Professional Business Management 2015 John Boon 1

© Unitec New Zealand 2 The white slides in this folder are drawn from Johnson, Scholes & Whittington 'Exploring Corporate Strategy', Harrow, England: Prentice Hall-Financial Times, 7th Edition, 2005.

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT 3 John Boon Associate Professor Department of Construction Xt 7045 Room

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Quantity Surveyor major projects Construction Manager building civil engineering Property Development Manager Project Manager in Architectural Firm Educator John Boon MBA, MProp, FRICS, FNZIQS. 4

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Commitment required Approximately 150 hours total time Attendance at all Block sessions 32 hours Self directed study 118 hours. Assessment Block 1 group presentation 10% Block 1 assignment Business Plan 30% Block 2 group presentation ethics 5% Block 2 assignment – finance25% Examination30% Professional Business Management 15 credits 5

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Your profession is also a business To be in business you need customers To have customers you have to have something they want To have customers you need to outsmart your competitors To stay in business you need to make a profit There is benefit in behaving ethically Key Messages of the Course 6

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT This Block: Business Strategy & PlanningJohn Boon Next Block: Financial ManagementBill Oldfield Business Ethics John Boon 7

The plan for block one Refer activity schedule 8

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>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Exchange Economy Parties agree things through contracts Prices are determined in the market dependent on supply and demand conditions The Context 10

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Imagine you are going to start your own business What would make it a good business? What makes a good business? 11

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Has customers and meets their needs or wants A good business: 12

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Meets the needs of its owners A good business: 13

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Is able to be sustained: Competitive advantage Profitable and reinvests in itself Can attract retain and develop good people Sustainable in the use of resources A good business: 14

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Its an iterative process You keep going around the loop until everything seems to fit. How do you think through what a business should do and be like? 15

© Unitec New Zealand 16 The business idea Exhibit II.I (p.62)

STRATEGY Deciding where you want to go and how to get there 17

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Deciding where you want to go and how to get there. Kenichi Ohmae “The smartest strategy in war is the one that allows you to achieve your objectives without having to fight” Sun Tzu 500BC Michael Porter “Finding the position in the market place that best suits your firms skills” Lowest cost vs Value added strategies Gary Hamel (London Business School) Deciding what a future market will look like and then stretching your firms skills so that it can take advantage of that market STRATEGY 18

19 Getting to Strategy Where are the opportunities? Vision Strategy Environmental conditions Competitor activity YOU why are you doing this? what do you have to offer? your values Customers wants Needs & values Competitive Advantage Plan

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Lenses for Strategic Formulation © Unitec New Zealand 20

21 Getting to Strategy Where are the opportunities? Vision Strategy Environmental conditions Competitor activity YOU why are you doing this? what do you have to offer? your values Customers wants Needs & values Competitive Advantage Plan

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT What’s going on in the environment in which we wish to do business that provides us with opportunities or threats? PEST analysis PEST_analysis notes Washington Uni.pdf PESTAnalysisWorksheet.pdf Exercise 1 PEST analysis You are particularly looking for change as that’s where the opportunities are: Environment Scanning 22