1. 1 Fall 2008 (c) Copyright 2008 Mortensen Consulting Group LLC Session #10 Strategic Management Dr. Mark H. Mortensen Sessions 001 and 270 Thursdays 6:00PM to 9:00PM

2. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 2 Fall 2008 You Will be Prepared for Today IFF You: Read H&W Chapter 10 Scanned Chapter 11, if you had time Do Assignment #5 (Read Toyota Motors Case Study, prepare to answer questions in class as a group, and do the Temperament Sorter questionnaire)

3. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 3 Fall 2008 Today 6:00Key points from last week Lecture/Discussion on Chapter #10 Group work on Assignment #5 Break Readout of Assignment #5 & Discussion on Personality Types Lecture/Discussion on Chapter #11 Group Project Template Discussion Review Study Guide for Quiz 8:50 End

4. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 4 Fall 2008 Key Points from Last Week – Harley-Davidson Case Study Responding to competition by fixing internal quality (or margin) operational problems Focusing on customers How demographic and customer preference changes can undermine a company’s success, forcing changes in the company’s strategies and tactics.

5. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 5 Fall 2008 Key Points from Last Week – Chapter 9 Strategy Implementation is the sum total of activities and choices required to execute a strategic plan Strategy is implemented via Programs, Budgets, and Procedures Strategy, size, and company maturity determine the company’s structure (Simple, Functional, Divisional, Beyond SBUs – Matrix, Virtual, Cellular)

6. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 6 Fall 2008 Lecture/Discussion on Chapter 10:

7. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 7 Fall 2008 Assignment #5 (Toyota) Due by:6:00PM, Thursday, 6 November 2008 Prepare for group work in next class. Fill out the Kiersey Temperament Sorter-II questionnaire found at www.advisorteam.com (look at the upper right of the web page) and print out your resulting personality type. The free report is sufficient. www.advisorteam.com Read the assigned Toyota Motors Case Study and prepare to work together with your Group next week in class to answer the following questions in 30 minutes. One member of the team will serve as spokesperson and present to the class:  What R&D strategy was Hiroshi Okuda following with the introduction of the Prius?  Why did Toyota decide on the hybrid technology – was it a rational decision, backed up by hard facts?  Given what has happened since, with the increased price of gasoline and the increased sales of the Prius, but given it is 2008, was the strategy successful?  Describe the process that your group went through to make its decisions on the above.

8. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 8 Fall 2008 Meyers-Briggs Personality Categories ExtroversionIntroversion IntuitionSensation ThinkingFeeling JudgingPerceiving

9. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 9 Fall 2008 Personality Types Guardians Idealists Rationals Artisans Architect (INTP) Field Marshal (ENTJ) Inventor (ENTP) Mastermind (INTJ) Supervisors (ESTJ) Protectors (ISFJ) Inspectors (ISTJ) Providers (ESFJ)

10. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 10 Fall 2008 Lecture/Discussion on Chapter 11

11. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 11 Fall 2008 Group Project Template Discussion For the Group Project, you will do a Strategic Analysis of Gomez, Inc. www.gomez.comwww.gomez.com Source material for the Group project can be found on my faculty web site – http://faculty.uml.edu/mmortensen http://faculty.uml.edu/mmortensen There is a PowerPoint template there that can be used for the group presentation A written Strategic Analysis example can be found in the book in Appendix 15.C – you will need to turn this in.

12. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 12 Fall 2008 Study Guide for Next Week’s Quiz on Chapters 9, 10, & 11

13. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 13 Fall 2008 Study Guide: Chapter 9: Organizing for Action Strategy Implementation definition How is strategy implemented (Programs, Budgets, and Procedures – definitions and examples)? Relationship of strategy, size, and company maturity in determining the company’s structure (Simple, Functional, Divisional, Beyond SBUs – Matrix, Virtual, Cellular. Definitions and examples.)

14. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 14 Fall 2008 Study Guide: Chapter 10: Staffing and Directing Relationship of strategy and how upper management is staffed Options in bring together cultures in an M&A situation (Integration, Assimilation, Separation, Deculturization – Definitions and examples) MBOs – What is it? How to apply it. TQM – What is it? What does it attempt to do? What is its approach/philosophy?

15. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 15 Fall 2008 Study Guide: Chapter 11: Evaluation & Control Evaluation and Control via Input, Behavior, and Output Controls – Definitions and examples Primary measures of Performance (ROI, EPS, ROE, Operating Cash Flow, Free Cash Flow, Shareholder value, EVA, MVA – Definitions and examples) Balanced Scorecard – what is it, and pluses and minuses Benchmarking – what is it, why do it, and examples Problems with measuring performance and the applicability of the law of unintended consequences.

16. Mortensen Consulting Group (c) Copyright 2008 Mortensen Consulting Group LLC 16 Fall 2008 Reminder for Next Week Study for Quiz on Chapters 9-11 for next week Read through the Group Project Template I suggest you scan the material for the Group project and start to organize your groups.