-Lecture1 ASManagement

1

WELCOME

to the class of Advanced Strategic Management

Dr. H. Rahman

"THE GREATEST

CALAMITY IS NOT TO

HAVE FAILED ; BUT TO

HAVE FAILED TO TRY"

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You and me in Class … !!

How I will Teach?

Follow the book

Multimedia presentation

Handouts of class lectures

What I expect from you? Be regular and participative

Start your work on your Project from Today

Prescribed Text Book:

Strategic Management -- (3th Edition)

Creating competitive advantages

Authors- Dess / Limpkin / Eisner

Syllabus:

Chapters = 1,2,5,6,7,8,9,13,14

Total = 9 Chapters

Principles of Management

Marks Distribution

Sessional Marks 50

Project/Presentation 20

Class participation/ Attendance 05

Midterm test 25

End Term Exam 50 Total 100

Pass Percentage 60%

Important : Assessment

End Term: Only 50%

Rest of the 50% is Sessional Marks

Advanced

Strategic

Management

Strategic Management:

Creating Competitive

Advantages

Chapter

1

What is an Organization?

Common Characteristics of Organizations

Copyright © 2004 Prentice Hall, Inc. All rights reserved.

EXHIBIT 1.1

What is an Organization?

Break Time

The break is only for 15 Min

All the students are advised to come to class

on time

The class after break is very important

Management?

Aim of Management?

PRODUCTIVITY ?

EFFECTIVENESS ?

EFFICIENCY ?

Amin of Management

Effectiveness – Efficiency –Productivity

PRODUCTIVITY

Productivity = Output / Input (within time & quality)

Productivity – Effectiveness - Efficiency

PRODUCTIVITY


EFFECTIVENESS

To achieve objectives within the available resources


PRODUCTIVITY


EFFECTIVENESS

To achieve objectives within the available resources

EFFICIENCY

To achieve objectives at the least cost of resources.


Managerial Roles Approach

By Mintzberg of McGill Uni

Based on:

What Managers actually do?

Research of 05 CEOs

Conclusion: Managers fill series

of 10 Roles:


Interpersonal roles

Figurehead

Leader

Liaison

Informational roles

Recipient

Disseminator

Spokesperson

Decisional roles

Entrepreneurial

Disturbance handler,

Resource allocator

Negotiator


© 2008 Weihrich and

Cannice

Definition of Strategy and Policies

Strategy is the determination of the mission

(or the fundamental purpose) and the basic

long-term objectives of an enterprise, and the

adoption of courses of action and allocation of

resources necessary to achieve these aims.

Policies are general statements or

understandings that guide managers' thinking

in decision making.

Power Direction

Two Perspectives of Leadership

Romantic view

Leader is the key

force in organization’s

success

External control

perspective

Focus is on external

factors that may affect

an organization’s

success

QUESTION

A CEO made a lot of mistakes such as committing

errors in assessing the market and competitive

conditions and improperly redesigning the

organization into numerous business units. Such

errors led to significant performance declines. This

illustrates the __________ perspective of leadership.

A. External control

B. Romantic

C. Internal mechanism

D. Operational

What is Strategic Management?

Strategic

management must

become both a

process and a way of

thinking throughout

the organization

Leaders must be

proactive, anticipate

change, and

continually refine

changes to their

strategies

Defining Strategic Management

Strategic management

Analyses, decisions, and actions an organization

undertakes in order to create and sustain

competitive advantages


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?


Actions

Allocate necessary resources

Design the organization to bring intended strategies

to reality

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?

Strategic Management Concepts

Exhibit 1.1

Key Attributes of Strategic

Management

Stakeholders

those individuals, groups, and organizations who

have a “stake” in the success of the organization,

including owners (shareholders in a publicly held

corporation), employees, customers, suppliers, the

community at large,

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Key Attributes of Strategic

Management

Ambidexterity

The challenge managers face of both aligning

resources to take advantage of existing product

markets as well

as proactively

exploring new

opportunities

Ambidextrous Behaviors in

Individuals

They take time and

are alert to

opportunities beyond

the confines of their

own jobs

They are brokers,

always looking to

build internal networks

They are cooperative

and seek out

opportunities to

combine their efforts

with others

They are multitaskers

who are comfortable

wearing more than

one hat

Strategic Management Process

Intended strategy

Decisions are determined only by analysis

Realized strategy

Decisions are determined by both analysis and

unforeseen environmental developments,

unanticipated resource constraints, and/or changes

in managerial preferences

Strategic Management Process

Exhibit 1.2

Exhibit 1.3

The Strategic

Management

Process

Strategic Analysis

Consists of “advance work” that must be done in

order to effectively formulate and implement

strategies

Starting point

Strategy Formulation

A firm’s strategy formulation is developed at several

levels:

Business-level

Corporate level

International

Entrepreneurial

Strategy Implementation

Ensuring proper

strategic controls and

organizational designs

Establishing effective

means to coordinate

and integrate activities

within the firm as well

as with suppliers,

customers, and

alliance partners

Corporate Governance and

Stakeholder Management

Corporate governance

The relationship among various participants in

determining the direction and performance of

corporations

Shareholders

management

board of directors

Corporate Governance and

Stakeholder Management (cont.)

Board of Directors

Elected representatives

of the owners

Ensure interests and

motives of management

are aligned with those

of the owners

Exhibit 1.4

Corporate Governance

Three mechanisms ensure effective corporate

governance:

An effective and engaged board of directors

Shared activism

Proper managerial rewards and incentives


Zero sum view

Stakeholders compete for attention and resources

of the organization

Gain of one is a loss to the other

Rooted in the traditional conflict between workers

and management


Stakeholder symbiosis view

Stakeholders are dependent upon each other for

their success and well-being

Mutual benefits

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QUESTION

Outback Steakhouse has developed a

sophisticated quantitative model and found that

there were positive relationships between

employee satisfaction, customer satisfaction, and

financial results. This is an example of

__________.

A. Zero-sum relationship among stakeholders

B. Stakeholder symbiosis

C. Rewarding stakeholders

D. Emphasizing financial returns

Social Responsibility

Social responsibility

The expectation that businesses or individuals will

strive to improve the overall welfare of society

Social Responsibility

Triple bottom line

Assessment of a company’s performance in

financial, social, and environmental dimensions

Example: Social Responsibility

Starbucks Coffee Company defines CSR

as:

Conducting business in ways that produce social,

environmental and economic benefits for the

communities in which we operate and for the

company’s stakeholders, including shareholders.

Some tangible benefits include attracting and

retaining our partners, customer loyalty, reducing

operating costs, and creating a sustainable supply

chain.

Strategic Management

Perspective

All managers and employees must:

Take an integrative, strategic perspective

of issues facing the organization

Assess how functional areas and activities

“fit together” to achieve goals and

objectives

Three Types of Leaders

Local line leaders

Have significant profit-and-loss responsibility

Executive leaders

Champion and guide ideas, create a learning

infrastructure, establish a domain for taking

action

Three Types of Leaders (cont.)

Internal networkers

Generate power

through the conviction

and clarity of their

ideas

Coherence in Strategic Direction

Hierarchy of goals

organizational goals ranging from, at the top, those

that are less specific yet able to evoke powerful and

compelling mental images, to, at the bottom, those

that are more specific and measurable.

Vision, mission statement, strategic objectives

A Hierarchy of Goals

Exhibit 1.6


Organizational

vision

Goal that is “massively

inspiring, overarching,

and long term”

Represents a

destination that is driven

by and evokes passion

Why Do Visions Fail?

The walk doesn’t

match the talk

Irrelevance

Too much focus leads

to missed

opportunities

Not the holy grail

An ideal future

irreconciled with the

present


Mission statement Set of goals that include both the purpose of the

organization, its scope of operations, and the basis

of its competitive advantage

Has the greatest impact when it reflects an

organization’s enduring, overarching strategic

priorities and competitive positioning


Strategic objectives

A set of organizational goals that are used to

operationalize the mission statement and that are

specific and cover a well-defined time frame.

Thank You

Q & A

Documents

-Lecture1 ASManagement