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ICE$BREAKING+
• Experience$in$Strategic$Management?$
• AEended$any$Strategic$Management$courses/
training?$
• Skill$in$using$Strategic$Management$tools?$
ICE$BREAKING+
Task+(Expected+7me:+5+minutes)+
• Divide$yourself$into$a$group$of$4$members$
• Name$your$group$e.g.$XOXO$
• Submit$your$group$name$and$list$of$members$
in$an$A4$paper$
• You$will$work$in$your$group$throughout$MY$2P
day$classes$
Strategy+Implementa7on+
! Involving$5$Ps$! Plan$–$set$of$step$a$firm$intends$to$follow$to$be$successful$
! Pizza$Hut$and$Dunkin$Donut$buy$raw$materials$in$bulk$
! Domino’s$and$Papa$John$used$specialised$kitchen$
$
Strategy+Implementa7on+
! Henry$Ford$used$“assembly$lines”$for$bulky$and$lower$cost$of$car$
manufacturing$and$focused$only$on$BLACK$car,$yet$had$to$change$
$
Strategy+Implementa7on+
! Ploy$–$movement$to$trick$compe`tor$
! Vic$Road$used$fallen$trees$on$federal$road$! Greek$used$Trojan$horse$to$trick$Trojan$
Strategy+Implementa7on+
! PaEern$–$consistency$in$firm’s$strategic$ac`on$
! KPmart’s$inconsistency$(from$discounted$store$to$spor`ng$goods$to$
building$supply$to$office$supply$to$IT)$leads$to$bankruptcy$
! Apple’s$consistency$except$Apple$TV$in$2007$
• Another$inconsistency$in$the$1980s…$
Strategy+Implementa7on+! Posi`on$–$firm’s$place$in$industry$compared$to$compe`tors$! Apple$(unique$features,$loyal$customer,$not$compete$against$price$e.g.$
Lenovo,$Acer,$Toshiba),$A&W$(first$franchise$chain),$McDonald’s,$Coca$
Cola$
! Gap$Inc.$owns$Old$Navy$(younger$customer),$Gap$and$Banana$Republic$
(matured$customer)$
Strategy+Implementa7on+
! Panama$Canal,$a$ship$canal$that$connects$Atlan`c$Ocean$and$Pacific$Ocean$is$uncontested$$
Strategy+Implementa7on+
! Perspec`ves$–$how$execu7ves$interpret$landscape$! Amazon.com$(Jeff$Bezos$viewed$internet$as$sales$channel$for$book$which$
was$mainly$communica`on$for$academic$and$government$in$1990s)$
$
Ac`vity$1$
• Work$in$your$group.$Iden`fy$example(s)$of$
each$5$Ps$of$strategy$implementa`on$in$the$
Malaysian$scenario.$You$are$to$present$this$
PPT$presenta`on$of$MINIMUM+5+pages+in$the$next$30$minutes.$Your$presenta`on$shall$take$
MAXIMUM+5+minutes.+
Ac7vity+from+Industrial+Speaker’s+Lecture+
• Develop$the$SWOT$analysis$on$the$delivery$of$
MDE1123/MRSE$1123$Strategic$Management+
The+Nature+of+Strategy+Implementa7on+
The+Nature+of+Strategy+Implementa7on+
! 3$types$of$nature$in$strategy$implementa`on:$
! Intended$strategy$$! Strategy$that$is$hoped$to$be$executed$! Detailed$out$in$strategic$plan$before$being$executed$as$business$plan$
! E.g.$Frederick$Smith,$a$Yale$University$undergraduate$
in$1995$created$business$plan$as$class$project$on$
delivering$system$by$rou`ng$package$through$a$central$hub$
The+Nature+of+Strategy+Implementa7on+
! E.g.$Chris`an$Loubou`n$inten`onally$designed$high$heels$with$red$lacquered$soles$as$the$signature$$
The+Nature+of+Strategy+Implementa7on+
! Emergent$strategy$$
! Unplanned$strategy$from$an$unexpected$opportunity$
! E.g.$Michael$Dell$started$computerPupgrading$business$
in$dorm$room$
The+Nature+of+Strategy+Implementa7on+
! Southern$Bloomer’s$products$for$prison$and$mental$hospital$produced$a$lot$of$scrap$yet$found$of$its$
poten`al$to$be$used$as$cleaning$patch$to$clean$inside$
gun$barrel$
The+Nature+of+Strategy+Implementa7on+
! Realised$strategy$! Strategy$that$organisa`on$usually$follows$! A$product$of$intended$strategy$! David$McConnell$struggled$to$sell$book$with$
complimentary$perfume,$yet$perfume$aEracted$
California$Perfume$to$market$it$
Things+to+Ponder+
• However,$despite$realised$strategy$which$is$related$to$intended$strategy,$some$strategies$
might$be$transformed$into$different$strategies$
inten`onally$or$uninten`onally$e.g.$
– FedEx$P$Frederick$Smith,$a$Yale$University$
undergrad$in$1995$created$business$plan$as$class$
project$on$delivering$system$by$rou`ng$package$
through$a$central$hub$–$Typical$example$from$
intended$strategy$to$realised$strategy$
Things+to+Ponder+
– Southern$Bloomer$P$Southern$Bloomer’s$products$
for$prison$and$mental$hospital$produced$a$lot$of$
scrap$yet$found$of$its$poten`al$to$be$used$as$
cleaning$patch$to$clean$inside$gun$barrel$–$Ini`ally$
from$x$strategy,$to$y$strategy$and$finally$to$z$
strategy$
$
Ac7vity+2+
IN+GROUP+• Discuss$the$type$of$strategy$implementa`on$in$
the$case$of$FaceBook$crea`on.$
$
IN+INDIVIDUAL+• Would$you$describe$your$current$career$as$
intended$or$emergent?$Why?$
Resource+Management+
! $Southwest+Airlines$– Profitable$although$compe`ng$in$industry$that$is$prone$to$
bankruptcy$and$financial$losses$
– Reasons:$• Does$not$connect$hub$airport$yet$small$ci`es$directly$
• Use$only$Boeing$737$–$beneficial$to$maintenance$and$opera`on$
personnels$
• No$assigned$seat$–$quicker$boarding$process$• Strong$staff$loyalty$• Posi`ve$culte$–$use$LUV$(Love$Field,$the$first$city$landed)$as$symbol$
of$love$amongst$employee,$employer$and$customer$
Types+of+Resources+
ResourcePBased$Theory$
Tangible$
P$Money,$asset,$plant,$equipment$
Intangible$
P$Knowledge,$skill,$reputa`on,$culture$
**Strategic$resources$
Strategic+Resources+
! GE$buys$and$sells$firms$to$maintain$its$market$
leadership$e.g.$$
! Alstom$Thermal,$power$and$grid$business$
! Enron$Wind,$wind$turbine$manufacturer$
! Smiths$Aeropace,$avionics,$power$and$structure$
producer$
! etc$
Strategic+Resources+
! CocaPCola$creates$new$brands$(Fanta,$Dasani$mineral$water)/flavours$as$sotPdrink$market$
evolves$e.g.$Cherry$Coke,$Vanilla$Coke$
Strategic+Resources+(Southwest+Airlines+Case+Study)+
ResourcePBased$View$Theory$
Valuable$
P$Exploit$opportunity$
Make$profit$yearly$
Rare$
P$Not$found$in$other$compe`tor$
LUV/love$culture$
Difficult$to$imitate$
LUV$trademark,$humble$beginning$by$borrowing$luggage$
cart$
NonPsubs`tutable$with$other$resources$
Treat$customer$and$employee$well,$create$
loyalty$
Matching+Structure+with+Strategy+
! Structure$largely$dictates$how$objec`ves$and$policies$will$be$established$
! Structure$dictates$how$resources$will$be$allocated$
! E.g.$Moses$used$organisa`onal$structure$as$
strategic$management$to$delegate$works$to$
subPleaders$
Symptoms+of+an+Ineffec7ve+Organiza7onal+Structure+
Func7onal+Structure+
Func7onal+structure$• Groups$tasks$and$ac`vi`es$by$business+func7on,$such$as$produc`on/opera`ons,$marke`ng,$finance/accoun`ng,$research$and$
development,$and$management$informa`on$
systems$
Func7onal+Structure+
Advantages+and+Disadvantages+of+a+Func7onal+Organiza7onal+Structure+
Divisional+Structure+
! Divisional+structure+• Func`onal$ac`vi`es$are$performed$both$
centrally$and$in$each$separate$division$
• Division$of$geographic$area,$product$or$service,$customer,$process$
• E.g.$GE’s$employees$belong$to$1$of$6$product$
divisions$(Energy,$Capital,$Home$and$Business$
Solu`ons,$Health$Care,$Avia`on$and$
Transporta`on)$
$
Divisional+Structure+
Advantages+and+Disadvantages+of+a+Divisional+Organiza7onal+Structure+
Matrix+Structure$
! Matrix+structure+• Most$complex$of$all$designs$because$it$depends$upon$
both$ver`cal$and$horizontal$flows$of$authority$and$
communica`on$
• Yet$heavily$rely$on$horizontal$rela`onship$• High$flexibility$as$it$creates$crossPfunc`onal$teams$
that$each$works$on$a$different$project$
• Create$spirit$of$teamwork$and$collabora`on$
Matrix+Structure$
! For$a$matrix$structure$to$be$effec`ve,$
organiza`ons$need$par`cipa`ve$planning,$
training,$clear$mutual$understanding$of$roles$
and$responsibili`es,$excellent$internal$
communica`on,$and$mutual$trust$and$
confidence$
Advantages+and+Disadvantages+of+a+Matrix+Structure$
Matrix+Structure$
CEO+as+Celebrity+$
! Mary+Kay+Ash+rewarded+sales+representa7ve+with+pink+Cadillacs+
CEO+as+Celebrity+$
! Richard+Branson+owns+more+than+400+companies+including+Virgin+Airways+
$
CEO+as+Celebrity+$
! Tony+Stark+changed+Stark+Industries+from+weapon+manufacturer+to+clean+energy+producer+(socially+responsible)$
Ac7vity+3+
• What$type$of$structure$best$describes$the$
organisa`on$you$are$currently$working$with?$
What$led$you$to$reach$your$conclusion?$
• What$is$your$view$of$having$a$celebrity$CEO$in$
the$organisa`on$you$are$currently$working$
with?$Give$reason$behind$your$views$
Restructuring+$
! Restructuring+• Involves$reducing$the$size$of$the$firm$in$terms$of$
number$of$employees,$number$of$divisions$or$units,$
and$number$of$hierarchical$levels$in$the$firm’s$
organiza`onal$structure$
• Also$called$downsizing,$rightsizing,$or$delayering$
Restructuring+$
! E.g.+Ford+bought+its+customer,+a+rental+car+company,+Hertz+but+then+made+a+reverse+decision+of+selling+it+to+focus+more+on+building+cars+and+trucks+(how+about+Ford’s+business+pa]ern?)+
Restructuring+$
! E.g.+General+Motors+(GM)+turned+its+parts+supplier,+Delphi+Automo7ve+System+Corpora7on+from+its+subsidiary+to+a+spin$off+company+to+reduce+OPEX$
Reengineering+$
! Reengineering+• Involves$reconfiguring$or$redesigning$work,$jobs,$and$processes$for$the$purpose$of$improving$cost,$
quality,$service,$and$speed$$
• Also$called$process$management,$process$
innova`on,$or$process$redesign$
$
Reengineering+$
! E.g.+Hallmark+Cards+Inc.+reengineered+from+a+typical+conven7onal+card+to+crea7ve+gree7ng+cards+by+integra7ng+ar7sts,+writers,+marketers+and+produc7on+people+
$
Reengineering+$
! E.g.+Kodak+reengineered+its+black$and$white+film+manufacturing+process+by+cu`ng+off+the+produc7on+7me$
$
Assess+Organisa7on+Performance$
Type$of$Assessment$
Performance$measurement$
P$Metric$to$gauge$performance$e.g.$price,$
stock$price,$sales$
Performance$reference$
P$Type$of$benchmarking$
Assess+Organisa7on+Performance$
Assess+Organisa7on+Performance$Performance$Measurement$
Balanced$scorecard$
Provide$balance$between$FINANCIAL$MEASURE$with:$
Customer$
Internal$business$
Process$
Learning$and$growth$
Financial$measure$
Customer$measure$
Triple$boEom$line$
Current+Marke7ng+Issues+
Ac7vity+4+Work$in$group.$Answer$the$following$ques`ons$(2$ques`ons$each$
group)$and$provide$a$total$of$4$examples$of$organisa`on$who$
successfully$solving$these$marke`ng$issues:$
1. How$to$make$adver`sements$more$interac`ve$and$more$effec`ve?$
2. How$to$best$take$advantage$of$Facebook$and$TwiEer$conversa`ons$
about$the$company$and$industry?$
3. To$use$exclusive$dealerships$or$mul`ple$channels$of$distribu`on?$$
4. To$use$heavy,$light,$or$no$TV$adver`sing$versus$online$adver`sing?$
5. To$limit$(or$not)$the$share$of$business$done$with$a$single$customer?$
6. To$be$a$price$leader$or$a$price$follower?$
7. To$offer$a$complete$or$limited$warranty?$
8. To$reward$salespeople$based$on$straight$salary,$straight$commission,$or$a$combina`on$salary/commission?$
Market+Segmenta7on+! $Market+Segmenta7on+• Subdividing$of$a$market$into$dis`nct$subsets$
of$customers$according$to$needs$and$buying$
habits$$
• Widely$used$in$implemen`ng$strategies$
• E.g.$Nivea$sun$protec`on$products$are$segmented$into$skin$type$(fair,$normal,$dark,$
children)$and$climates$(moderate,$hot,$very$
hot)$
Market+Segmenta7on+
Market+Segmenta7on+! Market$segmenta`on$decisions$directly$affect$
marke&ng)mix)variables)of$4Ps:))product$(freePseat$airplane),$place$(operated$in$small$ci`es),$
promo`on$(interes`ng$adver`sing$on$bags$fly$
free),$and$price$(lower$price$as$Southwest$gets$
favourable$lease$rates$at$secondary$airports)$
What+is+the+product+adver7sed?+
Marke7ng+Mix+Component+Variables+
Social+Responsibility+Environmental+Sustainability+
Social+responsibility+• Ac`ons$an$organiza`on$takes$beyond$what$is$legally$required$to$protect$or$enhance$the$wellPbeing$of$
living$things$$
• E.g.$Founda`on$of$Bill$and$Melinda$Gates$–R&D$on$
malaria$
• E.g.$David$Neeleman,$JetBlue$issued$public$apology$
in$1PfullPpage$adver`sement$in$newspaper$and$
posted$online$apology$video$to$customer$stranded$in$
airplanes$during$holidays$
Social+Responsibility+Environmental+Sustainability+
Sustainability+• Extent$that$an$organiza`on’s$opera`ons$and$ac`ons$protect$and$preserve$rather$than$harm$
or$destroy$the$natural$environment$
$
Business+Ethics+
! Business+ethics+• Principles$of$conduct$within$organiza`ons$that$guide$decisionPmaking$and$behavior$
Business+Ethics+• E.g.$Starbucks$is$the$largest$coffeehouse$company$in$
the$world$yet$started$to$decline$due$to$economic$
downturn$and$high$compe``on.$Howard$Schultz$
took$CEO$posi`on$with$mission$“1$person,$1$cup$and$
1$neighbourhood”$
– Focus$on$social$goals$– Improve$aroma$
– Provide$free$drinks,$wifi$and$codes$for$free$iTunes$– Change$songs$regularly$– Sponsor$degree$program$to$staff$$
– Introduced$instant$coffee$of$VIA$Ready$Brew,$which$tradi`onally$viewed$as$bland$drink$
Assault+against+VIA+Ready+Brew+
Seven+Principles+of+Admirable+Business+Ethics+
Ethics+Culture+
! Whistle$blowing+• Refers$to$policies$that$require$employees$to$
report$any$unethical$viola`ons$they$discover$
or$see$in$the$firm$
– UTM$staff$to$report$excessive$breakfast,$tea$and$
lunch$break$amongst$staff$
Ethics+Culture+
! Ethics$training$programs$should$include$
messages$from$the$CEO$or$owner$of$the$
business$emphasizing$ethical$business$
prac`ces,$the$development$and$discussion$of$
codes$of$ethics,$and$procedures$for$discussing$
and$repor`ng$unethical$behavior$
Bribes++
Bribery$• The$offering,$giving,$receiving,$or$solici`ng$of$any$item$of$value$to$influence$the$ac`ons$of$
an$official$or$other$person$in$discharge$of$a$
public$or$legal$duty$
• A$crime$in$most$countries$of$the$world$
Social+Policy+
! +Social+policy+! Concerns$what$responsibili`es$the$firm$has$to$
employees,$consumers,$environmentalists,$
minori`es,$communi`es,$shareholders$and$other$groups$
! $Firms$should$strive$to$engage$in$social$
ac`vi`es$that$have$economic$benefits$via$
Corporate$Social$Responsibility$(CSR)$program$
$
Environmental+Sustainability+
! Employees,$consumers,$governments,$and$
society$are$especially$resenuul$of$firms$that$
harm$rather$than$protect$the$natural$
environment$
! Conversely$people$today$are$especially$apprecia`ve$of$firms$that$conduct$opera`ons$
in$a$way$that$mends,$conserves$and$preserves$
the$natural$environment$
The+Top+20+Companies+in+the+World+on+Sustainability+
Ac7vity+5+• Choose$2$of$the$list$of$top$20$companies$in$the$
world$on$sustainability.$Discuss:$
– The$efforts$they$have$been$undertaken$as$a$part$of$the$company’s:$$
• Social$responsibili`es$$• Environmental$responsibili`es$
– Reasons$of$why$the$companies$undertook$the$
above$efforts$$
The+Five+Largest+(by+revenue)+Companies+in+Nine+Countries+(2011)+
Fortune’s+Most+and+Least+Admired+Companies+in+the+World+for+“Global+
Compe77veness”+
Culture+Differences+amongst+Managers+Worldwide+
• Americans$place$an$excep`onally$high$priority$
on$`me,$viewing$`me$as$an$asset.$Many$
Asians$place$more$worth$on$rela`onships.$
• Personal$touching$and$distance$norms$differ$
around$the$world.$Americans$generally$stand$
about$three$feet$from$each$other$when$
carrying$on$business$conversa`ons,$but$Arabs$
and$Africans$stand$about$one$foot$apart.$
• Family$roles$and$rela`onships$vary$in$different$
countries.$
• Business$and$daily$life$in$some$socie`es$are$
governed$by$religious$factors.$
• Time$spent$with$the$family$and$the$quality$of$
rela`onships$are$more$important$in$some$
cultures$than$the$personal$achievement$and$
accomplishments$espoused$by$the$tradi`onal$
U.S.$manager.$
Culture+Differences+amongst+Managers+Worldwide+
• Many$cultures$around$the$world$value$
modesty,$team$spirit,$collec`vity,$and$pa`ence$
much$more$than$compe``veness$and$
individualism,$which$are$so$important$in$the$
United$States.$
• Punctuality$is$a$valued$personal$trait$when$conduc`ng$business$in$the$United$States,$but$
it$is$not$revered$in$many$of$the$world’s$
socie`es.$
Culture+Differences+amongst+Managers+Worldwide+
• To$prevent$social$blunders$when$mee`ng$with$
managers$from$other$lands,$one$must$learn$
and$respect$the$rules$of$e`queEe$of$others.$
• Americans$oten$do$business$with$individuals$
they$do$not$know,$unlike$businesspersons$in$
many$other$cultures.$
Culture+Differences+amongst+Managers+Worldwide+
Communica7on+Differences+Across+Countries+
• Italians,$Germans$and$French$generally$do$not$
soten$up$execu`ves$with$praise$before$they$
cri`cize.$Americans$do$soten$up$folks,$and$
this$prac`ce$seems$manipula`ve$to$
Europeans.$
• Israelis$are$accustomed$to$fastPpaced$
mee`ngs$and$have$liEle$pa`ence$for$American$
informality$and$small$talk.$
Communica7on+Differences+Across+Countries+
• Bri`sh$execu`ves$oten$complain$that$American$
execu`ves$chaEer$too$much.$Informality,$
egalitarianism$(equality),$and$spontaneity$from$
Americans$in$business$sevngs$surprise$many$
foreigners.$
• Europeans$feel$they$are$being$treated$like$children$when$asked$to$wear$name$tags$by$
Americans.$
• Execu`ves$in$India$are$used$to$interrup`ng$one$another.$
Communica7on+Differences+Across+Countries+
• When$nego`a`ng$orally$with$Malaysian$or$Japanese$
execu`ves,$it$is$appropriate$to$allow$periodically$for$
a$`me$of$silence.$
• Refrain$from$asking$foreign$managers$ques`ons$such$
as$“How$was$your$weekend?”$That$is$intrusive$to$
foreigners,$who$tend$to$regard$their$business$and$
private$lives$as$totally$separate.$
Mexico$+Business+Culture+• Employers$seek$workers$who$are$agreeable,$
respecuul,$and$obedient,$rather$than$innova`ve,$
crea`ve,$and$independent.$
• Mexican$employers$are$paternalis`c,$providing$
workers$with$more$than$a$paycheck,$but$in$return$
they$expect$allegiance.$
Mexico$+Business+Culture+• Mexicans$do$not$feel$compelled$to$follow$rules$
that$are$not$associated$with$a$par`cular$person$
in$authority$they$work$for$or$know$well.$
• Mexicans$are$very$status$conscious$so$business$
`tles$and$rank$are$important.$
Japan$+Business+Culture+
• The$Japanese$place$great$importance$on$group$
loyalty$and$consensus,$a$concept$called$Wa.$• When$confronted$with$disturbing$ques`ons$or$
opinions,$Japanese$managers$tend$to$remain$
silent.$
Japan$+Business+Culture+
• Most$Japanese$managers$are$reserved,$quiet,$
distant,$and$introspec`ve,$whereas$most$U.S.$
managers$are$talka`ve,$insensi`ve,$impulsive,$direct,$
and$individual$oriented.$
• Unlike$Americans,$Japanese$prefers$to$do$business$
on$the$basis$of$personal$rela`onships$rather$than$
impersonally$speaking$over$the$phone$or$by$wriEen$
correspondence.$
Brazil$+Business+Culture+
• Avoid$embarrassing$a$Brazilian$by$cri`cizing$an$
individual$publically.$That$causes$that$person$to$lose$
face$with$all$others$at$a$business$mee`ng.+• Appointments$are$commonly$cancelled$or$changed$
at$the$last$minute$in$Brazil,$so$do$not$be$surprised$or$
get$upset.$
Germany+$+Business+Culture+
• Germans$are$like$Americans$in$that$they$do$not$
need$a$personal$rela`onship$to$do$business.$They$
are$more$interested$in$a$businessperson’s$
academic$creden`als$and$their$company’s$
creden`als.$
• German$mee`ngs$adhere$to$strict$agendas,$
including$star`ng$and$ending$`mes.$
Egypt$+Business+Culture+
• Egyp`ans$prefer$to$do$business$with$those$they$know$and$respect,$so$expect$to$spend$`me$
cul`va`ng$a$personal$rela`onship$before$
business$is$conducted.$
• In$Egypt,$business$moves$at$a$slow$pace$and$
society$is$extremely$bureaucra`c.$
China$+Business+Culture+
• The$Chinese$rarely$do$business$with$companies$or$
people$they$do$not$know.$Your$posi`on$on$an$
organiza`onal$chart$is$extremely$important$in$
business$rela`onships.$
• Arriving$late$to$a$mee`ng$is$an$insult$and$could$
nega`vely$affect$your$rela`onship.$
• Mee`ngs$require$pa`ence$because$mobile$phones$
ring$frequently$and$conversa`ons$tend$to$be$
boisterous.$
India$+Business+Culture+
• People$in$India$do$not$like$to$say$“no,”$verbally$or$nonverbally.$
• Rather$than$disappoint$you,$they$oten$will$say$something$is$not$available,$or$will$offer$you$the$
response$that$they$think$you$want$to$hear,$or$will$be$
vague$with$you.$
India$+Business+Culture+
• Indians$prefer$to$do$business$with$those$whom$they$
have$established$a$rela`onship$built$upon$mutual$
trust$and$respect.$
• Punctuality$is$important.$
• Indians$generally$do$not$trust$the$legal$system$and$
someone’s$word$is$oten$sufficient$to$reach$an$
agreement.$
THANK+YOU+
