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Strategic ManagementWeek 1Introduction
MSc / MA
Semester 2 11/12
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Phil Johnson
Teaching Fellow in Management BA (Hons) 2:1 in European Studies
European literature, history and philosophy
French language
MSc in Logistics & Supply Chain Management
Cranfield 1994 PGCE
Keele 2005
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Phil Johnson
Teaching Fellow in Management
1998-2004 Visiting Lecturer
Cranfield University
Leeds Business School
Warwick University
Westminster University
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Objectives To provide an overview of the process and
procedures of strategy management.
To provide an understanding of the mainapproaches to strategy in business, theirpractical and theoretical underpinnings, theirlimitations and weaknesses.
To provide practice in applying these modelsto differing, complex and volatile situations.
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Timetable (flexible!) Week 1
Overview
Objectives
Timetable
Assessment
History Elements of strategic management
Case study: EMB inc
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Timetable Week 2
Stakeholders
Mission, Vision, Values
External analysis
Macro
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Timetable Week 3
External analysis
Industry/sector
Internal analysis
Case Study: EMB inc (re-visited)
Corporate structures and strategicmanagement
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Timetable Week 4
Corporate level strategy Growth, portfolios, Ansoff
Business level strategy
Porter, Bowmans clock
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Timetable Week 5
Intended & emergent strategies
Assignment prep
Case study: to be confirmed
Wrap up
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Assessment Case study
circa 2,500 words (+/- 10%) Emphasis on analysis, not description
Demonstrate that you understand the
appropriate use of the tools we have
discussed
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Sources and referencing Use formal, reputable sources, such as textbooks,
journal articles and the quality media (eg Financial
Times, The Economist).
Do NOT use Wikipedia, or any site that offers pre-
written term papers (such as Ivythesis or Scribd).
Please use Harvard referencing style.
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Sources Set books
KLE
Flash movie at:-
http://www.keele.ac.uk/depts/aa/landt/KLE%20D
EMO%20LDU%20version.swf
http://www.keele.ac.uk/depts/aa/landt/KLE%20DEMO%20LDU%20version.swfhttp://www.keele.ac.uk/depts/aa/landt/KLE%20DEMO%20LDU%20version.swfhttp://www.keele.ac.uk/depts/aa/landt/KLE%20DEMO%20LDU%20version.swfhttp://www.keele.ac.uk/depts/aa/landt/KLE%20DEMO%20LDU%20version.swf8/2/2019 Strat Man MSc Session 1 Jan 12
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What is strategy?
Would you tell me please, which way
I ought to go from here?
That depends a good deal on where
you want to get to said the Cat
Alices Adventures in Wonderland
Lewis Carroll
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Strategy Incircumstances of competition or conflict, as in the theory of
games, decision theory, business administration, etc., a plan for
successful action based on the rationality and interdependence
of the moves of the opposing participants.OED Online 2005
Strategy is the directionand scopeof an organisation over the
long term, which achieves advantagein a changing environment
through its configuration ofresourcesand competencieswith
the aim of fulfilling stakeholder expectations.
Johnson, Scholes & Whittington, 2005 p9
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Some history Sun Tzu (circa 400BC)
Strategic objectives
External analysis Internal analysis
Resulting action
Fayol (1841-1925)
Plan
Organise
Coordinate
Command
Control
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Some history 1960s - Harvard business policy
courses
emphasis on practicality, not theory orresearch
1960s & 70s - Development of
corporate planning finance-driven
corporate planningdepartments
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Some history 1980s & 90s -
Quinn, Mintzberg, Pettigrew people [are] too imperfect and the world too complex for
heavy reliance on analysis and planning(Johnson, Scholes &Whittington, 2008, p17)
It is better to work with, rather than against, the messiness of
organisations.(ibid.)
Porter Competitive advantage (1980) & Competitive Strategy (1985)
Hamel & Prahalad resource-based theories (1990)
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Elements of strategic management
Johnson, Scholes & WhittingtonExploring Corporate Strategy 2005
Missions &Stakeholders
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Vision
A visionis a view of a future reality
that the organisation seeks.
Mellahi Frynas & Finlay
Global Strategic Management 2005p363
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Mission Mission statements should:
be specific enough to have an impact upon the behaviour ofindividuals throughout the business;
reflect the distinctive advantages of the organisation and bebased upon an objective recognition of its strengths andweaknesses;
be realistic and attainable;
be flexible enough to take account of shifts in the
environment; emphasise the common ground amongst stakeholders, not
the differences.
Adapted from LynchCorporate Strategy 2006
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Values Core values are the principles that guide an
organisations actions.
The underlying and enduring core principlesthat guide an organisations strategy anddefine the way the organisation shouldoperate.
Johnson, Scholes & Whittington, 2005, p207
Johnson, Whittington & Scholes 2011, p121
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ValuesValues should:
Place constraints on the means by whichthe organisation will seek to maximiseshareholder value
Increase the effectiveness with which theorganisation builds competitive advantage
through reinforcing strategic intent andbuilding internal consensus andcommitment.
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Stakeholders Stakeholders are those individuals or groups who
depend on an organisation to fulfil their own goalsand on whom, in turn, the organisation depends.
the individuals and groups who have an interest inthe organisation and, therefore, may wish toinfluence aspects of its mission, objectives andstrategies.
Johnson, Scholes & WhittingtonExploring Corporate Strategy 2008, p132
LynchCorporate Strategy 2006, p172
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Source: From R.E. Freeman, Strategic Management: A Stakeholder Approach, pub. Pitman 1984 Copyright 1984 by R.Edward Freeman
Stakeholder examples
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Stakeholder analysis
Source:Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems,Cambridge, MA, 1991. In Johnson Scholes and Whittington 2008, p156
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Conflict of expectations
Johnson, Scholes & Whittington, Exploring Corporate Strategy 2008, p155
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Mission/Vision/Values Marks & Spencer plc
Our Vision: To be the standard against
which all others are measured. Our Mission: To make aspirational quality
accessible to all.
Our Values: Quality, value, service,innovation and trust.M&S circa 2009
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Mission/Vision/Values The purpose of the firm is to contribute to society by
supplying goods of high quality at low prices in amplequantity. The happiness of man is built on mental
stability and material affluence. To serve thefoundation of happiness, through making mans lifeaffluent with an inexpensive and inexhaustible supplyof lifes necessities like water, is the duty of a
manufacturer. The purpose of the enterprise is tomaterialise the duty and consequently contribute tosociety.
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Mission/Vision/Values The purpose of the firm is to contribute to society by
supplying goods of high quality at low prices in amplequantity. The happiness of man is built on mental
stability and material affluence. To serve thefoundation of happiness, through making mans lifeaffluent with an inexpensive and inexhaustible supplyof lifes necessities like water, is the duty of a
manufacturer. The purpose of the enterprise is tomaterialise the duty and consequently contribute tosociety.
Matsushita, in Mellahi Frynas & FinlayGlobal Strategic Management 2005p364
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Mission/Vision/Values
Altria Group Mission Statement www.altria.comJan 12
Our Mission is to own and develop
financially disciplined businesses that
are leaders in responsibly providing
adult tobacco consumers with superior
branded products.
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Mission/Vision/Values
www.philipmorrisusa.comJan 12
As an operating company of Altria Group, PM USA is guided by Altria Group'sMission to own and develop financially disciplined businesses that are leaders inresponsibly providing adult tobacco consumers with superior branded products.
Guided by Altria Groups Mission and Values, PM USAs role is to responsibly and
effectively develop, manufacture and market superior branded cigarettes andsmokeless products for adult tobacco consumers.
The Mission guides and informs the business decisions at Altria Group and itsoperating companies, which pursue the Mission by focusing on four strategies:
Invest in Leadership: We will invest in excellent people, leading brands and external stakeholders
important to our business success. Align with Society: We will actively participate in resolving societal concerns that are relevant to
our business.
Satisfy Adult Consumers: We will convert our deep understanding of adult tobacco consumerneeds into better, more creative and more satisfying products.
Create Substantial Value for Shareholders: We will execute our business plans to createsustainable growth and generate substantial return for shareholders
http://www.philipmorrisusa.com/http://www.philipmorrisusa.com/Top Related