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PART ONE: ORIGIN OF STRATEGIC MANAGEMENT
London School of Commerce, Belgrade, 2012
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What is Management ?
Management
The process of getting things done effectively andefficiently, with and through people
EffectivenessDoing the right things, doing those tasks that help anorganization reach its goals
Eff ic iencyConcerned with the means, efficient use of resources likepeople, money, and equipment
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Four Management Functions
Planning Defining the organizational purpose and ways toachieve it
OrganizingArranging and structuring work to accomplishorganizational goals
Leading Directing the work activities of others
Control l ingMonitoring, comparing, and correcting workperformance
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Four Management Functions
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Functions by Organisational level
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Discussion
Human nature insist on adefinition for every concept....
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Discussion
...How would you describe a termstrategyin one sentence ?
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Definit ion of Strategy
There is no universaly accepted definition
Multiple definitions: Strategy as a Plan
Strategy as a Ploy
Strategy as a Pattern
Strategy as a Position
Strategy as a Perspective
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Strategy is a plan
Counsciosly intended course of action or set
of quidelines to deal with situation
Two essential characteristics:
Made with conscious and with purpose
Made in advance
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Strategy is a plan
In the army: drafting the plan of war... Shaping theindividual campaigns, deciding on the individual
engagements
In game theory: Strategy is a complete plan whichspecifies what choices will player make in every possible
situation
In management: Strategy is unified, comprehensive,
integrated plan .. designed to insure that the basic
objectives of the company are achieved
Von Clausewitz, von Newman and Morgenstern, Glueck
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Strategy as a ploy
Specific maneuver intended to outwit an
opponent or competitor
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Strategy is a pattern
A pattern is a stream of actions
Ford T in black
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Strategy is a posit ion
In world of management the word position
could be used as a niche, a product market
domain, the place in the environment
where resources are concentrated
Plan Ploy Position
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Strategy is a perspective
Strategy is a way of perceiving the world
Strategy is Weltanschauung (world view)
Strategies are abstraction which exist only inthe minds of interested parties
I-(pod,pad,phone) strategy
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Discussion
Which term is most suitable for you as a
description of strategy (if you were in
position to choose only one)
Plan (voted: students)
Ploy (voted: students)
Pattern (voted: students)
Position (voted: students)
Perspective (voted: students)
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Definit ion of Strategy
A strategy is the pattern or plan that
integrates an organization's majorgoals, policies, and action sequences
into a cohesive whole.
James Brian Quinn
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Definit ion of Strategy
A well-formulated strategy helps to marshal
and allocate an organization's resources into a
unique and viable posture based on its relative
internal competencies and shortcomings,
anticipated changes in the environment, and
contingent moves by intelligent opponents.
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Definit ion of other terms
Objectives
State what is to be achieved and when results are to be
acomplished
PoliciesRules or guidelines that express the limits within which
action should occur
ProgramsStep by step sequence of action necessary to achieve majorobjectives
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Discussion
Strategy vs. Tactics
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Deliberate and Emergent Strategies
Intended Strategy
Deliberate Strategy
Unrealised
StrategyRealised
StrategyEmergent
Strategy
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Question
To what extent you agree or disagree with
this statement
Business strategy is a mixture of
luck and judgment, opportunism
and design.
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PART TWO: THE S CHOO L OF STRATEGY
London School of Commerce, Belgrade, 2012
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Schools of strategy
Design school
Strategy as achieving the essential fit between internal
strenghts and weaknesses and external threats and
opportunities
Planning school
The process is formal and could be decomposed in steps and
checklists, supported by techniques.
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Schools of strategy
Positioning school (80s, M.Porter, BCG)
Strategy reduced to formal analyses of industry situations
Entrepreneurial schoolMoved strategy from functional (design,process) to visionary
process
Cognitive school
Strategy as mental (cognitiive, models, maps, schemas) process
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Schools of strategy
Learning school
Strategies are emergent, could be foound throughout the
organisation
Power school
Micro power, Macro power
Cultural school
Strategic changes influneced by culture
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Schools of strategy
Enviromental school
Dependence or independence of strategic manuevers in and
trough environment
Configuration school
Organisation is a configuration clusters of behaviors and
characteristics. Strategy - transformation
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Schools of strategy
Design school - Look before you leap
Planning school - A stitch in time saves nine
Positioning school -Nothing but facts
Entrepreneurial - Take us to your leader
Cognitive- I will see it when i believe it
Learning
If at first you dont succeed, try again
Power Look out for number one
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Schools of strategy
Cultural - An apple never fall far from the tree
EnvironmentalIt all depends
ConfigurationTo everything there is a season
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PART THREE : STRATEGISTS AND STEREOTYPES
O R F O U R M Y T H S A B O U T M A N A G E R ( S T R AT E G I S T S ) J O B
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Good manager...
... does deals (Tom Peters)
... is thinker(Porter)
.... is leader (Zaleznik)
... is controller (Fayol)
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Myth No.1
The manager is a systematic planer
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Fact No.1
Managers activity are characterised by variety,discontinuity and brevity
Mintzberg: 50% of the activities lasted than nineminutes, 10% exceeded one hour, average 583activities per day (study of 56 US foremen)
Stewart: Managers were able to work for a halfhour or more without interruption once every twoday
Aguilar: 93% of the verbal contacts were on ad hocbasis
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Myth No.2
The effective manager has no regularduties to perform
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Facts No.2
Managerial work involves performing a number of
regular duties, including ritual and ceremony,
negotiations, and processing of soft information that
links organisation with environment
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Myth No.3
The senior manager needs agregatedinformation, which a formal management
information system provides
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Facts No.3
Managers strongly favor the verbal media-
phone calls and meetings
Stewart: Managers spend 80% of their time
in verbal communication. Verbal information
is stored in the brains of people
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Myths No.4
Management is a science and profession
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Facts No.4
Scheduling time, processing infromation and
making decisions remains locked deep inside the
brains of managers.
Managers stil rely on words like judgment and
intuition.
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PART FOUR : STRATEGIC MANAGEMENT
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Strategic management
Strategic management includes:
Understanding the strategic position of an
organisation
Making strategic choices for the future
Managing strategy in action
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Strategic management
THE STRATEGIC
POSITION
Environment
CapabilityPurpose
Culture
STRATEGIC
CHOICES
Business-level
Corporate-level International
InnovationEvaluation
STRATEGY
IN ACTION
Processes
Resourcing
PracticeChanging
Organising
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Strategic posit ion
Understanding thestrategic position isconcerned withidentifying the impact
on strategy of theexternal environment,an organisationsstrategic capability and
the expectations andinfluence ofstakeholders
The Environment
Strategic Capability
Stakeholder
Expectations Cultural and Historical
Influences
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Strategic choices
Strategic choices
involve the options
for strategy in terms
of both thedirections in which
strategy might move
and the methods bywhich strategy
might be pursued.
Business-level
Corporate-level
International Strategy
Entrepreneurship and
Innovation
Evaluation/Success
Criteria
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Strategic Actions
Organising strategy
in action is
concerned with
ensuring that chosenstrategies are
actually put into
action.
Strategy Development
Process (intended and
emergent)
Structures, processes andrelationships
Resourcing Strategies to
support overall strategies
Strategic Change Practice of strategy
(people, activities,
methodologies)