Learning Corporate Strategy

 

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Rationale

Learning Objectives and Outcomes

Teaching and Learning Resources

 

Chat Lines, Discussion Forums, Wikis

Case Studies

Related Workshops

 

Learner Support

 

Recommended Texts

Resources

Assignments, Assessments

 

Learning Centres

 

Corporate Strategy

 

Rationale

 

 

 

Strategic Management is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

 

 

See also

 

External links

 

Excellent collection of strategy frameworks like SWOT, Ansoff Matrix, BCG Product Portfolio Matrix, Seven S's, Five C's, Four P's, and advanced frameworks like NPV (Net Present Value) and CAPM (Capital Asset Pricing Model).

A summary of the strategic management process

 

 

Learning Objectives and Outcomes

Knowledge

After completing this module, students will be able to:

1. Critically review the advanced concepts and strategic principles of management.

2. Critically evaluate how corporations implement strategic management.

3. Critically review change management principles.

 

Skills

After completing this module, students will be able to:

1. Exercise significant judgement in formulating strategic plans within the context of SWOT factors analysed.

2. Develop conceptual skills to integrate previously learned aspects of corporations.

3. Critically review the performance of people responsible for strategic decisions.

4. Construct a strategic audit for any organisation.

 

 

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Teaching and Learning Resources

 

 

 

 

 

 

 

 

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Learning Contents

Tutorials/Lectures Assignments Recommended Texts Readings Learner Support Discussion Forums Workshops Web Cases Case Studies Resources Staff Development Subject Reviews Tutorials and Lectures Assignments Recommended Texys Readings Learner Support Discussion Forums Workshops Web Cases Case Studies Resources Staff Development Subject Reviews

Tutorials Assignments Recommended Texts Workshops Discussion Forums Subject Reviews Readings Learner Support Resources Staff Development Web Cases Case Studies

The Structure of the Subject. What is Strategy? The Strategic Management Process. Schools of Thought on Strategy and Strategic Management

 

 

Business Strategy

Larger Map

 

Lectures and Tutorials


Readings

A Strategy is a long term plan of action designed to achieve a particular goal, as differentiated from tactics or immediate actions with resources at hand. Originally confined to military matters, the word has become commonly used in many disparate fields, such as:

 

Strategy - what is strategy?

 

 

Product strategy development process

 

 

See also

 

External links

 

Creativity & Thinking Skills

 

What is Business Creativity?

Assignment Brief

 

Why Context Matters. The Diversity of Context

Lectures and Tutorials


Readings

In marketing, a Corporate Identity (CI) is the "persona" of a corporation which is designed to accord with and facilitate the attainment of business objectives, and is usually visibly manifested by way of branding and the use of trademarks.

Corporate identity comes into being when there is a common ownership of an organisational philosophy which is manifest in a distinct corporate culture - the corporate personality. At its most profound, the public feel that they have ownership of the philosophy. (Balmer, 1995).

In general, this amounts to a logo (logotype and/or logogram) and supporting devices commonly assembled within a set of guidelines. These guidelines govern how the identity is applied and confirm approved colour palettes, typefaces, page layouts and other such methods of maintaining visual continuity and brand recognition across all physical manifestations of the brand.

Many companies, such as McDonald's and Electronic Arts have their own identity that runs through all of their products and merchandise. The trademark "M" logo and the yellow and red appears consistently throughout the McDonald's packaging and advertisements. Many companies pay large amounts of money for an identity that is extremely distinguishable, so it can appeal more to its targeted audience.

 

Corporate Identity

 

Corporate Identity is often viewed as being composed of three parts:

 

Corporate Identity has become a universal technique for promoting companies and improving corporate culture. Most notably is the company PAOS, founded by Motoo Nakanishi in Tokyo Japan in 1968. Nakanishi fused design, management consulting and corporate culture to revolutionize CI in Japan.

 

See also

 

External links

 

Megasites from different points of view

 

The Strategy Formulation Process: Overview. Strategic Intent

Lectures and Tutorials

 

Readings

Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organisational goals and objectives and thereby achieving the organisational vision. The process of strategy formulation basically involves six main steps. Though these steps do not follow a rigid chronological order, however they are very rational and can be easily followed in this order.

 

Three ways in which companies formulate strategy

1. Setting Organizations’ objectives - The key component of any strategy statement is to set the long-term objectives of the organization. It is known that strategy is generally a medium for realization of organisational objectives. Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives. Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives.

While fixing the organisational objectives, it is essential that the factors which influence the selection of objectives must be analysed before the selection of objectives. Once the objectives and the factors influencing strategic decisions have been determined, it is easy to take strategic decisions.

2. Evaluating the Organisational Environment - The next step is to evaluate the general economic and industrial environment in which the organization operates. This includes a review of the organizations competitive position. It is essential to conduct a qualitative and quantitative review of an organizations existing product line. The purpose of such a review is to make sure that the factors important for competitive success in the market can be discovered so that the management can identify their own strengths and weaknesses as well as their competitors’ strengths and weaknesses.

After identifying its strengths and weaknesses, an organization must keep a track of competitors’ moves and actions so as to discover probable opportunities of threats to its market or supply sources.

3. Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values for some of the organisational objectives. The idea behind this is to compare with long term customers, so as to evaluate the contribution that might be made by various product zones or operating departments.

4. Aiming in context with the divisional plans - In this step, the contributions made by each department or division or product category within the organization is identified and accordingly strategic planning is done for each sub-unit. This requires a careful analysis of macroeconomic trends.

5. Performance Analysis - Performance analysis includes discovering and analysing the gap between the planned or desired performance. A critical evaluation of the organizations past performance, present condition and the desired future conditions must be done by the organization. This critical evaluation identifies the degree of gap that persists between the actual reality and the long-term aspirations of the organization. An attempt is made by the organization to estimate its probable future condition if the current trends persist.

6. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually chosen after considering organisational goals, organisational strengths, potential and limitations as well as the external opportunities.

Read More ....

 

Strategic view of performance

 

Do You Embrace Change or Do You Resist it?

 

Review

 

 

Strategic Assessment: General Principles. Analysis of the External Environment

Lectures and Tutorials

 

Readings

PEST Analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macroenvironmental factors used in environmental scanning. It is also referred to as the STEP, STEEP or PESTLE analysis (Political, Economic, Socio-cultural, Technological, Legal, Environmental). Recently it was even further extended to STEEPLED, including ethics and demographics.

It is a part of the external analysis when doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration. Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. The economic factors are the economic growth, interest rates, exchange rates and inflation rate. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The technological factors also include ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions. It looks at elements such as R&D activity, automation, technology incentives and the rate of technological change.

The PEST factors combined with external micro environmental factors can be classified as opportunities and threats in a SWOT analysis.

Pest Analysis

 

External links

 

PEST

 

Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit.

Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.

 

 

A graphical representation of Porter's Five Forces

Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies.

Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which he found unrigorous and ad hoc.[1] Porter's five forces is based on the Structure-Conduct-Performance paradigm in industrial organisational economics. It has been applied to a diverse range of problems, from helping businesses become more profitable to helping governments stabilize industries.[2]

 

See also

 

Further reading

 

External links

 

 

Analysis of Resources, Capabilities, and Competence. Strategic Choice. Analytical Tools to Support the Strategy Formulation Process

Lectures and Tutorials


Readings

Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions.

 

Financial Analysis / understand your numbers

 

See also

 

External links

 

 

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It involves monitoring the marketing environment internal and external to the company. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies.

 

SWOT analysis

 

External links

 

 

 

Create a SWOT Analysis in 3 easy steps

 

Review

 

 

Overview/Business Strategies. Corporate Strategy

 

 

Lectures and Tutorials

 

Readings

Porter Generic Strategies

Michael Porter has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side dimension (Michael E. Porter was originally an engineer, then an economist before he specialized in strategy) and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the strength or core competency of the firm. In particular he identified two competencies that he felt were most important: product differentiation and product cost (efficiency).

 

Strategic Game Board

 

He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cube. But most of the 27 combinations were not viable.

In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope.

Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often quite profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Porter’s explanation of this is that firms with high market share were successful because they pursued a cost leadership strategy and firms with low market share were successful because they used market segmentation to focus on a small but profitable market niche. Firms in the middle were less profitable because they did not have a viable generic strategy.

Porter suggested combining multiple strategies is successful in only one case. Combining a market segmentation strategy with a product differentiation strategy was seen as an effective way of matching a firm’s product strategy (supply side) to the characteristics of your target market segments (demand side). But combinations like cost leadership with product differentiation were seen as hard (but not impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value-added differentiation.

Since that time, empirical research has indicated companies pursuing both differentiation and low-cost strategies may be more successful than companies pursuing only one strategy.[1]

Some commentators have made a distinction between cost leadership, that is, low cost strategies, and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost strategy is preferred. This involves providing the best value for a relatively low price.

 

See also

 

Global Consumer Business Global Consumer Business
Strategies for a Challenging World (June 2004)

 

 

 

 

Delivering Information Age Service, Organisation and Partnership

 

Review

 

 

Realising Strategic Intent. Leading Strategic Change

Lectures and Tutorials

 

Readings

Defining Your Strategic Intent

By Julie Gerstein

Any successful business—large or small—didn’t achieve success on good ideas alone. Succeeding in the business world requires what professors Gary Hamel and C.K. Prahalad term “strategic intent.” Strategic intent, they explain, is a business’ long-term, far-reaching goal. In order to determine your business’ strategic intent, you must not only consider what you want in the next five or ten years, but what you want to accomplish in a 50 year timeframe.

 

Align Actions with Strategic Intent



For example, decades ago, Coca-Cola’s strategic intent was for there to be a Coke within the reach of every human being on the planet. This seemed like a crazy idea at the time, but think about how prevalent Coke products are these days. By setting a developing a vision of the future and developing long-term goals, Coca-Cola made enormous strides in developing their brand.

The main tenets of strategic intent planning are direction, discovery and destiny.

• Sense of Direction includes an understanding about the long-term market or competitive position that a firm aims to build over the next decade. Your sense of direction should be a view of the future that conveys a unifying and personalizing sense of direction.

• Sense of Discovery. Your strategic intent should retain a sense of discovery and excitement about the future. This helps create a competitively unique outlook and gives employees the opportunity to explore new competitive territory.

• Sense of Destiny. Strategic intent has an emotional edge to it and it should be a goal that both you and your employees perceive as inherently worthwhile.

But strategic intent is not just a concept; it’s also a three-step process.

• Set the Strategic Intent (having all three characteristics stated above).

• Set the Challenges: find appropriate challenges and communicate them to the entire workforce. These challenges are the means to get into the Strategic Intent. (For example: Suppose the Strategic Intent of Google is: Allow end users to access all of the information of the Internet with the click of a mouse. A strategic challenge could be: Come up with a search engine capable of producing accurate search results.)

• Empowerment of the Strategic Intent: The strategic intent works best when everyone is invested in its goals. Managers and business owners should keep in mind the “wisdom of the anthill” and challenge traditional downward communications styles.

Defining your strategic intent clarifies objectives for both you and your employees. By setting out your strategic intent, you make clear your company’s goals and help set the path for future successes.

 

Strategic Intent: Identifying Google's Core Competencies

Planning and implementing strategic change is an important aspect to the management role. Strategic change is a term that is frequently used in business, but what does it really mean?

 

3 Dimensions of Strategic Change

In basic terms strategic change is about having a strategy to manage change. Strategy is derived from the Greek wood “strategios”, meaning: stratos (army) and ago (ancient Greek for leading).

A strategy is a long-term plan to achieve specific objectives or goals. Strategies are focused on the future and bring about sustained change, and typically require detailed planning and analysis. In Business, strategy planning is often seen as key to future success or even survival. With the world changing at a rapid pace, companies need to be dynamic and flexible to stay in business. They need to foresee the future and be ready to adapt to the potential changes that will come their way.

 

What If Analysis

We don’t have crystal balls in business and hopefully the decisions we make are based on sound knowledge and facts. But when planning for the future there is an element of the unknown. To be ready for the future we do need to consider ‘What If’. What If, this event happened? What would the impact be to business operations? What would be our potential exposure to risk? We need to consider what potential changes may occur, both positive and negative, in the future.

That may seem like a very broad task but you might be surprised to know that some very well known companies managed to survive large scale changes simply because they predicted them, some which seemed very unlikely at the time.

Read More ...

 


 

Managing the Change Programme. Changing Business Procedure

Lectures and Tutorials

 

Readings

Change management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organisational process aimed at helping employees to accept and embrace changes in their current business environment.[citation needed] In project management, change management refers to a project management process where changes to a project are formally introduced and approved.[1]

 

Change Management


Kotter [2] defines change management as the utilization of basic structures and tools to control any organisational change effort. Change management's goals is to minimize the change impacts on workers and avoid distractions.

 

See also

 

External links

 

 

Strategy Implementation

Lectures and Tutorials

 

Readings

 

 What does it take to implement strategy successfully? Strategic Objectives

 

Strategy Implementation - Meaning and Steps in Implementing a Strategy

 

In 1992, Robert S. Kaplan and David Norton introduced the Balanced Scorecard (BSC), a concept for measuring a company's activities in terms of its vision and strategies. It gives managers a comprehensive view of the performance of a business.

It is a strategic management system that forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, internal process, and learning & growth perspectives. The system consists of four processes: 1. Translating the vision into operational goals; 2. Communicate the vision and link it to individual performance; 3. Business planning; 4. Feedback and learning and adjusting the strategy accordingly.

 

Balanced Scorecard

 

 

 

Adaptability: A Strategic Capability

Lectures and Tutorials

 

Readings

Capability Management in Business. A relatively new topic outside defence, capability management is being applied to align organizations to strategic intent and to accelerate results.

 

Capability value contribution to strategy

 

 

See also

 

External links

 

 

 

Strategic Control and Restructuring

Lectures and Tutorials

 

Readings

Most commentators would agree with the definition of strategic control offered by Schendel and Hofer:

"Strategic control focuses on the dual questions of whether: (1) the strategy is being implemented as planned; and (2) the results produced by the strategy are those intended."

This definition refers to the traditional review and feedback stages which constitutes the last step in the strategic management process. Normative models of the strategic management process have depicted it as including there primary stages: strategy formulation, strategy implementation, and strategy evaluation (control).

Strategy evaluations concerned primarily with traditional controls processes which involves the review and feedback of performance to determine if plans, strategies, and objectives are being achieved, with the resulting information being used to solve problems or take corrective actions.

Recent conceptual contributors to the strategic control literature have argued for anticipatory feedforward controls, that recognize a rapidly changing and uncertain external environment.

Schreyogg and Steinmann (1987) have made a preliminary effort, in developing new system to operate on a continuous basis, checking and critically evaluating assumptions, strategies and results. They refer to strategic control as "the critical evaluation of plans, activities, and results, thereby providing information for the future action".

Read More ...

 

TAKING A STRATEGIC APPROACH TO RESTRUCTURING

 

 

Review

 

 

Recommended Texts

 

Thomson Advantage Books: Foundations of Strategic Management Thomson Advantage Books: Foundations of Strategic Management
3rd Edition
Jeffrey S. Harrison - Cornell University
Caron H. St. John - Clemson University
0324259174

192 pages Paper Bound 8 x 10

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Exploring Strategy

Exploring Strategy

9th Edition

Gerry Johnson, Kevan Scholes, Richard Whittington

Jun 2006, Value pack
ISBN13: 9781405846004
ISBN10: 1405846003

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Strategic Management - Process, Content, and Implementation

Strategic Management - Process, Content, and Implementation
Hugh Macmillan, former Professor of Business Policy, Edinburgh University, and Mahen Tampoe, Associate Lecturer, Henley Management College.

Hugh Macmillan and Mahen Tampoe give a structured and balanced summary of the most important concepts in the field of strategic management. They examine how these concepts may be effectively applied in practice, giving special attention to demonstrating the significance of the role of people in strategy implementation. In particular, the authors emphasize how effective strategists use theory in a constructive way without becoming slaves to it. Chapter summaries, further reading recommendations, clear figures and boxed case studies real-life business examples help to illustrate concepts and indicate further sources of learning materials.

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Managerial Economics: An Analysis of Business Issues

Managerial Economics: An Analysis of Business Issues,
Third Edition, Howard Davies & Pun-Lee Lam

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Foundations in Strategic Management

Foundations in Strategic Management
2nd Edition
by Harrison and St. John

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Resources

 

 

Institutionalization of Information Management into a Corporate Strategy, Pt. 1

 

 

 

 

 

Customer and Business Needs Analysis

 

Case Studies (as referred to in Harrison/John below)

 

IBM

 

International Business Machines Corporation (IBM, or, colloquially, Big Blue; NYSE: IBM) is a multinational computer technology corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century; it was founded in 1888 and incorporated (as Computing-Tabulating-Recording Company (C-T-R)) on June 15, 1911, and listed on the New York Stock Exchange in 1916. IBM manufactures and sells computer hardware, software, infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology.[citation needed] With almost 330,000 employees worldwide and revenues of $US91 billion[1] annually (figures from 2005), IBM is the largest information technology company in the world, and holds more patents than any other technology company.[3]

Since 2001, services and consulting (Global Service) revenues have been larger than those from manufacturing (Hardware).[4] Significantly, IBM has also been steadily increasing its workforce in developing countries (notably, in IBM India) and retrenching in the US and Europe.[5][6][7] Samuel J. Palmisano was elected CEO on January 29, 2002 after having led IBM's Global Services, and helping it to become a business with $100 billion in backlog in 2004.[8] Palmisano replaced Louis V. Gerstner, who held the job from 1993 to 2002, taking over from John Akers, who left during a period of financial difficulty for the company.

IBM has engineers and consultants in over 170 countries and IBM Research has eight laboratories, all located in the Northern Hemisphere, with five of those locations outside of the United States.[9] IBM employees have earned five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science.[10]

As a chip maker IBM is among the Worldwide Top 20 Semiconductor Sales Leaders.

 

See also

 

External links

 

Business data