Strategic Management Semester 2

• This is semester 2 of Strategic Management
• Taught by Pr Içam Harfi at IMS in Kénitra in 2024

Course Materials

• Module 1 covers the syllabus and assessments for the course
• Module 2 focuses on definitions and concepts related to strategic management
• Module 3 will explore the strategic management process
• Module 4 focuses on case studies in sport management
• Module 5 is Monitoring and Evaluation

Course Overview and Objectives

• Understand the link between mission, vision, and strategy
• Familiarization with strategic management concepts, frameworks, and techniques
• Comprehend the Business Model notion
• Expertise will be gained in application of concepts, frameworks and tools
• Explore reasons for good or bad enterprise/organization performance
• Strategy options for enterprises/organizations can be generated
• Optimal decision-making will be selected

Nature of Strategy

• Understand of strategic management benefits
• Explain how globalization and environmental sustainability influences the strategic management
• Understand the basic model and its components

Study Questions

• What are the foundations of strategy?
• The course aims to answer specific questions
• What is the strategic management process?
• Which strategies types are used by organizations?
• What current strategy implementation issues exist?

Activity 1

• "Let's break the ice!!!" this module is designed to get the students more comfortable and feel at ease

Strategic Decisions Characteristics and Vocabulary

• Characteristics of strategic decisions is defined
• Basic strategy vocabulary is to be understood
• Variation will be explored in strategic priorities i.e. corporate, operational, and business
• Corporate strategy and strategic model elements are explained
• The relative element importance will vary based on context and circumstance
• Analysis and intuition are integrated in strategic management
• Possibilities should be evaluated, taking small actions may lead to a solution
• Values are the strategic guides to determine future actions

Definition of Strategy

• Tutorial session "classe 1" has a task to find keywords relating to strategy

• Sun Tzu is the military strategist behind the "Art Of War"

• "The Art Of War" is considered the best strategy book

• Sun Tzu was a military specialist from the Chou dynasty in 5th century B.C. China

• Sun Tzu's work was not known in the west until the 18th century

• Proper translations wasn't made until the 20th century

• His work is a godsend for strategists across business and innovation

• A strategist (Stratos) is a senior military officer

• Military metaphor; strategy helps combine military forces actions to achieve determined goal

• Constraints on economic activity share similarities to armies in battle

• Like an army staff, management shapes decisions by shedding light on potential objectives, opportunities, and resources

• Determination of enterprise/organization objectives requires action and resource allocation

Levels of Strategy

• Corporate strategy is concerned with overall purpose and scope of organization

• Concerned with values added to different business parts

• Corporate level strategy is the basis of other strategic decisions

• Corporate decisions has a large decision scale

• Meets the expectations of stakeholders

• Questions to consider are to ? What ? and Who ?

• Corporate Level Strategy (CLS) includes:

  • Long Term
  • Uncertain
  • Geared toward overarching Goals
  • Complex
  • Dynamic
  • Far Reaching
  • Formulated from the Top Down
  • Retrenchment and Orientation to Growth

Examples of Corporate Strategy

• Mike's car dealership: implements vertical integration and diversification for company growth

• Luciana's cellphone business: incorporates stability strategy through consistent business process model

• Derek's bakery: implements retrenchment strategy by cutting costs and revising marketing

• Customer Loyalty/Retention: maintains lasting customer relationships through trust

  • loyal customers consume easily
  • are vocal advertisements
  • increase profits
  • consolidate image
  • strengthen brand attachment
  • competitive advantage

• Business strategy includes strategic planning and implementation for specific business unit direction

• Inquiries to consider are when, where, and how much will it cost

• The exploration, retention of customer loyalty, and innovation are key in business strategy

• Strategy Business Unit is an autonomous area within a company to manage strategy/operations

• It will allow for diversification and better strategies

Segmentation

• Strategic Segmentation involves dividing the whole enterprise into activities

• Functional Strategy involves acting with the best means for tactical plans to obtain required advantage

Questions to consider

• How to do things?
• How to make things happen?
• Establishing priorities
• Align the operating model
• Resource allocation

Benefits of Strategic Management

• Strategic management helps protect, control and maintain competitive advantage
• It also includes aligning vision, vision, values and mission and all stakeholders to overall strategy and structure

Financial Benefits

• Sustainable growth
• Competitive advantage
• Profitability management
• Improved revenue
• Solvency planning
• Liquidity monitoring

Non-Financial Benefits

• Revitalize Human Resources
• Identify Problems
• Better Decision Making
• Higher Stability
• Improved Understanding of competitors' Strategies
• For example, LG Electronics offers product at lower costs in Rural Areas

Process of Strategic Management

• The strategic management process provides steps to guide new strategies
• Includes situation analysis, strategy formulation, implementation, and evaluation
• For situation analysis, scan evaluates the organization's performance, corporate strategies, and external environment
• It arrives at an internal analysis

Framing Strategies

• Understanding the Basic and Fundamental Concepts of Strategic Diagnosis
• Understanding how to perform External and Internal Assessment
• Understand the standard approach for Strategic diagnosis Project
• Performing strategic diagnosis tools

SWOT Matrix: Internal/External Diagnosis

Strengths

• Expertise/Patents
• New product/service
• Good implementation
• Quality processes
• Brand strength

Weaknesses

• Lack of expertise
• Undifferentiated products
• Bad implementation
• Quality issues
• Bad reputation

Opportunities

• Emerging market
• Strategic alliances
• New market segments
• International market
• Regulation reduction
• Trade barrier suppression

Threats

• New competitor

• Price war

• Substitution product

• New regulations

• Trade barriers

• New taxation

• Economic crisis

• Mission and objectives, internal environment analysis, gap analysis, and strategy choice are to be reframed

• Strategy formulation includes developing vision, mission, identifying opportunities/threats and internal strengths/weaknesses

• Strategy should establish objectives, generate alternatives, and pursue strategies

• Important business decisions that should be covered are ; Abandoning, resource allocation, operations and international markets expansion

• Strategy should cover merging, joint ventures, and hostile takeovers avoidance

Applied exercise

• A SWOT Analysis for a Multi-Sport Complex

Strategy Implementation

• This is the phase where your formulated strategies are tested
• Requires the company to establish annual objectives, devise policies, motivate employees, and allocate resources
• Strategy implementation is often called the action stage

Strategy Evaluation

• This is used as part of a strategic analysis when making strategic decisions
• Includes value chain analysis, understanding competitive advantage, and defining the activities scope
• Questions in strategy evaluation will assess metrics, alignment, progress on vision, and strategic focus areas
• Car Manufacturers steps examples include:

Idetification of cars

• Includes; Micro, Hatchback, Sedan, SUV, MPV,Convertible, Wagon, Luxury, Antique, Coupe, Sports Car, Supercar, Muscle Car, Limousine, Hybrid Car, Electric Car, Diesel Car

Step 2: Analysis

• Examples include Battery Equalizer, Inverter, Thermal and electric drive systems

Step 3: Forming a strategy

Step 4: Executing the new plan

• Manufacturing, logistics
• Purchasing supply chain
• Profit
• After Market sales

Step 5: Evaluating the new direction

Conducting TOWS Analysis

• Strengths and Weaknesses go in the central column
• Opportunities and Threats go in the central row
• Internal and External Diagnostic (based on current status)
• SO Strategy involves taking advantage
• WO Strategy involves searching
• ST Strategy involves confrontation
• WT Strategy involves avoiding
• A Defense strategy is required, less opportunity is given
• Attack strength over opportunities
• We survive with WT -Survival
• The internal is used with a ce or Adjustment with ST
• Strategic objectives and analysis
• Strategy formulation, implementation, and evaluation/control should be considered
• This should be measured along with the mission, plan, values and analysis
• Effective leaders communicate the implementation and monitors employees