工商管理专业MBALectu课件

1、工商管理专业MBALectu课件Revision DiagramsDr Ita ODonovanStrategic Management工商管理专业MBALectu课件Thinking and Knowing Thinking is a key component of cognition. When we think, we perceive, classify, manipulate and combine information At the end of the process, we know something we did not know before ( it is poss

2、ible this new knowledge is incorrect Need to remember we think not by language alone, we think in shapes, images工商管理专业MBALectu课件Ways of thinkingWays of thinkingDeductive Reasoning Deductive Reasoning consists of inferring specific instances from general principles or rules e.g. Kiran is taller than

3、SunielSophia is shorter than SunielTherefore Kiran is taller than SophiaInductive reasoning Inductive reasoning is the opposite of deductive reasoning. It consists of inferring general principles or rules from specific facts.Inductive reasoning requires us to test facts or hypothesesRemember the car

4、d example asking which ones to turn up to be sure the statement was true.Other things to watch out for when thinkingOther things to watch out for when thinkingFailure to utilise a comparison groupControl group for comparisonConfirmation Bias: we tend to seek evidence that confirms our hypothesis.Rem

5、ember if there is an exception the rule is wrong.Always look for evidenceAlways look for evidence工商管理专业MBALectu课件Describing a firm strategy: competing in the present, preparing for Describing a firm strategy: competing in the present, preparing for the futurethe future COMPETING FOR PREPARING FOR TH

6、E PRESENT THE FUTURE Check exercises on Companies Mission Statements see pyramid diagram in these notes.STATICWhere are we competing?Product market scopeGeographical scopeVertical scopeHow are we competing?What is the basis of our competitive advantageDYNAMICWhat do we want to become?Vision statemen

7、tWhat do we want to achieve?Mission StatementPerformance GoalsHow will we get there?Guidelines for developmentPriorities for capital expenditure,R& DGrowth modes: organic growth, Mergers, Acquisitions, Alliances工商管理专业MBALectu课件Planning & Design School, Creativity and Planning & Design School, Creati

8、vity and EmergenceEmergenceThe design school The design school is based on the idea of rational planning, based on strategic analysis of the internal and external environment. The idea is that managers engage in deliberate, rational analysis. The design school does allow for the idea of creativity.

9、of creativity. This is in terms of the original conception of the idea/ concept/ strategy, and how it alters overtime as the realities of the internal and external environment are considered by the strategists. A good way to think of this is if you were designing and building a house. Concept alters

10、 as the concept and ideas become realities. Tools you use are SWOT analysis see slides Lecture 2 , and next 2 slides Key points Design schoolKey points Design schoolConsistencyConsistency: the strategy must not present mutually inconsistent goals and policiesConsonance:Consonance: the strategy must

11、represent an adaptive response to the external environment and to the critical changes occurring within it.Advantage: Advantage: the strategy must provide for the creation/maintenance of competitive advantage in the selected area of activityFeasibility: Feasibility: The strategy must neither overtax

12、 available resources nor create unsolvable sub problems5工商管理专业MBALectu课件Strengths and Weaknesses ChecklistStrengths and Weaknesses Checklist6Marketing: product quality & differentiation, market share & research, pricing policies, distribution channels, promotional programmes, customer services, adve

13、rtisingResearch and Development: R &D capabilities in product and processManagement Information System: speed, responsiveness, quality, expandability, user-orientated systemManagement Team: skills, value congruence, team spirit, experience, coordinationOperations: control of raw materials & quality

14、& inventory, production cost structure & capacity, energy efficient, facilities and equipmentFinance: financial & operating leverage, balance sheet ratios, stockholder relations,tax situationHuman Resources: Employee capabilities, morale , development and turnover, personnel systems.6工商管理专业MBALectu课

15、件Environmental ChecklistEnvironmental ChecklistSocietal Changes : Customer perspectives change, product demand or designGovernmental Changes: new legislationEconomic Changes: interest rates; exchange rates, real personal income changesCompetitive Changes: adoption new technologies; new competitors,

16、price changes, new productsSupplier Changes: change in input costs; supply change, changes in number of suppliersMarket Changes: new use of products, new markets; product obsolesence7工商管理专业MBALectu课件Entrepreneurs EmergentEntrepreneurs EmergentHere the emphasis is on the leader and on mental states s

17、uch as: judgement, intuition, judgement, intuition, wisdom, experience, insight.wisdom, experience, insight.VisionVision and perspectiveperspective are key ideas here ( remember the working definition of creativity by Sternberg and Lubart (1991) SLIDE 12Vision Vision serves as both an inspiration an

18、d a sense of what needs to be done a guiding idea.Entrepreneurial Entrepreneurial concept comes for economics in particular Joseph Schumpeter (1950) Schumpeter was concerned with how organisations keep surviving in changing situations.He was concerned with how the leader created ideas, new ways of d

19、oing things: within this he introduced the notion of creative destructioncreative destructionSchumpeter was aware that economists like to deal with such things as money, machinery, land. He was concerned with things that are less tangible.Schumpeter held the view:Schumpeter held the view:That entrep

20、reneurs have not accumulated any kind of goods, nor created original means of production but have employed existing means of production differently, more appropriately, more advantageously. They have carried out new combinations. And their profit, the surplus to which no liability corresponds, is an

21、 entrepreneurial profit.The key thing here is doing things in new ways and the capitalist bore the risk.Importantly Schumpeter thought that once the founder /leader ceased to innovate he/she was no longer an entrepreneur.Richard Branson is someone who fits the idea of an Entrepreneur.工商管理专业MBALectu课

22、件Key points of EntrepreneurshipsKey points of EntrepreneurshipsStrategyStrategy exists in the mind of the leader as perspective, this is a long term direction, a vision of the organisations future.The process of strategy formation is semiconscious at best, rooted in leaders experience and intuition,

23、 the strategy may be conceived or adopted from others, but the Leader will internalise it in his or her own behaviour.The Leader promotes the vision vision single-mindedly, maintained close personal control of implementationThe strategic vision is thus malleable, the strategy can be the strategy can

24、 be deliberate and emergentdeliberate and emergent, deliberate in vision and emergent is how it unfolds.The organisation is equally malleable, responsive to the leaders malleable, responsive to the leaders directivesdirectives, many of the procedures and power relationships are suspended to allow le

25、ader to manoeuvreEntrepreneurial strategy tends to form of a nichetends to form of a niche, one or more positions in market protected form the forces of outright competitionRichard Branson CEO Virgin Corporation classic EntrepreneurRichard Branson CEO Virgin Corporation classic Entrepreneur工商管理专业MBA

26、Lectu课件Strategy Formation Key PointsStrategy Formation Key PointsStrategy formulation Strategy formulation is primarily concerned with the howhow question, with process:HowHow are strategies formed, implemented and changed?We have discussed several ways of thinking about strategies a broad perspecti

27、ve would suggest the process is seen variously:Rational, Intentional, Goal- directed , as well as Intuitive.What is clear is that their in not one unifying theory of how it is. Not necessarily a problemFOUR PHASES OF FORMULATIONFOUR PHASES OF FORMULATIONIdentification, Identification, Mission Settin

28、g, Agenda SettingDiagnosis: Diagnosis: External Assessment Internal AssessmentConception: Conception: Option Generation, Option selectionRealisation : Realisation : Action taking, Performance control ( SEE PYRAMID DIAGRAM)工商管理专业MBALectu课件Main strategy formation activitiesExternalassessmentAgendaSett

29、ingInternal AssessmentMissionSettingOption GenerationOption SelectionActionTakingPerformanceControlIdentifyingDiagnosingRealisingConceiving工商管理专业MBALectu课件Strategy FormationStrategy FormationFour Kinds of Strategy DynamicFour Kinds of Strategy DynamicImproving/Imitating; Migrating, Consolidating; In

30、novating. These apply to Improving/Imitating; Migrating, Consolidating; Innovating. These apply to products and servicesproducts and services A firm must always seek to exploit external opportunities and internal competencies, but also endeavour to strengthen its business context by exploring new op

31、portunities and renewing competencies. Whether strategies formation is formal or informal, deliberate or emergent, systematic analysis is a vital input into the strategy process. Without analysis and thinking, strategic decisions are susceptible to organisational politics, opinions rather than evide

32、nce, passing fashion. Remember that concepts, theories and tools are there to be helpful, they will not substitute for experience, commitment and creativity.The reason we engage in a strategy formation process is so that we gain a deeper understanding of the issue among stakeholders. In addition we

33、seek to identify the key factors relevant to our strategy.Such thinking approaches help to increase the flexibility among all managers and the organisation as a whole.工商管理专业MBALectu课件Common Elements in Successful StrategiesCommon Elements in Successful StrategiesSuccessful StrategyEffective Impl eme

34、ntationSimple ConsistentLong termsGoalsProfound understanding of the competitive environmentObjective appraisalof resources工商管理专业MBALectu课件Basic Framework Basic Framework strategy as a link between the firm and its environment Strategic FitFundamental to this view is the idea of strategic fit. of st

35、rategic fit. For the strategy to be successful, it must be consistent with the firms external environment and with its internal environment, its goals, and values, resources and capabilities, and structure and systems. For example General Motors (USA) long term decline associated with failure to bre

36、ak away from multi-brand market segmentation and to adapt to changing automobile market.THE FIRMGoals and ValuesResources andCapabilitiesStructure and SystemsTHE INDUSTRY ENVIRONMENTCompetitorsCustomersSuppliersSTRATEGY工商管理专业MBALectu课件Strategy Example: NokiaVISIONVISIONOur vision is a world where ev

37、eryone is connected. Our vision is a world where everyone is connected. Everyone has a need to communicate and share. Everyone has a need to communicate and share. Nokia helps people to fulfill this need and we help Nokia helps people to fulfill this need and we help people feel close to what matter

38、s to them. We focus people feel close to what matters to them. We focus on technology that is intuitive, a joy to use, and on technology that is intuitive, a joy to use, and beautiful.beautiful.We are living in an era where connectivity is We are living in an era where connectivity is becoming ubiqu

39、itous. The communications industry becoming ubiquitous. The communications industry continues to change and the internet is at the continues to change and the internet is at the centre of this transformation. Today the internet centre of this transformation. Today the internet is Nokias quest.is Nok

40、ias quest.Nokias strategy relies on growing, transforming Nokias strategy relies on growing, transforming and building the Nokias business to ensure future and building the Nokias business to ensure future success.success.STRATEGYSTRATEGYWe seek to grow, transform and build Nokia business We seek to

41、 grow, transform and build Nokia business based on our business strategies and strategic based on our business strategies and strategic capabilities. Our business strategies reflect the capabilities. Our business strategies reflect the primary focus of each of Nokias business areas as primary focus

42、of each of Nokias business areas as follows:follows:Lead and win in mobile devicesLead and win in mobile devicesGrow consumer internet servicesGrow consumer internet servicesAccelerate the adoption of business solutionsAccelerate the adoption of business solutionsLeverage scale and transform solutio

43、ns in Leverage scale and transform solutions in infrastructure.infrastructure.Our strategic capabilities are the priority areas Our strategic capabilities are the priority areas where we are investing with the aim of gaining where we are investing with the aim of gaining competitive advantage. The f

44、ollowing capabilities competitive advantage. The following capabilities can be shared among our several business areas.can be shared among our several business areas. consumer understanding consumer understandingBrandBrandTechnology and architectureTechnology and architectureChannels and supply chai

45、n.Channels and supply chain.Source (July2009)Source (July2009)Remember to always check what Remember to always check what companies say about themselves against companies say about themselves against the internal reality of the company the internal reality of the company and the perceptions in the e

46、xternal and the perceptions in the external environment.environment.工商管理专业MBALectu课件Roles of StrategyRoles of StrategyStrategy as a planning tool Strategy as a planning tool which gives direction to the organisation- a plan of what to do and aim for.Strategy as a support to decision makingStrategy a

47、s a support to decision making , strategy gives coherence to the decisions of an individual and the organisation. Bounded Rationality of our decisions. We are limited by the amount of information the human brain can handle. Strategy helps in several ways: Simplifies decision by constraining the rang

48、e of decision alternatives By acting as a heuristic rule of thumb that reduces the search for suitable solutions A strategy making process permits the knowledge of different people to be polled and integrated A strategy making process facilitates the use of analytic tools and frameworks ( SWOT, PEST

49、)Strategy as a co-ordinating deviceStrategy as a co-ordinating device: : The greatest challenge of managing an organisation is co-ordinating the actions of different organisational members. Communicating the vision, goals, objectives and position of the company is an important role of the CEO and To

50、p Management Team. The strategic planning process can provide a forum for this to take place. Here it is important that all groups in the organisation take part. Once this is implemented then the next phase is to ensure that all organisation members are working and moving forward in the same directi

51、on. The name for this is performance managementis performance management, which is a series of goals, targets, and performance measures for individuals and groups, divisions, department , throughout the organisations.工商管理专业MBALectu课件PERFORMANCE MANAGEMENT FRAMEWORKPERFORMANCE MANAGEMENT FRAMEWORKSER

52、VICE/BUSINESS PLANSDIRECTORATE PLANS & STRATEGIESCORPORATE PLANS & STRATEGIES STRATEGIC PLANORGANISATIONWIDELOCALSTRATEGICOPERATIONALCOMPETITIVE ADVANTAGEINDIVIDUAL STAFF PERFORMANCE , ACCOUNTABILITY & APPRAISALS工商管理专业MBALectu课件Strategic Change Key pointsStrategic Change Key pointsStrategic Change i

53、s an intellectual challenge in terms of thinking through the approach to be adopted, as well as a process of assisting people to deal with change and uncertainty.In broad terms strategic change is concerned with findings ways of successfully dealing with changes in markets, government policies, comp

54、etitiveness, technologies etc.Key to change is the ability of the firm to maintain position in the market while undergoing a major change process. The challenge of dual strategies how a company manages its existing activities while also nurturing new initiatives that will form the basis for its busi

55、ness in the future. Key concern can be the existing capabilities of the firm and the individual competencies of employees e.g. Management systems and employee skillsExample: British Airways and Continental failed to establish low budget airlines. Others like Google and 3M have managed dual strategie

56、s.HSBC Banking has managed the dual strategy of cost leadership and differentiation in full service banking and internet banking工商管理专业MBALectu课件A Framework for a Change architecture A Framework for a Change architecture Clarity in governance and accountability Engagement for key stakeholders in appr

57、opriate ways Securing alignment from the majority of the key stakeholders to the change process Effective, credible, accessible and appropriately transparent performance measures to gauge progress and success A balanced set of performance measures presented on a common framework (e.g. balanced score

58、card approach) Acquiring or developing new skills and capabilities and the mobilization of commitment and resources Learning to use our current knowledge to enhance our future knowledge in a search for enhancement of our products and services工商管理专业MBALectu课件Business processesMeasures GoalsTender Suc

59、cess rateProductivityUnderwriteProfitabilityInnovationMeasures GoalsStaff competencies%revenue from New servicesCustomer perceptionCustomerMeasures GoalsPolicy HoldersSatisfactionResponse times Quality of adviceFinancialMeasures GoalsRate on Capital EmployedCash FlowAsset utilisationRevenue GrowthA

60、Balanced Scorecard工商管理专业MBALectu课件Cutural Web as a means of understanding organisation and what new stories you may need for Change.Stories: heroes/heroines, successes, disasters, mavericksRoutines and Rituals: things that always happen e.g meet deadlines, arrive on time way things are done around h