SM - Lecture One

8/2/2019 SM - Lecture One

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PART ONE: ORIGIN OF STRATEGIC MANAGEMENT

London School of Commerce, Belgrade, 2012


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What is Management ?

Management

The process of getting things done effectively andefficiently, with and through people

EffectivenessDoing the right things, doing those tasks that help anorganization reach its goals

Eff ic iencyConcerned with the means, efficient use of resources likepeople, money, and equipment


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Four Management Functions

Planning Defining the organizational purpose and ways toachieve it

OrganizingArranging and structuring work to accomplishorganizational goals

Leading Directing the work activities of others

Control l ingMonitoring, comparing, and correcting workperformance


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Four Management Functions


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Functions by Organisational level


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Discussion

Human nature insist on adefinition for every concept....


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Discussion

...How would you describe a termstrategyin one sentence ?


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Definit ion of Strategy

There is no universaly accepted definition

Multiple definitions: Strategy as a Plan

Strategy as a Ploy

Strategy as a Pattern

Strategy as a Position

Strategy as a Perspective


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Strategy is a plan

Counsciosly intended course of action or set

of quidelines to deal with situation

Two essential characteristics:

Made with conscious and with purpose

Made in advance


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Strategy is a plan

In the army: drafting the plan of war... Shaping theindividual campaigns, deciding on the individual

engagements

In game theory: Strategy is a complete plan whichspecifies what choices will player make in every possible

situation

In management: Strategy is unified, comprehensive,

integrated plan .. designed to insure that the basic

objectives of the company are achieved

Von Clausewitz, von Newman and Morgenstern, Glueck


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Strategy as a ploy

Specific maneuver intended to outwit an

opponent or competitor


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Strategy is a pattern

A pattern is a stream of actions

Ford T in black


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Strategy is a posit ion

In world of management the word position

could be used as a niche, a product market

domain, the place in the environment

where resources are concentrated

Plan Ploy Position


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Strategy is a perspective

Strategy is a way of perceiving the world

Strategy is Weltanschauung (world view)

Strategies are abstraction which exist only inthe minds of interested parties

I-(pod,pad,phone) strategy


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Discussion

Which term is most suitable for you as a

description of strategy (if you were in

position to choose only one)

Plan (voted: students)

Ploy (voted: students)

Pattern (voted: students)

Position (voted: students)

Perspective (voted: students)


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A strategy is the pattern or plan that

integrates an organization's majorgoals, policies, and action sequences

into a cohesive whole.

James Brian Quinn


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A well-formulated strategy helps to marshal

and allocate an organization's resources into a

unique and viable posture based on its relative

internal competencies and shortcomings,

anticipated changes in the environment, and

contingent moves by intelligent opponents.


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Definit ion of other terms

Objectives

State what is to be achieved and when results are to be

acomplished

PoliciesRules or guidelines that express the limits within which

action should occur

ProgramsStep by step sequence of action necessary to achieve majorobjectives


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Discussion

Strategy vs. Tactics


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Deliberate and Emergent Strategies

Intended Strategy

Deliberate Strategy

Unrealised

StrategyRealised

StrategyEmergent

Strategy


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Question

To what extent you agree or disagree with

this statement

Business strategy is a mixture of

luck and judgment, opportunism

and design.


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PART TWO: THE S CHOO L OF STRATEGY

London School of Commerce, Belgrade, 2012


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Schools of strategy

Design school

Strategy as achieving the essential fit between internal

strenghts and weaknesses and external threats and

opportunities

Planning school

The process is formal and could be decomposed in steps and

checklists, supported by techniques.


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Schools of strategy

Positioning school (80s, M.Porter, BCG)

Strategy reduced to formal analyses of industry situations

Entrepreneurial schoolMoved strategy from functional (design,process) to visionary

process

Cognitive school

Strategy as mental (cognitiive, models, maps, schemas) process


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Schools of strategy

Learning school

Strategies are emergent, could be foound throughout the

organisation

Power school

Micro power, Macro power

Cultural school

Strategic changes influneced by culture


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Schools of strategy

Enviromental school

Dependence or independence of strategic manuevers in and

trough environment

Configuration school

Organisation is a configuration clusters of behaviors and

characteristics. Strategy - transformation


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Schools of strategy

Design school - Look before you leap

Planning school - A stitch in time saves nine

Positioning school -Nothing but facts

Entrepreneurial - Take us to your leader

Cognitive- I will see it when i believe it

Learning

If at first you dont succeed, try again

Power Look out for number one


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Schools of strategy

Cultural - An apple never fall far from the tree

EnvironmentalIt all depends

ConfigurationTo everything there is a season


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PART THREE : STRATEGISTS AND STEREOTYPES

O R F O U R M Y T H S A B O U T M A N A G E R ( S T R AT E G I S T S ) J O B


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Good manager...

... does deals (Tom Peters)

... is thinker(Porter)

.... is leader (Zaleznik)

... is controller (Fayol)


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Myth No.1

The manager is a systematic planer


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Fact No.1

Managers activity are characterised by variety,discontinuity and brevity

Mintzberg: 50% of the activities lasted than nineminutes, 10% exceeded one hour, average 583activities per day (study of 56 US foremen)

Stewart: Managers were able to work for a halfhour or more without interruption once every twoday

Aguilar: 93% of the verbal contacts were on ad hocbasis


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Myth No.2

The effective manager has no regularduties to perform


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Facts No.2

Managerial work involves performing a number of

regular duties, including ritual and ceremony,

negotiations, and processing of soft information that

links organisation with environment


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Myth No.3

The senior manager needs agregatedinformation, which a formal management

information system provides


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Facts No.3

Managers strongly favor the verbal media-

phone calls and meetings

Stewart: Managers spend 80% of their time

in verbal communication. Verbal information

is stored in the brains of people


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Myths No.4

Management is a science and profession


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Facts No.4

Scheduling time, processing infromation and

making decisions remains locked deep inside the

brains of managers.

Managers stil rely on words like judgment and

intuition.


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PART FOUR : STRATEGIC MANAGEMENT


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Strategic management

Strategic management includes:

Understanding the strategic position of an

organisation

Making strategic choices for the future

Managing strategy in action


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Strategic management

THE STRATEGIC

POSITION

Environment

CapabilityPurpose

Culture

STRATEGIC

CHOICES

Business-level

Corporate-level International

InnovationEvaluation

STRATEGY

IN ACTION

Processes

Resourcing

PracticeChanging

Organising


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Strategic posit ion

Understanding thestrategic position isconcerned withidentifying the impact

on strategy of theexternal environment,an organisationsstrategic capability and

the expectations andinfluence ofstakeholders

The Environment

Strategic Capability

Stakeholder

Expectations Cultural and Historical

Influences


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Strategic choices

Strategic choices

involve the options

for strategy in terms

of both thedirections in which

strategy might move

and the methods bywhich strategy

might be pursued.

Business-level

Corporate-level

International Strategy

Entrepreneurship and

Innovation

Evaluation/Success

Criteria


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Strategic Actions

Organising strategy

in action is

concerned with

ensuring that chosenstrategies are

actually put into

action.

Strategy Development

Process (intended and

emergent)

Structures, processes andrelationships

Resourcing Strategies to

support overall strategies

Strategic Change Practice of strategy

(people, activities,

methodologies)

SM - Lecture One

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