BMGT 682 Welcome to Strategic Management My name is Ray Van Ness Ray Please call me “Ray”
Please take a minute and introduce yourself To the people sitting around you Greetings & Introductions
… the prism through which all information I give you is filtered My background… My background… ACCOUNTANT to EXECUTIVE to ENTREPRENEUR to PROFESSOR 20+ years30+ years 20+ years in business followed by 30+ years of teaching: Began as general accountant then… Traveling Internal Auditor for International shoe manufacturing Corp. Cost Accountant Controller then entered finance and became … Vice President of Finance, elected to board of directors, later elected as Executive VP, then President & CEO, then Branched into business acquisitions (entrepreneurship) Later, retired for a few days and decided to begin a second career Here I am, 30 + years into my second career
It is – More a bout P PP PROCESS and Less about NEW CONTENT Focus on thinking and acting in unique ways… Daring to challenge the status quo and still be likeable…
It will be EXPERIENTIAL EXPERIENTIAL with competing OPINIONS OPINIONS and energetic DISCUSSIONS DISCUSSIONS and you should expect to experience CREATIVE TENSION Strategic Concepts will be presented by you Case Studies will be presented by you Merger Activities & Strategic Debates will be by you This course will be conducted as a Professional Development Workshop How will Your Course be conducted?
It is about assessing corporate strengths, weaknesses, opportunities and threats. It is about contemplating effective corporate strategies for capitalizing on strengths to take advantage of opportunities and minimizing weaknesses and threats. It is about refining TEAM WORK ABILITY It is about refining PEOPLE SKILLS It is about refining CRITICAL THINKING SKILLS It is about refining COMMUNICATION SKILLS Practice communicating technical information Practice communicating sometimes “dry” but important data Practice capturing and holding the attention of others It is about refining POWER OF PERSUASION SKILLS Effective managers must develop strong persuasion skills Aristotle, the Greek philosopher, identified three methods of persuasion and effective managers have mastered each: Logos = Persuasion by REASONING Pathos = Persuasion by EMOTIONAL APPEAL Ethos = Persuasion by CHARACTER You are encouraged to practice each of these persuasion skills
Course Purposes and Objectives CRITICAL THINKING To create an environment that supports critical thinking and encourages creative problem solving CREATIVE TENSION To provide an environment where differing opinions are seen as a valuable and productive source for CREATIVE TENSION. Thought: Thought: You learn more from the person who disagrees with you than from the one who agrees. SKILLS & TOOLS To add to your arsenal of management skills and abilities. PEER LEARNING To support and encourage the process of peer-to-peer (coworker) learning. Thought: Thought: Asking for and listening to opinions of coworkers offers not only a rich opportunity for learning but also the likely benefit of endearment. EFFECTIVE EXPRESSION & PERSUASION To encourage and support the practice of expressing appropriate personal opinions, thoughts, concerns, and ideas in a persuasive manner.
Syllabus -- click Syllabus: Distribution & Discussion
Formation of 6 Teams The Professor has divided the class into 6 distinct Teams Teams will elect (3) leaders for their team (President, VP, & Secretary) BONUS: Pres earns 200 points, VP earns 150 points; Secretary earns 250 points
Team Assignments (see syllabus) Team 1: Team 2: Team 3: Team 4: Team 5: Team 6: Team 6: Team 6: You will be presenting Chapter 2: Charting A Company’s Direction. Power Points are on the course website to help you with your planning. Select a MAXIMUM of 20 slides for your presentation. Team 1: Team 1: You will be presenting Case 10: Chipotle – SYLLABUS SEE pages 13-17 of your SYLLABUS for directions. Teams 2, 3, 4, & 5: Teams 2, 3, 4, & 5: Read Chapter 2 in the text AND read Case 10 – page C-114) Members of teams 6 and 1 please see me immediately after class
Strategic Questions 1. What’s the company’s present situation? 2. Where does the company need to go from here? 3. How should it get there? strategy A company’s answer to “How it will we get there?” is its strategy
Consists competitive movesbusiness approaches Consists of Management’s competitive moves and business approaches Combines planning, decision-making, actions Combines planning, decision-making, and actions Strategies can be: OFFENSIVE primary goal: OFFENSIVE ( primary goal: grow market share; pressure competitors) CONSERVATIVE primary goal: CONSERVATIVE ( primary goal: avoid risks; minimize confrontations with strong competitors)
How to grow the business How to please customers How to outcompete rivals How to manage each functional division (R&D, production, marketing, HR, finance, and so on) How to respond to changing market conditions competitive advantage How to achieve a competitive advantage and targeted levels of performance Strategy is HOW to...
Successful firms develop bases for competitive advantage 1. Cost leadership (Advantage: Known for low prices)(Wal-Mart) (Harley-Davidson) 2. Differentiation (Advantage: Distinctive, desirable features to product or service) (Harley-Davidson) 3. Narrow market niche (Advantage: able to satisfy the need and desires of customers within a micro market) (Antique Car parts companies) 4. Developing superior expertise and resources (Advantage: able to make it difficult for competitors to replicate products or services) (Microsoft ) (Microsoft ) 2 and 4 are very closely related
Shifting market conditions Technological breakthroughs New actions by competitors Evolving customer preferences Emerging market opportunities Creative thinking Crisis situations Strategies are always works in progress… Company strategies are generally partly Proactive and partly Reactive
Strategies planners ask: In summary, Strategic planners think, plan, and act…. Now it’s your turn…
(1)Movie : Are Consumers Living beyond their means? What are the consequences of different consumer behavior? Case 11 : In a Slumping Economy: A Shift in Shopping Habits [5.13min] (2) Closing comments (3) Professor meeting with Team 6 and Team 1 Movie, Meeting, Closing comments