Strategic Management Course Orientation and Discussion PDF

Strategic Managem ent Course Orientatio n and Discussion Prof. Leslie Ann U. Gamundoy 8-14-2024 2  Course Outline-Strategic Management The course emphasizes the value and process of strategic management. In addition to familiarizing students with ne...

Strategic Managem ent Course Orientatio n and Discussion Prof. Leslie Ann U. Gamundoy 8-14-2024 2  Course Outline-Strategic Management The course emphasizes the value and process of strategic management. In addition to familiarizing students with new subject matter, students are expected to integrate and apply their prior learning to strategic decision making in organizations. The Strategic Management course is designed to explore an organization’s vision, mission, examine principles, techniques and models of organizational and environmental analysis, discuss the theory and practice of strategy formulation and implementation such as corporate governance and business ethics for the development of effective strategic leadership. 09/25/24 Prentice Hall, Inc. ©2012 1-3  Course Intended Learning Outcomes Understand the strategic decisions that organizations make and have an ability to engage in strategic planning. Explain the basic concepts, principles and practices associated with strategy formulation and implementation. Integrate and apply knowledge gained in basic courses to the formulation and implementation of strategy from holistic and multi- functional perspectives. Analyze and evaluate critically real-life company situations and develop creative solutions, using a strategic management perspective 09/25/24 Prentice Hall, Inc. ©2012 1-4  Time Frame WEEK 1 Familiarity of PnC Mission, Vision, Quality Objectives, Course Requirements, Course Covered, Class Policy Part One: Introduction to Strategic Management Chapter 1: Basic Concept of Strategic Management WEEK 2 Chapter 2: Corporate Governance WEEK 3 Social Responsibility and Ethics in Strategic Management WEEK 09/25/24 4-5 Environmental Scanning and Prentice Hall, Inc. ©2012 Industry Analysis 1-5 WEEK 7-8 Part Two: Scanning the Environment Chapter 3: Environmental Scanning and Industry Analysis WEEK 9-10 Chapter 4: Internal Scanning: Organizational Analysis WEEK 11 Part Three: Strategy Formulation Chapter 5: Strategy Formulation: Situation Analysis and Business Strategy WEEK 12 MIDTERM 09/25/24 Prentice Hall, Inc. ©2012 1-6 WEEK 13-14 Chapter 6: Strategy Formulation: Corporate Strategy WEEK 15-16 Chapter 7: Strategy Formulation: Functional Strategy and Strategic Choice Week 17 Strategy Formulation: Organizing for Action WEEK 18 FINALS 09/25/24 Prentice Hall, Inc. ©2012 1-7  Course Requirement Quizzes Assessment Tasks (Assignments, Case studies) Major Exams (Prelim, Midterm and Finals) 09/25/24 Prentice Hall, Inc. ©2012 1-8  References Strategic Management: Made Simple by: Felina C. Young Strategic Management and Business Analysis by: Jenkins and David Williamson Strategic Management by: Hunger and Wheelen Theory of Strategic Management with Cases by: Gareth Hill and Charles W.L. Hill 09/25/24 Prentice Hall, Inc. ©2012 1-9  Class Rules Attendance Monitored Assignments/Activities should be submitted on TIME Answer short evaluation on TIME (except some acceptable reasons or excuses like sickness or important emergency purposes) Examination should be taken on TIME. 09/25/24 Prentice Hall, Inc. ©2012 1-10  Grade Computation Assessment item Grade Source Percentage Quizzes Writ en/Skil s-based Quizzes 20% Class Participation Recitation 10% Other Requirements Research Project/Case Studies 20% Exam Writ en/Skil s-based Exam 50% Total 100% Maximum number of absences # of meetings per week Absences should not exceed 5 17 3 10 2 7 1 3 STRATEGIC MANAGEMENT & BUSINESS POLICY 13TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER  Learning Objectives Understand the benefits of strategic management. Explain how globalization and environmental sustainability influence strategic management. Understand the basic model of strategic management and its components. Identify some common triggering events that act as stimuli for strategic change 09/25/24 Prentice Hall, Inc. ©2012 1-14  Understand strategic decision-making modes Use the strategic audit as a method of analyzing corporate functions and activities 09/25/24 Prentice Hall, Inc. ©2012 1-15 Strategic Management: a set of managerial decisions and actions that determines the long- run performance of a corporation. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control Prentice Hall, Inc. ©2012 1-16  Phases of Strategic Management: Phase 1: Basic financial planning Phase 2: Forecast-based planning Phase 3: Externally oriented strategic planning Phase 4: Strategic management Prentice Hall, Inc. ©2012 1-17  Benefits of Strategic Management: Clearer sense of strategic vision for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment Prentice Hall, Inc. ©2012 1-18  Additional Benefits of Strategic Management: Improved Strategic thinking organizational Organizational performance learning Achieves a match between the organization’s environment and its strategy, structure and processes Important in unstable environments Prentice Hall, Inc. ©2012 1-19  Impact of Globalization: Globalization: the integration and internationalization of markets and corporations Prentice Hall, Inc. ©2012 1-20  Impact of Environmental Sustainability: Environmental Sustainability: the use of business practices to reduce a company’s impact on the natural, physical environment Prentice Hall, Inc. ©2012 1-21  Impact of Environmental Sustainability Risks of Climate Change include: Regulatory risk Litigation risk Supply chain risk Reputational risk Product and Physical risk technology risk Prentice Hall, Inc. ©2012 1-22  Population ecology: established organizations are unable to adapt to change. For example, proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions. Institution theory: organizations adapt by imitating successful organizations. Prentice Hall, Inc. ©2012 1-23  Strategic choice perspective: organizations adapt to change and have the ability to reshape their environment. This perspective is supported by research indicating that the decisions of a firm’s management have at least as great an impact on firm performance as overall industry factors. Organizational learning theory: organizations adapt defensively and use knowledge to improve their relationship with the environment. This perspective expands the strategic choice perspective to include people at all levels becoming involved in providing input into strategic decisions Prentice Hall, Inc. ©2012 1-24 Strategic flexibility: the ability to shift from one dominant strategy to another and requires: – Long-term commitment to the development and nurturing of critical resources – Learning organization – an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights. Prentice Hall, Inc. ©2012 1-25  Main activities of a learning organization include: Solving problems Learning from past systematically experience, history and experiences of others Experimenting with new approaches Transferring knowledge quickly and easily throughout the organization Prentice Hall, Inc. ©2012 1-26  Basic Elements of Strategic Management 1. Environmental scanning 2. Strategy formulation 3. Strategy implementation 4. Evaluation and control Prentice Hall, Inc. ©2012 1-27 Prentice Hall, Inc. ©2012 1-28 Prentice Hall, Inc. ©2012 1-29  Basic Elements of Strategic Management Environmental Scanning is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the organization Prentice Hall, Inc. ©2012 1-30 Prentice Hall, Inc. ©2012 1-31  Basic Elements of Strategic Management Strategy Formulation: the development of long-range plans for the effective management of environmental opportunities and threats in light of organizational strengths and weaknesses (SWOT) Prentice Hall, Inc. ©2012 1-32  Basic Elements of Strategic Management Mission- the purpose or reason for the organization’s existence Vision- describes what the organization would like to become Objectives- the end results of planned activity Prentice Hall, Inc. ©2012 1-33  Basic Elements of Strategic Management Strategies- form a comprehensive master plan that states how the corporation will achieve its mission and objectives – Corporate – Business – Functional Policies- the broad guidelines for decision making that links the formulation of a strategy with its implementation Prentice Hall, Inc. ©2012 1-34  Facebook’s Corporate Mission Statement “To give people the power to share and make the world more open and connected.” (2017) “To give people the power to build community and bring the world closer together.” (New Mission statement) – Empowering people – Enabling community building – Connecting the world 09/25/24 Prentice Hall, Inc. ©2012 1-35  Facebook’s Vision Statement “People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.” – Global market scope – Tool for communication – Tool for discovery – Tool for self-expression 09/25/24 Prentice Hall, Inc. ©2012 1-36 Prentice Hall, Inc. ©2012 1-37  Basic Elements of Strategic Management Strategy implementation: the process by which strategies and policies are put into action through the development of: Programs Budgets Procedures Prentice Hall, Inc. ©2012 1-38  Basic Elements of Strategic Management Evaluation and control: the process in which corporate activities and performance results are monitored so that actual performance can be compared to desired performance Prentice Hall, Inc. ©2012 1-39  Basic Elements of Strategic Management Performance: the end result of organizational activities Feedback/Learning Process: revise or correct decisions based on performance Prentice Hall, Inc. ©2012 1-40 Triggering event: something that acts as a stimulus for a change in strategy and can include: New CEO External intervention Threat of change of ownership Performance gap Strategic inflection point Prentice Hall, Inc. ©2012 1-41  What Makes a Strategic Decision? Strategic decision making focuses on the long-run future of the organization Characteristics of strategic decision making include: Rare Consequential Directive Prentice Hall, Inc. ©2012 1-42  Mintzberg’s Modes of Strategic Decision Making Entrepreneurial Adaptive Planning Logical incrementalism (Quinn) Prentice Hall, Inc. ©2012 1-43  Strategic Decision Making Process: 1. Evaluate current 5. Analyze strategic performance results (SWOT) factors 2. Review corporate 6. Generate, evaluate governance and select the best alternative strategy 3. Scan and assess the 7. Implement selected external environment strategies 4. Scan and assess the 8. Evaluate implemented internal corporate strategies environment Prentice Hall, Inc. ©2012 1-44 Prentice Hall, Inc. ©2012 1-45 Prentice Hall, Inc. ©2012 1-46  Strategic audit provides a checklist of questions, by area or issue, that enables a systematic analysis to be made of various corporate functions and activities Prentice Hall, Inc. ©2012 1-47 Prentice Hall, Inc. ©2012 1-48