Dr Ridhwan Fontaine Week 7 Strategy Dr Ridhwan Fontaine Week 7

Good News Last Class – 2weeks away Deadline for ALL assignments – 28 July Final exam – 30 July (9am to 12pm)

Today’s Agenda Review key points so that they are engrained in your mind Continue our exploration of conventional strategic management

1st Game Sisters vs brothers Draw a comprehensive mindmap that reflects the course so far

2nd Game Sisters vs brothers Find one sentence that summarises the whole course so far

Conventional strategic model External analysis (Porter 5 Forces) Internal Analysis (policies and processes) Generic strategy (cost or quality) Strategic Decision Making

2 Generic Strategies Quality – perception – earn more profit Cost – more objective – volume business Generic strategies reflect the needs and wants of customers Generic strategies influence every decision made to execute the strategy

Strategy Decision Making Types of Decisions Offensive (economic growth) Defensive (economic downturn) Grow internally (organic growth) Grow by acquiring other companies Grow domestically Grow internationally First mover advantage Second mover advantage Diversification Focus on core business

Strategy Decision Making and the Case of Ford – A Quick Analysis Types of Decisions Offensive (economic growth) Defensive (economic downturn) Grow internally (organic growth) Grow by acquiring other companies Grow domestically Grow internationally First mover advantage Second mover advantage Diversification Focus on core business

The problem Most people think about profits / increased sales / increased market share first (present) They forget about achieving the strategic objectives (future) They forget that every decision increases or decreases risk

Strategy Decision Making in Relation to Generic Strategies and Risk Types of Decisions Profit Strategic Objectives Risk Offensive (economic growth) From 11% to 9% Achieved Increased Defensive (economic downturn) From 11% to 13% Not achieved Decreased

Strategy Decision Making in Relation to Generic Strategies Types of Decisions Profit Strategic Objectives Risk Grow internally (organic growth) Up by 2% Achieved Increased Grow by acquiring other companies Up by 6% Not achieved Decreased

Strategy Decision Making in Relation to Generic Strategies Types of Decisions Profit Strategic Objectives Risk Grow domestically Up by 3% Achieved Decreased Grow internationally Up by 1% Not Achieved Increased

Strategy Decision Making in Relation to Generic Strategies Types of Decisions Profit Strategic Objectives Risk First mover advantage Up by 3 % Achieved Decreased Second Mover advantage Up by 5 % Increased

Strategy Decision Making in Relation to Generic Strategies Types of Decisions Profit Strategic Objectives Risk Diversification Up by 3 % Achieved Increased Focus on Core Business Up by 5 % Decreased

Let’s Focus on the Assignments and Reflections

Marking scheme Attending a 2 day Islamic leadership workshop + reflections Diary on unintended consequences Final exam (decentralised – on 2nd August as I have to fly to France on the 5th) 40 % 20% 40%

Your Personal Assignment (20%) Every week, observe decisions that people make around you that have UNINTENDED CONSEQUENCES You can also interview people – most people have stories about unintended consequences Summarise the situation and explain the decision and the UNINTENDED CONSEQUENCE. In your report, you must provide at least 8 situations with a decision and the UNINTENDED CONSEQUENCE

Islamic leadership – Shared Understanding Leads to a Corporate Culture Day 1 (9am to 5pm) Day 2 (9am to 5pm) Linguistic miracles of the Quran – Why are we Muslims? Culture? Born in a family? Thematic overview of the Quran – surah al Asr – iman, amal salih, truth, sabr => working as a community. Helping others is a necessary. Surah al-Fatihah – Understanding people – people who are blessed, people who are cursed or people who are lost Surah Yasin – methodology to find the truth – thinking about revelation, history and the world around them.

My Main Research Question How does iman increase? Muslim has got specific questions (e.g. al Qadar) and his iman will only increase when he specific question is resolved (the specific hypothesis) Muslim has got specific questions (e.g. al Qadar) but any increase in Islamic knowledge will increase his iman (the general hypothesis)

Your job – Write a report of the workshop Summarise what you hear during the 2 workshops – marks depend on the quality and the quantity of the summary Which module do you find the most inspiring? Why? Based on your personal opinion, do you believe in the specific hypothesis or the general hypothesis? Why?