1. Aims of Strategic Management Course
Understand the concepts of Strategy, Strategic Management and other basic vocabulary of strategy;
Identify the characteristics of strategic decisions;
Identify the various levels of strategic decision making;
Understand the various elements of the Strategic Management process.
Understand different approaches to strategy

2. Aims of Strategic Management What is Strategy?

3. Understanding the Origin
“Strategos”
The main task of the general – to lead, to direct, to show the way to the army.

4. Understanding the Origin
“The Art of War” - the oldest military manual written approximately b.C. by an ancient Chinese general, Sun Tzu.
“Sun Tzu and the Art of Business” (Mark McNeilly).
“Sun Tzu: War and Management” (Hou, W., Sheang, L. And Hidajat, B.)
“Sun Tzu: the Art of War for Managers: 50 Strategic Rules” (Gerald Michaelson).
“The Art of Strategy: A New Translation of Sun Tzu’s ‘The Art of War’” (Wing).

5. Sun Tzu’s Military Strategy and Management
“An army shouldn’t go to war, unless it is certain that it has an advantage over the enemy.”
Lesson: Management should not only know their own internal capability but also the resources and competences of their competitors.
“A territory must be conquered as quickly as possible, and unnecessary blood shed should be avoided.”
Lesson: Management should avoid unnecessary waste of time and resources.

6. Military Strategy and a Business Strategy
Objective
To conquer and control markets
To conquer and control territories
Analysis
Of the macro environment
Of the industry (microenvironment)
Resources and competences
Organisational structure
Control and co-ordination
Of the environmental conditions
Enemy’s strengthens and weaknesses
Own capabilities and limitations
Command structure
Leadership and co-ordination
Results
Strategic plan
Plan of campaign

7. Levels of Strategy Corporate Level
Business Unit Level (Strategic Business Unit)
Operational Strategies

8. Levels of Strategy Strategy and Tactics – War and batles
Without winning the battles we cannot win the war, but without determining first which victories are really critical to succeed, we cannot determine which battles are really necessary.

9. Definition of Strategy
“Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson and Scholes, 2005:9).

10. Another definition (cont.)
“The strategy of the firm is the match between its internal capabilities and its external relationships. It describes how it responds to its suppliers, its customers, its competitors and the social and economic environment within which it operates.”
Strategy is basically the way

11. The 5 P’s of Strategy Henry Mintzberg, 1987
PLAN: Consciously intended course of action
PATTERN: Consistency in behavior
POSITION: Where in its environment?
PERSPECTIVE: Ingrained way of perceiving the world
PLOY:

12. The Strategic Management Process

13. But Management isn’t Strategic Management
Managerial Functions Henri Fayol
To PLAN
To ORGANISE
To COORDINATE
To COMMAND
To CONTROL
But Management isn’t Strategic Management

14. What is Strategic Management?
“Strategic Management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisation to achieve its objectives” David (2003: 5).
“Strategic Management is a process of formulating, implementing, and evaluating cross-functional decisions that enable the organisation to define and achieve its mission, and ultimately to create value” Porth (2003: 2).

15. The Strategic Management Process

16. Prescriptive Strategy vs. Emergent Strategy
“Is one whose objective has been defined in advance and whose main elements have been developed before the strategy commences.”
Emergent Strategy
“Is a strategy whose final objective is unclear and whose elements are developed during the course of its life, as a strategy proceeds.” (Lynch, 2006:16)

17. The Strategy Lenses Strategy - deliberate or emergent ?
Intended strategy
Centrally controlled or
loosely coupled ?
deliberate
Unrealized
strategy
Realized
strategy
Emergent
strategy

18. Strategic Management in Different Contexts
Small business context
The multinational corporation
Manufacturing and services organisations
Strategy in the public sector
The voluntary and not-for-profit sectors

19. References
Johnson, G. Scholes, K. and Whittington, R. (2005). Exploring Corporate Strategy. 7th Edition. Harlow: Financial Times Prentice Hall.
Lynch, R. (2006). Corporate Strategy. 4th Edition. Harlow: Financial Times Prentice Hall.
Porth, S. (2003). Strategic Management: A Cross Functional Approach. New Jersey: Prentice Hall.
Stonehouse, G., Hamill, J., Campbell, D. and Purdie, T. (2000). Global and transnational Business: Strategy and Management. Chichester: John Wiley and Sons Ltd.

20. Lynch, R. (2006) “Corporate Strategy”. 4th Edition
Johnson, G. and Scholes, K. (2005) “Exploring Corporate Strategy”. 7th Edition
Lynch, R. (2006) “Corporate Strategy”. 4th Edition