1. STRATEGIC MANAGEMENT, TERMS & CONCEPTS, BUSINESS ETHICS
Those actions (or by default, inactions) which determine the long term future of an organization.

2. THREE KEY QUESTIONS
1. Where is the organization today?
2. Where do we want it to be in the future?
3. What needs to be done to get there?

3. CHARACTERISTICS OF STRATEGIC ACTIONS AND DECISIONS
Infrequent
Consequential
Precedent -- and policy -- setters
Multifunctional

4. SOME EXAMPLES
Miller Beer and Philip Morris
Lockheed and the Electra

5. HIERARCHY OF STRATEGY
Corporate
Business
Functional
Ideally, these play together
Realistically, there’s often conflict

6. SOME EXAMPLES OF CONFLICT
Clara Peller and Wendy’s
Ford, Kawasaki, and social responsibility

7. WHAT IS THE PURPOSE OF A BUSINESS?
Profit?
Revenue?
Jobs?
Meet society’s needs?
Something else?

8. JAMES INVESTMENT RESEARCH, INC. Firm Objectives
Provide highest quality service to our clients
Good performance
Lots of communications
Provide economic or such other advice/assistance as possible
Provide good work environment for our employees
Compensate staff at high levels
Stable and growing client base
Low expenditures except for salaries
High firm profits to be shared with employees
Technological leadership in investment research
State of the art equipment
Emphasis on innovation and creativity
Strong professional reputation of the firm and its personnel
Honesty and integrity
Competence
Quality of work

9. THE CONCEPT OF STAKEHOLDER
Old view: maximize stockholder value
New view: one maximizes stockholder value over the long run by balancing the benefits to all stakeholders:
customers neighbors
employees stockholders
management vendors
government competitors
& more . . .
Some examples . . .

10. STRATEGIC DECISION MAKERS
Boards of Directors
Senior management
Roles, skills, tasks

11. BOARD OF DIRECTORS Elected by shareholders Mission: Trends:
Protect interests of owners
Hire -- and fire -- top management
Approve management initiatives
Trends:
Codetermination
Board responsibility
Board activism
Strong owners, e.g., mutual funds

12. MANAGEMENT TASKS DIFFER WITH LEVEL
Technical
Interpersonal
Conceptual
Supervisor Manager CEO

13. STRATEGIC PLAN: A VITAL TOOL
Seven parts:
Evaluate current performance
Scan external environment: Identify opportunities and threats
Scan internal environment: Identify strengths and weaknesses

14. SEVEN PARTS (cont.) Analyze strategic factors: SWOT
Develop and select alternative strategies
Implement the strategy
Evaluate and control the strategy

15. BUSINESS ETHICS Is this just something taught in schools?
Some real life cases:
Ford’s Pinto
Manville’s asbestos
Financial houses: Barings, Saloman Brothers
Tobacco
Handguns
International Fabricating Corporation
Impacts? Financial? People?

16. WHY BE ETHICAL?
1. Moral reasons
2. Self-interest
3. Financial well-being
4. Retain autonomy

17. From The Power of Ethical Management, by Peale and Blanchard:
AN ETHICAL MODEL
From The Power of Ethical Management, by Peale and Blanchard:
1. Is it legal?
2. Is it balanced?
3. How does it make you feel about yourself?

18. MOVING FROM INDIVIDUAL TO CORPORATE
1. Hire correctly
2. Set standards
3. Model, or “What you can learn from your dog.”
4. Talk
5. Institutionalize into decision- making
6. Reward, and sanction