Strategic Management BUSM 3200 1-1 These Lecture Slides summarize the key points covered in the respective chapters in your recommended text; these slides do NOT substitute, at all, the required reading of the assigned chapter from the text. These slides also may contain additional supplementary material extracted from other texts and sources outside your text book. BUSM 3200- Strategic Management (Jan 2013) GDS
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Strategic Management BUSM 3200
1-1
These Lecture Slides summarize the key points covered in the respective chapters in your
recommended text; these slides do NOT substitute, at all, the required reading of the assigned
chapter from the text. These slides also may contain additional supplementary material extracted
from other texts and sources outside your text book.
BUSM 3200- Strategic Management (Jan 2013) GDS
The Required Text:
The text is COMPULSORY
• To do the assignment
• Case studies as shown in the lecture schedule needs to be read from the text
• Examination topics and content taken from this book
‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’ Alfred Chandler
‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’ Michael Porter Sources: A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13 M.E. Porter, ‘What is strategy?’, Harvard Business Review, 1996, November–December, p. 60
Corporate-Level Strategy is concerned with the overall purpose and scope of an organisation and how to add value to business units.
Business-Level Strategy is concerned with the way a business seeks to compete successfully in its particular market.
Operational Level Strategy is concerned with how different parts of the organisation deliver the strategy in terms of managing resources, processes and people.
The strategic position is concerned with the impact on strategy of the external environment, the organisation’s strategic capability (resources and competences), the organisation’s goals and the organisation’s culture.
Strategic choices involve the options for strategy in terms of both the directions in which strategy might move and the methods by which strategy might be pursued.
The Exploring Strategy Model can be applied in many contexts. In each context the balance of strategic issues differs: Small Businesses (e.g. Purpose and Growth issues) Multinational Corporations (e.g. Geographical Scope and Structure/Control issues) Public Sector Organisations (e.g. Service/Quality and Managing Change issues) Not For Profit Organisations (e.g. Purpose and Funding issues; Multiple Stakeholders)
The issues and challenges of doing SM in these different contexts will be unique
The strategy lenses (1)
The strategy lenses are ways of looking at strategy issues differently in order to generate many insights. Looking at problems in different ways will raise new issues and new solutions.
This topic reminds us that there is always the ‘human dimension’ in SM
Strategy is a result of decisions arising from the ‘cumulative wisdom or experiences’ of the mangers who are involved in decision making Strategy is likely to build on what was done before; limited change.
Strategy is not necessarily planned or directed from the top Rather it ‘emerges’ from within and around the organization as it responds to changes. New ideas emerge as a result of unpredictable and competitive pressures.
Strategy here focuses on the dynamics of interactions between the manager and subordinates – one of engaging in problem framing, debating and then communicating the decisions. It focuses on the complexities of human dynamics in SM
As you do you complete the chapter readings and assignment in the weeks to come, keep thinking about how the different topics you are covering affect the issue of competitive advantage
This is the key issue in SM
How to gain and how to sustain competitive advantage
The work of Professor Michael Porter focuses on this. We cover this in great detail in Lecture 5.
Strategy is the long-term direction of an organisation. A ‘strategy statement’ should cover the goals of an organisation, the scope of the organisation’s activities and the advantages or capabilities the organisation brings to these goals and activities.
Corporate-level strategy is concerned with an organisation’s overall scope; business-level strategy is concerned with how to compete; and operational strategy is concerned with how resources, processes and people deliver corporate- and business-level strategy.
Strategy work is done by managers throughout an organisation, as well as specialist strategic planners and strategy consultants.
• Research on strategy context, content and process shows how the analytical perspectives of economics, sociology and psychology can all provide practical insights for approaching strategy issues
• The Exploring Strategy Model has three major elements: understanding the strategic position, making strategic choices for the future and managing strategy-in-action.
• Strategic issues are best seen from a variety of perspectives, as exemplified by the four strategy lenses of design, experience, variety and discourse.
These questions are provided for your reference only – they are only INDICATIVE of the standard of questions you might expect in the final exam.
DO NOT use these questions to “spot”
The RMIT examiner will post advice on the exam on the Learning Hub closer to the exam; you are required to pay attention to that advise
The questions here show the range of topics that could be tested from this lecture; they are NOT exhaustive
To score a high grade it is important to LINK the theory to applications and examples. Where from?
You have been assigned specific cases to read from the text. Each case study will show you the kinds of strategic decisions the case company needs to make. You can draw from these examples.
You have selected a case company for your project; you may use examples from there.
You are supposed to read widely from the business press about local, regional and international companies strategies. You can use examples from there as well.
Our understanding of how strategy development in organizations can be enhanced through employing different strategy lenses. Give examples to illustrate your understanding.