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LEARN. PERFORM. GROW.

Course 1: Introducing Strategy (1)


International Strategic Management
Master in International Business Management
The Faculty of International Business and Economics,
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ASE Bucharest

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AGENDA for Today


Course 1: Introducing Strategy (1)

1.
2.

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Introductive Session

What is Strategy? Why Strategy ? Who sets Strategy?

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Detailed Course Contents:

1. Introducing Strategy
2. The Strategic Position
> The Environment
> Strategic Capability
> Expectations & Purposes

3. Strategic choices
> Business-Level & Corporate-Level Strategy;
> International Strategy;
> Directions and Methods of Development

4. Strategy into action


> Organising for Success, Enabling Success & Managing
Strategic Change
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1. Introducing Strategy

What is Strategy? Why Strategy ? Who sets Strategy?


The Strategy Process
Strategic Management
Evolution of Strategic Approach
2 Main Types of Strategic Approach

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2. The Strategic Position (I)

The Environment
General analysis - dynamics, predictability, etc
The Macro-environment analysis - PESTEL Analysis; Scenarios; Porters
Diamond
Industries and sectors analysis the 5 force framework; key successful
factors
Market Analysis - SWOT Analysis (Opportunities & Threats); Competitors
Analysis (critical success factors); Customers Analysis (customer matrix)

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2. The Strategic Position (II)

Strategic Capability
Diagnosing strategic capability strategic groups (interviews & focus groups)
Evaluation of resources & Added value value chain analysis
Competences analysis - SWOT analysis (Strengths & Weaknesses); key
successful factors
HR analysis competences evaluation; performance appraisal (knowledge &
skills)
Financial resources analysis financial data & indicators
Operational resources analysis systems, policies, processes & procedures

Expectations & Purposes


VMV system

Corporate governance
Stakeholder expectations stakeholder mapping
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3. Strategic choices (I)

Business-Level Strategy
Bases of competitive advantage the strategy clock
Sustaining competitive advantage
Competition and collaboration

Corporate-Level & International Strategy


Product / market diversity
Value creation and the corporate parent
Managing the corporate portfolio the growth share matrix

Directions and Methods of Development


Directions for strategy development Ansoff matrix; TOWS matrix
Methods of strategy development methods of development matrix
Success criteria - must & wants criteria

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4. Strategy into action

Organising for Success


structural types
systems, policies, processes & procedures

Enabling Success

Managing people
Managing information
Managing finance
Managing technology
Integrating resources

Managing Strategic Change


Changing process
Reacting to change
Managing successfully difficult situations

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Evaluation

70% - final evaluation (60 90), of which:


> 35% open questions
> 35% case study

20 % - project evaluation, of which:


> 10 % for impactful presentation during the last class (both content & presentation
format) - 10/presentation, all present team members involved
> 10% for final project - delivered exclusively by e-mail in Word Format until the
examination day.

10 % - class activity evaluation


>

Exercises

> Individual case studies


> Group case studies

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Course Outcomes
By the end of this course, the participants will
-> The course is designed to offer the students both the essential frameworks and
the analytical tools to develop a capability for strategic management with due
recognition of growing importance of businesses operating in the context of
international environment.
By the end of this course, the participants will
-> know and understand
> The most important theoretical concepts, best practices & skills of strategic analysis of
the corporate
> The most important theoretical concepts, best practices & skills of strategic planning,
developing strategic alternatives and implementing corporate strategy
> Examples of strategic approach within the international business environment

-> be able to analyze a company strategically


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Key Words

Vision, Mission, Values


Strategy
Strategic planning
Goal
Strategic plan
Strategic position
Strategic alternative
Strategic choice
Implementing strategy
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Participants Expectations

Individual activity 5 min


Group activity 10 min

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AGENDA for Today


Course 1: Introducing Strategy (1)

1.
2.

Copyright 2006 AchieveGlobal , Inc.

Introductive Session

What is Strategy? Why Strategy ? Who sets Strategy?

LEARN. PERFORM. GROW.

Enterprise Model: Where Does Strategy Fits?


Government

The Economy

Society/
Community

Parent
Corporation

Regulations/Policies

Economic Conditions

Concerns

Priorities

The Business

Capital

Leadership

Shareholders

Technology

Resource
Providers

Equity/Dividends

People

Strategy

Money

Market

Business Processes
Needs

Suppliers
Suppliers
(upstream
industry
value
chain)

Raw
Material/
Component
Suppliers

Goals/
Measurements

Human
Capabilities

Information/
Knowledge
Management

Organization
Structure/
Roles

Issue Resolution

Competitors

(source: Kepner-Tregoe, Inc)


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Products/
Services
Culture

Customers

Customers
Customers
(downstream
industry
value chain)

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What is Strategy?

STRATEGY

Products

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Competitive
Advantages

Markets

What is Strategy?

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What is Strategy?

Strategy: The framework of choices that define the nature


and direction of an organization
> The three legs of the strategy stool:
Products/services: What will we offer?
Markets/customers: To whom will we offer our
products/services?
Competitive advantages: Why will customers buy products /
services from us rather than from others?
> These three legs are the same for:
Large corporations
Units within large corporations
Small businesses
Government agencies, etc
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Why Strategy?
What

are the consequences of not having a specific, upto-date, energizing strategy?


What day-to-day decisions should be guided by a
strategy?

Strategy provides FOCUS


> How will we spend our time?
> How will we spend our money?

Without a strategy, there is no rudder to your ship

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Who Sets Strategy?


Who

is responsible for an organizations strategy?

> The top team it is the their most important responsibility


> Delegating strategy responsibility is abdication
Who
>
>
>
>
>

else should provide input to the strategy?

Those closest to the market (customers and competitors)


Technology experts
Creative, futuristic thinkers
Opinion leaders
Those who will bear the brunt of implementation

is not responsible for setting an organizations


strategy?

Who

> A staff function (e.g., the Strategic Planning Department)


> Consultants (Both can provide tools, coordination, facilitation)
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Strategic decisions are about:

The long-term direction of an organization


The scope of an organizations activities
Gaining advantage over competitors
Addressing changes in the business environment
Building on resources and competences (capability)
Values and expectations of stakeholders

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Definition

The long-term direction of an organization


The direction and scope of an organization over the long
term, which achieves advantage in a changing environment
through its configuration of resources and competences with
the aim of fulfilling stakeholder expectations.

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Strategic decisions are likely to:

Be complex in nature

Involve considerable change

Be made in situations of uncertainty


Affect operational decisions
Require an integrated approach (both inside and outside an
organization)

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Levels of strategy
Corporate-level strategy

is concerned with the overall purpose and scope of an


organization and how value will be added to the different parts
(business units) of the organization
Business-level strategy -> Strategic business unit (SBU)

is about how to compete successfully in particular markets


SBU part of an organization for which there is a distinct external
market for goods and services that is different from another SBU
Operational strategies

Are concerned with how the component parts of an organization


deliver effectively the corporate and business-level strategies in
terms of resources, processes and people
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Strategy and Operations

Strategy and Operations


Strategy (What)

Operations (How)

Clear/Right

Effective/
Efficient

Unclear/Wrong

1. Have equaled

2. Have equaled

succes in the
past and will in
the future

succes in the
past, but succes
is doubtful in the
future

3. Have sometimes

worked in the past in


Ineffective/
the short run, but
Inefficient
increasing
competition makes
succes doubtful in
the future
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4. Have equaled
failure in the
past, and will in
the future

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Thank you!

For more information:


Cosmin Jolde
cosmin.joldes@equatorial.ro
Copyright 2006 AchieveGlobal , Inc.