1. Concepts and process od strategic management
Lecture 1.
Concepts and process od strategic management

2. Schedule Sept. 11. Introduction, concepts, process of strategy
Sept. 18. Analysis of the environment
Sept. 25. Resources and capabilities
Oct. 2. Seminar: environment and resource analysis
Oct. 9. Competive advantages, and strategic alternatives
Oct Seminar: Strategic options
Nov. 6. Stakeholders, and corporate governance
Nov Portfolio-models, diversification
Nov. 20 Decision, and strategic goals
Nov Seminar: Stakeholders, and goals
Dec. 4. Implementation of the strategy
Dec. 11. Organization, culture, and change management
Dec. 18 Seminar or exam

3. Gerry Johnson, Kevan Scholes, Richard Whittington.
Course textbooks
Essential:
Gerry Johnson, Kevan Scholes, Richard Whittington.
Exploring Corporate Strategy. 7th ed, 2005
Or any other books from Johnson, and Scholes Exlporing Corporate Strategy.

4. Workbook: submitt et the end of the semester (50%)
Assessment
Written exam (50%)
Workbook: submitt et the end of the semester (50%)

5. Strategy
The strategy
is about winning !

6. The early days …
“Initially strategos refered to a role (a general in command of an army). Later it came to mean ‘the art of the general‘, which is to say the psychological and behavioral skills with which he occupied the role. By the time of Pericles (450 BC) it came to mean managerial skill (administration, leadership orienta-tion, power). And by Alexander‘s time (330 BC) it refered to the skill of employing forces to overcome opposition and to create a unified system of global governance“

7. The strategy and tactics by Clausewitz
The tactics: using the army to win the battle.
The strategy: using the battles to win the war.

8. A Definition of Strategy
Strategy is:
the direction and scope of an organisation,
over the long term,
which achieves advantage for the organisation,
through configuration of its resources,
within a changing environment,
to meet the needs of markets, and
to fulfill stakeholder expectations.

9. The purpose of the strategy?
The strategy are likely to be concerned with scope of an organization’s activities,
The strategy is to do with the maching of activities of an organizaton to the environment in which operat
The strategy is also to do with the maching of the organizaton’s activities to its resource capability,
The strategy have major resource implications for the organization
The strategy are likely to affect operational decisions,
The strategy will be affected by values and expectations of those who have power in and around the organizaton,
The strategy likely to affect the long term direction of an organization

10. Different types of managerial problem
Important problems: changing of established rules and processes
Urgent problems: maintaining the established rules and processes
Urgent problems
Not urgent problems
Important problems
Crisis management
(I have to do..)
Strategic management
(I really must get around to doing)
Not important problems
Tactical management
(I always seems to get trapped doing..)
Operational management
(I’ll probably ende up just doing..)

11. The difference between the strategic and operational types of management
Strategic management
Operational management
Ambiguity, Complexity, Non-rutine decisions
Simple modells, and Routinised decisions
Organization-wide
Operationally specific
Fundamental, and significant change
Small-scale change
Envirionment or expectation driven
Resource driven

12. The difference of the strategic and traditional approache
Strategic approache
Traditional approache
Concentrate on the environment
Concentrate on the company
Built on appraisal of the market and competition
Built on appraisal of the past achievement of the company
Aims to utilize of the competitive advantages
Aims to continue of the past trends

13. Competitive & Industry Analysis Implementation and Control
The Process View: Competitive Strategy as a Sequence of Steps that may overlap 1
Tasks : Key Questions ...
Competitive & Industry Analysis
Where do we stand ?
Where do we want to go ?
Strategy formulation
Implementation and Control
How do we get there ?
BBA_Str1v 13

14. Basic model of the strategic management process
analysis
Strategy
implementation
Strategic
choice 11

16. The strategic analysis
The strategic analysis is concerned with understanding the strategic position of an organizaton.
The main factors of the strategic analysis: organization.
The environment: provide on one hand threats upon the firm, and the same environment provide opportunities.
The resources: provide tools to ansvere the environmantal challenges, and determine strengths and weaknesses of the organizations,
Culture and expectations: determine values and expectations of those who have power in and around the organizaton,

17. The strategic choice and decision
The strategic choice is concerned with the strategic options, and a series of strategic decisions.
The main factors of the strategic choice:
Identifying and generating strategic options,
Evaluate of the strategic options in the context of the strategic analysis to assess their relaitive merits
Selection of new strategy, selectiong those option which the organization (and the main stakeholders) will pursue

18. The strategic implementation
The strategic implementation is concerned with the translation of strategy into action, projects, and programms.
The main factors of the implementation process:
Planning and allocating resources, and set up the controll systems
Re-form the organizational structure, design a new culture if it needs.
Managing strategic change

19. Strategy development routes
as outcome
(of cultural and
political processes)
Imposed
strategy
Intended
strategy
Realised
strategy
Unrealised
strategy

20. Patterns of strategy development
Continuity
Incremental
Flux
Transformational

21. Strategic evolution and consolidation
Strategic decisions eg
Product launch
Acquisition
Divestment
Overseas expansion
Evolving
strategic
direction
Strategies evolve and inform
strategic decisions, which in
turn consolidate strategic
direction

22. The dynamics of paradigm change
Development
of strategy
Implementation
Corporate
performance
The paradigm if
unsatisfactory
Step 1
Tighter control
Step 2
Reconstruct or develop
new strategy
Step 3
Abandon paradigm
and adopt a new one
Source: Adapted from P. Grinyer and J.-C. Spender,Turnaround: Managerial recipes for strategic success,
Associated Business Press, 1979, p. 203

23. 1 Industry and Competitive Analysis - Questions Tasks :
What is our business ?
How do we create value ?
What are our organizational and/or technological capabilities ?
Who are we in business with ?
How is our business/industry changing ?
What drives this change ?
What are our strengths and weaknesses ?
What opportunities open up, and what threats exist ?
Competitive & Industry Analysis ("Where do we stand?")
Strategy formulation ("Where do we want to go ?")
Implementation and Control ("How do we get there?")
BBA_Str1v 23