EBUS 2715 Strategic Management Principles

• EBUS 2715 covers the principles of strategic management.

The Strategic Management Process

• Strategic leadership provides and direction to an organisation
• Strategic direction involves making strategic decisions for the direction of the company
• Corporate governance and strategy ensures the company is managed ethically and effectively
• External environmental analysis involves looking at factors outside a business
• Internal environmental analysis involves looking at factors from within a business
• Long-term goals and generic strategies help a business plan its future and remain competitive
• Grand and functional strategies give the long-term function for the business
• The business model canvas is a tool used to define the business strategy
• It is important to align strategy with the industry life cycle to remain relevant and competitive
• Strategic analysis and choice involves choosing a strategy that suits the business
• The focus then shifts to its implementation and change management
• The focus then shifts to the drivers of strategy implementation
• The focus then moves to the structural drivers and instruments for strategy implementation
• Continuous improvement through strategic control and evaluation is important to success
• Applying strategic management concepts in the global marketplace is the final stage

Introduction

• Businesses must plan for the future in a fierce and unpredictable environment
• The COVID-19 pandemic made organisations more focused on planning for a volatile and uncertain future
• The competitive landscape has significantly changed since the 1990s, drastically altering engagement rules

The VUCA World

• Organisations now work in a VUCA world
• VUCA stands for Volatile, Uncertain, Complex, and Ambiguous.
• Managers should realise that their actions and decisions can influence the competitive landscape

Business Model Transformations

• Four transformations have influenced business models and strategists' work
• The available strategic space has expanded
• Business is now global
• Speed is critical
• Innovation is a new source of competitive advantage

What strategic management is

• Strategic management is a process that integrates and coordinates organisational functions and resources
• It implements strategies aligned with the environment to achieve long-term goals and gain a competitive advantage by adding value for stakeholders

Why strategic management matters

• Strategic management helps create a competitive advantage or "competitive edge"
• A strategy is an effort or deliberate action an organisation implements to outperform its rivals

Views on Strategy

• Emerging versus traditional views exist around strategy
• Strategy can either be a fixed solution or a dynamic, evolving process
• Good strategies should have specific, identifiable characteristics

People in Strategic Management

• Human resources are the most important asset, also known as human capital
• Human capital is the catalyst for implementing strategies
• Environmental analysis is the responsibility of every manager
• Strategy formulation is the responsibility of top management
• Strategy implementation is the responsibility of all levels of employees and sometimes other stakeholders

Strategic Planning Champions

• Strategic planning champions (SPCs) introduce, promote, and guide the strategic planning process
• An SPC is a skillful strategic thinker and analytical planner with specific roles
• Roles of an SPC include being a social craftsperson, artful interpreter, and known stranger

Strategic Intuition

• Strategic management involves both qualitative and quantitative assessment and analysis
• Qualitative analysis involves intuition or "gut feeling"
• Quantitative analysis is built on proper strategic analysis and choice
• Richard Branson's success with Virgin Group was mainly due to a strategic vison

Benefits of Strategic Management

• Higher profitability and productivity
• Improved communication across the different functions of the organisation
• Empowerment
• Discipline and a sense of responsibility in management
• More effective time and resource management
• Change management

Risks of Strategic Management

• Time-consuming
• Unrealistic expectations from managers and employees
• Uncertain chain of implementation due to external market factors
• Negative perception of strategic management
• No specific goals or measurable outcomes
• Problems with culture of change
• Success groove

Strategic Issues for the Future

• Addresses ethics and strategy
• Stakeholder and Knowledge management
• Innovation economy
• Change management
• Strategic leadership