1. Chapter 1 Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
輔仁大學 企業管理學系
林良陽老師

2. Strategy is a set of related actions that managers take to increase their company’s performance.
Strategic Leadership
Strategy Formulation
Strategy Implementation
Competitive Advantage: Results when a company’s strategies lead to superior performance compared to competitors

3. Superior Performance and Sustainable Competitive Advantage
One company’s profitability relative to that of other companies in the same or similar business or industry
Maximizing shareholder value
Competitive Advantage
When a company’s profitability is greater than the average of all other companies in the same industry & competing for the same customers

4. Company’s Business Model
Management’s model of how strategy will allow the company to gain competitive advantage and achieve superior profitability

5. Differences in Industry and Company Performance
A company’s profitability and profit growth are determined by two main factors.

6. Performance in Nonprofit Enterprises
Nonprofit entities such as government agencies, universities, and charities
A successful strategy gives potential donors a compelling message as to why they should contribute.

7. Strategic Managers Corporate Level Managers General Managers
Functional Managers

8. The Five Steps of the Strategy Making Process
Select the corporate vision, mission, and values and the major corporate goals and objectives.
Identify opportunities and threats.
Identify its strengths and weaknesses.
Select strategies.
Implement the strategies.

9. Crafting the Organization’s Mission Statement
Provides a framework or context within which strategies are formulated
Mission
Vision
Values
Major Goals

10. The Mission What is it that the company does?
What is the companies business?
Who is being satisfied ?
What is being satisfied?
How customer needs are being satisfied ?

11. The Vision What would the company like to achieve?
A good vision is meant to stretch a company by articulating an ambitious but attainable future state.

12. Values The values of a company should state:
How managers and employees should conduct themselves
How they should do business
What kind of organization they need to build to help achieve the company’s mission
Organizational culture

13. Major Goals
A goal is a precise and measurable desired future state that a company must realize if it is to attain its vision or mission.
Key characteristics of well-constructed goals:
Precise and measurable
Address crucial issues
Challenging but realistic
Specify a time period

14. 2. External Analysis
Purpose is to identify the strategic opportunities and threats.
External Analysis requires an assessment of:
Industry environment in which company operates
The country or national environments in which company competes
The wider socioeconomic or macroenvironment that may affect the company and its industry

15. 3.Internal Analysis
Purpose is to pinpoint the strengths and weaknesses of the organization.
Internal analysis includes an assessment of:
Quantity and quality of a company’s resources and capabilities
Ways of building unique skills and company-specific or distinctive competencies

16. 4.Selecting Strategies: SWOT Analysis and Business Model
SWOT analyses help to identify strategies that align a company’s resources and capabilities to its environment.
Functional strategies should be consistent with and support the company’s business level and global strategies.

17. 5.Strategy Implementation
After choosing a set of congruent strategies to achieve competitive advantage, managers must put those strategies into action.
The feedback loop.

18. Intended and Emergent Strategies
Intended or Planned Strategies
Emergent Strategies
Realized Strategies

19. Strategic Planning in Practice
Recent studies suggest that formal planning does have a positive impact on company performance – and should include the current and future competitive environments.
Scenario Planning
Decentralized Planning
Strategic Intent

20. Strategic Decision Making
In spite of systematic planning, companies may adopt poor strategies if groupthink or individual cognitive biases are allowed to intrude into the decision-making process.
Cognitive biases
Groupthink

21. Strategic Leadership
Good leaders of the strategy-making process have a number of key attributes:
Vision, eloquence, and consistency
Commitment
Being well informed
Willingness to delegate and empower
The astute use of power
Emotional intelligence