22-Jan-18

North South University Unit Coordinator

School of Business & Economics (SBE) Dr. M. Nazmul Amin
ALA Scholar

Experience/Research
Degrees
BSc Ag (Honours)
BUS 690 MS in Agronomy
Master in Public Policy & Management (Monash)
Strategic Management; Sec. 2 PhD in Business & Economics (Monash)
ACBA (IBA, DU)
Spring Semester, 2018 Research areas
Week 1 & 2 Strategic Management
International Business
Change Management
Compensation Management
Corporate Social Responsibility
Human Resource Management

Student consultation Important!

Room: NAC 992
Email: nazmul.amin@gmail.com
You MUST buy the text book
Consultation Time:
Face-to-face (From Week 2) You MUST bring the print copy of
R 985; Fridays: 8am-9am; 12pm-1pm; lecture notes in the class
Saturdays, 6pm-7pm or by appointment; Attending lectures and class
E-mail
discussions is an absolute MUST
Anytime

Unit objectives
Identify and explain the core concepts of strategic
management;
Explain and analyse the relationships between
strategy formulation, strategy implementation and
strategy evaluation;
 Develop analytical skills to plan the future of an
Course Assessment Strategy/
organisation in its competitive environment; Grading Components
Critically analyse and implement business strategy
tools, such as corporate social responsibility (CSR)
Apply the theory and concepts to case analysis
Analyse key current issues in SM
Broadly understand the strategic challenges
businesses are facing in the 21st century

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Component/Coverage Points Date Due Five-minute presentation

Class Participation
Class Performance 10%
Write-up: 500-600 words (Maximum)
[Pop Quiz+Industry Analysis+General Discussion etc]
Class Activities and Performance 5% Presentation: 5 minutes (Maximum)
[Group Workshop and Presentation]
Assignment 1 (Project One) 15% See the Schedule =====================
[preselected business case presentation will start from week 5]
Presentation (Part 1) + Written Report (Part 2) [Teamwork] o Introduction: History, present position,
Assignment 2 (Project Two) 15% 30 March 2018
Business Case Development and Presentation
customers, etc.
Research Report (Part 1) + Presentation (Part 2) [Teamwork]
[Maximum 7000 words with APA format] o Description of the industry: market size, major
Midterm Examination 1 15% Week 4 players, products and services, home and abroad
[official examination week]
Midterm Examination 2 15% Week 08 businesses, market potentials, weaknesses, etc.
[official examination week]
Final Examination 25% Week 14 o Major challenges and future outlook:
[official examination week]
o Reference

Assignment 1 (Project One) Assignment 2 (Project Two)

 [preselected business case presentation will start from week 5]  Business Case Development and Presentation
Presentation (Part 1) + Written Report (Part 2) [Teamwork]
 Research Report (Part 1) + Presentation (Part 2) [Teamwork]
Evaluation Criteria
Structure Provide a strategic analysis of your selected company/Industry.
Content Individual report on one of the selected companies:

Visual aids o A Non-Banking Financial Institution (NBFI) in Bangladesh.

o A Platform Business in Bangladesh.
Presentation
o A Real Estate Company in Bangladesh.
Referencing
o Fashion Retail Industry in Bangladesh.

Grading Components: Summary

1.Country Road Discussion & Presentation: week 3 & 4: 5 marks
[all students-team work, only presentation, Time: 5-7
minutes/team];
2.Industry Research Report: 5 marks [all students-individual work-
report writing & 5-minute presentation-will start from week 3];  Plagiarism
3.Group Workshop: 5 marks [Topic: The Art of War; all students-
team work, report writing & 5-7 minutes presentation-will start  Must be your own work
from week 8];
4.Assignment 1 (project one): 15 marks [preselected business case
 Sources must be acknowledged properly
analysis, all students-team work, report writing & 25 minutes
presentation-will start from week five];
5.Assignment 2 (project two): 15 marks [business case
development; all students-team work, report writing & 20
minutes presentation-will start from week 12];
6.Examination: 2 mid-30 marks & final 25 marks;

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Today’s learning objectives Strategy

Define & discuss
Strategy Competitive moves & business approaches
Strategic management management employs in running a company..
Identifying the core issues
Strategy & the quest for competitive advantage Strategy defines the company’s distinctive
Strategy is partly proactive & partly reactive approach to competing & the competitive
What makes a strategy a winner?
Strategic vision & strategic mission advantages on which it will be based…
Strategic management process Strategy is not the same as vision/values…
Importance of SM
Challenges of SM Strategy is more than a particular action…
IO model & Resource based model Strategy is different than aspirations…
Business model

Strategy
Management’s ‘game plan’
Attracting & pleasing customers…
•Setting Strategy
Positioning a company its chosen market… • A great strategy has pieces,
Competing against rivals… …but they form a coherent
Achieving good business performance… whole!

Survival through Growth & Profitability

Henry Mintzberg (McGill University) Mintzberg’s ‘Five Ps for Strategy’

Strategy is “A pattern in a Strategy as plan Consciously intended course of action
stream of decisions”.
Strategy as ploy Specific manoeuvre to outfit
Plan
opponents
Ploy
Strategy as pattern Pattern in a stream of actions
Pattern
Strategy as position Position in relation to the
Position
organisation’s environment
Perspective
Co-authored “Strategy Safari” which identified Strategy as perspective The organisation’s shared mindset
ten different strategy schools/ approaches

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Thinking Strategically
The Three Big Strategic Questions
1. Where are we now? [our current position]
2. Where do we want to go? [the big picture]
 Business(es) to be in & market positions to stake out
The Development of Strategic
 Buyer needs & groups to serve
 Out comes to achieve
Thinking in Management
 [BHAG (big hairy audacious goal)]
3. How will we get there?
 A company’s answer to “how will we get there?” is its
strategy. [Abell’s (1980) Framework]

The Development of Strategic Thinking in Management Alfred Chandler (Harvard) 1918-2007

Early contributors (Academia):  Pulitzer Prize winning business
historian
Alfred Chandler
 From studies of GM, DuPont,
Kenneth Andrews Exxon, & Sears from 1900s to
1940s explained the structure of
Igor Ansoff the multidivisional firm and argued
Early contributors (Consulting companies) that structure follows strategy
 “Strategy can be defined as the
McKinsey & Co: determination of the basic long-
Peters & Waterman (In Search of Excellence) term goals and objectives of an
enterprise, and the adoption of
Kenichi Ohmae (Global Strategy) courses of action and the allocation
of resources necessary for carrying
Boston Consulting Group (BCG) out these goals” (Strategy & Structure, 1962, p 13)
Bruce Henderson (BCG Matrix)

Kenneth Andrews, Harvard (1916-2005) Igor Ansoff (Carnegie Institute of Technology)

 Father of Corporate Strategy (1965)
 Led the articulation of
 “Strategic management is a
courses in corporate strategy systematic approach to a major and
at Harvard, from courses in increasingly important
responsibility of general
“Business Policy” management: to position and relate
 Father of SWOT analysis & the firm to its environment in a way
which will assume its continued
the use of Case Studies success and make it secure from
surprises”
(Igor Ansoff & Edward McDonnell, 1990)
 Need to adapt management
Organisation approaches to rates of
Environment
environmental change

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Tom Peters Kenichi Ohmae

 Co-creator of the McKinsey 7-S framework
 Co-author of ‘In Search of Excellence’ (1982)
 “What is a good strategic plan? There is none. But there is
a good strategic planning process.
 A good strategic planning process:
 gets everyone involved
 is not constrained by overall corporate “assumptions”
(e.g., about the general economic picture)
 is perpetually fresh, forcing the asking of new questions
 is not left to the planners, and
 requires lots of noddling time and vigorous debate.
 As far as the document per se, it is:
 is succinct
 emphasises the development of strategic skills, and
 is burned the day before it is to go to the printer- that is, it
is a living document, not an icon”. Tom Peters, 1987
 Co-founder of McKinsey’s strategy practice;
extensive contributions to global strategies
 In making strategy, first comes painstaking
attention to the needs of customers.
 Then comes close analysis of a company’s real
degrees of freedom in responding to those
needs.
 Then comes the willingness to re-think,
fundamentally, what products are and what they
do, as well as how best to organize the business
system that designs, builds, and markets them.
 Competitive realities are what you test possible
strategies against; you may define them in terms
of customers.
 Before you test yourself against competition,
strategy takes shape in the determination to
create value for customers.

Bruce Henderson (1915-1992) Michael Porter (Harvard)

Founder of the Boston  Argued that the structure of
Consulting Group & the market determined the
creator of the BCG matrix competitive landscape and
& the Experience Curve hence the shape of a firm’s
strategy
 Dominated strategic thinking
during the 1980s and 90s.
 “The essence of strategy
formulation is coping with
competition”.(1979)

Gary Hamel (Michigan; LBS) C.K. Prahalad (Univ of Michigan)

 Early work related to resource-based
theory (e.g. with Hamel)
Strategy in a business  Demonstrates the way in which
strategic thinking is about
comprises four components conceptualisation of situations, e.g.
(Hamel, Leading the Revolution, p70): The Fortune at the Bottom of the
Pyramid, 2008
– Core strategy  Recent work on new business models
integrating IT and strategy and the
– Strategic resources relationship between strategy,
– Customer Interface business models and business
processes; the N=1 and R=G principles
– Value network for innovation model
(N= No. of customers; R= source of
Resources; G=Global)

The New age of Innovation

(Co-Creation of Value)

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Richard Normann (1943-2003) (Lund University)
Strategy is the art of creating value
Richard Normann & Rafael Ramirez, 1993
Evolutionary Theorist: Robert Burgelman (Stanford)
Has pioneered the study of
firm’s co-evolving with their
environments
Mentor to Andy Groves and
studied Intel’s approach to
strategy over 12 years
(Strategy is Destiny)
Finally, approaches to
strategy are influenced by
business leaders….
22-Jan-18
Kim Warren (London Business School)
 “Strategic management is
about building and sustaining
performance into the future”
(Strategic Management
Dynamics, 2008, p 4)
Arie P.De Geus (Shell)
 In 1980s, the planning group at shell
surveyed 30 companies that had been in
business for more than 75 years. What
impressed us most was their ability to
live in harmony with the business
environment, to switch from survival
mode when times were turbulent to a
self-development mode when times
were slow. And this pattern rang a
familiar bell because shell’s history is
similarly replete with switches from
expansion to self-preservation and back
to growth……
 …For this reason, we think of planning
as learning and of corporate planning as
institutional learning. (The Learning Company, 1988)
Finally, approaches to strategy are
influenced by business leaders….
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Strategy: Proactive and Reactive Strategic Vision vs. Mission

Strategies are a blend of proactive initiatives and
reactive adjustments
A strategic vision portrays a company’s future
Abandoned strategy
elements
business scope (“where are we going?”),
Proactive strategy elements
New indicatives plus ongoing Latest
whereas a company’s mission typically
Vision & strategy elements
version
strategy Strategy in describes its present business and purpose
Adaptive reactions to changing action
circumstance
(“who we are, what we do, and why we are
Reactive strategy elements

here?”) (Thompson et al., page 20)

Characteristics of an effectively worded strategic vision Common short comings in company vision statements
(Kotler, 1996) (Davidson, 2002; Robert, 1992)

Vague or Is short on specifies about where the company is headed or what the
Graphic Paints a picture of the kind of company that management is trying to
incomplete company is doing to prepare for the future
create and the market position(s) the company is striving to stake
out. Not forward Does not indicate whether or how management intends to alter the
looking company’s current product/market/customer/technology focus.
Directional Is forward-looking; describes the strategic course that management
has charted and kinds of product/market/customer/technology
circumstances change. Too broad Is so umbrella-like and all-inclusive that the company could head in
most any direction, pursue most any opportunity, or enter most any
focused Is specific enough to provide managers with guidance in making
business.
decisions and allocating resources.
Bland or Lacks the power to motivate company personnel or inspire shareholder
Flexible Is not a once-and-for-all-time statement-the directional course that
uninspiring confidence about the company’s direction or future prospects.
management has charted may have to be adjusted as
product/market/customer/technology circumstances change.
Not Provides no unique company identity; could apply to companies in any
Feasible Is within the realm of what the company can reasonably expect to distinctive of several industries (or at least several rivals operating in the same
achieve in due time. industry or market arena).
Desirable Indicates why the chosen path makes good business sense and is in Too reliant Does not say anything specific about the company’s strategic course
the long-term interests of stakeholders. on beyond the pursuit of such lofty accolades as best, most successful,
Easy to Is explainable in 5-10 minutes and, ideally, can be reduced to a superlatives recognized leader, global or worldwide leader, or first choice of
communicate simple, memorable slogan (Ford’s famous vision of ‘A Car in Every Garage’) customers.

Well-constructed goals have five main characteristics

A goal is a precise & measurable desired 1. They are precise and measurable
future state that a company attempts to 2. They address critical issues
realize. 3. They are challenging but realistic
 The purpose of goals is to specify with 4. They specify a time period in which the
goals should be achieved
precision what must be done if the
company is to attain its mission or 5. Well-constructed goals also provide a means
by which the performance of managers can
vision.
be evaluated

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Strategic Management (SM)

Who participates in crafting strategy? No set of rules
Strategic management is the study of why some firms
outperform others
CEO (Chief Executive Officer) How to compete in order to create competitive advantages in the
marketplace
Senior executives How to create competitive advantages in the market place

Managers of subsidiaries, divisions, SM is a ‘Capstone’ subject

plants, other important operating units It covers aspects of:
– Management
(and, often, key employees) – Economics
– Marketing
– Accounting & finance
– International business
– Many more………..

Importance & Challenges of SM

Strategic Management Process
Importance
Allows (identification, prioritisation and exploration of
opportunities)
Minimises (effects of adverse conditions and changes) The set of processes used to determine the
Helps (develop a framework for improved coordination &
control activities) strategies for the organisation
Guides (entire organisation regarding ‘what it is we are trying to Identifying an organization’s existing vision,
do & achieve)
Challenges mission and setting objectives followed by
Change & competition strategy formulation, implementation &
Current success (guarantee of future???) evaluation
Right strategy & effective implementation
Expect unexpected (any time)
No boarders/boundaries

Strategic Management Process The Industrial Organisation (I/O) Model

The External Explains the dominant influence of the external environment on
Environment
firms’ strategic actions
Strategic inputs

Strategic Intent
Strategic Mission Specifies that the industry in which a firm chooses to complete has a
The Internal stronger influence on the firm’s performance than do the choices
Environment managers make inside their organisations
Four assumptions of I/O model
Strategy Formulation Strategy Implementation i. External environment imposes pressures and constraints that
Strategic actions

Organizational
Business-level
Strategy
Competitive
Dynamics
Corporate-
level Strategy
Corporate
Governance
Structure & determine strategies leading to above-average returns
Controls
Acquisition &
International Cooperative Strategic Strategic
ii. Most firms competing in an industry control similar strategically
Restructuring
Strategies
Strategies Strategies Leadership Entrepreneurship
relevant resources and pursue similar strategies
iii. Resources used to implement strategies are highly mobile across
firms
outcomes
Strategic

Strategic Competitiveness
Above Average Returns iv. Organisational decision makers are assumed to be rational and
Feed back
committed to acting in the firm’s best interests (profit maximising)

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Resource based Model Business Model

Strategy is dictated by Resources & Capabilities
Assumptions
Each organisation is a collection of unique
resources and capabilities that provides the
basis for its strategy and is primary source of
returns;
Differences in firms’ performance are due
primarily to their unique resources and
capabilities rather than structural
characteristics of the industry;
A company’s Business Model is the ‘Plan of doing
business related to its cost and revenue’ or ‘How to
make money in this business’?
Both start-up ventures and established companies need
a well defined business model to take new products and
services.
Process of business model design is part of business
strategy. Company’s strategy is complementary to its
business model.
Implementation of company’s business model is a part
of Business Operations (organization structure, human
resources, sequence of operations and systems e.g.
information technology architecture, production lines)

Relationship between strategy and business model

Strategy: Deals with a Business model:

company’s competitive Concerns whether costs
initiatives, growth and and revenues flowing
superior performance. from the strategy
demonstrate amply
profitability and viability
of the business
Assignment 1 (Project One)
[preselected business case presentation will start
from week 5]
Presentation (Part 1) + Written Report (Part
2) [Teamwork]

Week 5 presentation case Week 6 presentation case

Case for presentation: ‘Back to the future: Bendigo
Bank’s community bank model’, page 14-26, Cases in
Strategy & Management, Cutcher & Wailes, 2006.
Presentation Questions:
1. Define organisational resources, organizational
capabilities, and core competencies, give an example
of each from Bendigo Bank
2. Use the resource-based model to identify some
strengths of the value chain framework of Bendigo
Bank
3. Do a SWOT analysis of Bendigo Bank.
Case for presentation: ‘Yes’ OPTUS- A State-owned
Private Sector, page 222-233, Cases in Business and
Management, Alam & Majumdar, 2011, (Case book).
Presentation Questions:
1. Discuss Optus’s competitive market position by
using Porter’s five forces model.
2. Critically discuss the core competencies of Optus
using resource-based view.
3. Do a SWOT analysis of ‘Yes’ OPTUS.

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Week 7 presentation case
Case for presentation: ‘Woolworths Limited: Retail
Leader in Australia’, page 124-139, Cases in Business and
Management, Alam & Majumdar, 2011, (Case book).
Presentation Questions:
1. Identify the main characteristics of the industry in
which Woolworths operates.
2. Which important competencies did Woolworths use
to add value to its strategic management practices to
ensure its sustained growth
3. What is a business model? Critically examine the
principal features of Woolworths’ business model.
Week 9 presentation case
Case for presentation: ‘Kodak Strategy’, Page 75-86,
(Cases in Business and Management, Alam &
Majumdar, 2011), (Case book)
Presentation Questions:
1. What competitive forces seem to have the greatest
effect on industry attractiveness? Discuss the nature of
competition in the international photography equipment
industry.
2. In the context of Kodak’s key resource strengths and
weaknesses, what recommendations do you suggest for
Kodak to successfully compete in the digital photography
industry?
Week 11 presentation case
Case for presentation: ‘Corporate Governance at BHP
Billiton’, page 413-419, Contemporary Strategic
Management an Australasian Perspective, Grant at al.,
2011.
Presentation Questions:
1. What indicators would you use to measure BHP
Billiton’s corporate governance performance?
2. What is the link between BHP Billiton’s strategy drivers
and the company’s corporate governance agenda?
3. How is senior executive remuneration determined at
BHP Billiton?
22-Jan-18
Week 8 presentation case
Case for presentation: ‘The Collapse of General Motors-
Who is at fault?’ page 234-243, Cases in Business and
Management, Alam & Majumdar, 2011, (Case book).
Presentation Questions:
1. What are the internal and external factors that
contributed to GM’s decline and eventual bankruptcy
protection application? Critically analyse.
2. Discuss the latest state of the new (smaller) GM.
3. Critically analyse whether it was GM’s failure or its
competitors’ enormous success in cost savings and
innovation that brought about GM’s demise.
Week 10 presentation case
Case for presentation: ‘The Golden Arches in India: A
case of strategic adaptation’, page C95-C105,
(Strategic Management: Competitiveness &
Globalisation, Hanson et al., 2005.
Presentation Questions:
1. Discuss the main strategic and management issues
that McDonalds had to consider to enter into India
2. Critically analyse its entry strategy in the Indian
growing fast food industry
3. Identify the functional strategies that McDonalds
pursued to establish its strong foothold and make
India as an export base for cheese, lettuce and
other products
Week 12 presentation case
Case for presentation: ‘The Tata Nano: An inspiration from
an Indian conglomerate’, page 88-95, Cases in Business
and Management, Alam & Majumdar, 2011, (Case book).
Presentation Questions:
1. What external and internal forces influenced the TATA
group to design the TATA NANO?
2. Are leadership and management different from one
another? If so, how? Identify the leadership qualities of the
TATA Group.
3. What lessons can be learned by other companies
considering the TATA NANO’s success? Discuss giving
examples from Tata Group and Tata Nano.
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