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1. Introducing Strategy (I)

Corporate Strategy Master Degree The Faculty of International Business and Economics, ASE Bucharest

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AGENDA for Today

1. Introducing Strategy (I)

1. 2.

Introductive Session What is Strategy? Why Strategy ? Who sets Strategy?

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Brief Course Contents:

1. Introducing Strategy 2. The Strategic Position 3. Strategic choices 4. Strategy into action

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Detailed Course Contents:

1. Introducing Strategy 2. The Strategic Position (I) The Environment 3. The Strategic Position (II) Strategic Capability;
Expectations & Purposes

4. Strategic choices (I) - Business-Level & Corporate-Level

Strategy

5. Strategic choices (II) International Strategy; Directions

and Methods of Development

6. Strategy into action Organising for Success; Enabling

Success & Managing Strategic Chance

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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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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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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

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Strategic choices (II)

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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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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Final Evaluation:

60% - exam 30 % - final project 10 % - class activity

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

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AGENDA for Today

1. Introducing Strategy (I)

1. 2.

Introductive Session What is Strategy? Why Strategy ? Who sets Strategy?

LEARN. PERFORM. GROW.

Enterprise Model: Where Does Strategy Fits?

Government
Regulations/Policies

The Economy
Economic Conditions

Society/ Community
Concerns

Parent Corporation
Priorities
Capital

The Business Leadership

Technology

Shareholders
Equity/Dividends

Resource Providers

People Money

Strategy

Business Processes
Needs

Market

Suppliers Suppliers (upstream industry value chain)

Raw Material/ Component Suppliers

Goals/ Measurements

Human Capabilities

Information/ Knowledge Management

Organization Structure/ Roles

Products/ Services Culture

Customers

Customers Customers (downstream industry value chain)

Issue Resolution

Competitors

(source: Kepner-Tregoe, Inc)

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What is Strategy?

STRATEGY

Products

Competitive Advantages

Markets

(source: Kepner-Tregoe, Inc)

What is Strategy? What is Strategy?

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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
(source: Kepner-Tregoe, Inc)

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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

(source: Kepner-Tregoe, Inc)

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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

Who

is not responsible for setting an organizations strategy?

> A staff function (e.g., the Strategic Planning Department) > Consultants (Both can provide tools, coordination, facilitation)

(source: Kepner-Tregoe, Inc)

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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 Be made in situations of uncertainty Affect operational decisions Require an integrated approach (both inside and outside an
organization)

Involve considerable change

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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

Strategy and Operations

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Strategy and Operations

Strategy (What)
Clear/Right Unclear/Wrong

1. Have equaled
Operations (How)
Effective/ Efficient succes in the past and will in the future

2. Have equaled
succes in the past, but succes is doubtful in the future

3. Have sometimes

4. Have equaled
failure in the past, and will in the future

worked in the past in Ineffective/ the short run, but Inefficient increasing competition makes (source: Kepnersucces doubtful in Tregoe, Inc) the future

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AGENDA for Today

Course: Introducing Strategy (I)

1. 2.

Introductive Session What is Strategy? Why Strategy ? Who sets Strategy?

LEARN. PERFORM. GROW.

Thank you!

For more information:

Cosmin Jolde cosmin.joldes@achieveglobal.ro