Midterm Notes

Ch 01, Ch 02 & Ch 03

MBA - Strategic Management Course Notes

Ahmed M. Hassan
13/02/2011
0
Lec : 01 Ch01 Introduction
MBA
Attitudes (A) Si!!s (S) "no#!ed$e ()
Like or is!ike
"# $e or - $e%
attitude to&ards'
customers
(ua!it)
market
orientation
H*M
++..
,nter-ersona!
communication
Leadershi-
Negotiation
.ro/!em so!$ing
Creati$e thinking
01
2heoretica!
3rame &ork
Conce-ts
01 "0motiona! inte!!igence%
45no&ing ho& )ou and others 3eet and &hat to do a/out it6
Ski!! or a/i!it) to -ercei$e7 assess and -ositi$e!) in8uence one9s o&n and others9
emotions.
imensions o3 01
1. 5no&ing )our o&n emotions
2. Managing )ou o&n emotions
3. Moti$ating )our se!3
:. 5no&ing and understanding others emotions
;. Managing re!ationshi- &ith others
Strategic Management
- Macro ana!)sis !e$e!
- Ho!istic/integrati$e a--roach
- Strategic -!ans --- main source < internet
Main -ro/!em is ------= -!anning
>hat is our /usiness < &hat /usiness &e are in?
.!an or /e -!anned 3or@/usiness is a &ar --- &in-!ose game < Aero sum
Market share --- customer share "ho& man) customers are !o)a!%
At 1BBB' Mo/ini! 100C market share in 0g)-t
At 200;' Mo/ini! ;0C market share in 0g)-t
I
20%
Competitors
80%
I
15%
Competitors
85%
1
Doda3one ;0C market share in 0g)-t
Norma!!) market consists o3 Bee% &ro'ects & Bones &ro'ects
0E' Li3e insurance 20C "Bee%% and *e!ia/i!it) insurance F0C ((ones% -----.areto *u!e
Notes:
GHI JKL MN OPQR STUV WXY Z[ZG
No -!anning is -!anning 3or 3ai!ure
0ducation' i3 )ou think education is eE-ensi$e tr) ignorance
.!anning--- 3uture ---un-redicta/!e
.!an \/\ adhoc "]YX^QIZ ]_`aL%
.!anning .!ans
.rocess
2hinking -rocess
Methodo!og)
outcomes
ideas
Disit .ast Create 3uture
Learning cur$e
"brganiAationa! memor)% cuture enactment
cuture enactment "dedning )our ro!e in the 3uture%
42omorro& ne$er comes < &hen )ou reach 3uture )ou are in the -resent6
Mahatir Mohamed --- 2020 -!an
ea-anese com-an) MBA Bf0/1000 ----- &here is the rest 30 -oints??
cuture orientation@i3 )ou do not kno& &here )ou are going7 an) road &i!! take )ou
there.
42hose &ho ha$e the go!d make the ru!es6
1uantum !ea-----O_VgR OPhR
*o!e Mode! --- $ision--- strategist
0n$isioning ---- ha$ing a $ision
Scenarios ---- diierent -!ans "uncertaint)7 assum-tions # &hat i3%
Str)te$ic thiners
Str)te$ic thinin$ *** !on$ term %uture
1- 0njo) !ong term thinking
2- Has a $ision
,n3ormation has t&o com-onents'
1. ,m-ortant "strategic issues%
Past Present Future
2
2. Noise " o-erationa! issues < !ess risk)@has authorit)%
Lec : 02 * Ch02 +ision )nd Mission
,)mous -uestions
1- >here &e are? ---- Strategic ana!)sis "S>b2%
2- >here do &e &ant to go? --- Strateg) 3ormu!ation "mission7 $ision7 o/jecti$es%
1 and 2 are the strategic -!anning -hase " ; cha-ters in the /ook%
3- Ho& can &e get there? --- Strateg) im-!ementation "structure7 cu!ture7 resources..%
too!s
:- Are &e there ? --- Strateg) e$a!uation and contro! " BSC7 0c1M7 Ba!drige A&ard7
Benchmarking+%
Strategic -!anning ---- !ong run --- 3uture
cocus direct a&ard--- short term
+ision . dre)m/destin)tion
">hat &ou!d )ou !ike to /ecome?%
Doda3one $ision 4to /e the most admired com-an) in 0g)-t6
Admired "/) stakeho!ders% \ /ased on &hich criteria < *b07 societ)7 customer
care+.?
+ision \ &hat do &e &ant to /ecome?
Mission \ &hat /usiness &e are in? "*eason 3or /eing/eEistence% +. OkX` lgm
XnhopT
Mission statement \ Creed statement qar sXt_u
Mercedes mission 4our mission is )our -!easure6 se!!ing !uEur) and socia! stance
Vision
Mission
3
Mission 0!ements:
1. Customers < &ho are the drmvs customers?
2. 1roduct or Ser2ice < &hat are the 3orms major -roducts or ser$ices?
3. M)ret - geogra-hica!!) &here does the drm com-ete?
:. 3echno!o$4 < is the drm techno!ogica!!) current?
;. Concern 3or sur2i2)!, $ro#th )nd &ro5t)(i!it4 < is the drm committed to
sur$i$a! and dnancia! soundness?
w. 1hi!oso&h4 - &hat are the /asic /e!ie3s7 $a!ues7 as-irations and ethica!
-riorities o3 the drm?
f. Se!% conce&t < >hat is the drmvs distincti$e com-etence or major com-etiti$e
ad$antage?
F. Concern 3or &u(!ic im)$e < ,s the drm res-onsi$e to socia!7 communit) and
en$ironmenta! concerns?
B. Concern 3or em&!o4ees < Are em-!o)ees a $a!ua/!e asset o3 the drm ?
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Lec : 03 * Ch3 09tern)! Assessment
St)eho!ders
An)one &ho is -ositi$e!)/negati$e!) aiected /) the acti$ities carried out /) the
organiAation such as customers7 o&ners7 em-!o)ees7 com-etitors7 societ)7 etc.
:ecisions
Certain *isk xncertain
you kno& outcomes
"eE. Bank interest%
-ro/a/i!it) o3
outcomes
"eE. trade -rodt%
unkno&n outcomes
not recommended
09tern)! en2ironment (8&&ortunities, 3hre)ts)
1. Starting -oint 3or organiAations >e im-ort in-uts 3rom the en$ironment
2. 0nding -oint 3or the organiAations >e eE-ort out-ut to the en$ironment
3. cactors o3 eEterna! en$ironment xncontro!!a/!e
:. 0Eterna! en$ironment Source o3 uncertaint)

:ecisions
.ro/a/i!it
)
Da!ue Situation
z z Certaint)
z { *isk
{ { xncertaint)
Change
Unstable
Stable
igh "egree o# Certaint$
Sim
igh "egree o#
un%ertaint$
Pla%i"
&urbulent
5
Comple'it$
Comple'
0n2ironment ,)ctors
1* Com&!e9it4
a. No o3 0Eterna! 3actors "ce&7 Man)%
/. Harmon) "Homogenous7 Heterogeneous%
2* Ch)n$e ".redicta/!e7 xn-redicta/!e%
3)s 0n2ironment Societ4 0n2ironment
a) to da) o-erations
brganiAationa! domain
Short term im-act
irect
Long term
,ndirect
.0S2 "C%
10S3 (C)
1- .o!itica! /Lega!
2- 0conomic
3- Socia! / Cu!tura! / emogra-hic
:- 2echno!og) / Science
;- Com-etiti$e 3orces
0conomic ;<=>?@ ABC
e-osa/!e income
,n8ation
xnem-!o)ment trends
>orker -roducti$it) !e$e!s
Soci)! / Cu!ture
Consumer /eha$ior
Attitude to&ards (ua!it)
(rgani)ation &as*
+n,ironment
So%iet$
+n,ironment
-
&urbulent
en,ironment
1o!itic)!
|o$ernment *egu!ation/ deregu!ation
2aE !a& changes
0$4&t 1DE0
1. Socia!ism Communism
2. State o&nershi-
3. .u/!ic sector
:. .rotected markets }Za_~Za`
;. Com-etition
w. 1ua!it)
f. ,ncome
F. .rice Contro!
B. 0astern techno!og) Z}MIZ ZX_IZ
10. No -unishment
0$4&t 1DFE 2010 on
1. Ca-ita!ism
2. .ri$atiAation
3. .ri$ate//usiness sector
:. Border!ess markets O`g~u sZgZ
;. Com-etition
w. 1ua!it)
f. ,ncome
F. No .rice Contro!
B. Modern techno!og)
0$4&t in tr)nsition
,3 &e need to sur$i$e7 &e must seek the 3o!!o&ing'
1. ,nte!!ectua! ca-ita! "changing mind set7 ac(uire ne& ski!!s/com-etences%
2. 2echno!og) ad$ancement " ne& techno!og)%
3. .rocedures sim-!idcation ".rocess re-engineering%
:. Customer care
;. 1ua!it) im-ro$ement
w. 0n3orce com-etition cu!ture
f. ,nno$ation / *
.
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Lec : 0G * Ch3 continued
H)te#)4 Com&uters C)se (8&&ortuinties & 3hre)ts)
5e) eEterna!
3actor
&eight *ating >eighted score
21 0.2 3 0.w
22 0.: 2 0.F
b1 0.3 3 0.B
b2 0.1 1 0.1
3ot)! 1I0 2IG
NIBI Jo# to $et #ei$ht (or r)n):
.ane! o3 eE-erts
Nomina! grou-ing
|rou- o3 eEecuti$es
,ndustr) re-orts / indeE
Consu!ting drm
*ating Com-an)vs current strategies res-onse to eEterna! 3actor or a/i!it) to
maEimiAe the /enedt o3 the o--ortunit) and minimiAe the im-act o3 the threats.
"1%res-onse is -oor "2%res-onse is a$erage "3%res-onse is a/o$e a$erage
":%res-onse is outstanding
>eight *e!ati$e im-ortance o3 each eEterna! 3actor
0.0 not im-ortant 1.0 $er) im-ortant
2he tota! &eighted score o3 2IG indicates a miE o3 o--ortunities and threats and
com-an) is a!most a$erage in ca-ita!iAing o--ortunities and minimiAing threats
(rgani)ation &as*
+n,ironment
So%iet$
+n,ironment
EFE = Os, Ts
STEP (C)
Porters
five forces
1 2 3 4
2/4
8
Jo#e2er, com&)nies c)n turn ) thre)t into )n o&&ortunit4 (it is ) m)tter o%
&erce&tion)
Com&etiti2e 1ro5!e M)tri9 C1M
1I List the critic)! success %)ctor (CS,) inc!uding interna! and eEterna! 3actors
2I Assign a &eight 3or each 3actor indicating the im-ortance o3 each 3actor "0.0 to
1.0%
3I 2ota! o3 a!! &eights MKS3 /e 1.0
GI cor each com-etitor &e indicate the rating o3 each 3actor &ith a $a!ue 3rom 1
"major &eakness% to : "major strength%
EI >e ca!cu!ate the score o3 each 3actor /) mu!ti-!)ing the >eight to the *ating
LI >e sum a!! the scores 3or each com-etitor to get the tota! &eighted score.
H)te#)4 A&&!e :e!!
CS,M s Nt
6)tin
$
NtMd
Score
6)tin
$
NtMd
Score
6)tin
$
NtMd
Score
Market share 0.1; 3 0.:; 2 0.30 : 0.w0
,n$entor) s)s 0.0F 2 0.1w 2 0.1w : 0.32
cin -osition 0.10 2 0.20 3 0.30 3 0.30
.rod. 1ua!it) 0.0F 3 0.2: : 0.32 3 0.2:
Cons. Lo)a!t) 0.02 3 0.0w 3 0.0w : 0.0F
Sa!es istr 0.10 3 0.30 2 0.20 3 0.30
|!o/a! 0E-. 0.1; 3 0.:; 2 0.30 : 0.w0
brg. Structure 0.0; 3 0.1; 3 0.1; 3 0.1;
.rod. Ca-acit) 0.0: 3 0.12 3 0.12 3 0.12
0-commerce 0.10 3 0.30 3 0.30 3 0.30
Customer Ser$ice 0.10 3 0.30 2 0.20 : 0.:0
.rice com-etiti$e 0.02 : 0.0F 1 0.02 3 0.0w
Mgt. eE-erience 0.01 2 0.02 : 0.0: 2 0.02
2ota! 1.00 2.F3 2.:f 3IGD
0
1orterMs 52e %orces mode!
1. *i$a!r) among com-etitors " /etter to se!ect &eak com-etitors%
2. Bargaining -o&er o3 su--!iers
3. Bargaining -o&er o3 /u)ers
:. 2hreats o3 su/stitute -roducts
;. Barrier to ne& entr) "higher is /etter i3 )ou are a!read) in7 /ad i3 )ou need to
enter%
10
(U& I1
2arrier
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