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Strategic Management-DPGMMO
6th & 8th December 2010
Dr Yong Chee Tuan
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Business, Operational, Strategic ?
Business PlanNormally prepared to acquire financing
Operational PlanIdentifies specific results to be accomplished within a
given time period
BudgetExpresses operational plan in financial terms
Strategic PlanIdentifies the basic concept and direction of an
organization
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Defining Strategic Management
Strategic management
Analyses, decisions, and actions an
organization undertakes in order to create
and sustain competitive advantages
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Defining Strategic Management
Analysis
Strategic goals
Internal and external environment of the firm
Strategic decisions What industries should we compete in?
How should we compete in those
industries?
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Defining Strategic Management
Actions
Allocate necessary resources
Design the organization to bring intended
strategies to reality
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Two Fundamental Questions
1. How should we
compete in order to
create competitive
advantages in the
marketplace?
2. How can we create
competitive
advantages in the
marketplace that are
unique, valuable,
and difficult for rivals
to copy or
substitute?
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Key Attributes of Strategic Management
1. Directs the organization toward overall
goals and objectives
2. Includes multiple stakeholders in decision
making
3. Needs to incorporate short-term and
long-term perspectives
4. Recognizes trade-offs between efficiencyand effectiveness
1-7
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Strategic Management Process
Intended strategy
Decisions are determined only by analysis
Realized strategy
Decisions are determined by both analysisand unforeseen environmental
developments, unanticipated resource
constraints, and/or changes in managerial
preferences
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WaitThis is not the public sector
perspective!
Ya, there is competitiveness, but the
roles of a public sector organisation are
evolving.
New public management scholars areusing the business approaches, but the
existing systems/models/functions have
not changed
A lot of modifications are needed here!
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Strategic Management: Why?
In a comfortable position/situation
Believe the future (at least for 10 years) is also
promising with abundant resources & outputs
Enjoy minimum divides & progressive living
standards- stakeholders are satisfied
Sheltered by global crisis, international
disputes & regional instability
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Strategic Management: Why not?
In crisis- natural or otherwise events
The paths are already determined
The resources have been assigned When Operations plan is required, not the
strategic/tactical plan
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RKN Objectives
Sales Plan
a) Improve quality of life of the people;
b) Maximise the economic utilization of national resources;
c) Develop non-oil industries;
d) Accelerate human resources development to meet countrys
demand of increasingly sophisticated economy;
e) Maintain full employment & increase the level of productivity;
f) Maintain a moderate rate of inflation;
g) Foster a more disciplined, self-reliant and caring society;
h) Encourage and nurture the development of Rakyat Melayu asleaders of industry and commerce; and
i) Have a clean and healthy environment.
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1. List the features of the RKN objectives
with relevance to the ministry.
2. How can your organisation contributeto the attainment of each of the RKN
objectives?
1. In terms of a) regulatory, b) infrastructure
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Gap Analysis- Pt 1 and Pt 2
Current Scope ofWork: Which of the
RKN objectives areimpacted by the key
activities of yourorganisation?
How wellwe do?
What other SOWshould MOC do (or
should not do)?
What are the majorbarriers implementing
these revised SOW?
What are the possiblesolutions?
Licensingeg for
b), f)
Regulating
Promoting
Facilitating
Establishing
Providing
Funding projects
Where are we? What next? How?
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Pt3: Vision, Intents & Principles
State your group preferredvision statement
State your preferredstrategic intents and
principles (list not morethan 4)
1
2
3
4
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Strategic Plan: Packaging
A Strategic Plan is formulated based on analyses,
choices, trade-offs, and leadership/management
interactions
The plan may create a culture & system ofoperations; existing culture & system must evolve tosupport & implement the plan
Different degrees of transparency are required to
maintain the plan; communication is crucial!
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Presentation: 15min
You have just been appointed as a strategic planning
consultant by a Ministry.
Provide a framework of an ideal strategic plan for the
said Ministry.
Identify the key issues, boundaries, similar action plans
used in regional economies,etc
Highlight the key features that define the Strategic
Plan as a good plan
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