MT 460: Management Policies and Strategy

Instructor: Laurie Cure

Seminar 1

Welcome and Introductions

•Introduce yourself by sharing what your most excited about in beginning this course.

Seminar Ground Rules

•Use the private chat function to engage in individual discussions

•Do not start side conversations•Please  do  NOT  interject  “I  agree”  or  “Good

 point”  as  this  clutters  the  seminar.  •Throughout the seminar, I will pause and open

the floor for questions. If you are able to hold questions until that point, it is helpful.

•Please be active when your input is requested- we are all learning from each other’s wisdom and expertise.

Seminar Objectives for Tonight•Share expectations•Discuss course content•Review syllabus details

•Unit 1 Feedback

•Review Unit 2 assignments•Discuss concepts in Unit 2: Strategic

Management

•Discuss details of Final Assignment

Welcome and Logistics

•A little about me▫I have an MBA and Ph.D. in I/O Psych▫Consult in strategic planning and

organizational development▫Like you, I am always balancing work,

family and school •FLEX Seminar: Wednesday 8-9 pm ET

▫EXCEPT Thursday, March 24th at 9:00 PM ET

Creating a Learning Environment•When everyone brings there expertise

and wisdom to the classroom, we can all benefit

• Share stories and experiences in discussions and seminars that will help others learn.

•Ensure you are respecting the diversity of the group: gender, race, thought, experiences and perspectives.

•Participate and communicate

Course Objectives

By the end of the term, you will be able to:

•Describe the main components of the strategic management process

•Perform a SWOT analysis •Explain how a company builds competitive

advantage through an appropriate structure and control systems

•Evaluate the results of a strategic plan

Textbook for Course

•Title: Strategic Management Author(s): John A. Pearce, II, Villanova University & Richard B. Robinson, Jr.

•eBook▫Go to the Doc Sharing and save and/or

print book or relevant chapters

Grading• Discussions

▫ Each unit requires an initial discussion post + 2 responses

• Assignments/Projects▫ Case analysis are used where you become a key decision

maker▫ Follow the template in doc sharing

• Final Project▫ Due in Unit 9▫ Choose and research a company, write a strategic plan

• Writing Assignment▫ Focuses on reflection of learning

• Expectations: ▫ Use Grading Rubric▫ APA Style- what you can expect from me▫ USE and CITE references in all work▫ Discussions and assignments grades within 5 days

Discussion Posts Rubric• Quality (40%)

▫ All assigned discussion questions were answered completely ▫ Posts were on topic and unique in content ▫ All posts demonstrated analysis of the topic

• Participation Guidelines (30%) ▫ Posts made to each discussion question on at least 3 different days ▫ The original post to be no less than 100 words – (supports quality)▫ Initial post no later than Saturday at 11:59 PM ET

• Clarity and Organization of Writing (20%) of your post will be measured on the following criteria:▫ Posts were organized and  logical ▫ No spelling or grammatical errors ▫ References were used and cited properly

• Professional & Netiquette (10%) in your post will be measured on the following criteria:▫ Respect and consideration toward peers/instructors ▫ Appropriate language ▫ Professional use of abbreviations and acronyms

Deadlines

• DISCUSSION POSTS CANNOT BE ACCEPTED LATE

• COMMUNICATION IS KEY▫ Up to one week (1-7 calendar days) late = 20%

deduction in points▫ After one week (8-14 calendar days) late 30%

deduction in points• No work will be accepted more than two (2)

weeks after the due date• Notify your instructor by email when you have

submitted late work

Plagiarism Policy

• Plagiarism: Using another person's words, ideas, or results without giving proper credit to that person; giving the impression that it is the student's own work. plagiarism is the theft of someone else's ideas and work. Whether a student copies verbatim or simply rephrases the ideas of another without properly acknowledging the source, it is still plagiarism

• Best way to avoid plagiarism is to CITE your REFERENCES

• More details in your syllabus

• Simple enough- always give credit when using someone else’s thoughts or ideas (in posts, papers, pp etc.)

What you can expect from me?

• I am reasonable and supportive• I will respond to questions daily •Assignments and discussions grades within

5 days• I am available for appointments if

necessary• I will bring my expertise to the class and

facilitate your learning in a positive way• I will reach out if it appears your grades

are falling

Unit 1 Feedback• Discussion was great.

▫ Answered ALL components of the question • I tried to use week 1 to guide expectations and I

responded to EVERY student during week 1.• I will generally allow discussion to be with the class

responding to only 25% of students during any given week

• Always use references in posts for maximum points• Continue deepening your ANALYSIS for maximum

points• Ensure that your responses to others advances

discussion

Unit 2 Objectives

•By the end of this unit, you will be able to: ▫Describe Strategic Management ▫Discuss how Strategic Management affects

business and the layman

Unit 2- To Do List• Read Chapter 1, “Strategic Management” – download from doc sharing• Complete and upload your Assignment to the drop box

▫ Complete a short answer on the following question: Why is strategy important to business?

▫ Be sure to use your reading this week as a resource. You may also use the Library databases and the Internet as additional resources.

▫ TIP: Be sure to address the main components of the strategic management process for full credit

• Format: review syllabus for specifics▫ Your project should be double-spaced, citations should use APA style, and it should beat least 2-3

pages.

• Respond to the (2) Discussion questions by Saturday at 11:59 PM ET2. Does the competition between various companies affect your daily life in any

way? Give an example that might apply. For example, consider how you recently chose between two products or services offered by different companies. What factors made you choose one over the other? How do the companies compete?

Grading: Unit 2 Assignment (1): Why is Strategy Important to Business?

• Content, Focus, Use of Text / Outside Sources (50%): Response answers assignment question and covers questions or issues thoroughly. Student uses text and other literature to support work

• Analysis and Critical Thinking (30%): Exhibits strong higher-order thinking and analysis-

evaluation and analysis critical

• Writing Style, grammar, APA format (20%) Clear sentences, concise, grammar strong, no errors, use

of APA

What does strategic management mean to you?

What is Strategic Management• The set of decisions and actions that result in formulation and

implementation of plans designed to achieve a company’s objectives

• Large-scale, long-term, future-oriented plan & decision making

• Requires executive office level leadership and participation (CEO, board of directors)

• Provides a framework for managerial decisions• Reflects a company’s awareness of the main elements of

competition• The Three Levels of Strategic Management model is a three

level process involving corporate, business, and functional-level planners.

• (Pierce & Robinson, 2008)

Strategic Management Model

Steps in Strategic Management Process1. Formulate the company’s

mission2. Assess the external

environment – competitive and general contexts

3. Conduct an internal analysis4. Analyze the company’s

options by matching its resources with the external environment

5. Identify the most desirable options in light of the mission

6. Select a set of long-term objectives and grand strategies that will achieve the most desirable options

7. Develop annual objectives and short-term strategies that are compatible with long-term objectives and grand strategies

8. Implement the strategic choices

9. Evaluate the success of the strategic process for future decision making

Dimensions of Strategic Decisions

•Strategic issues require top-management decisions▫Strategic decisions overarch

several areas of a firm’s operations

▫Top management has the perspective to understand their broad implications

▫Top managers have the power to authorize necessary resource allocations

Dimensions of Strategic Decisions

•Strategic issues require large amounts of the firm’s resources▫They involve substantial allocations of

people, physical assets, and money▫Strategic decisions commit the firm

to actions over an extended period▫In highly competitive firms, achieving

and maintaining customer satisfaction frequently involves commitment from every facet of the firm

Dimensions of Strategic Decisions

•Strategic issues often affect the firm’s long-term prosperity▫Strategic decisions commit the firm for

a long time, typically 5 years; however the impact lasts much longer

▫Once a firm has committed itself to a strategy, its image and competitive advantages are usually tied to that strategy

▫Firms become known for what they do and where they compete. Shifting away from that can jeopardize their previous gains

Dimensions of Strategic Decisions

•Strategic issues are future-oriented▫They are based on what managers

forecast, rather than what they know▫Emphasis is on the development of

solid projections that will enable a firm to seek the most promising strategic options

▫A firm will succeed only if it takes a proactive (anticipatory) stance toward change

Dimensions of Strategic Decisions

•Strategic issues usually have multifunctional or multi-business consequences. ▫Strategic decisions have complex

implications for most areas of the firm

▫Decisions about customer mix, competitive emphasis, or organizational structure involve a number of the firm’s SBUs, divisions, or program units

Dimensions of Strategic Decisions•Strategic issues require considering the firm’s external environment▫All businesses exist in an open system.

They affect and are affected by external conditions that are largely beyond their control

▫Successful positioning requires that strategic managers look beyond operations and consider what relevant others are likely to do

Three Levels of Strategy

•Corporate level: board of directors, CEO & administration [Highest]

•Business level: business and corporate managers [Middle]

•Functional level: Product, geographic, and functional area managers [Lowest]

Alternative Strategic Management Structures

Characteristics of Strategic Management Decisions: Corporate•Often carry greater risk, cost, and profit potential

•Greater need for flexibility•Longer time horizons•Choice of businesses, dividend policies, sources of long-term financing, and priorities for growth

Characteristics of Strategic Management Decisions: Functional

•Implement the overall strategy formulated at the corporate and business levels

•Involve action-oriented and operational issues

•Relatively short range and low risk•Modest costs: depend upon available

resources•Relatively concrete and quantifiable

Characteristics of Strategic Management Decisions: Business•Help bridge decisions at the corporate

and functional levels•Less costly, risky, and potentially

profitable than corporate-level decisions•More costly, risky, and potentially

profitable than functional-level decisions•Include decisions on plant location,

marketing segmentation, and distribution

Formality in Strategic Management

•Formality is the degree to which participation, responsibility, authority, and discretion in decision-making are specified in strategic management

Forces Determining Formality

•Organizational Size

•Predominant Management Styles

•Complexity of Environment

•Production Process

•Problems in the Firm

•Purpose of the Planning System

•Stage of Firm’s Development

Three Modes of Formality

•Entrepreneurial Mode – most small firms

•Planning Mode – most large firms•Adaptive Mode – most medium size firms

Strategy Makers

• Ideal strategic team includes decision makers from all three levels

•Top managers must give final approval

•Strategic decisions coincide with managers’ responsibilities

THE CEO• A firm’s CEO plays a

dominant role in strategic planning

• The CEO’s principal duty is giving long-term direction to the firm

• The CEO bears ultimate responsibility for the firm’s success and strategic success

• CEOs are typically strong-willed, company-oriented individuals

Benefits of Strategic Management•Strategic management supports involvement

in planning by all levels of management•Participative decision making offers benefits:

▫Enhance ability to monitor and forecast▫Better alternatives created and decisions made▫Increased motivation through understanding▫Reduced gaps due to role clarification▫Decreased resistance to chang

Risks of Strategic Management

•Managers’ time away from other responsibilities

•Unrealistic expectations promised by strategy formulators

•Possible disappointment of participating subordinates if goal is not reached

Strategic Management Process•Businesses vary in formulation and other processes

•The basic components of the models used to analyze strategic management are similar

•Strategic management is a process—a flow of information through interrelated stages of analysis toward the achievement of some goal

The Nature and Value of Strategic Management

•Strategic management:The set of decisions and actions that result in formulation and implementation of plans designed to achieve a company’s objectives

Final Project: Strategic Plan• Choose a company and write a strategic

plan for that organization• Executive Summary:

▫ Start with an executive summary of your strategic plan.

• Company Background:▫ Identify the organization that you have chosen

for your strategic plan.

▫ Provide a brief background of this organization including its products, services and customers.

▫ Include the organization’s strategic planning model (including the history of successes and failures associated with the process).

• Mission Statement & Vision Statement:▫ How does the mission, vision and values aid the

organization in reaching its desired end state?▫ Include the mission statement and vision

statement and refer to it in your analysis.

• Internal Analysis & External Analysis:▫ Write an assessment of the organization

including their ability to accomplish goals and objectives as set in their previous strategic plan(s) and, their ability to respond to internal and external changes and challenges.

• SWOT analysis of your plan’s focus area(s):▫ Incorporation of the SWOT findings into clearly

stated goals and objectives for a 3-5 year period focusing on your strategic plan area(s).

▫ You will have 3-4 goals for each year with 3-4 measurable objectives for each goal. Outline your goals and objectives clearly and then provide a narrative explanation for each.

• Long Term Objectives:▫ Designate the long term objectives in your

strategic plan.

• Strategy Analysis and Choice:▫ Choose the generic strategy and grand strategy.

Then chosen and discuss why you have chosen each and how they will fit within the framework of the organization.

• Plan Goals and Implementation:▫ Discuss the goals and implementation for the

business strategy. Include in this discussion the organizational structure and the leadership and culture.

• Critical Success Factors:▫ Describe the critical success factors.

• Controls and Evaluation:▫ List and describe controls and evaluation

methods.