Fundamentals of Strategic Management IR1 2024-25 PDF

Fundamentals of Strategic Management IR1 2024-25 Ángel Araujo, Ph.D. GRACIAS POR ASISTIR Inversiones de Impacto Ángel Araujo, Ph.D. 1 UFV - IR 1 Fundamentals of Strategic Management About Strategic Management 1 Ángel Araujo, Ph.D....

Fundamentals of Strategic Management IR1 2024-25 Ángel Araujo, Ph.D. GRACIAS POR ASISTIR Inversiones de Impacto Ángel Araujo, Ph.D. 1 UFV - IR 1 Fundamentals of Strategic Management About Strategic Management 1 Ángel Araujo, Ph.D. 2 00 | Calendar & Class Rules When will everything happen? 9/9/2024 9/12/2024 9/16/2024 9/19/2024 9/23/2024 9/26/2024 9/30/2024 10/3/2024 10/7/2024 10/10/2024 10/14/2024 10/17/2024 Future Future About Strategy About Strategy The Office of Strategy Environmental Environmental Internal Internal Case Flash Introduction Management-The State of Direction and Direction and Forward: Management Management Analysis Analysis Analysis Analysis the Art, 2011.pdf Value Value Nike, Inc. Class Class Class Practise Practise Class Class Class Class Class Class Practise 10/21/2024 10/24/2024 10/28/2024 10/31/2024 11/4/2024 11/7/2024 11/11/2024 11/14/2024 11/18/2024 11/21/2024 11/25/2024 11/28/2024 Directions for Directions for Paris Baguette: Evaluation and Competitive Competitive Methods of Methods of Internationalis Internationalis Strategic Strategic Quintessentially French with implementatio Strategies Strategies Development Development ation ation development development Love from Korea n Practise Class Class Class Class Class Class Class Class Practise Practise Class 12/2/2024 12/5/2024 12/9/2024 12/12/2024 Evaluation and Ben & Jerry's Homemade Ice Cream, Inc.: A Period of Transition implementation Class Team Dynamics Team Dynamics Team Dynamics 3 00 | Learning Goals Learning Goals Consider when studying 1. Define the main concepts of strategy 2. Delimit the different phases involved in the Strategic Management process and analyse their potential advantages 3. Analyse the process rationale and the factors upon which it depends 4. Establish a framework of analysis for Strategic Management based on a holistic approach encompassing economic- rational issues and those of an organisational nature 4  Index - Structural Pilars 01 02 03 Strategic Decisions The Process of Strategic Strategy Management Management as a and its Responsibility Field of Study Ángel Araujo, Ph.D. 5  Index 01 02 03 04 About Strategic The Concept of Other major Levels of Strategy Management Strategy Concepts 05 06 07 08 Phases / Process Responsibility for Fit and change in Approaches to of Strategic Mgt. Strategic Decisions the process Strategic Management & Toward a holistic view Ángel Araujo, Ph.D. 6  01 About Strategic Management Ángel Araujo, Ph.D. [email protected] 7 01 | About Strategic Management If we analyse it zoom out, Strategic Management is: 1. Strategic Management as a field first appeared in the 1960s 2. Pioneers: Chandler (1962), Boston Consulting Group (1963), Andrews (1965) and Ansoff (1965) 3. ABC Model (Academics, Business, Consultants) a. Advantages: greater wealth of knowledge and a certain equilibrium between practice and theory b. Problem: It is not easy to organise and systematically arrange the knowledge generated or transfer know-how between the various players in the discipline’s history 4. Academic contributions to Strategic Management a. Economics (Agency Theory and Transaction Cost Theory) b. Industrial Organisation c. Organisation Theory d. Behavioural sciences (Psychology) 5. International academic associations a. Strategic Management Society b. Strategic Management Division (Academy of Management) c. Strategy Section (ACEDE, Spanish Academy of Management) 8 01 | About Strategic Management If we analyse it zoom out, Strategic Management is: Strategic Analysis Strategic Formulation Strategic Implementation 2. Future Direction and Values 5. Competitive Strategies 9. Evaluation and Implementation 3. Environmental Analysis 6. Directions for Strategic Development 4. Internal Analysis 7. Methods of DEvelopment 8. Internationalisation 9 01 | About Strategic Management Strategic Analysis Definition Strategic analysis refers to the process of conducting research on a company and its operating environment to formulate a strategy. The definition of strategic analysis may differ from an academic or business perspective, but the process involves several common factors: 1. Identifying and evaluating data relevant to the company’s strategy 2. Defining the internal and external environments to be analyzed 3. Using several analytic methods such as Porter’s five forces analysis, SWOT analysis, and value chain analysis 10 01 | About Strategic Management Strategic Formulation Definition In strategy formulation, organizations meticulously analyze their internal and external environments, define clear mission and vision statements, set achievable objectives, and develop robust strategies. This process, grounded in comprehensive research and analysis. It facilitates the creation of actionable plans that steer the organization towards sustainable growth and success. Strategy formulation is a critical phase in the strategic management process where organizations define clear objectives and develop a blueprint to achieve them. This phase necessitates the integration of insights from various functional areas like marketing, finance, and operations to craft strategies aligned with the organization’s mission and vision. The ultimate goal is establishing a competitive advantage and fostering sustainable growth, ensuring the organization’s long-term viability and success. 11 01 | About Strategic Management Strategic Implementation Definition Strategy implementation is the act of executing a plan to reach the desired goal or set of goals. The brainstorming process helps formulate these ideas, while the implementation process puts those strategies or plans into action. Strategy implementation depends heavily on feedback and status reports to ensure the strategy is working and to rework any areas that may need improvement. Strategy implementation is important because it involves taking action instead of simply brainstorming ideas. It helps show the team that the strategies discussed are viable. It's also a great tool for team development because everyone can participate. Strategy implementation depends on thorough communication and the right tools to facilitate the strategy. 12  02 The Concept of Strategy Ángel Araujo, Ph.D. [email protected] 13 02 | The Concept of Strategy Strategy Key Point “Strategy is the dynamics of the firm’s relation with its environment for which the necessary actions are taken to achieve its goals and/or to increase performance by means of the rational use of resources” Source: Ronda & Guerras (2012:182) 14 02 | The Concept of Strategy The Firm Environment Strategy Key Point Strategy Firm Performance Stakeholders 15 02 | The Concept of Strategy The Firm Environment Interactive process between the firm Strategy and its environment Key Point Strategy Firm Performance Stakeholders 16 02 | The Concept of Strategy 17 02 | The Concept of Strategy The Firm Environment Interactive process between the firm Strategy and its environment Key Point Strategy Decisions and actions Firm Performance Stakeholders 18 02 | The Concept of Strategy 19 02 | The Concept of Strategy The Firm Environment Interactive process between the firm Strategy and its environment Key Point Strategy Decisions and actions Firm Performance Goal: improve firm performance Stakeholders 20 02 | The Concept of Strategy 21 02 | The Concept of Strategy The Firm Environment Interactive process between the firm Strategy and its environment Key Point Strategy Decisions and actions Firm Performance Goal: improve firm performance Why does a firm seek to improve its Stakeholders performance? benefit stakeholders 22 02 | The Concept of Strategy 23 02 | The Concept of Strategy Additional Ideas Why does a firm seek to improve its performance? 1. Long-term direction 2. Managing resources and capabilities 3. Definition of the scope of the firm 24 02 | The Concept of Strategy Long-term direction 25 02 | The Concept of Strategy Managing resources and capabilities 26 02 | The Concept of Strategy Definition of the scope of the firm 27 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization 28 02 | The Concept of Strategy Artificial Intelligence 29 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization Social preferences 02 Complex Nature Political tensions Regulation 30 02 | The Concept of Strategy Global tensions 31 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization Social preferences 02 Complex Nature Political tensions Regulation Values Holistic approach to the 03 organisation Mission Vision 32 02 | The Concept of Strategy What drives people 33 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization Social preferences 02 Complex Nature Political tensions Regulation Values Holistic approach to the 03 organisation Mission Vision Structural trends Impact upon the sum of the 04 firm's decision Main growth drivers Social 34 02 | The Concept of Strategy Economic Drivers 35 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization Social preferences 02 Complex Nature Political tensions Regulation Values Holistic approach to the 03 organisation Mission Vision Structural trends Impact upon the sum of the 04 firm's decision Main growth drivers Social Management 05 Changes in organisations People Environment 36 02 | The Concept of Strategy Change is the only constant 37 02 | The Concept of Strategy Characteristics of the strategic decisions BANI environment Key Points 01 High Uncertainty Business highly scalable Globalization Social preferences 02 Complex Nature Political tensions Regulation Values Holistic approach to the 03 organisation Mission Vision Structural trends Impact upon the sum of the 04 firm's decision Main growth drivers Social Management 05 Changes in organisations People Environment Environment Network of outside 06 relations Social Governance 38 02 | The Concept of Strategy Change is the only constant 39 02 | The Concept of Strategy Good Strategies Key Point 1. Fit with the context and internally consistent 2. Different from the competitors’ strategy 3. Sustainable over time, thereby ensuring the firm’s long- term survival. 40 02 | The Concept of Strategy Bad Strategies Key Point 1. A poor analysis or diagnosis of the problem 2. Mistake objective for strategy 3. Poor definition of strategic objectives 4. Organisational inertia 5. The Icarus paradox or “dying from success” 6. Identifying the strategic process with a formal process 41  03 Other major concepts Ángel Araujo, Ph.D. [email protected] 42  Strengths and weaknesses (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy Firm Performance Stakeholders 43  Strengths and weaknesses Opportunities and threats (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy Firm Performance Stakeholders 44  Strengths and weaknesses Opportunities and threats (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy (corporate, Strategy competitive, functional) Firm Performance Stakeholders 45  Strengths and weaknesses Opportunities and threats (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy (corporate, Strategy competitive, functional) Competitive advantage Firm Performance Stakeholders 46  Strengths and weaknesses Opportunities and threats (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy (corporate, Strategy competitive, functional) Competitive advantage Firm Performance Profitability, Value creation Stakeholders 47  Strengths and weaknesses Opportunities and threats (resources and capabilities) 03 | Other major concepts The Firm Environment Key Point Strategy (corporate, Strategy competitive, functional) Competitive advantage Firm Performance Profitability, Value creation Shareholders, managers, Stakeholders employee, customers, society, etc. 48  04 Levels of Strategy Ángel Araujo, Ph.D. [email protected] 49 04 | Levels of Strategy 50 04 | Levels of Strategy Corporate Strategy Key Point 1. Purpose: Establish a firm’s general guidance 2. Contents: future direction, search for value and opportunities for value creation, defining the scope, how to grow or develop in the future or how to create and develop synergies 51 02 | The Concept of Strategy 52 04 | Levels of Strategy 53 04 | Levels of Strategy Competitive Strategy Key Point 1. Purpose: How to compete more effectively in a series of businesses or strategic business units 2. Contents: creating & sustaining a competitive advantage, and the creation, improvement and exploitation of valuable resources, tangibles and intangibles as well as capabilities 54 02 | The Concept of Strategy 55 04 | Levels of Strategy Functional Strategies Key Point 1. Purpose: How to use and apply resources and capabilities within each functional area 2. Contents: strategies for functional areas such as operations, marketing, financing, human resources and technology 56 02 | The Concept of Strategy 57 02 | The Concept of Strategy 58  Ánge Thanks l Arauj Any doubts? ¡Gracias! Thanks! o, Danke! Ph.D. Merci! Grazie! 59