BMST5103

STRATEGIC MANAGEMENT

Seminar 1
COURSE INTRODUCTION
STRATEGIC MANAGEMENT ESSENTIALS

Dr Abang Nawawi Dahlan

+6012 2077058
abangdahlan@gmail.com
Prescribed Textbook:

Fred R David and Forest R David: Strategic Management: A

Competitive Advantage Approach, Concepts and Cases
(16th Edition), Pearson

Additional Readings:
Robert R Grant: Contemporary Strategy Analysis

Charles W. L. Hill; Gareth R. Jones (2012). Strategic

Management: An Integrated Approach, 10th edition,
Ohio: South-Western (CENGAGE Learning). [9th edition
can be used in case 10th edition is not available]

De Wit, B. and Meyer, R. (2010). Strategy: Processes,

content, context (4th ed.). London: South-Western
(CENGAGE Learning).
 ASSESSMENT

Assignment 1 30%
Due Date: 24th June 2018

Assignment 2 70%
Due Date: 29th July 2018
 SEMINAR PLAN
TOPICS/CHAPTERS IN DAVID’S
SEMINAR 1 FOUNDATIONS OF STRATEGIC • Introduction to Strategic
26 MAY 2018 MANAGEMENT Management
• Strategic Management
Essentials (Chapter 1)
THE FIRM STRATEGY • Types of Strategies (Chap 4)

SEMINAR 2 ANALYSIS OF THE EXTERNAL & • The Internal Audit (Chap 6)

07 JULY 2018 INTERNAL ENVIRONMENT • The External Audit (Chap 7)

VISION AND MISSION • Vision & Mission Analysis

(Chap 5)

SEMINAR 3 STRATEGY GENERATION & • Strategy Generation &

21 JULY 2018 SELECTION Selection (Chap 8)

SEMINAR 4 STRATEGY IMPLEMENTATION • Strategy Implementation

04 AUG 2018 AND EVALUATION (Chap 9)
• Strategy Execution (Ch.10)
ETHICS, SOCIAL RESPONSIBILITY • Strategy Monitoring (Ch. 11)
& SUSTAINABILITY • Globalization &
Internationalization (Ch. 2)
• Ethics, Governance (Ch. 3)
 BMST5103
STRATEGIC MANAGEMENT

Topic 1 / Chapter 1
Strategic Management
Essentials
Dr Abang Nawawi Dahlan
+6012 2077058
abangdahlan@gmail.com
1-6

►Strategies
►the means by which long-term
objectives will be achieved

►may include geographic expansion,

diversification, acquisition, product
development, market penetration,
retrenchment, divestiture, liquidation,
and joint ventures
1-7
Why Firms Need Strategy

Changes and Resources – Tangible &

Uncertainties Intangible
in the Internal Capabilities – Competency,
Environment Competitive Advantage

The Macro-environment
Changes and
Uncertainties Competitive Environment
in the External
Industry Environment
Environment

To cope with CHANGE and UNCERTAINTY

1-8
Changes and Uncertainties

´Intense price competition is plaguing

most firms.
• Unemployment and underemployment
rates remain high.
• Interest rates are rising.
• Product life cycles are becoming
shorter.
• State and local governments are
financially weak.
11-9

´A dramatic increase in the

environmentʼs
complexity

´The increasing difficulty of predicting the

future with accuracy

´The increasing number of variables

´The rapid rate of obsolescence of even

the best plans
11-10

´The increase in the number of both

domestic and world events
affecting organizations

´The decreasing time span for which

planning can be done with any
degree of certainty
1-11
Strategic management

►the art and science of

formulating, implementing,
and evaluating cross-
functional decisions that
enable an organization to
achieve its objectives
1-12

►Strategic management is used

synonymously with the term strategic
planning.

►But there’s a slight difference

 Stages of Strategic Management

Strategy Strategy Strategy

formulation implementation evaluation

Strategic Planning

Strategic Management
1-13
 Stages of Strategic Management

´Strategy formulation
´Entails
´developing a vision and mission,
´determining an organization’s internal strengths and
weaknesses,
´identifying the external opportunities and threats,
´establishing long-term objectives,
´generating alternative strategies, and
´choosing particular strategies to pursue.

1-14
 Stages of Strategic Management

´Strategy formulation
´Guided by the need
´To decide on what new businesses to
enter
´What businesses to abandon
´How to allocate resources
´Whether to expand operations or diversify
´Whether to enter international markets
´Whether to merge or form a joint venture
´How to avoid a hostile takeover
.

STRATEGIC PLANNING
1-15
1-16
Stages of Strategic Management
►Strategy implementation
►Translating the PLAN into ACTION

►Requires a firm
► to establish annual objectives,
► devise policies,
► motivate employees, and
► allocate resources so that formulated
strategies can be executed
1-17
Stages of Strategic Management
Strategy Evaluation
´Examining the underlying bases of a
firmʼs strategy
´Comparing expected results with
actual results
´Taking corrective actions to ensure
that performance conforms to plans
11-18 Strategy evaluation includes three
basic activities:

´Examining the underlying bases of a

firmʼs strategy

´Comparing expected results with

actual results

´Taking corrective actions to ensure

that performance conforms to plans
11-19

´Strategy evaluation
´managerial questioning of
expectations and assumptions,
´a review of objectives and values, and
´ stimulate creativity in generating
alternatives and formulating criteria of
evaluation
1-20
The Strategic-Management Model
To find answers to 4 KEY QUESTIONS
Where are we now?
‘Audit’ of current situation

Where do we want to go?

Strategy Formulation

How are we going to get there?

Strategy Implementation

How effective have we been?

Strategy Evaluation
 A COMPREHENSIVE STRATEGIC MANAGEMENT MODEL

1-21
Describing firm strategy – Competing in
the present, Preparing for the Future
 STRATEGY MAKING PROCESS

Intended Strategy
Strategic Planning BUT…..NO BATTLE PLAN SURVIVES
Realized
Planned Strategy CONTACT WITH THE ENEMY
Unexpected moves of competitors,
Strategy
Changing buyer needs and
preferences,
Emerging market opportunities,,
New ideas for improving the
Fail at Start-up strategy,
Mounting evidence that the
Unprecedented strategy is not working well.
Change
Deliberate
- Resource
constraints Strategy
- Managerial
preferences Unplanned shift by
top-level
Unrealize Emergent managers

d Strategy Strategy New

Management
Serendipity
The occurrence and development of events by chance in a
happy or beneficial way