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Taiz master program Engineering & Management Course Strategic managementIntroduction

Lecturer : John L Simonswww.jlsimons.orgj.l.simons@rug.nl

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As a starter …

Together with the book there is a website

Inside the book there is a individual student’s code

Use them !!! See

http://wps.pearsoned.co.uk/wps/media/access/Pearson_Default/5605/5739931/login.html

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

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Characteristics of strategic decisions ?

Long term direction Organisation scope Fitted to the business environment (Re)allocating resources and

competences Stakeholder driven Corporate strategy, organizational

strategy, strategic management …

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Check the characteristics

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Check the characteristics

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Check the characteristics

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A working definition

Strategic decisions 1. focus on the long term direction

and scope of an organisation 2. achieve advantage in a dynamic

environment 3. by (re)allocating resources and

competences4. fulfill stakeholder needs

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As a consequence

They are complex They are uncertain They affect operational decisions They cover internal and external

processes They involve a non trivial change

process

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

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Levels of Strategy

Corporate level Business level Business unit level

Iff there is an external market and a product

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

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What is in a name !

Mission, stakeholder’s delivery Vision, desired future state Goal, general purpose Objective, measurable purpose Capabilities, resources and competences

and processes Business model, product/money flow Product/market matrix, which products on

which markets

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A small exercise

Fill in these concepts for Taiz University or for TAIZ-CGS

Classroom discussion on viability of terms

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management

process Strategy as an academic subject Strategy as a profession Course setup

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The strategic management process

3455 ! Understanding the strategic position

(what business are we in? 4 aspects) Identifying the strategic choices (what directions can we choose? 5

aspects) Taking the strategic actions (what do we need to redesign? 5

aspects)

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The 3455 ECS model, Book p 12

Position : ECPC Environment, Capability, Purpose, Culture

Choice : BCIIE Business level, Corporate level, International, Innovation, Evaluation

Action : PORCP Processes, Organising, Resourcing, Changing, Practice

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What is Strategic Position?

Strategic position is concerned with the impact on strategy of the external

environment, an organisation’s strategic capability and the expectations and

influence of stakeholders.

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Strategic Position

The Strategic Position

Environment

Culture

PurposeCapability

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What are Strategic Choices?

Strategic choices involve understanding the underlying bases

for future strategy at both the business unit and corporate levels

and the options for developing strategy in terms of both the

directions and methods of development.

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Strategic Choices

Strategic Choices

Business-level

Innovation

InternationalCorporate-

level

Evaluation

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What is Strategy in Action?

Strategy in action is concerned with ensuring that strategies are

working in practice.

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Strategy in Action

Strategy in Action

Processes

Changing

ResourcingStructuring

Practice

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The 3445 Toolkit or Foolkit

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Strategic position ECPC

What is the impact of the Environment? Oppertunities/threats

Which strategic capabilities do we have? Core competences, Crucial knowledge

What are stakeholder needs? Purposes, mission, vision, values

What are the Cultural influences? If we could …

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Culture intangible?

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Strategic choice BCIIE

Competition at business level. pricing, marketing

Corporate level authority. new product/markets, portfolio’s

Innovation and enterpeneurship. first mover decisions

Evaluating strategies. Succes criteria

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Evaluating a strategy

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Strategic action : PORCP

Strategic process : art or science? Organising : which structure? Resourcing : How reallocating

people, money, technology ? Changing : How to reach the new

state? Practical experiences

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Good or bad strategic change

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

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Strategy and related fields

Organisational design Strategic planning Organisational sociology psychology Complexity theory Language and information theory Mathematical organisation theory …

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Just 1000 pages about mathematical organisation theory

http://www.hup.harvard.edu/catalog.php?isbn=9780674312265

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Strategy, what is it all about ?

Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

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The profession

Job for the general manager only? Job for all managers? Job for consultants? On a periodical base?

http://strategicmanagement.net/ http://www.strategyplus.org/history.shtml

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Course setup and tasks (1)

Formulation of a strategy based on the three steps of the engineering view. Choice of a firm (either real-life or case study) must be done in agreement with the lecturer. Either from “your” real existing firm or from the hypothetical or real firm of the course book, you have an (incomplete) description of the business processes and the managerial interventions of that firm over a certain period.

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Course setup and tasks (2)

Reflection on an application of concepts, methods or techniques by a firm as presented on the Internet and/or discussed during the lecture. The following aspects should be addressed: introduction of the firm, description of the subject/method/ concept including strong and weak aspects, theoretical applicability, practical applicability, own judgment on the application.

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Your task NOW and TOMORROW

Form groups of two students Choose (your own) or (hypothetical) firm

for which a strategy will be designed. This requires that firm material is available.

(TOMORROW is delivery date) Choose a concept/method (see last slide). Find a firm on the Net that has applied the concept.

Apply for a presentation slot in the coming days

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Hypothetical firm case studies

IT is highly preferable to choose a real real real firm, however …

The book contains case studies that refer to existing firms e.g. INTEL. Together with material from the Internet such a case study can be acceptable …

Chosen case study must be approved by lecturer !!!

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Strategic concepts/methods/techniques

Goto the General index of the book and find yourself an interesting concept

Goto http://en.wikipedia.org/wiki/Strategic_management and consider hyperlinks

Chosen concept/method/technique must be approved by lecturer !!!