Chapter 1

Pengurusan StrategikStrategic Management

BPMN 3023Pensyarah: Dr Kadzrina Abdul Kadir

Bilik: 317, Bangunan Utama COBTel: 928-5262

PenilaianEvaluation

%

Kajian KesAssignment

10

PembentanganPresentation

10

Projek KumpulanGroup Project

20

Peperiksaan Pertengahan SemesterMid Semester Exam

20

Peperiksaan Akhir SemesterFinal Exam

40

JUMLAH / TOTAL 100

Strategic Management

Corporate Business Functional

Operations (POM/Stats)

HRM (HRM / Corporate Law/ OB)

Sales (Fin/OB/Acctg/Mktg)

Logistics (POM)

MIS (MIS)

Acctg (Acctg/Fin)

Marketing (Mktg/OB)

R&D (Sciences / MIS)

Market Research/ Problem Solving (KP/OB/Stats)

Strategy (Strategic Mgt/ Entr.)

Financial (Fin)

Investments (Fin)

Policies (Law)

International Market (IB / Econ)

Prereq.: >90 credits, last sem/ 2nd last sem

US Bank Industry – 2008 Recession

Investment Bank• Morgan Stanley

– Change to commercial bank

• Goldman Sachs– Change to commercial bank

• Merrill Lynch– Acquired by Bank of America

• Lehman Brothers – bankrupt

• Bear Stearns– Acquired by JP Morgan Chase

• Source: Lehman Brothers marks the end of a banking era, Newsweek, Daniel Goss, http://www.newsweek.com/id/159092 , Accessed at 9/16/2008

• Last major investment banks change status; http://www.msnbc.msn.com/id/26827357 , Accessed at 9/22/2008

Large Global Banks/Insurance

• Citigroup– US government bail out

• AIG– US government bail out

USD85 billion – own 79.9% of company

World/US recession - History

• Great Depression – 1929-1933

• Oil price crisis in US – 1973-1974

• Gulf crisis war– 1990

• Tech Burst– 2001

• U.S. confronts possibility of deep recession - Economy in Turmoil- msnbc.com; http://www.msnbc.msn.com/id/27202928/page/2/, Accessed at 10/16/2008

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Basic Concepts of Strategic Management

GlobalizationInternationalization of markets and corporations

Global (worldwide) markets rather than national markets

Electronic CommerceUse of the Internet to conduct business transactions

Basis for competition on a more strategic level rather than traditional focus on product features and costs

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Strategic Management Defined

Set of managerial decisions and actions that determines the long-run performance of a firm (“how to survive”)

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Basic Concepts of Strategic Management

4 Phases of Strategic Management

1. Basic financial planning2. Forecast-based planning3. Externally-oriented planning4. Strategic management

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Basic Concepts of Strategic Management

Highly Rated Benefits

• Clearer sense of strategic vision• Sharper focus on strategic importance• Improved understanding of changing

environment

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Basic Concepts of Strategic Management

Not Always a Formal Process

• Where is the organization now? (not where do we hope it is)

• If no changes are made, where will the organization be in 1,2,5 or 10 years?

• What specific actions should management undertake?

• What are the risks and payoffs?

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Basic Concepts of Strategic Management

Basic Elements of the Strategic Management Process

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Organizational Adaptation

Organization “fit” with environment

• Theory of population ecology – unable to adapt

• Institution theory – adapt by imitating

• Strategic choice perspective – adapt and reshape environment

• Organizational learning theory – adjust defensively and use

knowledge offensively

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Learning Organizations

An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

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Learning Organizations

4 Chief Activities

• Systematic problem solving• New approach experimentation• Learning from experiences• Intra-organization knowledge transfer

Toyota and suppliers In 2008, first time Toyota Corporation faced a loss

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Environmental Scanning Defined

Monitoring, evaluation, and disseminating information from external and internal environments –to key people in the firm

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Basic Concepts of Strategic Management

Environmental Variables

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Environmental Scanning

SWOT Analysis

• Strengths – Weaknesses

• Opportunities - Threats

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Strategy Formulation

Development of long-range plans for effective management of opportunities and threats in light of corporate strengths and weaknesses

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Strategy Formulation

Mission Statement

• Purpose/reason for organization• Promotes shared expectations• Communicates public image• Who we are; what we do; what we

aspire to

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Organizational Adaptation

Strategic flexibility

• Demands long-term commitment to development of critical resources

• Demands firm become a learning organization

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Basic Concepts of Strategic Management

Hierarchy of Strategy

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Goals & Objectives

Corporate Goals/Objectives

–Profitability (net profit)–Growth–Resource utilization (ROE, ROI)–Market leadership

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Basic Concepts of Strategic Management

3 Types of Strategy

–Corporate strategy

–Business strategy

–Functional strategy

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Basic Concepts of Strategic Management

Corporate Strategy

–Stability–Growth–Retrenchment

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Basic Concepts of Strategic Management

Business Strategy

–Competitive strategies

–Cooperative strategies

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Basic Concepts of Strategic Management

Functional Strategy

–Technological leadership

–Technological followership

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Basic Concepts of Strategic Management

Strategic Decision-Making

Process

Pg 22-23

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Strategic Decision Making

Strategic Decisions

–Rare

–Consequential

–Directive

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Strategic Decision Making

Mintzberg’s Modes

–Entrepreneurial mode–Adaptive mode–Planning mode–Logical incrementalism

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Hambrick and Fredrickson – Good Strategy

5 Elements of Good Strategy

1. Arenas – where will we be?2. Vehicles – how to get there?3. Differentiators – how will we win?4. Staging – what moves?5. Economic logic – how to obtain

returns?

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STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 1 Basic Concepts of Strategic Management

QUESTIONNAIRE2012

Question

• Name, Age, Semester, Program, State, DPP, MUET Band

• 1. What is your Objective that you want to achieve in– A. 5 years – B. 10 years– C. 30 years

• 2. How are you going to achieve that objective – what is your strategy?

• English Usage• How do you feel about your level of

English?• Why?

• Fill in the blanks:• How often do you:• 1. Read English newspapers?

________________• 2. Read English storybooks?

_________________• 3. Listen to English songs?

___________________• 4. Watch English movies/tv shows?

____________• 5. Talk in English with other people?

____________• 6. Talk in English in class?

_____________________