Corporate & Human Resource

Management Strategy

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Strategy & Corporate Strategy Nature

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Strategy

Science & Art of

Assessing the Strategy is a set of documents,
Business Situation pictures or any other type that
describes the future state of a
Setting Long Term project, team or organization In a
Goals way such that it helps its members
to move from the present state into
Select Course of
the future state.
Action

Managing
Necessary Resource

M & E Toward Goal

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Three Level of Strategy

Growth
Sustainability
Renewal

Cost Leadership
Differentiation
Market Focus

Policies
Practices

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 .

Corporate Strategy

Corporate Strategy Answer the Question “What the Business Will be In?”
Corporate Strategy Comprise the Portfolio of Businesses & How These
Businesses Related to Each Other. For Instance:

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Corporate Strategy Process

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 .

Business Strategy

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Business Strategy Mind

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 .

Business Strategy, Competitive Strategy & Competitive Advantage

Business Strategy means setting a competitive strategy & competitive

advantage.

 Competitive Strategy identifies how to build and strengthen the business’s

long-term competitive position in the marketplace.

 Competitive Advantage identifies any factors that allow an organization to

differentiate its product or service from those of its competitors to
increase market share.

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 Change
More
Create New
Unique Technology
Culture
Invest in Online
Customer Influencer
Relationship Business Strategy
for Competitive
Delight
Invest in Advantage
Customers
People
Work at
Niche Industry
Create
Down Events
Own Data

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Former vice president of human resources at the Toyota Motor
Manufacturing facility in Georgetown, Kentucky, described the
importance of human capital as a competitive advantage: “People are
behind our success. Machines don’t have new ideas, solve problems, or
grasp opportunities. Only people who are involved in thinking can make
a difference. . . . Every auto plant in the United States has basically the
same machinery”. But how people are utilized and involved varies
widely from one company to another. The workforce gives any company
its true competitive edge.

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Functional Strategy

Each department should operate within the framework

of its business’s competitive strategy. Functional
strategies identify what each department must do to
help the business accomplish its strategic goals.

To make its Olay skincare products to a toptier brand,

P&G’s product development, production, marketing,
sales, and human resource departments have engaged in
activities toward high-quality mission.

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Managers’ Roles in Strategic Planning

Few top executives formulate strategic plans without lower-level

managers’ input. No one knows more about the firm’s competitive
pressures, product and industry trends, and employee capabilities
than do the company’s department managers.

Human resource manager is in a good position to supply “competitive

intelligence”—information on competitors, for instance, competitors’
incentive plans, be the masters of own firms’ employees’ strengths
and weaknesses.

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Integrated Strategy for Real Practices

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Strategic Planning Nature

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Strategic Planning

Setting goals for the company usually

starts at the top for formulating an overall
strategic plan for the company.
 Strategic plan is the company’s overall plan for how it
will match its internal strengths and weaknesses with
its external opportunities and threats in order to
maintain a competitive position.

 The strategic planner asks, “Where are we now as a

business, and where do we want to be?” He or she
then formulates a strategic plan to help guide the
company to the desired end point

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Effective Strategic Planning

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Strategic Management

Strategic management is the art & science process of identifying

and executing the organization’s strategic plan, for instance, by
matching the company’s capabilities (strengths and weaknesses)
with the environment (competitors, customers, and suppliers,…)
for formulating, implementing, & evaluating cross-functional
decisions that enable an organization to achieve its goal.

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Strategic Management Process

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7 Steps of Strategic Management Process
Step 1:
Strategic management process begins by asking, “What
business are we in?” Here the manager defines the
company’s current business. Specifically, “What products do
we sell, where do we sell them, and how do our products or
services differ from our competitors’?”

 Cost & revenue, balancing today & tomorrow.

 Leading, or just managing.
 Products & services.
 Channels, services & pricing.
 Existing & potential customers.
 Resources, suppliers, partners.
 Organization, process & culture.
 People & resources.
 Engaging all stakeholders.
 Delivering value propositions.
 Engaging the target customers.
 Level of customer satisfaction.

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7 Steps of Strategic Management Process
Worksheet for Environmental Scanning

Step 2:
To ask, “Are we in the right business
given our strengths and weaknesses and
the challenges that we face?” To answer,
the role of manager is to “Audit” or study
both the firm’s environment and the
firm’s internal strengths and weaknesses.

SWOT Matrix

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7 Steps of Strategic Management Process

Step 3:
To decide what should our new business be, in terms of what we
sell, where we will sell it, and how our products or services
differ from competitors’ products/services? Some managers
express these intent with a “Vision Statement”

The vision statement is a general

statement of the firm’s intended
direction; it shows, in broad terms,
“What we want to become/what we
should be in the future.”

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 Step 4:
To translate the desired new direction into strategic goals.
Ford, for example, what exactly did making “Quality Job One”
mean for each department in terms of how they would boost
quality? The answer was laid out in goals such as “No more than
1 initial defect per 10,000 cars.”

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 Step 5:
Manager chooses strategies—courses of action—that will
enable the company to achieve its strategic goals
(Reducing Defect for Customer Satisfaction Performance).
Ford pursue its goal of no more than 1 initial defect per
10,000 cars.
Options Causes Effects/Outcomes
The state-of-art High cost investment in Quality will improve, cost
technology technology & employee efficiency and also reduce
training. defects.
Quality check at ending of Catch up quality defect Help reduce defect but not
process before sending to another improve quality if other
process. tools still at the same.
Decision/
Rigorous employee High cost investment in Skill employees lead to Select the
selection & training human resource. better quality Best
performance. Alternative
More pay rate for better High cost lead to reduce More employees’
performance profit of company. satisfaction lead to better
performance.
Supplier partnership for Tough negotiation for Suppliers will offer high
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quality materials. partnership. quality materials.

 Step 6:
Strategy execution, means translating the strategies into action.
This means actually implementing the strategy. The state-of-art
technology, review job analysis for training, improving pay rate.

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 Step 6:
Strategy execution, means translating the strategies into action.
This means actually implementing the strategy. The state-of-art
technology, review job analysis for training, improving pay rate.

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7 Steps of Strategic Management Process
Step 7:
Manager evaluates the results of planning and
execution. Things don’t always turn out as planned,
all managers should periodically assess the progress
of strategic decisions.

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Human Resource Strategy Nature

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Human Resource Strategy

Strategic human resource management means formulating and

executing human resource policies and practices that produce
the employee competencies and behaviours the company needs
to achieve its strategic aims.

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Human Resource Strategy Context

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Constraints on Human Resource Strategy

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