1 - International Strategic Management 2015

LEARN. PERFORM. GROW.

Copyright 2006 AchieveGlobal , Inc.

International Strategic Management

Master in International Business Management

The Faculty of International Business and Economics,

ASE Bucharest

Course 1: Introducing Strategy (1)



1. Introductive Session

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

AGENDA for Today




Detailed Course Contents:

1.Introducing Strategy

2.The Strategic Position > The Environment

> Strategic Capability

> Expectations & Purposes

3.Strategic choices > Business-Level & Corporate-Level Strategy;

> International Strategy;

> Directions and Methods of Development

4.Strategy into action > Organising for Success, Enabling Success & Managing

Strategic Change



1. Introducing Strategy

What is Strategy? Why Strategy ? Who sets Strategy? The Strategy Process Strategic Management Evolution of Strategic Approach 2 Main Types of Strategic Approach



2. The Strategic Position (I)

The Environment General analysis - dynamics, predictability, etc

The Macro-environment analysis - PESTEL Analysis; Scenarios; Porters Diamond

Industries and sectors analysis the 5 force framework; key successful factors

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



2. 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



3. 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

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



4. 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



Evaluation

70% - final evaluation (60 90), of which: > 35% open questions

> 35% case study

20 % - project evaluation, of which: > 10 % for impactful presentation during the last class (both content & presentation

format) - 10/presentation, all present team members involved

> 10% for final project - delivered exclusively by e-mail in Word Format until the

examination day.

10 % - class activity evaluation > Exercises

> Individual case studies

> Group case studies



Course Outcomes

By the end of this course, the participants will

-> The course is designed to offer the students both the essential frameworks and

the analytical tools to develop a capability for strategic management with due

recognition 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



Key Words

Vision, Mission, Values Strategy Strategic planning Goal Strategic plan Strategic position Strategic alternative Strategic choice Implementing strategy



Participants Expectations

Individual activity 5 min Group activity 10 min



1. Introductive Session

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

AGENDA for Today




Equity/Dividends

Enterprise Model: Where Does Strategy Fits?

Business Processes

Competitors

The Business

Suppliers Suppliers

(upstream

industry

value

chain)

Raw

Material/

Component

Suppliers

Technology

People

Money

Resource

Providers

Products/

Services

Needs

Market

Customers

Customers Customers

(downstream

industry

value chain)

Shareholders

Capital

Government The Economy Society/

Community

Parent

Corporation

Regulations/Policies Economic Conditions Concerns Priorities

Strategy

Leadership

Goals/

Measure-

ments

Human

Capabilities

Information/

Knowledge

Management

Organization

Structure/

Roles

Culture

Issue Resolution

(source: Kepner-Tregoe, Inc)



What is Strategy?

Products Markets Competitive

Advantages

STRATEGY



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

> The three legs of the strategy stool:

Products/services: What will we offer?

Markets/customers: To whom will we offer our

products/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?



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



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 organizations strategy?

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

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



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



Definition

The long-term direction of an organization The direction and scope of an organization over the long

term, which achieves advantage in a changing environment

through its configuration of resources and competences with

the aim of fulfilling stakeholder expectations.



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 an

organization)

Involve considerable change



Levels of strategy

Corporate-level strategy is concerned with the overall purpose and scope of an

organization 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 external market for goods and services that is different from another SBU

Operational strategies Are concerned with how the component parts of an organization

deliver effectively the corporate and business-level strategies in terms of resources, processes and people



Strategy and Operations

Clear/Right Unclear/Wrong

Effective/

Efficient

Ineffective/

Inefficient

Strategy (What)

Op

era

tio

ns (

Ho

w) 1 2

3 4

1. Have equaled succes in the

past and will in

the future

2. Have equaled succes in the

past, but succes

is doubtful in the

future

3. Have sometimes worked in the past in

the short run, but

increasing

competition makes

succes doubtful in

the future

4. Have equaled failure in the

past, and will in

the future

Strategy and Operations



For more information:

Cosmin Jolde

[email protected]

Thank you!



Documents

1 - International Strategic Management 2015