Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
-
Upload
fahad-mudassar -
Category
Documents
-
view
223 -
download
0
Transcript of Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
1/26
Strategic Leadership involves:Strategic Leadership involves:
Strategic LeadershipStrategic Leadership
The ability to anticipate, envision, maintain flexibilityThe ability to anticipate, envision, maintain flexibilityand empower others to create strategic changeand empower others to create strategic change
MultiMulti--functional work that involves workingfunctional work that involves workingthrough othersthrough others
Consideration of the entire enterprise rather thanConsideration of the entire enterprise rather thanjust a subjust a sub--unitunit
A managerial frame of referenceA managerial frame of reference
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
2/26
Strategic CompetitivenessStrategic Competitiveness
AboveAbove--Average ReturnsAverage Returns
EffectiveEffective
Strategic LeadershipStrategic Leadership
influenceinfluence
shapes the formulation of
andandStrategic IntentStrategic Intent Strategic MissionStrategic Mission
SuccessfulSuccessful
Strategic ActionsStrategic Actions
FormulationFormulationof Strategiesof Strategies
ImplementationImplementationof Strategiesof Strategies
Strategic LeadershipStrategic Leadershipand the Strategicand the StrategicManagement ProcessManagement Process
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
3/26
Managerial DiscretionManagerial Discretion
External EnvironmentExternal EnvironmentIndustry StructureIndustry StructureRate of market growthRate of market growth# and type of competitors# and type of competitorsPolitical/Legal constraintsPolitical/Legal constraints
Product differentiationProduct differentiation
Factors Affecting Managerial DiscretionFactors Affecting Managerial Discretion
Interpersonal skillsInterpersonal skills
Tolerance for ambiguityTolerance for ambiguityCommitment to the firmCommitment to the firm
Aspiration levelAspiration levelSelfSelf--confidenceconfidence
Characteristics of the ManagerCharacteristics of the Manager
Employee interactionEmployee interaction
OrganizationalOrganizationalCharacteristicsCharacteristics
Resource availabilityResource availability
Size and ageSize and ageCultureCulture
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
4/26
Exercise of Effective Strategic
Leadership
EstablishingEstablishing
balancedbalanced
organizationalorganizational
controlscontrols
EmphasizingEmphasizingethicalethical
practicepractice
DevelopingDevelopinghumanhuman
capitalcapital
Exploiting andExploiting and
maintainingmaintaining
corecore
competenciescompetencies
SustainingSustaining
an effectivean effective
organizationalorganizational
cultureculture
DeterminingDetermining
strategicstrategic
directiondirection
Effective StrategicEffective Strategic
LeadershipLeadership
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
5/26
Determining Strategic Direction
Strategic direction means the development ofStrategic direction means the development of
a longa long--term vision of a firms strategic intentterm vision of a firms strategic intent
A charismatic leader can help achieveA charismatic leader can help achievestrategic intentstrategic intent
It is important not to lose sight of the strengthsIt is important not to lose sight of the strengths
of the organization when making changesof the organization when making changes
required by a new strategic directionrequired by a new strategic direction Executives must structure the firm effectivelyExecutives must structure the firm effectively
to help achieve the visionto help achieve the vision
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
6/26
Exploiting and Maintaining Core
Competencies Core competencies are resources andCore competencies are resources and
capabilities that serve as a source ofcapabilities that serve as a source of
competitive advantage for a firm over its rivalscompetitive advantage for a firm over its rivals Strategic leaders must verify that the firmsStrategic leaders must verify that the firms
competencies are emphasized in strategycompetencies are emphasized in strategyimplementation effortsimplementation efforts
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
7/26
Exploiting and Maintaining Core
Competencies In many large firms, and certainly in relatedIn many large firms, and certainly in related--
diversified ones, core competencies arediversified ones, core competencies are
exploited effectively when they are developedexploited effectively when they are developedand applied across different organizationaland applied across different organizationalunitsunits
Core competencies cannot be developed orCore competencies cannot be developed or
exploited effectively without developing theexploited effectively without developing thecapabilities of human capitalcapabilities of human capital
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
8/26
Developing Human Capital
Human capital refers to the knowledge andHuman capital refers to the knowledge andskills of the firms entire workforceskills of the firms entire workforce
Employees are viewed as a capital resourceEmployees are viewed as a capital resource
that requires investmentthat requires investment No strategy can be effective unless the firm isNo strategy can be effective unless the firm is
able to develop and retain good people toable to develop and retain good people tocarry it outcarry it out
The effective development and managementThe effective development and managementof the firms human capital may be theof the firms human capital may be theprimary determinant of a firms ability toprimary determinant of a firms ability toformulate and implement strategiesformulate and implement strategies
successfullysuccessfully
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
9/26
Sustaining an Effective
Organizational Culture An organizational culture consists of aAn organizational culture consists of a
complex set of ideologies, symbols, and corecomplex set of ideologies, symbols, and core
values that is shared throughout the firm andvalues that is shared throughout the firm andinfluences the way it conducts businessinfluences the way it conducts business
Shaping the firms culture is a central task ofShaping the firms culture is a central task ofeffective strategic leadershipeffective strategic leadership
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
10/26
Sustaining an Effective
Organizational Culture An appropriate organizational cultureAn appropriate organizational culture
encourages the development of anencourages the development of an
entrepreneurial orientation among employeesentrepreneurial orientation among employeesand an ability to change the culture asand an ability to change the culture asnecessarynecessary
Reengineering can facilitate this processReengineering can facilitate this process
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
11/26
The benefits ofThe benefits ofbusiness reengineeringbusiness reengineeringarearemaximized when employees believe that:maximized when employees believe that:
Changing Culture and ReengineeringChanging Culture and Reengineering
Every job in the company is essential andimportant
All employees must create value through theirwork
Constant learning is a vital part of every personsjob
Teamwork is essential to implementationsuccess
Problems are solved only when teams acceptthe responsibility for the solution.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
12/26
Emphasizing Ethical Practices
Ethical practices increase the effectiveness ofEthical practices increase the effectiveness ofstrategy implementation processesstrategy implementation processes
Ethical companies encourage and enableEthical companies encourage and enablepeople at all organizational levels to exercisepeople at all organizational levels to exerciseethical judgmentethical judgment
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
13/26
Emphasizing Ethical Practices
To properly influence employee judgment andTo properly influence employee judgment andbehavior, ethical practices must shape thebehavior, ethical practices must shape the
firms decisionfirms decision--making process and be anmaking process and be anintegral part of an organizations cultureintegral part of an organizations culture
Leaders set the tone for creating anLeaders set the tone for creating anenvironment of mutual respect, honesty andenvironment of mutual respect, honesty andethical practices among employeesethical practices among employees
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
14/26
Establishing Balanced
Organizational Controls Organizational controls provide theOrganizational controls provide the
parameters within which strategies are to beparameters within which strategies are to be
implemented and corrective actions takenimplemented and corrective actions taken Financial controls are often emphasized inFinancial controls are often emphasized in
large corporations and focus on shortlarge corporations and focus on short--termterm
financial outcomesfinancial outcomes
Strategic control focuses on the content ofStrategic control focuses on the content of
strategic actions, rather than their outcomesstrategic actions, rather than their outcomes
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
15/26
Establishing Balanced
Organizational Controls Successful strategic leaders balance strategicSuccessful strategic leaders balance strategic
control and financial control (they do notcontrol and financial control (they do not
eliminate financial control) with the intent ofeliminate financial control) with the intent ofachieving more positive longachieving more positive long--term returnsterm returns
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
16/26
Why do a situation analysis?
Situation analysis concentrates on
generating solid answers to a well-
defined set of strategic questions and
using these answers to:
Appraise the companys strategic situation
and business position
Craft a suitable strategy
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
17/26
Situation analysis focuses on:
EXTERNAL FACTORS the firms
MACRO-environment (industry and
competitive conditions)
INTERNAL FACTORS the firms
immediate MICRO-environment (itsown internal situation and
competitive position)
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
18/26
The Key Questions in
Company Situation Analysis1. How well is the companys present strategy
working?
2. What are the companys strengths,weaknesses, opportunities, and threats?
3. Are the companys prices and costscompetitive?
4. How strong is the companys competitiveposition?
5. What strategic issues does the companyface?
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
19/26
SWOT Analysis
SWOT represents the first letter inStrengths, Weaknesses, Opportunities,and Threats.
SWOT analysis
Involves sizing-up a companys INTERNALstrengths and weaknesses and itsEXTERNAL opportunities and threats
Is an easy to use tool for getting a quickoverview of a companys strategic situation
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
20/26
Why SWOT Analysis is Important
It is the basis for matching strategy to
the companys situation To its internal strengths and weaknesses
To its external threats and opportunities
A winning strategy must always fit the
companys situation.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
21/26
Strengths What is a company Strength?
Something a company is good at doing or
a characteristic that gives it an importantcapability.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
22/26
Weaknesses
What are company weaknesses?
Something a company lacks or does poorly
(in comparison to others) or a conditionthat puts it at a disadvantage.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
23/26
Opportunities What are company opportunities?
Those that offer important avenues for
profitable growth, those where a companyhas the most potential for competitive
advantage, and those which the company
has the financial resources to pursue.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
24/26
Threats What are company Threats?
Certain factors in a companys external
environment that pose a threat to its well-being.
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
25/26
Some questions to consider once the
SWOT listings have been compiled are:
Does the company have internal strengths or
core competencies an attractive strategy can
be built around?
Do company weaknesses make a company
vulnerable and does it disqualify a company
from pursuing industry opportunities?
Which weaknesses does a company need to
correct?
-
8/8/2019 Revised BBA473 Week 2 New Edition Dr. Ronald Bolender
26/26
Which opportunities does the company have
the skills and resources to pursue with a real
chance for success? Which opportunities arethe best from the companys standpoint?
(Remember: Opportunity without the means
to capture is only an illusion.)
What external threats should management be
worried most about and what strategic moves
need to be made to craft a good defense?
Some questions to consider once the
SWOT listings have been compiled are: