bma3- lecture 01 2014. strategic management
DESCRIPTION
Strategic management explained. I got this from BMA3A lecturer.TRANSCRIPT
ONB 3 B
STRATEGIC MANAGEMENT
Lecture 1
Strategic Management
process
Strategic management
The concept : Enterprise or business
Strategic management
Top management promise: Value
proposition to satisfy a need
THE TIME LINE OF STRATEGY
Present Future Past
Strategic thinking
The fundamental question:
– In what way would top management make decisions in such a rapid changing environment in order for it to survive and even more to show growth?
ASPECTS OF STRATEGIC
MANAGEMENT
Inputs - analysis Actions – formulation Actions – implementation
Contemporary issues
Strategic Management - concepts
Strategic management Strategic thinking Strategic decisions Hypercompetition The strategic business game The fundamental question of strategy The core areas of strategy Process, content and context of strategy The role of change
Strategic management
Decision-making - present That set of managerial
decisions and actions that determine the long-run performance of an organisation (company)
Deliver the promise to the customer
Strategic thinking
Strategic thinking To learn to think beyond the
parameters of conventional wisdom and develop approaches to compete successfully in a hostile environment
Strategic thinking
Vision Corporate (organisational) culture Foresight Leadership Instituting ethics and values Core values of business
Core values Have a commitment for service Demonstrate genuine caring for
people Provide ethical treatment for all
people Provide good value to all members Be ever-changing and dynamic
Strategic thinking
The challenge of strategic management within a changing environment
The new competitive landscape– Technology– Globalisation
Technology and technological changes
The new competitive landscape
• Rapid technological changes
• Rapid technology diffusion
• Dramatic changes in information technologies
• Increasing importance of knowledge
The competitive landscape
The global economy
• People, goods, services, and ideas move freely across geographical borders
• Significant opportunities emerge in multiple global markets
• Markets and industries become more internationalized
Strategic decisions
Strategic decisions - elements
Context
Content
Process
Strategic decisions - elements
Context - environment
Content - main actions of strategy
Process - how actions interact - role of change
The relationship between:
• strategic thinking
• strategic management
• strategic planning
• strategy
The relationship between strategic management, strategic planning
and strategy
Strategic management/Strategic thinking
Strategic management/Strategic thinking
Strategic planningStrategic planning
StrategyStrategy
Comprehensive master plan “How” the organisation
wants to fulfill its goals and objectives
Comprehensive master plan “How” the organisation
wants to fulfill its goals and objectives
Core areas of Strategy
Core areas of Strategy
Strategic Analysis
Strategy implementationStrategic
development
The models of strategy
Traditional - prescriptive approach
Continuous - emergent approach
Prescriptive approach
Strategic Analysis
• Environment• Resources• Vision,mission and objectives
Strategic development
• Options• Selection• Route forward• Consider strategy
Strategy implementation
Prescriptive approach
Focus on:
• profit-maximising, competition based
• resource-based• game-based• socio-cultural environment
Emergent Approach
Planned (or Intended) Strategy
Actual Strategy
Adaptive Reactions to changing circumstances
The emergent approach
Strategic Analysis
• Environment• Resources• Vision,mission and objectives
Strategic development
• Options• Selection• Route forward• Consider strategy
Strategy implementation
Emergent approach
Focus on:
survival-based uncertainty-based human resource-based continuous approach
Strategic management model
Analysis of the external environment
Long-term goals
Objectives
Strategic plan
LegendMajor impactMinor impact
Desired
Possible
Enterprise mission
Company profile
Analyse and develop
Strategic management model
Feedback
Analysis of the external environment
Long-term goals
Objectives Operating strategies
Strategic plan
LegendMajor impactMinor impact
Evaluation and control
Institutionalization of strategy
Policies
Feedback
Desired
Possible
Enterprise mission
Company profile
Analyse, develop and implement
The five tasks of strategic management
The five tasks of strategic management
Task 1 Task 2 Task 3 Task 4 Task 5
Developing a strategic vision and business mission
Revise as needed
Setting objectives
Crafting a strategy to achieve the objectives
Implementing and executing the strategy
Evaluation and control
Revise as needed
Improve / change as needed
Improve / change as needed
Recycle to tasks 1, 2, 3 or 4 as needed
Feedback
Who performs the five tasks of strategic management?
Who performs the five tasks of strategic management?
Every manager has a strategy-making, strategy-
implementation role
It is wrong to view strategic management as a solely a
senior executive responsibility
Hierarchy of strategic management levels
Board of directorsBoard of directors
Chief executive officer
Chief executive officer
General ManagerFinance
General ManagerFinance
Manager Shoe business
Manager Shoe business
Human resource manager
Human resource manager
Manager Steel business
Manager Steel business
Marketing manager
Marketing manager
General ManagerHuman resources
General ManagerHuman resources
Financial managerFinancial manager
Corporate level
Divisional level
Functional level
Manager Clothing business
Manager Clothing business
Shortcomings of strategic management process
Fail to develop a long-term planning philosophy
All levels of management not involved
Rely on intuitive decision-making
Unrealistic expectations Inflexible in a too rapidly
changing environmnt
Driving forces of strategy
Driving forces of strategy
Vision – value creationResources (EP) – locked inCreativityValue systemsAssumptions (change)Risk appetiteSustainability
Organisational Strategist
Decision-making on different aspects
Inspiring othersBold innovative ideas
Thank you