEGY

WHAT DO WE WANT TO DO? (organizational and individual values)

WHAT DO OTHERS EXPECT US TO DO? (stakeholder expectancies)

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Strategic Choices
Bases of competitive advantage at business level (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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Strategy into Action (1)

Organizing: strategy development intended vs emergent

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Strategy into Action (2)

The future is not the result of choices among alternative Structuring the paths offered in theorganisation present -- it is a (ch.12) place that is created -- created first in the mind and will; created next in the Marshalling resources (people, information, activity.

finance, technology) (ch.13) Managing change (ch.14) Practice of strategy (ch.15)

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SM Concepts (1)
1) Strategic management involves deciding what is important for the long-range success of your business and focusing on it. 2) Strategic management asks, How should I position my business to meet management and business goals? 3) A business strategy is a series of business decisions that lead to achieving a business goal.

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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 business strategy. 6) Strategic management is most effective if you can step back far enough and say all things are possible.
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SM Concepts (3)
7) The essence of strategic management is matching business resources to market opportunities. 8) Strategic management involves seeking and identifying opportunities and threats in the market and industry and the outside world in general. 9) Strategic management is based on the premise that all businesses are not the Slide 1.24 same.

SM Concepts (4)
10) Strategic management involves assessing the strengths and weaknesses of your business. 11) When assessing strengths and weaknesses, personal skills and abilities are likely to be more important than business assets. 12) Strategic management involves looking into the future rather than dwelling on the Slide 1.25 past.

SM Concepts (5)
13) Strategic management is proactive rather than reactive. 14) Strategic management involves anticipating change and taking advantage of it. 15) Strategic thinking involves assessing how decisions made today will affect my business in the future. 16) Strategic management is more of a stateofmind than a rigid process.
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SM Concepts (6)
17) A military connotation of strategic management is it hasnt won every war, but it has avoided a lot of ambushes. 18) Strategic management is most useful for businesses with unique or differentiated products for niche, specialty or differentiated product markets.

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SM Concepts (7)
19) Strategic planning comes before business planning. Strategic planning is used to identify and assess alternative business strategies. Business planning is used to implement a business strategy. 20) Strategic planning is more words and less numbers than business planning. 21) A strategic plan is a living document that changes as your goals and resources evolve.
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SM development

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Theories of SM
Intended
Industry and envirnoment based I&E argue that profits are delivered by selecting the most attractive Resource based industry and then competing better than others Game based Resource based focus on chief resources and capabilities especialy those where it has competitive advantage Co-operation and network based Game based focus on decision making that surrounds the selection of Survival based Uncertainty based Human resource based Innovation and knowledge based
objectives. NET focus on sharing networkds, contacts, knowledge

COOP - At least 2option independent companies work together to achieve the best strategic Emergent

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Assignements
By using Exploring Corporate Strategy model map key issues relating to Strategic Position, Strategic Choices and Strategy in Action of one familiar organization

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