Introduction & Interaction: Your Company & Nature of Job Draw A Sketch That Describes You

Strategic Management - BA300
Introduction & Interaction
Your Your
Name Draw a sketch
Company &
Nature of job that describes
you
Ch # 1 1
My expectations from the course
My concerns about the course
My expectations from the teacher
My concerns about the teacher
Ch # 1 2
Let us Agree on Norms
•Cell Phone
•Late Coming
•Someone Dominating the discussion
•Discussion that digress from the topic
Ch # 1 3
Objective / Goal of the course

The main objective of this course is to inculcate a visionary and
strategic thinking in the mindset of the outgoing MBA student. More
specific objectives are as follows:
•To develop a cross-functional and holistic view of the business
organization that is fully exposed to the vulnerabilities of the rapidly
changing, hyper-competitive and increasingly unpredictable external
environment.
•To understand the challenges of internal integration and external
adoption.
•To develop the ability of analyzing varying business situations and
finding the possible ways aimed at achieving the desired
organizational goals.
Ch # 1 4
Instructions
1. Must come prepared for the class.
2. Must read the topics to be discussed in advance.
3. Must reach class two minutes before start.
4. Must be properly attired.
5. Must complete all assignments in time.
6. Must not use red or green ink in all grading examinations.
Attendance
Students are required to maintain 75% attendance however,

students maintaining 100% attendance will be rewarded.
Ch # 1 5
Books
Text Book(s): Strategic Management: Concepts & Cases 11th

Edition Fred & David: Prentice Hall 2007.
Reference Book(s): Exploring Corporate Strategy 7th Edition G.
Johnson & K. Scholes: Prentice Hall 2005.
Grading Plan
Quizzes 10%
Assignments 10%
Hourly Exams 20%
Report/Presentation 10%
Final Exam 50%
Ch # 1 6
Strategic Management - BA300 Course Outline
Sessions Topics Study Ref
THE NATURE OF STRATEGIC MANAGEMENT: What Is Strategic Management? , Key Terms in Strategic
1 Ch-1
Management, The Strategic-Management Model, Benefits of Strategic Management,
Why Some Firms Do No Strategic Planning, Pitfalls in Strategic Planning, Guidelines for Effective Strategic Management,
2 Ch-1
Business Ethics and Strategic Management,
Comparing Business and Military Strategy, The Nature of Global Competition, The Cohesion Case and Ch-1
3
Experiential Exercise, The Cohesion Case: Google, 2005
4 THE BUSINESS VISION AND MISSION: What Do We Want to Become? What Is Our Business? Ch-2
5 Importance of Vision and Mission Statement, Characteristics of a Mission Statement, Ch-2
6 Components of a Mission Statement, Writing and Evaluating Mission Statements Ch-2
THE EXTERNAL ASSESSMENT: The Nature of an External Audit, The Industrial Organization (I/O) View,
7 Economic Forces, Social, Cultural, Demographic, and Environmental Forces, Political, Governmental, and Legal Ch-3
Forces, Technological Forces,
Competitive Forces, Competitive Analysis: Porter’s Five-Forces Model, Sources of External Information, Ch-3
8
Forecasting Tools and Techniques,
The Global Challenge, Industry Analysis: The External Factor Evaluation (EFE) Matrix, The Competitive Profile Ch-3
9
Matrix (CPM)
THE INTERNAL ASSESSMENT: The Nature of an Internal Audit, The Resource-Based View, Integrating Ch-4
10
Strategy and Culture, Management, Marketing,
11 Finance/Accounting, Production/Operations, Research and Development, Ch-4
12 Management Information Systems, The Internal Factor Evaluation (IFE) Matrix Ch-4
STRATEGIES IN ACTION: Long-Term Objectives, Types of Strategies, Integration Strategies, Intensive

13 Ch-5
Strategies, Diversification Strategies, Defensive Strategies,
14 Michael Porter’s Generic Strategies, Means for Achieving Strategies, Ch-5
15 Hourly Test – 1
Ch # 1 7
16 Strategic Management in Nonprofit and Governmental Organizations, Strategic Management in Small Firms Ch-5
STRATEGY ANALYSIS AND CHOICE: The Nature of Strategy Analysis and Choice, A Comprehensive
17 Ch-6
Strategy-Formulation Framework,
18 The Input Stage, The Matching Stage, The Decision Stage, Ch-6
19 Cultural Aspects of Strategy Choice, The Politics of Strategy Choice, Governance Issues Ch-6
IMPLEMENTING STRATEGIES: MANAGEMENT AND OPERATIONS ISSUES: The Nature of Strategy Ch-7
20
Implementation, Annual Objectives, Policies, Resource Allocation,
Managing Conflict, Matching Structure with Strategy, Restructuring, Reengineering, and E-Engineering, Ch-7
21
Linking Performance and Pay to Strategies,
Managing Resistance to Change, Managing the Natural Environment, Creating a Strategy-Supportive Culture,
22 Production/Operations Concerns When Implementing Strategies, Human Resource Concerns When Ch-7
Implementing Strategies
IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES: The Ch-8
23
Nature of Strategy Implementation
24 Marketing Issues, Finance/Accounting Issues, Ch-8
25 Research and Development (R&D) Issues, Management Information Systems (MIS) Issues Ch-8
STRATEGY REVIEW, EVALUATION, AND CONTROL: The Nature of Strategy Evaluation, A Ch-9
26
Strategy-Evaluation Framework,
The Balanced Scorecard, Published Sources of Strategy-Evaluation Information, Characteristics of an Effective Ch-9
27
Evaluation System,
28 Contingency Planning, Auditing, 21st Century Challenges in Strategic Management Ch-9
29 Case Analysis 1
Ch # 1 8
31 Case Analysis 1
32 Case Analysis 1
33 Case Analysis 2
34 Case Analysis 2
35 Case Analysis 2
36 Case Analysis 3
37 Presentations
38 Presentations
39 Presentations
40 Case Analysis 3
41 Case Analysis 3
43 Case Analysis 4
44 Case Analysis 4
45 Case Analysis 4
46 Revision (Important Topics)
Ch # 1 9
Ch # 1 10
What is strategic management?
It is “the art and science of formulating, implementing and

evaluating cross-functional decisions for the achievement of
organizational objective.”
Strategic management refers to the art of planning your
business at the highest possible level.
Definition:
“The on-going process of formulating, implementing and
controlling broad plans guide the organizational in
achieving the strategic goods given its internal and external
environment”.
Ch # 1 11
Chapter 1: Nature of Strategic Management

Importance of Strategic Management
• Global considerations impact all business decisions
• Electronic commerce (E-commerce) is a vital strategic
management tool, like use of internet for direct selling,
communication with sellers, customers, creditors, supply
chain etc
• The natural environment is an important strategic issue like
global warming, pollution
Ch # 1 12
Strategic Management Model

Developing Vision & Mission Statement
Perform external audit
Perform internal audit
Setting Objectives
Generate, evaluate and select strategies
Implementing strategies – management issues
Implementing strategies – marketing, finance, accounting, R & D
and MIS issues
Measure and Evaluate Performance & corrective measures
Ch # 1 13
Stages of Strategic management:

The strategic management process
consists of three stages:
• Strategy Formulation
(strategy planning)
• Strategy Implementations
• Strategy Evaluation
Ch # 1 14
Strategy Formulation
Vision & Mission
External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
Ch # 1 15
Strategy Implementation
Annual Objectives
Policies
Employee Motivation
Resource Allocation
Ch # 1 16
Strategy Evaluation
Internal Review
External Review
Performance Metrics
Corrective Actions
Ch # 1 17
Strategic Management Achieves

Organizational Success
Process of Integrating:
Management
Marketing
Finance/accounting
Production/operation
Research & development
Computer information systems
Ch # 1 18
Strategy Formulation
Issues include:
What new businesses to enter
What businesses to abandon
How to allocate resources
Expand operations or diversify
Enter international markets
Merge or form joint venture
Avoidance of hostile takeover
Ch # 1 19
Strategic Planning
Strategic planning is only useful if it

supports strategic thinking and leads
to strategic management
Ch # 1 20
Strategic Thinking
• Strategic thinking means asking,
"Are we doing the right thing?“
• Key requirements about strategic thinking:

• a definite purpose be in mind;
• an understanding of the environment; and
• creativity in developing effective responses to
those forces.
Ch # 1 21
Key strategic-management questions:
What kind of business should we become?
Are we in the right fields?
Should we reshape our business?
What new competitors are entering our industry?
What strategies should we pursue?
Ch # 1 22
Key Terms
•Competitive advantage
•Strategists
•Vision & Mission statement
•What do we want to become?
•What is our business?
•External opportunities and threats
•Internal strength & weakness
•Environmental Scanning
•Long term objectives
•Strategies
•Annual objectives and policies
Ch # 1 23
Key Terms
Strategists
Most responsible for success or failure of an organization
Various job titles:

Chief executive officer
President
Chair of the Board
Executive Director
Owner
Entrepreneur
Ch # 1 24
Key Terms
External Opportunities and Threats
Largely beyond the control of a single organization
Economic
Social
Cultural
Demographic
Environmental
Political, legal, governmental
Technological
Strategy formulation to:
Take advantage of external opportunities
Avoid or reduce impact of external threats
Ch # 1 25
Internal Strengths and Weaknesses

Controllable activities performed especially well or
poorly
Arise in functional areas of the business:
Management
Marketing
Finance / accounting
Production / Operation
Research & development
Computer information systems
Ch # 1 26
Key Terms
Environmental Scanning
•Industry Analysis
•Process of conducting research and gathering &

understanding external information
•Financial ratios
•Measuring performance
•Industry averages
•Survey data
Ch # 1 27
Key Terms
Long-term objectives:
Mission-driven pursuit of specific results more than one-year out.
Essential for organizational success
State direction
Aid in evaluation
Create synergy
Focus coordination
Basis for planning, motivating and controlling
Ch # 1 28
Difference between strategic planning and long-range planning
Long-range Planning Strategic Planning
• • Views future as unpredictable

Views future as predictable.
• • Views planning as a continuous
Views planning as a periodic
process process
• • Expects new trends, changes, and
Assumes current trends will
continue surprises
• • Considers a range of possible
Assumes a most likely future
and emphasizes working futures and emphasizes the
backward to map out a year- development of strategies based
by-year sequence of events on a current assessment of the
necessary to achieve it organization’s environment
• • Asks "What business should we
Asks "What business are we
in?" be in? Are we doing the right
thing?"
Ch # 1 29
Strategy
Competitive approaches and business moves for

successful achievement of goals
It is management’s game plan
Asses Present Position
Where we want to go?
How to go?
Ch # 1 30
Key Terms
Strategies:
Means by which long-term objectives will be achieved.
May include:
Geographic expansion, diversification
Merger & Acquisition
Product development, market penetration
Retrenchment, divestiture
Liquidation, joint venture
Ch # 1 31
Policies
Policies are the means by which annual

objectives will be achieved.
Policies include, guidelines, procedures,
rules, regulation etc
Ch # 1 32
Benefits of Strategic Management

Proactive in shaping organization’s future
Initiate and influence activities
Formulate better strategies
Systematic, logical, rational approach
Financial benefits
Improvement in sales
Improvement in profitability
Improvement in productivity
Ch # 1 33
Non-Financial benefits
Enhanced awareness of external threats
Improved understanding of competitors’ strategies
Increased employee productivity
Reduced resistance to change
Understanding of performance-reward relationships
Enhances problem-prevention capabilities
Ch # 1 34

Identification of opportunities
Objective view of management problems
Improved coordination and control
Minimizes adverse conditions and changes
Decisions to better support objectives
Effective allocation of time and resources
Internal communication among personnel
Ch # 1 35
Integration of individual behaviors
Clarifies individual responsibilities
Encourages forward thinking
Encourages favorable attitude toward change
Discipline and formality to the management of the business
Ch # 1 36
Why Some Firms Do No Strategic Planning
Poor reward structures

Waste of time
Too expensive
Laziness
Content with success
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
Suspicion
Ch # 1 37
Pitfalls in Strategic Planning

1. Using strategic planning to gain control over decision and resources
2. To satisfy accreditation or regulatory requirement
3. To hastily moving from mission development to strategy formulation
4. Failing to communicate the plan to implies who continue working in the dark
5. Top managers making many intuitive decisions that conflict with the formal plan
6. Top managers not actively sporting the strategic planning process
7. Failing to use plan as a standard for measuring performance
8. Delegating planning to a planner rather than involving all managers
9. Failing to involve key employees in all phases of planning
10. Failing to create collaborative climate sportive of change
11. Viewing planning to be unnecessary or un important
12. Becoming so engrossed in current problems that insufficient or no planning is done
13. Being so formal in planning that flexibility and creativity stifled
Ch # 1 38
Guidelines for effective strategic management

Open mindedness
Willingness and agree ness to consider new information, ideas,
possibilities is essential
Members of organization must share spirit of learning and enquiry
Shared vision
Ownership of the process
Ch # 1 39
Business Ethics and Strategic Management

Principles of conduct within organizations that guide decision making
and behavior
It is prerequisite for good strategic management
Code of business ethics Provides basis on which policies can be
planed to guide daily behavior and decisions at the workplace
Internet privacy
Internet and Business actions always unethical include:

Misleading advertising
Misleading labeling
Environmental harm
Poor product or service safety
Insider trading
Dumping flawed products on foreign markets
Ch # 1 40
Comparing Business and Military Strategy

Objectives, mission, and weaknesses battlefield terminologies
Greek strategos refers stratos (the army) and ago (to lead)
Business and military strategies aim to gain competitive
advantage
In business it is competition while in army it is conflict
Nature of Global Competition
Companies conduct business across borders

International or multinational corporations
Parent company
Host country
Strategy implementation more difficult
Cultural differences
Norms, values, work ethics
Ch # 1 41
Advantages of International Operations

Absorb excess capacity
Reduce unit costs
Spread economic risks over wider markets
Low-cost production facilities
Competition may be less intense
Reduced tariffs, lower taxes
Economies of scale
Disadvantages of International Operations
Different social, cultural demographic, legal forces may create
difficult communication
Weaknesses of foreign competition may be underestimated
Barriers to communication and effective management of personnel
Complications from different monetary systems
Ch # 1 42
Cohesion case
Competitive advantage
Security
Ethics
Networks, telecommunication and wireless computing
Enterprise architecture
Systems development
Business intelligence
Collaboration
Enterprise resource planning (ERP)
Customers relationship management (CRM)
Supply chain management (SCM)
E-business
Ch # 1 43
Ch # 1 44

Introduction & Interaction: Your Company & Nature of Job Draw A Sketch That Describes You

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Introduction & Interaction: Your Company & Nature of Job Draw A Sketch That Describes You

Transféré par

Droits d'auteur :

Formats disponibles

Strategic Management - BA300

Introduction & Interaction

My expectations from the course

My concerns about the course

My expectations from the teacher

My concerns about the teacher

Let us Agree on Norms

•Someone Dominating the discussion

•Discussion that digress from the topic

Objective / Goal of the course

Students are required to maintain 75% attendance however,

Text Book(s): Strategic Management: Concepts & Cases 11th

5 Importance of Vision and Mission Statement, Characteristics of a Mission Statement, Ch-2

6 Components of a Mission Statement, Writing and Evaluating Mission Statements Ch-2

STRATEGIES IN ACTION: Long-Term Objectives, Types of Strategies, Integration Strategies, Intensive

What is strategic management?

It is “the art and science of formulating, implementing and

Chapter 1: Nature of Strategic Management

Strategic Management Model

Stages of Strategic management:

Vision & Mission

External Opportunities & Threats

Internal Strengths & Weaknesses

Strategic Management Achieves

Strategic planning is only useful if it

• Key requirements about strategic thinking:

Key strategic-management questions:

What kind of business should we become?

Are we in the right fields?

Should we reshape our business?

What new competitors are entering our industry?

What strategies should we pursue?

Most responsible for success or failure of an organization

Various job titles:

Internal Strengths and Weaknesses

Mission-driven pursuit of specific results more than one-year out.

Essential for organizational success

Basis for planning, motivating and controlling

Difference between strategic planning and long-range planning

Long-range Planning Strategic Planning

• • Views future as unpredictable

Competitive approaches and business moves for

It is management’s game plan

Asses Present Position

Where we want to go?

Policies are the means by which annual

Benefits of Strategic Management

Benefits of Strategic Management

Enhanced awareness of external threats

Improved understanding of competitors’ strategies

Increased employee productivity

Reduced resistance to change

Understanding of performance-reward relationships

Enhances problem-prevention capabilities

Benefits of Strategic Management

Benefits of Strategic Management

Integration of individual behaviors

Clarifies individual responsibilities

Encourages forward thinking

Encourages favorable attitude toward change

Discipline and formality to the management of the business

Why Some Firms Do No Strategic Planning