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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
1. Introducing Strategy (I)
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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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1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?
AGENDA for Today
1. Introducing Strategy (I)
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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
(source: Kepner-Tregoe, Inc)
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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?
(source: Kepner-Tregoe, Inc)
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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
(source: Kepner-Tregoe, Inc)
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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)
(source: Kepner-Tregoe, Inc)
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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
(source: Kepner-Tregoe, Inc)
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1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?
AGENDA for Today
Course: Introducing Strategy (I)
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For more information:
Cosmin Jolde
Thank you!
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