Business Strategy
Rob Giberson
Week 2
Wednesday, January 13, 2010
BUS 400
Designate (in increments of 5% or 10%) where the final 10% of your grade is allocated. For example:
Contribution/Participation 20% + 0% =20%
Term Project 25% + 5% =30%
Midterm Examination 15 % + 5% =20%
Final Case Examination 30 % + 0% =30%
Total = 100%
Evaluation (Hand out)
Term Project:
Part A- Write a strategy case on a SK based organization
Part B- Analyse your case
Individual or groups of 4 (nothing else)
Instructions, guides, formatting etc sent to you via URCourses this afternoon.
Due dates:
Notify me of groups (names, and who the group’s contact person is) by Friday January 29th at noon.
Project proposal (organization, strategic issue, contact information) by Thursday February 11th at noon.
Last date to submit the term project to me is Monday April 5th at 9 am.
Evaluation (Hand out)
Strategic Management Process
Stakeholder Preference
Environment
Competitive, Intl, Social, Technical, Economic, Political
Resources
Capital, Equipment, Land, Intellectual, Functional Capabilities
Performance
Financial, Operational, Strategic
Strategy
Mission/Vision/Objectives
Competitive position
Competitive Advantage
Organization
Structure, Reward system, Staffing, Leadership, Support systems
Strategic Management Concept
Definition
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
Strategic management is the study of why some firms outperform others
How to compete in order to create competitive advantages in the marketplace that are:
Unique and valuable
Difficult for competitors to copy or substitute
Coherence in Strategic Direction
Company Vision
Inspiring
Overarching
Long-term
Driven by and evokes passion
Fundamental statement of the organization’s
Values
Aspiration
Goals
Company vision
Mission statements
Strategic objectives
Mission statements
Purpose of the company.
Basis of competition and competitive advantages.
More specific than vision.
Focused on the means by which the firm will compete
Strategic Objectives
Operationalize the mission statement
Provide guidance on how the organization can fulfill or move toward the “higher goals”
Measurable; Specific; Appropriate; Realistic; Timely
Yardstick for rewards and incentives
Strategic Formulation
Successful firms develop base for competitive advantage (. Cost leadership, Differentiation, Niche, amongst others)
Sustainability (advantage, maintenance, adaptation, social responsibility, governance, etc)
Industry life cycle
Strategic Management Process
Analysis
Strategic goals (vision, mission, strategic objectives)
Internal and external environment of the firm
Decisions
What industries should we compete in?
How should we compete in those industries?
Actions (Implementation)
Allocate necessary resources
Design the organization to bring intended strategies to reality
Strategic Analysis (cont.)
Managers Scan
and internal environment, industry, competitors
Hard to find potential sources of competitive advantage
Intellectual assets
Networks and relationships amongst employees, customers, suppliers, alliance partners.
Strategic Management Process
Stakeholder Preference
Environment
Competitive, Intl, Social, Technical, Economic, Political
Resources
Capital, Equipment, Land, Intellectual, Functional Capabilities
Performance
Financial, Operational, Strategic
Strategy
Mission/Vision/Objectives
Competitive position
Competitive Advantage
Organization
Structure, Reward system, Staffing, Leadership, Support systems
Next Class (WK3)
Read chapter 2
Vincor: case 17 in case book
Read and prepare your analysis for in class discussion.
Media Review due from group 2
Executive summaries due from group 4
Grade Distribution choice due at start of class
Break
Strategy
Strategy
distinguishing pattern of the most important characteristics of the organization
the deployment of resources
current and future hoped-for businesses
product/market scope and focus
geographical coverage
approach to competition
policies that govern how the organization pursues its purpose
Strategic Management Process
Stakeholder Preference
Environment
Competitive, Intl, Social, Technical, Economic, Political
Resources
Capital, Equipment, Land, Intellectual, Functional Capabilities
Performance
Financial, Operational, Strategic
Strategy
Mission/Vision/Objectives
Competitive position
Competitive Advantage
Organization
Structure, Reward system, Staffing, Leadership, Support systems
Coherence in Strategic Direction
Company Vision
Inspiring
Overarching
Long-term
Driven by and evokes passion
Fundamental statement of the organization’s
Values
Aspiration
Goals
Company vision
Mission statements
Strategic objectives
Mission statements
Purpose of the company.
Basis of competition and competitive advantages.
More specific than vision.
Focused on the means by which the firm will compete
Strategic Objectives
Operationalize the mission statement
Provide guidance on how the organization can fulfill or move toward the “higher goals”
Measurable; Specific; Appropriate; Realistic; Timely
Yardstick for rewards and incentives
Strategic Formulation
Firm’s portfolio or group of businesses
What business(es) should we be in?
How can we create synergies among the businesses?
Diversification
Related
Unrelated
Strategic Formulation
Successful firms develop bases for competitive advantage
Cost leadership
Differentiation
Focusing on narrow or industry-wide market segments
Sustainability
Industry life cycle
Strategic Management Concepts
Definition
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
Strategic management is the study of why some firms outperform others
How to compete in order to create competitive advantages in the marketplace
How to create competitive advantages in the market place
Unique and valuable
Difficult for competitors to copy or substitute
Strategic Management Concepts
Key attributes of strategic management
Directs the organization toward overall goals and objectives.
Includes multiple stakeholders in decision making
Incorporates short-term and long-term perspectives
Recognizes trade-offs between efficiency and effectiveness
Strategic Management Process
Analysis
Strategic goals (vision, mission, strategic objectives)
Internal and external environment of the firm
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
Strategic Analysis
Starting point in the strategic management process
Precedes effective formulation and implementation of strategies
Clear goals and objectives permit effective allocation of resources (including hierarchy)
Vision
Mission
Strategic objectives
Strategic Analysis (cont.)
Managers Scan
and internal environment, industry, competitors
Often overlooked potential sources of competitive advantage
Intellectual assets
Networks and relationships amongst employees, customers, suppliers, alliance partners.
Strategic Formulation (cont.)
Appropriate entry strategies
Sustain competitive advantage in global markets
Organizational structure and design bounds
What an organization can do and how
Hierarchical vs flat, flexible vs rigid, process driven vs entrepreneurial, rapid response, etc
Strategic Implementation (cont.)
Organization that are committed to
Excellence
Ethical behaviour
Learning
Strategic Implementation (cont.)
Corporate entrepreneurship and innovation
New opportunities
Enhance innovative capacity
Autonomous entrepreneurial behaviour
Product champions
Strategic Implementation (cont.)
Pressure to grow
Innovation and entrepreneurship
New ventures and small businesses
Major engine of economic growth
Recognize viable opportunities
Entrepreneurial leadership skills
Definition
the relationship among various participants in
determining the direction and performance of corporations:
Shareholders
Management
Board of directors
Elected representatives of the owners
Ensure interests and motives of management are aligned with those of the owners
Effective and engaged board of directors
Shareholder activism
Proper managerial rewards and incentives
Corporate Governance
Social Responsibility
Definition
the expectation that businesses or individuals will strive to improve the overall welfare of society
Requires
Managers must take active steps to make society better
Socially responsible behaviour changes over time
Triple Bottom Line ( Balance between financial, environmental and social performance)
Strategic Management Perspective
Integrative view of the organization
Assess how functional areas and activities “fit together” to achieve goals and objectives
All managers and employees must take and integrative, strategic perspective of issues facing the organization
Strategic Management Perspective
Key driving forces increasing the need for strategic perspective and involvement
Globalization
Technology
Intellectual capital
These forces are
Interrelated
Accelerating the rate of change and uncertainty
Next Class (WK3)
Read chapter 2
Vincor: case 17 in case book
Read and prepare your analysis for in class discussion.
Media Review due from group 2
Executive summaries due from group 4
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
Presentation to the Saskatchewan Chicken Industry Funds
Copyright - Garnet Garven University of Regina
