1 - corporate strategy 2012

8/2/2019 1 - Corporate Strategy 2012

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LEARN. PERFORM. GROW.

Corporate Strategy Master Degree

The Faculty of International Business and Economics,

ASE Bucharest

1. Introducing Strategy (I)


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1. Introductive Session

2. What is Strategy? Why Strategy ? Who sets Strategy?

AGENDA for Today



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Brief Course Contents:

1.Introducing Strategy

2.The Strategic Position

3.Strategic choices

4.Strategy into action


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Detailed Course Contents:

1.Introducing Strategy

2.The Strategic Position (I) The Environment

3.The Strategic Position (II) Strategic Capability;Expectations & Purposes

4.Strategic choices (I) - Business-Level & Corporate-LevelStrategy

5.Strategic choices (II) International Strategy; Directionsand Methods of Development

6.Strategy into action Organising for Success; EnablingSuccess & Managing Strategic Chance


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The Strategic Position (I)

The Environment

General analysis - dynamics, predictability, etc

The Macro-environment analysis - PESTEL Analysis; Scenarios; PortersDiamond

Industries and sectors analysis the 5 force framework; key successfulfactors

Market Analysis - SWOT Analysis (Opportunities & Threats); CompetitorsAnalysis (critical success factors); Customers Analysis (customer matrix)


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The Strategic Position (II)

Strategic Capability Diagnosing strategic capability strategic groups (interviews & focus groups)

Evaluation of resources & Added value value chain analysis

Competences analysis - SWOT analysis (Strengths & Weaknesses); key

successful factors HR analysis competences evaluation; performance appraisal (knowledge &

skills)

Financial resources analysis financial data & indicators

Operational resources analysis systems, policies, processes & procedures

Expectations & Purposes VMV system

Corporate governance

Stakeholder expectations stakeholder mapping


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Strategic choices (I)

Business-Level Strategy

Bases of competitive advantage the strategy clock

Sustaining competitive advantage

Competition and collaboration

Corporate-Level & International Strategy

Product / market diversity

Value creation and the corporate parent

Managing the corporate portfolio the growth share matrix


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Strategic choices (II)

Directions and Methods of Development

Directions for strategy development Ansoff matrix; TOWS matrix

Methods of strategy development methods of development matrix

Success criteria -must & wants criteria


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Strategy into action

Organising for Success structural types

systems, policies, processes & procedures

Enabling Success Managing people

Managing information

Managing finance

Managing technology

Integrating resources

Managing Strategic Change Changing process

Reacting to change

Managing successfully difficult situations


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Final Evaluation:

60% - exam

30 % - final project

10 % - class activity

Exercises

Individual case studies

Group case studies


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Course Outcomes:

By the end of this course, the participants will

-> The course is designed to offer the students both the essential frameworks andthe analytical tools to develop a capability for strategic management with duerecognition of growing importance of businesses operating in the context of

international environment.

By the end of this course, the participants will

-> know and understand

> The most important theoretical concepts, best practices & skills of strategic analysis of

the corporate> The most important theoretical concepts, best practices & skills of strategic planning,

developing strategic alternatives and implementing corporate strategy

> Examples of strategic approach within the international business environment

-> be able to analyze a company strategically


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Key words:

Vision, Mission, Values

Strategy

Strategic planning

Goal

Strategic plan

Strategic position

Strategic alternative Strategic choice

Implementing strategy


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Participants Expectations

Individual activity 5 min


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AGENDA for Today



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Equity/Dividends

Enterprise Model: Where Does Strategy Fits?

Business Processes

Competitors

The Business

Suppliers

Suppliers(upstream

industryvaluechain)

RawMaterial/

ComponentSuppliers

Technology

People

Money

ResourceProviders

Products/

Services

Needs

Market

Customers

Customers

Customers(downstream

industryvalue chain)

Shareholders

Capital

Government The EconomySociety/

CommunityParent

Corporation

Regulations/Policies Economic Conditions Concerns Priorities

Strategy

Leadership

Goals/Measure-

ments

Human

Capabilities

Information/

Knowledge

Management

OrganizationStructure/

RolesCulture

Issue Resolution

(source: Kepner-Tregoe, Inc)


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What is Strategy?

Products MarketsCompetitiveAdvantages

STRATEGY



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Strategy: The framework of choices that define the natureand direction of an organization

> The three legs of the strategy stool:

Products/services: What will we offer?

Markets/customers: To whom will we offer ourproducts/services?

Competitive advantages: Why will customers buy products /services from us rather than from others?

> These three legs are the same for:

Large corporations

Units within large corporations

Small businesses

Government agencies, etc

What is Strategy?

What is Strategy?



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Why Strategy?

What are the consequences of not having a specific, up-to-date, energizing strategy?

What day-to-day decisions should be guided by a

strategy?

Strategy provides FOCUS

> How will we spend our time?

> How will we spend our money?

Without a strategy, there is no rudder to your ship



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Who Sets Strategy?

Who is responsible for an organizations strategy?

> The top team it is the their most important responsibility

> Delegating strategy responsibility is abdication

Who else should provide input to the strategy?

> Those closest to the market (customers and competitors)

> Technology experts

> Creative, futuristic thinkers

> Opinion leaders

> Those who will bear the brunt of implementation

Who is not responsible for setting an organizationsstrategy?

> A staff function (e.g., the Strategic Planning Department)

> Consultants (Both can provide tools, coordination, facilitation)



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Strategic decisions are about:

The long-term direction of an organization

The scope of an organizations activities

Gaining advantage over competitors

Addressing changes in the business environment

Building on resources and competences (capability)

Values and expectations of stakeholders


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Definition

The long-term direction of an organization

The directionand scopeof an organization over the longterm, which achieves advantagein a changing environment

through its configuration of resources and competenceswiththe aim of fulfilling stakeholder expectations.


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Strategic decisions are likely to:

Be complex in nature

Be made in situations of uncertainty

Affect operational decisions

Require an integrated approach (both inside and outside anorganization)

Involve considerable change


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Levels of strategy

Corporate-level strategy

is concerned with the overall purpose and scope of anorganization and how value will be added to the different parts(business units) of the organization

Business-level strategy -> Strategic business unit (SBU)

is about how to compete successfully in particular markets

SBU part of an organization for which there is a distinct externalmarket for goods and services that is different from another SBU

Operational strategies

Are concerned with how the component parts of an organizationdeliver effectively the corporate and business-level strategies interms of resources, processes and people


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Strategy and Operations

Clear/Right Unclear/Wrong

Effective/Efficient

Ineffective/Inefficient

Strategy (What)

Operations(How) 1 2

3 4

1. Have equaledsucces in the

past and will inthe future

2. Have equaledsucces in the

past, but succesis doubtful in the

future

3. Have sometimesworked in the past inthe short run, but

increasingcompetition makessucces doubtful in

the future

4. Have equaledfailure in thepast, and will in

the future

Strategy and Operations



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AGENDA for Today

Course: Introducing Strategy (I)


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For more information:

Cosmin Jolde

[email protected]

Thank you!


1 - corporate strategy 2012

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