Session #13 Strategic Management Dr. Mark H. Mortensen Sessions 001 and 270 Thursdays 6:00PM to 9:00PM Fall 2008 (c) Copyright 2008 Mortensen Consulting Group LLC

You Will be Prepared for Today Iff You: Have prepared your presentation on the group project. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Today 6:00 Discussion on Jay Borden’s Presentation Last Week Group A Presentation Group B Presentation ~7:30 BREAK Group C Presentation Discussion of Group Presentations Fill out Faculty Evaluation Forms Review Session for Final Exam Fill Out “Senior Exit Surveys” (Newbury Comics Video) 8:50 End (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

Jay Borden’s Presentation Last Week Job of the President in a Startup “Transformative Hires” Market Creation and Domination Importance of Trust (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Group A Presentation (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Group B Presentation (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Group C Presentation (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

Discussion on Group Presentations What areas were done well? What areas were done less well? Were there crisp opinions presented? Were the opinions supported by facts? Was the results proscriptive, and not just descriptive? Were the proposals innovative? How well did the visuals work? Did the presenters present well? (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC FINAL EXAM Review Session (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

Final Exam Review Session Review Course Objectives, Review Key Terms and Concepts I expect you to know and Key Tools I expect you to be able to demonstrate mastery of, Tell you the last two questions of the exam so you can prepare your answers to them ahead of time, if you so desire. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Course Objectives Become facile with the prevailing strategic management terminology, concepts and theories so as to be able to understand and converse with others about the strategic directions of a company, Understand corporate governance and how it influences strategic management of a company, and how it profoundly affects its future success, Learn how to take part in a strategic analysis as you identify central issues and courses of action in a framework you can convey to others in a compelling way, Be able to apply concepts learned in earlier courses in marketing, accounting, finance, management, production, and information systems towards achieving a set of corporate goals, Be able to include the impacts of a globalized economy in your strategic thinking, Begin to acquire the ability to recognize a good strategist, and a good strategy, both quantitatively and qualitatively, Improve your research capabilities to gather and interpret publically available data, turning it into understanding of the market and social forces to which businesses must constantly adapt. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

Final Exam Questions Will Test Your: Knowledge of the basic terminology and theories of strategic management, Understanding of the tools (IFAS, EFAS, SWOT, Competitive Matrix, etc.) and how they are used, Understanding of the strategies, organizational structures, and main strategic options and when they should be applied, Ability to give examples of all of these from companies we studied – Starbucks, Dunkin’ Donuts, Apple, Toyota, Harley-Davidson, Newbury Comics, Renesys, Granite – and optionally others, too. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 1 Be able to define “Strategic Management” to your mother and describe its importance to a corporation Be able to write down the 4-Step Strategic Management Model Be able to describe what goes into a SWOT Analysis and what you would do with the results (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 2+ Be able to articulate the purpose & responsibilities of a Board of Directors, the President, and the senior staff members in the different company structures (matrix, functional, divisional, simple) What are the key measures that an executive can use for managing a company? How did SOX (Sarbanes-Oxley) change that? Be able to discuss some of the current trends in corporate governance. Be able to articulate the importance of Executive Leadership, even in a “learning organization.” How does an executive leader ensure that there is a direction, it is a good one, and that it is followed? (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 3+ Be able to articulate what you believe is/are the goal(s) of a public company? (Profit, …) Shouldn’t there be more to business than just the search for profits for the shareholders? Some companies say “yes” and make it a part of their business plan. Know some examples of this. Be able to describe how managers balance short-term, well-defined business goals and longer term business and social goals. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 4 Be able to describe how a SWOT analysis fits into the overall strategic planning process (i.e. why bother doing?) Be able to take information and put it into a SWOT table. Internal scanning and analysis – be able to look at it and decide if it meets the criteria of a good “SWOT” analysis? (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 5+ Environmental Factors Analysis Summary (EFAS) and Internal Factors Analysis Summary (IFAS) – Tools for thinking thru what belongs on SWOT. Being able to do them. Strategic Positioning Chart – finding axes that allow different competitors’ (or products) relative positions in the marketplace to be seen easily. Several different forecasting techniques (e.g. Analytical, Delphi). Be able to look at some data from a Delphi and a simple linear analytical analysis and do a simple forecast. Be able to articulate the general approaches to corporate strategy (Defenders, Prospectors, Analyzers, Reactors) and recognize when they are useful. Be able to define “Business Model” and give some examples (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 6 Be able to recognize good EFAS and IFAS tables Be able to take an EFAS and IFAS and generate a good SWOT table Be able to articulate the Generic Strategies and describe Porter’s Competition Matrix Be able to describe the basic competitive tactics (Timing, Market Location, Defensive) and when they are useful Be able to recognize the various cooperative strategies and what the pros and cons of them are. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 7 (1of 2) Be able to describe the three Choices of Directional Strategy (Growth – vertical and horizontal, Stability, Retrenchment) and understand where they are useful Be able to look at a portfolio analysis done as a BCG Growth-Share Matrix and tell what the strategies should be for the various areas. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Session 7 (2 of 2) Be able to recognize the various Marketing Strategies (Product Development, Line Extension, Push, Pull, Skim Pricing, Penetration Pricing, Dynamic Pricing) and when they would be useful. Be able to articulate the pros and cons of a highly-leveraged financial strategy R&D Strategy Options: Leadership, Followership, Open Innovation – definition and pros and cons Operations Strategy: Pros and cons of customized solutions vs. mass production; Continuous Improvement concept Purchasing Strategy: sourcing options (multiple, sole, parallel) and definition & pros and cons of JIT Be able to discuss how one selects the BEST strategy (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

Final Exam Review Session If you want, you can print these out ahead of time (with your name on them) and attach them to the exam. The next-to-last question on the final exam will be: “Do a SWOT analysis of YOU - your internal strengths and weaknesses, and the external business environment (opportunities and threats) in the area you want to be in two years. Don’t fall prey to the mistake of putting down what you know and don’t know as your strengths and weaknesses – go for something more fundamental (e.g. ‘I have the ability to learn to play musical instruments,’ is good, but ‘I can play the piano really well’ is not.)” The last question of the final exam will be: “What are three major learning points that you are taking away from this course? How do you perceive these will influence/inform you in your eventual business career?” These will be graded on form and thoughtfulness. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008

(c) Copyright 2008 Mortensen Consulting Group LLC Reminder for Next Week Study for the Final Exam Written report on the Group Projects is due by 11:59PM on December 18, 2008 to mark_mortensen@uml.edu. (c) Copyright 2008 Mortensen Consulting Group LLC Fall 2008