Welcome to Strategic Management BMGT 682 Welcome to Strategic Management My name is Ray Van Ness Please call me “Ray” 1 min

Greetings & Introductions Please take a minute and introduce yourself To the people sitting around you AND Say hello to old friends Greetings & Introductions 1 min

My background… … the prism through which all information I give you is filtered ACCOUNTANT to EXECUTIVE to ENTREPRENEUR to PROFESSOR 20+ years in business followed by 30+ years of teaching: Started as as general accountant …then… Traveling Internal Auditor for International shoe manufacturing Corp. Cost Accountant in steel industry Corporate Controller in photographic industry Vice President of Finance, elected to board of directors, later elected as Executive VP, then President & CEO, in photographic and graphic arts industry Entrepreneur: Purchased multiple growth oriented corporations Later sold businesses, retired for a few days and began another career as an educator Here I am, 30 + years into my teaching career  2 mins

What is this “MANAGEMENT” course about? It is – More about PROCESS and Less about NEW CONTENT You are encouraged to focus on thinking and acting in unique ways… Dare to challenge the status quo and still be likeable…

This course will be conducted as a Professional Development Workshop How will Your Course be conducted? This course will be conducted as a Professional Development Workshop It will be EXPERIENTIAL with competing OPINIONS and energetic DISCUSSIONS and you should expect to experience CREATIVE TENSION Strategic Concepts will be presented by you Case Studies will be presented by you Merger Activities & Strategic Debates will be by you 2 mins

What is this “MANAGEMENT” course about? It is about: 1. ASSESSING corporate strengths, weaknesses, opportunities and threats. 2. CONTEMPLATING effective corporate strategies for capitalizing on strengths to take advantage of opportunities and minimizing weaknesses and threats.   3. TEAM WORK ABILITY 4. PEOPLE SENSITIVITY SKILLS 5. CRITICAL THINKING SKILLS 6. COMMUNICATION SKILLS Practice communicating financial information Practice communicating strategies Practice capturing and maintaining the attention of others 7. POWERS OF PERSUASION SKILLS Effective managers must develop strong persuasion skills Aristotle, the Greek philosopher, identified three methods of persuasion and effective managers have mastered each: Logos = Persuasion by REASONING Pathos = Persuasion by EMOTIONAL APPEAL Ethos = Persuasion by CHARACTER You are encouraged to practice each of these persuasion skills

Course Purposes and Objectives CRITICAL THINKING To create an environment that supports critical thinking and encourages creative problem solving CREATIVE TENSION To provide an environment where differing opinions are seen as a valuable and productive source for CREATIVE TENSION. Thought: You learn more from the person who disagrees with you than from the one who agrees. SKILLS & TOOLS To add to your arsenal of management skills and abilities. PEER LEARNING To support and encourage the process of peer-to-peer (coworker) learning. Thought: Asking for and listening to opinions of coworkers offers not only a rich opportunity for learning but also the likely benefit of endearment. EFFECTIVE EXPRESSION & PERSUASION To encourage and support the practice of expressing appropriate personal opinions, thoughts, concerns, and ideas in a persuasive manner. 2 mins

Syllabus: Distribution & Discussion Syllabus -- click 2 mins

(Leader will earn 200 bonus points) Formation of 6 Teams The Professor has divided the class into 6 distinct Teams Teams will elect A Team Leader (Leader will earn 200 bonus points) 2 mins

Elect your team officers Take a Break – and -- 2 mins Elect your team officers

Team Assignments (see syllabus) Team 6: You will be presenting Chapter 2: Charting A Company’s Direction. Power Points are on the course website to help you with your planning. Select a MAXIMUM of 20 slides for your presentation. Teams 1, 2, 3, 4, & 5: Read Chapter 2 in the text AND read Case 10 – page C-140) 2 mins Members of teams 6 and 1 please see me immediately after class

Thoughts about Strategy Brief points… Thoughts about Strategy 2 mins

Strategic Questions 1. What’s the company’s present situation? 2. Where does the company need to go from here? 3. How should it get there? A company’s answer to “How it will we get there?” is its strategy 2 mins

Strategy… Strategies can be: Consists of Management’s competitive moves and business approaches Combines planning, decision-making, and actions Strategies can be: OFFENSIVE (primary goal: grow market share; pressure competitors) CONSERVATIVE (primary goal: avoid risks; minimize confrontations with strong competitors)

Strategy is reflected in “actions” rather than words”

The HOWs That Define a Firm's Strategy How to grow the business How to please customers How to outcompete rivals How to manage each functional division (R&D, production, marketing, HR, finance, and so on) How to respond to changing market conditions How to achieve a competitive advantage and targeted levels of performance Strategy is HOW to . . .

(Antique Car parts companies) Four Strategic Approaches to Building Sustainable Competitive Advantage Successful firms develop bases for competitive advantage 1. Cost leadership (Advantage: Known for low prices) (Wal-Mart) 2. Differentiation (Advantage: Distinctive, desirable features to product or service) (Harley-Davidson) 3. Narrow market niche (Advantage: able to satisfy the need and desires of customers within a micro market) (Antique Car parts companies) 4. Developing superior expertise and resources (Advantage: able to make it difficult for competitors to replicate products or services) (Microsoft) 2 and 4 are very closely related

Evolution of strategies is powered by: Strategies are always works in progress… Evolution of strategies is powered by: Shifting market conditions Technological breakthroughs New actions by competitors Evolving customer preferences Emerging market opportunities Creative thinking Crisis situations Company strategies are generally partly Proactive and partly Reactive

Strategies planners ask: Is our current path INEFFECTIVE? Do we have a corporate culture RESISTANT to CHANGE? Do we need to be more FLEXIBLE? Do we need to be more ADAPTIVE? Do we need to be more INNOVATIVE? Do we need to be more COMPETITIVELY AGGRESSIVE? In summary, Strategic planners think, plan, and act…. Now it’s your turn…

Movie, Meeting, Closing comments Brief Movie (2) Closing comments (3) Professor meeting with Team 6 and Team 1 2 mins