Motivation

People
Interaction OB

Module 1 Information
Random sample
QM
Stratified Data
Confidence interval

Macro
Markets EC future predicted for rational choice
Strategy in business context Strategy formulation detached from
Marginal analysis
everyday mngt.
Product characteristics forgo short-term profit for long-term advantage
Market demand Marketing Planning appr. proposed strategy capable of being managed
Competitive advantage CEO knowledge or power to choose

Comparing profitability Analysis -> strategy decision without

FIN feedback from environment = failure
Analysis
Implementation seperate precess after strategy agreed
Resource allocation 3 planning approaches
AC Managers can handle only limited no of options
Efficiency
Managers biased in interpretion of data
Seek satisfactory not max profitable solution
Constantly changing enviromnet Emergent strategy
Org is a coalition of interest groups
Strategy is dynamic # static
Dynamics
Company culture/policies = resource
Success strategy need for restructure due
available + external factors
to loss of comp. advantage
Available internal resources
profit in the past
Resource based strategy Search for comp advantage
Comp. preasure
How well are we performing Total Quality Management (TQM)
development of new prod.
The overall view
Systematic approach - continually adopted
Carry on Structure proactive style
attack existing markets What should we be doing in the future Strategic planning make choices not by random
combine expansion & diversification
Do not confuse rigour with number
Process of strategy & decision making
High degree of comp advantage precision is not essential
Improve resource planning Analysis relative orders of magnitude
Improve market intelligens & economic analysis How can we achieve succesful changes Data expressed as positive or negative
better control systems for monitoring performance Bring together business concepts & Elements of strategic planning quantitative of qualitative
Communicate company goals -> culture ideas in order to understand how
companies operate in a competitive Vision
Day to day press/problems first Integration
environment, develop understanding Specific recommendations in 1 area affect others
Cash flow of the inter relationship involved ->
basis for conclusions for monitor performance
external shocks Evaluation
Strategy & crises success/failure + environment relevant measures!
Loss of key personell scanning
Cost overspending react and learn
Feedback
labour relations strategy must be aligned with actual events

What are the market? process implementation - better

understanding
Which segment ?
SBU product level Company Overall sence of direction
Competition?
Benefits of SP reduce conflicts
Can comp advantage be achieved?
understanding
Comp bidding Individual
Allocation company resources enhance prestige and career prospects
SBU value added ratio

Divisionalisation Business Unit and Corporate strategy

Diversification
Portfolio planning
Restructuring Dev. of corp strategy
Core business
Parenting advantage
Globalisation

- 11/11/2011 - - - prepared by Carl Olav Staff / Rune Fjellvang

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