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In October its share of the total television audience was just 0.1% compared with 0.5% each for the other two broadcasters.
The channel has been a serious drain on the main ITV network.
Today
Recent developments in strategy towards the end of the course Beginning of the course review Thoughts on the exam
Recent Developments
Leadership
Leadership
The growing emphasis on leadership including the cult of celebrity in leadership? Management is doing things right; leadership is doing the right things.
Peter Drucker
Leadership
Marks & Spencer in 2004 Good example of different leadership styles - See previous articles / studies
"It's not going bust and it doesn't have outrageous debts but it's in a cycle of decline and it's hard to see where that's going to stop,"
Leadership Mistakes
The chief executive of Barclays Bank has done a Gerald Ratner. He went before a select committee of MPs and - in front of a battery of TV cameras and newspaper reporters - admitted that he doesn't own a credit card because it's too expensive.
Governance
The chairman will get his way BSkyB shareholders are unlikely to prevent James Murdoch's appointment
NYSE plans independent board GRASSO RESIGNATION Slow progress expected to end white, male dominance
Managing Change
Technology
A global shift in power Easier to trade globally technology driven Threat and opportunity Italian lingerie maker [SG3]dodges China threat
http://news.bbc.co.uk/1/hi/business/4469724.stm
Journal of International Business Studies going since 1970! some people now waking up! The Great Reverse Part III Burgeoning Sino-Indian trade ties may significantly alter the world economic balance
Anna Greenspan YaleGlobal, 8 September 2004
Other issues?
International - Tesco
Sales across the group jumped 13.9% during the 14 weeks to 19 November, led by a 23.3% surge in international sales. UK sales grew by 11.6%.
Analysts say it plans to increase its global presence to offset a lack of growth opportunities in the UK.
In the past four weeks, the firm has opened 25 stores in eight countries, including its first store in Guangzhou, southern China. Tesco said it was on track to open 150 stores abroad in the second half of the year.
Different schools and expert opinions (Porter, Hamel, Mintzberg etc) Different ways in which strategy gets created and implemented (Design, experience, ideas)
Strategy Development
Three Viewpoints or Lenses
- Strategic Planning - Strategic Leadership - Organisational Politics - Logical Incrementalism - The Learning Organisation - Imposed Strategy
People
Resources
Organisational purpose
SWOT: Analysis
Situation Analysis
PEST: Analysis
Political Economic Social Technological
Industry Analysis:
-5 Forces - Strategic groups
What are the Most Common Causes of Strategic Failure? Bad luck Inward perspective Failure to generate a coherent strategy Poor top management Poor corporate governance Complacency Short term focus Poor timing Examples?
What are they? When should they be used? When should they not be used? How should they be used properly?
http://www.bain.com/management_tools/
t ra te g s on
P la nn ng
Outso ur u sto me r Re la t o ns
p M a na ge me nt t t ra te g e s
ro
t ra te g
ll a n e s
Kno
le g e M a na ge me nt o ns z ng
Bus ne ss P ro e ss Re e ng ne e r ng
http://www.bain.com/management_tools/
E o no m
a lue
na l s s 0 20 40
o re
o mpe te n
es
60
80
100
M ss o n a n
t a te me nts ng
89 84 84 79 78 78 78 78 76 76 75 70 69 64 62 62 59 57 54 52 52
se
Corporate Strategy - Developing Strategy for the Whole Organisation Value chain integration Portfolio analysis (BCG, Directional Policy Matrix) Directional policy matrix Mergers and acquisitions Corporate parenting styles Core competencies (corporate) Business Strategy Developing Strategy for a Strategic Business Unit Single value chain analysis Resource analysis Porter 5 forces PEST analysis SWOT analysis Generic business strategy analysis (strategy clock) Core competencies (business) Functional/Operations Strategy Developing Strategy for a Function e.g. Supply chain strategy
Questions to ask When Using Strategy Tools? Is the tool intended to be used at the level of strategy at which I am operating? Some tools can be used at different levels, in different ways. Am I using such a tool in the right way? If multiple tools are available for the same situation, which one is the right one for the job?
What Does it Take to be a Good Strategist? Mindset Competencies Training Experience Knowledge
is strategy?
The direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment and to fulfil stakeholder expectations
Fit
Language Levels
Environmental
scenarios
Elements
of Strategic Management
Strategy
types of strategy
GSM ...The
PESTEL SWOT Forecasting Industry Porters Life
nvironment
and Scenarios
Analysis
5-forces Advantage
cycle Groups
Competitive Strategic
Roots of strategic capability Types of resources Nature of competencies, core competencies, distinctive capabilities [Kay], dynamic capabilities [Teece et al, Eisenhardt & Martin] and critical success factors (CSFs) Competitive advantage and capabilities Framework for analysis: VRI [Barney 1997]resources and capabilities should be
o Valuable o Rare o Inimitable o rganization can effectively exploit them
[www.ecofine.com/strategy/RBV%20of%20the%20firm.htm]
Experience curve effects Value chain analysis Benchmarking and Knowledge management Resource-based approach to strategy-development
Organisational expectations and purpose Importance of corporate governance Stakeholders and stakeholder mapping Ethical issues and their impact on strategy Meaning and importance of legitimacy Culture and its impact on strategy Communicating organisational purpose
Nature of strategic choices Corporate, Business or Competitive, Directions and Methods of Development Corporate level strategy and multi-business organisations Creating value through corporate strategy Different styles of corporate parenting portfolio, restructurer, synergy manager, parental developer Frameworks for portfolio analysis of corporate strategy balance, attractive, fit Diversification strategies The corporate portfolio and the nature of corporate control
usiness Level
Strategic Business Units (SBUs) and business unit strategy Competitive advantage Different ways of achieving competitive advantage the strategy clock The meaning and importance of differentiation strategies cost leadership, differentiation, focus Relation of differentiation strategies to core competencies Sustainability of competitive advantage Cooperation versus competition Principles of game theory Fast-paced environments: hypercompetition
Identify development directions (new / existing, markets, products) open to an organisation available, preferred, succeed better Compare three methods of development (internal, acquisitions, alliances) Understand the different forms of strategic alliance and the conditions for successful alliances Strategic evaluation: what makes a good strategy? Understand suitability, acceptability and feasibility Selecting strategies for implementation
Readings for
xam Preparation
Readreviewand read again chapters 1 8 of Johnson and Scholes textbook Work through case studies in Johnson & Scholes Review of slides and lecture notes Read in Management journals follow-on from the Authors given in the lecture notes Consider other peoples points of view Newspapers/Journals e.g. Financial Times, Economist, Business Week Visit the Website of Bain and Co to review the management tools (http://www.bain.com/management_tools/) Visit the Website that goes with the textbook by Johnson and Scholes Look for real world examples you must have a few in mind
final thoughts
Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things. Miyamoto Musashi I don't want any yes-men around me. I want everybody to tell me the truth even if it costs them their jobs. Samuel Goldwyn US (Polish-born) movie producer (1882 - 1974)