Post on 14-Apr-2018
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Welcome to
BSP028 Strategic Management
Dr Angelika Zimmermann
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Evacuation in case of fire
Evacuation procedure
Location of the fire assembly point
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The Module: Aims To develop a critical understanding of the concepts
involved in strategic management and theirapplication in the private and public sectors
To develop skills in the area ofstrategic analysis,the development of strategic options and the
implementation of strategy To encourage a positive attitude to change, with a
desire for excellence and a visionary and positiveapproach to future developments
To encourage an openness to new ideas and anawareness of alternatives
To develop skills in obtaining, analysing andapplying information from a variety of sources
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Lecture Topics
Introduction to Strategic Management
1. Analysing the Environment2. Strategic Capability
3. Corporate Governance
4. Business Level Strategy
5. Corporate level strategy
6. Evaluating Strategies7. Strategy implementation
8. Strategic Leadership
9. Organisation Structure and Design
10. The Cultural Context
11. Business Ethics and Corporate Responsibility12. Managing Strategic Change
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Main Textbooks
Johnson, G., Whittington, R. and Scholes, K., (2011)
Exploring Corporate Strategy. Enhanced Media Edition
(with student access kit) (9th ed.) Prentice Hall: London
Website address: www.pearsoned.co.uk/ecs7
Lynch, R. (2006) Corporate Strategy (4th ed.). Prentice
Hall: London
Finlay, P. (2000) Strategic Management. Prentice Hall:
London
Grant, R.M. and Jordan, J. (2012) Foundations of
Strategy. Wiley: Chichester
http://www.pearsoned.co.uk/ecs7http://www.pearsoned.co.uk/ecs77/27/2019 Intro Strat Mgmt 2012
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Methods
Teaching approach Assessment
see Reading list on learn
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Introduction to Strategic Management
Intended learning outcomes
To develop an understanding of the definitions
and functions of strategic management
To distinguish between prescriptive and
emergent approaches to Strategy To be aware of factors affectig the strategies of
different types of organisations
To take into account prominent contemporary
issues when analysing strategy
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What is a Strategy?
Greek Strategia = The art ofleading an army(stratos=army; agein=tolead)
But: Strategy is nowadaysnot in the hands of topleaders alone
No single agreed definition
General def.: The means toachieve the organisationspurpose and objectives
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Quotes
The flame of competition has changed from smokeyyellow to intense white heat. For companies to
survive and prosper they will have to have a vision,a mission and strategy.Peter Ellwood, CEO Lloyds TSB Group
Far too many companies either have no goals at all,other than cost reduction, or their boss hides them
in his head. Theres no hope for companies inBritain unless more top management accepts the
need for a widely communicated set of clearobjectives.Peter Beck, ex-Chairman, The Strategic Planning Society(adapted from Thompson & Martin, p.7)
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Strategic terms
Mission Overriding purpose (e.g., What business are we in?)
Vision Desired future state
Goals
General statement of purpose or aim Objective
More precise statement of the goal
Strategic capability Resources, activities and processes
Strategies Means to achieve purpose and objectives (paths,
decisions)
Long-term direction of the organisation
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Definitions (1)
Corporate strategy is the pattern of major
objectives, purposes or goals and
essential policies or plans for achieving
goals, stated in such a way as to define whatbusiness the company is in or is to be in and
the kind of companyit is or is to be. (Andrews,1971; Lynch, 2003)
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Definitions (2)
Strategy is the direction and scope of an
organisation over the long term, which
achieves advantages in a changing
environment through its configuration ofresources and competences with the aim of
fulfilling stakeholder expectations. (Johnson etal., 2005)
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Illustration: British Airways (1)
How do mission, goals, and strategiesof BA differ from those of other
airlines you know?
Johnson et al., p. 14
http://images.google.co.uk/imgres?imgurl=http://www.2747.com/2747/world/airline/britishairways.jpg&imgrefurl=http://www.2747.com/2747/world/airline/britishairways.htm&h=768&w=1024&sz=360&hl=en&start=1&tbnid=ggLGMXjhtmOJsM:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dbritish%2Bairways%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG7/27/2019 Intro Strat Mgmt 2012
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Illustration: British Airways (2)
Chairmans report 2010:
,We are in the grip of a devastating global
economic downturn and the next year will be
extremely difficult for us. In times of crisis, it isessential that we keep our sights fixed on the
future. That is why we are continuing with our
plans to firmly establish British Airways as a high
performing, market-focused, global premium
airline.
http://images.google.co.uk/imgres?imgurl=http://www.2747.com/2747/world/airline/britishairways.jpg&imgrefurl=http://www.2747.com/2747/world/airline/britishairways.htm&h=768&w=1024&sz=360&hl=en&start=1&tbnid=ggLGMXjhtmOJsM:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dbritish%2Bairways%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DGhttp://images.google.co.uk/imgres?imgurl=http://www.2747.com/2747/world/airline/britishairways.jpg&imgrefurl=http://www.2747.com/2747/world/airline/britishairways.htm&h=768&w=1024&sz=360&hl=en&start=1&tbnid=ggLGMXjhtmOJsM:&tbnh=113&tbnw=150&prev=/images%3Fq%3Dbritish%2Bairways%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG7/27/2019 Intro Strat Mgmt 2012
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Levels of strategy
Corporate strategy What business the company should be in
How value will be added to the different parts
Business-level strategy (Strategic business unit)
How to compete successfully in particular markets
Operational strategies
How the component parts of the organisation can
effectively deliver the corporate- and businesslevel
strategies (resources, processes, people)
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Exhibit 1.3 The Exploring Corporate Strategymodel
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What is Strategic Management? The processby which organisations determine their
purpose, objectivesand desired levels ofattainment, decide on actions for achieving theseobjectives in an appropriate timescale and frequentlyin a changing environment; implement the actions;and assess progress and results.(Thomson & Martin, 2005)
Elements:
Understanding the strategic posi t ionof anorganisation;
Making strategic cho icesfor the future;
Turning strategy in to act ion
-Both art and science (business judgement, values,speculation) -
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Prescriptivevs.EmergentApproach(Mintzberg, 1987; Quinn, 1980)
The future can be
estimated
Long-term strategic
plan> Develop strategy first,
then implement it
The future is uncertain
Complete strategic plan
not useful
> Experiment: developand implement strategy
iteratively
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Strategic Management in different
contexts
Small businesses
International corporations
Manufacturing and service organisations
Public sector
Not-for-profit organisations
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Small businesses
Single or limited amount of
markets, products/services Strategy made by less
people (no dept. forstrategic analysis)
Competitive strategy andcapability especiallyimportant
Legacy of foundersexpectation may persist
Private ownership, limitedfinances
> limited choice ofstrategies
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Multinational corporations
Diverse products andmarkets
Stronger market position
Issues: Structure and control
Relationships betweenbusinesses and corporateparent
Competition betweenbusiness units for resources
Logistics of distributedoperations
Global scale economies vs.local market identity
http://images.google.co.uk/imgres?imgurl=http://images.businessweek.com/ss/06/01/big_outsourcers/image/intro.gif&imgrefurl=http://images.businessweek.com/ss/06/01/big_outsourcers/source/1.htm&h=437&w=440&sz=61&hl=en&start=13&tbnid=ENySLctR4Uer5M:&tbnh=126&tbnw=127&prev=/images%3Fq%3Dmultinational%2Bcompanies%26gbv%3D2%26svnum%3D10%26hl%3Den7/27/2019 Intro Strat Mgmt 2012
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Manufacturing and service organisations
Competitive advantage
through quality of
productversus service
But: good service iscompetitive advantage
for selling products
http://images.google.co.uk/imgres?imgurl=http://www.bbc.co.uk/schools/gcsebitesize/img/gcsechem_75.jpg&imgrefurl=http://www.bbc.co.uk/schools/gcsebitesize/chemistry/usefulproductsair/ammonia_haberrev2.shtml&h=380&w=315&sz=25&hl=en&start=1&tbnid=2SVw-Z8zHj4r0M:&tbnh=123&tbnw=102&prev=/images%3Fq%3Dproduction%2Bplant%26gbv%3D2%26svnum%3D10%26hl%3Denhttp://images.google.co.uk/imgres?imgurl=http://www.indiancallcenterz.com/img/telemarketing_agent.jpg&imgrefurl=http://www.indiancallcenterz.com/outbound_service.php&h=237&w=175&sz=33&hl=en&start=9&tbnid=6nst9o1GG7JSeM:&tbnh=109&tbnw=80&prev=/images%3Fq%3DCall%2Bcenters%26gbv%3D2%26svnum%3D10%26hl%3Den7/27/2019 Intro Strat Mgmt 2012
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Public sector
Ideology more important More outside control (e.g., government,
political agenda rather than market)
Strategy dictated by provider of funds ratherthan user of service
Competition for funds rather than customers
http://images.google.co.uk/imgres?imgurl=http://www.supportal.org.uk/UploadedImages/NHS_logo.jpg&imgrefurl=http://www.supportal.org.uk/ASPScripts/NewsItem.asp%3FNewsId%3D645&h=286&w=705&sz=21&hl=en&start=1&tbnid=PALs4FbXqZosrM:&tbnh=57&tbnw=140&prev=/images%3Fq%3Dnhs%26gbv%3D2%26svnum%3D10%26hl%3Denhttp://images.google.co.uk/imgres?imgurl=http://www.thomaston.lib.me.us/imagestpl/welcome.jpg&imgrefurl=http://www.thomaston.lib.me.us/&h=338&w=450&sz=41&hl=en&start=15&tbnid=mXyz7WgjELRRBM:&tbnh=95&tbnw=127&prev=/images%3Fq%3Dpublic%2Blibrary%26gbv%3D2%26svnum%3D10%26hl%3Denhttp://images.google.co.uk/imgres?imgurl=http://www.quickonthenet.com/2005/4166/pix/gallery/Logo-Illustration-Post-Office.jpg&imgrefurl=http://norfolkblogger.blogspot.com/2007_03_01_archive.html&h=400&w=559&sz=137&hl=en&start=9&tbnid=Mn1TD90GjTIyRM:&tbnh=95&tbnw=133&prev=/images%3Fq%3Dpost%2Boffice%26gbv%3D2%26svnum%3D10%26hl%3Den7/27/2019 Intro Strat Mgmt 2012
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Not-for profit sector
Ideology of central strategic importance Competition for funds
Different expectations of funding bodies
http://images.google.co.uk/imgres?imgurl=http://www.japaneselifestyle.com.au/travel/images/nara_todaiji.jpg&imgrefurl=http://www.japaneselifestyle.com.au/travel/nara_todaiji.htm&h=271&w=480&sz=37&hl=en&start=1&tbnid=p3oS38E5tMvDVM:&tbnh=73&tbnw=129&prev=/images%3Fq%3Dbuddhist%2Btemple%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DGhttp://upload.wikimedia.org/wikipedia/en/thumb/1/17/Matthias_Church_budapest.jpg/300px-Matthias_Church_budapest.jpghttp://images.google.co.uk/imgres?imgurl=http://81.89.141.215/liftco-mast/admin/websites/images/Help%2520the%2520Aged.JPG&imgrefurl=http://81.89.141.215/liftco-mast/websites/&h=384&w=512&sz=19&hl=en&start=1&tbnid=y7oOKWNLCAet3M:&tbnh=98&tbnw=131&prev=/images%3Fq%3Dhelp%2Bthe%2Baged%26gbv%3D2%26svnum%3D10%26hl%3Denhttp://images.google.co.uk/imgres?imgurl=http://z.about.com/d/healing/1/0/2/r/2007_greenpeace.jpg&imgrefurl=http://healing.about.com/od/healernetwork/ig/Calendars/Earth-Calendar.htm&h=500&w=500&sz=56&hl=en&start=1&tbnid=r8i0zkYHKxF1EM:&tbnh=130&tbnw=130&prev=/images%3Fq%3DGreenpeace%26gbv%3D2%26svnum%3D10%26hl%3Den7/27/2019 Intro Strat Mgmt 2012
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Contemporary issues (1)
Internationalisation
Increases size of markets and range of competitors
Have to organise activities across borders
E-commerce: effect on strategic position Changes customer expectations
Easier access to competitors
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Contemporary issues (2)
Knowledge and learning
Fast-moving world > continuous learning is
necessary
Need to create knowledge from inside and outside(R&D)
Have to challenge the status quo, be innovative
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Assignment: IKEA case
5000 words
including supporting, charts, diagrams and tables,
but without references.
Read assignment guidelines! Hand in date 17th August 2012, 2pm
Submit a printed copy to MSc office, plus an
electronic version on Learn system
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Assignment: IKEA case
Complete the following tasks: Describe IKEAs main strategies and
evaluate them with regard to their
suitability. Use your evaluation to explainIKEAs successes and difficulties in the
past and present, and to contemplate its
potential successes and difficulties in
the future.