STRATEGIC LEADERSHIP IN A STRATEGIC LEADERSHIP IN A COMPETITIVE BUSINESS COMPETITIVE BUSINESS

ENVIRONMENTENVIRONMENT

PRESENTERPRESENTER

Prof. Elisante Ole GabrielProf. Elisante Ole GabrielPhD – Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus.PhD – Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus.

Deputy Permanent Secretary - MIYCSDeputy Permanent Secretary - MIYCS

+255-784-455-499+255-784-455-499

elisante_gabriel@yahoo.comelisante_gabriel@yahoo.com

www.olegabriel.com www.olegabriel.com

CONTENTCONTENT

• Analysing a Business Environment (Micro & Macro)

• Creating & Sustainable Competitive Advantage

• Competitive Strategies

• Alternative Strategies for Market & Products Development

• Strategic Thinking = Dreaming the future

• Tips for Emerging Leaders (Challenge = Oppt)

• CONCLUSION E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499 22

BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT ANALYSISANALYSIS

SWOT/SAOC, PEST & SLEEPTINSWOT/SAOC, PEST & SLEEPTIN

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SWOT ANALYSISSWOT ANALYSIS

• This tool helps to identify the key internal factors (Strengths and Weaknesses) = SW

• The External factors are Opportunities and Threats (OT)

• This is modified: Instead of Weaknesses = Areas for Improvement and Threats = Challenges: Hence SAOC

• Create, Sustain a Competitive Advantage

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ExternalExternal and Internal Analyses and Internal Analyses

General

General

Environment

Environment

GeneralGeneral

EnvironmentEnvironment

General

General

Environm

ent

Environm

ent

SocioculturalSociocultural

Global

Global

TechnologicalTechnological

Polit

ical

/Leg

al

Polit

ical

/Leg

al

Dem

ogra

phic

Dem

ogra

phic Econom

ic

Economic

IndustryIndustryEnvironmentEnvironment

CompetitorCompetitorEnvironmentEnvironment

By studying the external By studying the external environment, firms identify environment, firms identify what they what they might choose to domight choose to do

Opportunities and threatsOpportunities and threats

The Generic Components of The Generic Components of External Environment (PEST)External Environment (PEST)

• Political

• Economical

• Social

• Technological

However, these was found to be limited in expressing the real macro environment

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New Dimension of Macro New Dimension of Macro Environment (Gabriel, 2004)Environment (Gabriel, 2004)

• From 4 components (PEST) to 8 (SLEEPTIN)• Social • Legal• Economical• Ethical• Political• Technological• International• Natural

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Internal AnalysisInternal Analysis

By studying the internal By studying the internal environment, firms identify environment, firms identify what they what they can docan do

Unique resources, Unique resources, capabilities, and core capabilities, and core competenciescompetencies

(sustainable competitive (sustainable competitive advantage)advantage)

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Challenge of Internal AnalysisChallenge of Internal Analysis

• How do we effectively manage current core competencies while simultaneously developing new ones?

• How do we assemble bundles of resources, capabilities and core competencies to create value for customers?

• How do we learn to change rapidly? • HINT: Many leaders fail to properly analyse the

internal environment

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Components ofComponents ofInternal AnalysisInternal Analysis

Discovering CoreDiscovering CoreCompetenciesCompetencies

ResourcesResources• TangibleTangible• IntangibleIntangible

CapabilitiesCapabilities

CoreCoreCompetenciesCompetencies

CompetitiveCompetitiveAdvantageAdvantage

StrategicStrategicCompetitivenessCompetitiveness

Four CriteriaFour Criteriaof Sustainableof SustainableAdvantagesAdvantages

• ValuableValuable• RareRare• Costly to ImitateCostly to Imitate• NonsubstitutableNonsubstitutable

ValueValueChainChain

AnalysisAnalysis

• OutsourceOutsource

BUSINESS DIAGNOSISBUSINESS DIAGNOSIS(Porters’ Perspective)(Porters’ Perspective)

• There are two fundamental questions

• WHAT MAKES AN INDUSTRY ATTRACTIVE? (PFFF, for Industry Analysis)

• WHICH POSITION GIVES A FIRM SUPERIOR PERFORMANCE? (Generic Strategies)04/21/2304/21/23 1111

Industry Analysis

Porter discusses the FIVE FORCES that determine the nature of competition in an industry :–

• Threat of new entrants, • Bargaining power of customers, • Bargaining power of suppliers, • Threat of substitute products or services, • Rivalry among industry competitors.

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Rivalry Among Existing Competitors

Bargaining Power of Suppliers

Threat ofNew Entrants

Threat of Substitutes

Bargaining Power ofBuyers

FIVE FORCES FRAMEWORK – for INDUSTRY ANALYSIS (By Michael

Porter)

Lessons from Industry Analysis

• Industry analysis is the starting point of any strategy.

• Business Leaders have to understand the structure of the industries that they are competing in.

• Hint: The impact of the Competitive Forces varies from one market to another!

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• In pursuing competitive advantage, a company also has to choose its scope –

• Whether it will target a particular segment or go for a broad market (e.g National Vs EAC Market).

• These choices define four basic approaches to competitive advantage.

• Which set of choices a company makes determines which “generic strategy” as Porter calls it, a company is following.

• Avoid being STUCK-IN-THE MIDDLE04/21/2304/21/23 1515

GENERIC STRATEGIES

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Strategic Advantage

Broad Broad

Cost Differentiation

Focus Focus

Cost Differentiation

GENERIC STRATEGIES (By M Porter)

Str

ateg

ic T

arg

et

(Sco

pe)

• Failure to make a choice means that a company is stuck - in - the middle, with no advantage.

• The result is poor performance.• Each Manager ought to be strategic on choosing the

strategies• A Strategy which is suitable for one market might not

be suitable for another.• Strategy shift from one strategy to another ought to be

done timely!• You need to THINK STRATEGICALLY to avoid being

stuck – in – Middle.

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STUCK-IN-THE MIDDLE

Three major Types of MindThree major Types of Mind

(I) GREAT MINDED PEOPLE (Make things happen)

(II) AVERAGE MINDED PEOPLE (Watch Things Happening)

(III) SIMPLE MINDED PEOPLE (Wonder Why Things are Happening?)

Where do you belong? Your people with Helicopter?

E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499 1818

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Why Strategic Thinking for Why Strategic Thinking for Emerging LeadersEmerging Leaders

• Changes in Market Structure of the Film Industry• Limited Resources on sectoral needs• Cultural Dynamics which can effect the decisions of

customers in the Market• Micro & Macro Factors• Impact of Technology• Changes in Behavior of customers in line with imports• Changes on the Political dynamics & Regulations

E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499

2020

Six Commandments of Strategic Six Commandments of Strategic Leadership Leadership (By Gabriel E, 2002)(By Gabriel E, 2002)

1. Create superior performance

2. Sustain superior performance

3. Understand your core functions (Your Value?)

4. Know your Competitor as you know yourself

5. Cope with the speed of Technology. AND

6. Make use of Feedback from your Internal and external customers for Synergy (1 + 1 > 2)

HINT: Always be Visionary with a Dream like Dr. Martin Luther King Jnr. (1963 for USA)

E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499

I Have a Dream..I Have a Dream......We shall be judged not by the color We shall be judged not by the color of our skin but the content of our of our skin but the content of our character!character! 2121

Martin Luther King Jnr. (At the Age of 29yrs)

I Have a Dream … Dr. Luther King JnrI Have a Dream … Dr. Luther King Jnr(1963, USA)(1963, USA)

• …That one day, This Nation will raise up..,

• Live out its true meaning of its freedom• We will all choose to be self evident, that all people

are created EQUALLY…I have a dream..that• ..All of us will be able to sit on a table of

brotherhood…I have a dream…that• My four little children will one day live in a Nation…

where they will be judged not by the colour of their skin but by the content of their character…I HAVE A DREAM!

We've got some difficult days ahead. But it really doesn't matter with me now, because I've been to the mountaintop. And I don't mind.

Like anybody, I would like to live a long life. Longtivity has its place. But I'm not concerned about that now. I just want to do God's will. And He's allowed me to go up to the mountain. And I've looked over. And I've seen the Promised Land. I may not get there with you. But I want you to know tonight, that we, as a people, will get to the promised land!

And so I'm happy, tonight.I'm not worried about anything.I'm not fearing any man!

Mine eyes have seen the glory of the coming of the Lord!!

I’ve been to the mountaintop..A day before assassinated)(By M. Luther King Jnr., At the Age of 39 Yrs in 1969)

The Dream of Elisante Ole Gabriel for The Dream of Elisante Ole Gabriel for Tanzania & Africa (2012)Tanzania & Africa (2012)

• …. I have a dream that One day Tanzania will be the richest Country in the African Continent

• …… Africa will also be the most powerful continent economically on the planet Earth

• …. Africans need to develop the following for its Youth: Moral Capital, Innovativeness, Homogeneities and Perseverance (MIHoP)…!

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TIPS FORTIPS FORBUSINESS LEADERS in AfricaBUSINESS LEADERS in Africa

• The Success of Business depends on Innovative mind

• Manage Competition Strategically

• There is no room for losers but winners in the competitive Business Environment

• Entrepreneurship Spirit not just skills should be the driving force.

• Convert Threats to Opportunities ( Successful life even without Limbs (A Case of Nick, UK)

E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499 2525

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CONCLUSIONCONCLUSION

• It is the right strategy which can take you to the right Business position.

• The Competitive Forces ought to be properly addressed. AND

• Make sure you always offer Value to your Market and not just products!

• THANK YOU!!!

E. Ole Gabriel, 0784-455499E. Ole Gabriel, 0784-455499

+255784-455499