1. SM 2010 1a1 Taiz master program Engineering & Management Course Strategic management Introduction Lecturer : John L Simons www.jlsimons.org j.l.simons@rug.nl

2. SM 2010 1a2 As a starter … Together with the book there is a website Inside the book there is a individual students code Use them !!! See http://wps.pearsoned.co.uk/wps/med ia/access/Pearson_Default/5605/57 39931/login.html

3. SM 2010 1a3 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

4. SM 2010 1a4 Characteristics of strategic decisions ? Long term direction Organisation scope Fitted to the business environment (Re)allocating resources and competences Stakeholder driven Corporate strategy, organizational strategy, strategic management …

5. SM 2010 1a5 Check the characteristics

6. SM 2010 1a6 Check the characteristics

7. SM 2010 1a7 Check the characteristics

8. SM 2010 1a8 A working definition Strategic decisions 1. focus on the long term direction and scope of an organisation 2. achieve advantage in a dynamic environment 3. by (re)allocating resources and competences 4. fulfill stakeholder needs

9. SM 2010 1a9 As a consequence They are complex They are uncertain They affect operational decisions They cover internal and external processes They involve a non trivial change process

10. SM 2010 1a10 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

11. SM 2010 1a11 Levels of Strategy Corporate level Business level Business unit level Iff there is an external market and a product

12. SM 2010 1a12 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

13. SM 2010 1a13 What is in a name ! Mission, stakeholders delivery Vision, desired future state Goal, general purpose Objective, measurable purpose Capabilities, resources and competences and processes Business model, product/money flow Product/market matrix, which products on which markets

14. SM 2010 1a14 A small exercise Fill in these concepts for Taiz University or for TAIZ-CGS Classroom discussion on viability of terms

15. SM 2010 1a15 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

16. SM 2010 1a16 The strategic management process 3455 ! Understanding the strategic position (what business are we in? 4 aspects) Identifying the strategic choices (what directions can we choose? 5 aspects) Taking the strategic actions (what do we need to redesign? 5 aspects)

17. SM 2010 1a17

18. SM 2010 1a18 The 3455 ECS model, Book p 12 Position : ECPC Environment, Capability, Purpose, Culture Choice : BCIIE Business level, Corporate level, International, Innovation, Evaluation Action : PORCP Processes, Organising, Resourcing, Changing, Practice

19. SM 2010 1a19 What is Strategic Position? Strategic position is concerned with the impact on strategy of the external environment, an organisations strategic capability and the expectations and influence of stakeholders.

20. SM 2010 1a20 Strategic Position The Strategic Position Environment Culture PurposeCapability

21. SM 2010 1a21 What are Strategic Choices? Strategic choices involve understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development.

22. SM 2010 1a22 Strategic Choices Strategic Choices Business- level Innovation International Corporate- level Evaluation

23. SM 2010 1a23 What is Strategy in Action? Strategy in action is concerned with ensuring that strategies are working in practice.

24. SM 2010 1a24 Strategy in Action Strategy in Action Processes Changing Resourcing Structuring Practice

25. SM 2010 1a25 The 3445 Toolkit or Foolkit

26. SM 2010 1a26 Strategic position ECPC What is the impact of the Environment? Oppertunities/threats Which strategic capabilities do we have? Core competences, Crucial knowledge What are stakeholder needs? Purposes, mission, vision, values What are the Cultural influences? If we could …

27. SM 2010 1a27 Culture intangible?

28. SM 2010 1a28 Strategic choice BCIIE Competition at business level. pricing, marketing Corporate level authority. new product/markets, portfolios Innovation and enterpeneurship. first mover decisions Evaluating strategies. Succes criteria

29. SM 2010 1a29 Evaluating a strategy

30. SM 2010 1a30 Strategic action : PORCP Strategic process : art or science? Organising : which structure? Resourcing : How reallocating people, money, technology ? Changing : How to reach the new state? Practical experiences

31. SM 2010 1a31 Good or bad strategic change

32. SM 2010 1a32 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

33. SM 2010 1a33 Strategy and related fields Organisational design Strategic planning Organisational sociology psychology Complexity theory Language and information theory Mathematical organisation theory …

34. SM 2010 1a34 Just 1000 pages about mathematical organisation theory http://www.hup.harvard.edu/catalo g.php?isbn=9780674312265 http://www.hup.harvard.edu/catalo g.php?isbn=9780674312265

35. SM 2010 1a35 Strategy, what is it all about ? Strategic decisions Levels of strategy Basic terms and concepts The strategic management process Strategy as an academic subject Strategy as a profession Course setup

36. SM 2010 1a36 The profession Job for the general manager only? Job for all managers? Job for consultants? On a periodical base? http://strategicmanagement.net/ http://www.strategyplus.org/history.sht ml

37. SM 2010 1a37 Course setup and tasks (1) Formulation of a strategy based on the three steps of the engineering view. Choice of a firm (either real-life or case study) must be done in agreement with the lecturer. Either from your real existing firm or from the hypothetical or real firm of the course book, you have an (incomplete) description of the business processes and the managerial interventions of that firm over a certain period.

38. SM 2010 1a38 Course setup and tasks (2) Reflection on an application of concepts, methods or techniques by a firm as presented on the Internet and/or discussed during the lecture. The following aspects should be addressed: introduction of the firm, description of the subject/method/ concept including strong and weak aspects, theoretical applicability, practical applicability, own judgment on the application.

39. SM 2010 1a39 Your task NOW and TOMORROW Form groups of two students Choose (your own) or (hypothetical) firm for which a strategy will be designed. This requires that firm material is available. (TOMORROW is delivery date) Choose a concept/method (see last slide). Find a firm on the Net that has applied the concept. Apply for a presentation slot in the coming days

40. SM 2010 1a40 Hypothetical firm case studies IT is highly preferable to choose a real real real firm, however … The book contains case studies that refer to existing firms e.g. INTEL. Together with material from the Internet such a case study can be acceptable … Chosen case study must be approved by lecturer !!!

41. SM 2010 1a41 Strategic concepts/methods/techniques Goto the General index of the book and find yourself an interesting concept Goto http://en.wikipedia.org/wiki/Strategic_ma nagement and consider hyperlinks http://en.wikipedia.org/wiki/Strategic_ma nagement Chosen concept/method/technique must be approved by lecturer !!!