Strat Man MSc Session 1 Jan 12

8/2/2019 Strat Man MSc Session 1 Jan 12

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Phil Johnson 1

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



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.swf


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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.
http://www.altria.com/http://www.altria.com/


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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/

Documents

Strat Man MSc Session 1 Jan 12