Presentation on theme: "Slide 1 of 24 2. Strategic Management Title: Introduction to Strategic Management –Define Strategic Management –Model of Strategic Management –Discuss."— Presentation transcript:
Slide 1 of 24 2. Strategic Management Title: Introduction to Strategic Management –Define Strategic Management –Model of Strategic Management –Discuss three primary stages of Strategic Management –Processes of Strategic Management –Case Study
Slide 2 of 24 Strategic Management Once there were two company presidents who competed in the same industry. These two presidents decided to go on a camping trip to discuss a possible merger. They hiked deep into the woods. Suddenly, they came upon a grizzly bear that rose up on its hind legs and snarled. Instantly, the first president took off his knapsack and got out a pair of jogging shoes. The second president said, "Hey, you can't outrun that bear." The first president responded, "Maybe I can't outrun that bear, but I can outrun you!" This simple story merely attempts to capture one of the key ideas of strategic management, which is to achieve and maintain competitive advantage.
Slide 3 of 24 Organisations All these company types use strategic management, it is more than a competitive advantage tool. It enables future planning –Private sector Competitive advantage very important –Public sector More concerned with delivery of services within budget –Not for profit sector Concerned with getting budget to deliver services
Slide 4 of 24 Strategy and Strategic Management Defined Strategy reminder: any actions that alter the strength of an enterprise.. Strategy is the plan that integrates an organisations goals, policies and actions into a cohesive whole…. Quinn (1980) –Many more definitions: Robson page 4 Strategic Management is concerned with deciding on strategy and managing how that strategy is to be put into effect via strategic analysis, choice and implementation (Johnson, Scholes 1993)
Slide 5 of 24 Strategic Management Model Strategic Analysis Strategic Implement Strategic Choice Environment Expectations Objectives, Culture Resources Options Evaluate Options Strategy Select Resource Planning Org Structure People & Systems Source: Johnson, Scholes Robson page 10
Slide 6 of 24 Strategic Management Processes Question Phase Component What should we be doing? Strategic AnalysisMission Where are we going? Strategic AnalysisGoals What routes have we chosen? Strategic ChoiceStrategies How do we guide our collective decisions to get there? Strategic ImplementationPolicies What choices do we have? Strategic ImplementationDecisions Shall we do it? Strategic ImplementationActions Source: Robson page 17
Slide 7 of 24 More detail What is the business doing now? –What assumptions are we making about competitors, industry trends etc? What is happening in the environment? –Industry analysis, competitor analysis, Societal analysis, what are our strengths and weaknesses What should the business be doing? –Strategic alternatives, strategic choices
Slide 8 of 24 Simple Example MissionTo be the industry cost leader GoalAchieve Staff Productivity gain of 5% StrategyReduce employee time lost PolicyImprove job satisfaction and working conditions DecisionVarious initiatives, upgrade certain job titles, provide of coffee vending machines, extra holidays for not missing days etc… ActionImplement !!! Analysis Choice Implementation
Slide 9 of 24 Strategic Management Phases in Context Strategy Analysis Issues may include deciding what new businesses to enter, what businesses to abandon, how to allocate resources, What type of Information Systems to invest in (SISP) Weeks 3,4 Whether to expand operations or diversify, Whether to enter international markets, Whether to merge or form a joint venture … Strategic Choice involves being able to evaluate your options and choose the most appropriate strategy for your company based on the nature of the organisation and the industry. Strategy implementation requires a firm to develop an effective organisational structure, to redirect marketing efforts, to prepare budgets, to develop and utilise Information Systems.
Slide 10 of 24 Relationship between Strategic and Operational Plans Direction & Priorities Feedback STRATEGIC MANAGEMENT PLAN (mission, goals, policies, structures, funding ) OPERATIONAL PLANS (sales targets, budgetes, resourcing plans etc.)
Slide 11 of 24 Business Environment Thriving on Chaos –Continuous Change –Education –Job Design –Organisation Structure –Management Style –Customer Expectations
Slide 12 of 24 Exercises Do a Strategic Analysis on Irish Rail, What business are they in, Who are their customers, what are their Strengths, Weaknesses, Opportunities, Threats, Conclusions Do a strategic analysis of Irish soccer for the FAI…What business are they in, Who are their customers, what are their Strengths, Weaknesses, Opportunities, Threats, Conclusions
Slide 13 of 24 Recommended Readings For this weeks material, readings from the introductory chapters of any text(s) on Strategic Management or Strategic IS Management (i.e. Robson chapter 1 or Johnson and Scholes or Thomas and Strickland) and the provided readings of Edward de Bono on lateral thinking. Specifically, the material that should be focused on is any material that will help the learner to define, describe and discuss the following topics in a manner that demonstrates a good understanding of the material: Topics Strategic Management, Strategic Management Phases, Strategic Management Model, Strategic Thinking, Creativity,