Slide of strategic management w1

Bma799 Strategic management Lecture One: • Introduction to the Unit • Strategic Management & Competitive Advantage Part A: Unit Overview Who Am I? • Dr Stuart Crispin (Unit Coordinator) • Room – A240 (L), Com308 (H) • Phone – 62267476 • Email – Stuart.Crispin@utas.edu.au • Skype – scrispin Unit Overview • Capstone unit – focus on strategic management of ‘organisation’ (for-profit and not-for-profit) • Internal and external analysis, business-level and corporate-level strategy, corporate governance • Markets are more dynamic, global, and competitive Unit Overview • Unit Outline: • Prescribed text and recommended reading • Assessment items • Submission of coursework • Submission guidelines • Referencing guide • Tutorial program • Study schedule Unit Overview • MyLO: • Begin Here– unit outline & study guide • Learning Hub – lecture slides and additional content • Assessment – information about assessment items and submission • News • Q&A Forum • Communication • Our expectations Part B: Strategic Management & Competitive Advantage Learning Objectives • Define what is meant by strategy and strategic management • Explain the difference between emergent and intended strategy • Define the four main types of strategy formulation process • Explain how strategic thinking is used to achieve differentiation leading to sustainable competitive advantage Learning Objectives • • • • • Assess the role of internal and external environment analysis in strategic management Incorporate the vision, values, ethics and stakeholder needs into organisation purpose Define the role of strategic objectives and performance measures Explain the two mechanisms by which sustainability is incorporated into strategic objectives Distinguish between corporate-, business- and functional-level strategies Introduction • • Strategic management plays in essential role in: • (1) setting the direction for organisational development and, • (2) securing its future survival and growth Strategic management is critical in both difficult and prosperous business environments(always change) – albeit for different reasons • Despite the advantages of strategic management, it is not used consistently by organisations Strategic Thinking • Strategic thinking is one of the most important dimensions of modern strategic • • management It extends the idea of strategic intent to cover the whole strategy formulation process and not just the broad thrust and objectives It is one of the main contributions to modern strategic management that differentiates it from its processor, strategic planning Strategy and Differentiation • An important objective of strategic management is to create differentiation between • the organisation and its competitors or the other entities operating in its space Differentiation should lead to stakeholders, particularly customers or other primary users to prefer one organisation over another Sustainable Competitive Advantage • Sustainable competitive advantage refers to organisational capacity to continuously outperform its rivals in attracting customers • A competitive advantage is more likely to be sustainable if it is based on organisational processes rather than products and sets of assets Organisational Purpose • Organisational purpose can help in addressing many • who the organisation exists to serve and • how they should be served? questions including: • Understanding of organisational purpose is critical for decision making in complex and ill defined environment Organisational Vision and Mission • Vision refers to the desired (long term) future state of the organisation • Mission refer to a shorter term version of the vision, incorporating the values and expectations of the major stakeholders and contemporary environmental factors Organisational Values and Ethical Position • Value statement is a brief description of the stakeholders and behaviours the organisation considers most important • Ethical position refer to the standard of behaviour the organisation sets for itself and its staff members Key Organisational Stakeholders • It is important for every organisation to clearly identify its key stakeholders • Some of the key stakeholders include: • • • • • • Owners Staff members Customers Regulatory authorities Government Local communities Typical Expectations of Key Stakeholders Table 1.2 Part E: Strategic Management Framework A Framework for Strategic Management • The planned components of strategic management involve the following seven aspects: • • • • • • • The external environment general environment The internal characteristics of the organisation The setting of objectives The crafting of strategies Implementation of change Performance measurement Plan adjustment Types of Strategies • There are three distinct types of strategies • Corporate-level strategy refers to the selection of businesses in which a company • • should compete Business-level strategy the actions that a company implements to create a competitive advantage over rivals เเเ เ Functional-level strategy suggest how the organisation supports its business-level strategies Strategy in the Public Sector • Although the basis for strategy is the same, there are some differences in the way in • • which strategic management is implemented in the public sector These are primarily due to external environment of the public sector industry The performance measures are also different Offensive and Defensive Strategies • The two most general modes of competition refer to offensive and defensive • • strategies An offensive strategy is intended to increase the market share or leadership position of an organisation at the expense of competitors A defensive strategy is intended to protect the market share position of an organisation against the offensive strategy activities of competitors Strategy Implementation • The process of strategy implementation is time consuming, costly and frequently only • partially successful aspect of strategic management Implementation is essential because until a strategy is implemented, it is just a collection of ideas and expectations Summary • Strategic management has evolved through a range of different formats to the present • • position It continues to play a significant role in ensuring the success and survival of all types of organisations The importance of organisational purpose and the role of vision and missions in reflecting the needs of key organisational stakeholders is a very important component of strategy formulation ... customers? • What we offer our customers? • How we go about doing the above two? Part D: Modern Strategic Management Modern Strategic Management • Modern approach to strategic management is viewed... competitive advantages’ Strategic Thinking • Strategic thinking is one of the most important dimensions of modern strategic • • management It extends the idea of strategic intent to cover the whole strategy... one of the main contributions to modern strategic management that differentiates it from its processor, strategic planning Strategy and Differentiation • An important objective of strategic management