a strategic analysis of an organisation in the Transport industry.

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Acknowledgement of Country On behalf of those present I acknowledge the Wurundjeri people of the Kulin Nation who are the traditional custodians of the land on which we now meet. I pay my respect to their Elders: past, present and emerging.

I also pay my respect to all Aboriginal and Torres Strait Islander people of Australia and hope that the path towards reconciliation continues to be shared and embraced.

STRATEGIC PLANNING IN DYNAMIC ENVIRONMENTS (MGT30005)

- WEEK 1 -

UNIT OVERVIEW

https://www.theage.com.au/business/companies/woolies-bottles-it-on-pokies-and-gives-customers-what-they-want-20190705-p524da.html

https://www.theage.com.au/business/companies/auspost-chief-christine-holgate-puts-stamp-on-strategy-to-deliver-profits-20200228-p545e3.html

Toastmasters will help you to: • Become a better

speaker and presenter • Communicate with

confidence • Develop leadership

skills • Listen effectively

You'll find a fun, safe supportive learn-by-doing environment that allows you to achieve your goals at your own pace.

The club is available for both students and staff.

When: Tuesdays Time: 12:30-1:30pm Where: GS302

Cost: $100 for new members*

Contacts: Andrew Rixon (President) [email protected]

Sam Wilson (VP Membership) [email protected]

*- Scholarships available

http://swin.edu.au

UNIT OVERVIEW

§ What majors are you doing? § HR? § Marketing? § Finance? § Accounting?...

§ Anyone doing a degree from outside the Business School?

§ Who is in their final year? Final semester?

§ Who here regularly “watches” some form of business TV/news?

GETTING TO KNOW YOU…

https://iview.abc.net.au/show/business

§ You would have heard sayings like: § “Plans are nothing, planning is everything”...., § “Opportunity favours the prepared mind”...., § “The best way to predict the future is to create it”...

§ But how do we do that?

§ We will cover a variety of models that can be useful as a starting point... but

§ Strategy has lots of characteristics and it basically comes down to awareness of the wider business horizon and, most notably, strategic thinking

WHAT IS STRATEGY?

CONVENTIONAL VERSUS INTEGRATIVE THINKING

WHY ARE SOME FIRMS MORE SUCCESSFUL THAN OTHERS?

Context

COMPETITORS’ offerings

CUSTOMERS’ needs

ORGANISATION’S capabilities

Sweet Spot

§ “Today’s competitive advantage may become tomorrow’s albatross unless strategists attune themselves to changes in underlying conditions.”

§ “… Every competitive advantage is predicated upon a particular set of conditions that exist at a particular point in time for particular reasons.”

§ “… The very existence of competitive advantage sets in motion creative innovations that, as competitors thrive to level the playing field, cause the advantage to dissipate.”

CHRISTENSEN (2001): THE PAST AND FUTURE OF COMPETITIVE ADVANTAGE

§ Strategic decisions are about: § The long-term direction of the organisation § The scope of an organisation’s activities § Gaining advantage over competitors

§ Addressing change in the business environment § Building on resources and competences

(capabilities) § Values and expectations of stakeholders

§ Therefore strategies are likely to be:

§ Complex in nature § Made under uncertainty § Affect operational decisions

§ Require an integrated approach § Often involve change

WHAT IS STRATEGY?

Mintzberg’s 5 Ps for Strategy

Strategy as plan Consciously intended course of action

Strategy as ploy Specific manoeuvre to outwit opponents

Strategy as pattern Pattern in a stream of actions

Strategy as position Position in relation to the organization’s environment

Strategy as perspective The organization’s shared mindset

THE INTENDED STRATEGY MAY NOT BE REALISED

DELIBERATE AND EMERGENT STRATEGIES

A FUTURES CONE

UNIT CONTENT WILL BE FROM THE OUTSIDE INWARDS

The Strategic Context

The Industry (and Markets)

The Organisation(s)

THE COMPETITIVE ADVANTAGE OF NATIONS

§ Factor conditions are operational issues in the country or region — cost of capital, cost and skill of labour, and cost and availability of resources, including technology and information — as well as infrastructure.

§ Demand conditions are the number and nature of customer preferences.

§ Related and supporting industries help develop efficiencies along the supply chain.

§ Industry strategy, structure and rivalry may force organisations to develop strategies and structures to make them more effective, in order to stay in business.

THE ELEMENTS OF PORTER’S DIAMOND

EMPLOYMENT IN AUSTRALIA OVER TIME BY SECTOR

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

February 1988 February 1993 February 1998 February 2003 February 2008 February 2013 February 2018 Primary

Secondary

Tertiary

Quaternary

Quinary

§ Primary: Agriculture, Forestry and Fishing; Mining § Secondary: Manufacturing; Electricity, Gas and Water Supply;

Construction § Tertiary: Wholesale Trade; Retail Trade; Transport and Storage;

Accommodation, Cafes and Restaurants § Quaternary: Communication Services; Finance and Insurance;

Property and Business Services; Education § Quinary: Health and Community Services; Cultural and

Recreational Services; Personal and Other Services

§ But what business is your organisation in?

§ What industry are you in? (see Levitt’s Marketing Myopia)

§ What customer problem do you solve?

§ What “job” do you do for the customer? § Which ”denied value” can you create?

FROM BROAD CONTEXT TO SECTOR/ INDUSTRY

§ “We now have five-forces analysis, core competencies, hypercompetition, the resource- based view of the firm, value chains, and a host of other helpful, often powerful, analytic tools.

§ Missing, however, has been any guidance as to what the product of these tools should be - or what actually constitutes a strategy.

§ Indeed, the use of specific strategic tools tends to draw the strategist toward narrow, piecemeal conceptions of strategy that match the narrow scope of the tools themselves.”

§ “ … The general's challenge — and the value-added of generalship — is in orchestration AND comprehensiveness.”

HAMBRICK & FREDRICKSON (2001): ARE YOU SURE YOU HAVE A STRATEGY?

5 MAJOR ELEMENTS OF STRATEGY (HAMBRICK & FREDRICKSON, 2001)

5 MAJOR ELEMENTS OF STRATEGY: IKEA (HAMBRICK & FREDRICKSON, 2001)

THE TRANS- PORTATION SECTOR

§ Individual - Industry Anomaly/ies Video Commentary (20%)

§ Group Project – Strategic Analysis of An Organisation (40%)

§ Exam (40%)ASSESSMENT

"INTELLIGENCE WITHOUT AMBITION IS A BIRD WITHOUT WINGS.”

(SALVADOR DALI)