Strategic Management Essays, The quality of your answer is much more important than its quantity. You do not need to use in-text citation, nor reference in answering the questions.

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Why study strategic management?

One of the fundamental questions of strategic management is

Why some organizations can outperform others in a long run? This translates to:

How can my organization perform better than my competitors?

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The demise of Holden

Holden: The End of the Road

Holden is an iconic brand closely tied to our national ide i , c l e , a d DNA

Once a market darling that had over 50% of the market share and was the top-selling brand till 2002, Holden will be totally retired from market by the end of this year.

What went wrong for Holden over the last decade?

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The demi e f H lde (c d)

What strategic factors drive Holden the end of the road?

High production cost, small domestic market size, shift in consumer preferences, lack of investment, or competition?

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What is strategy? (1/4)

Strategy has its military origin The word of strategy derives from Greek word

strategia, hich mea generalship .

Strategic decisions in business context, as in military, have three characteristics

They are important They involve a significant commitment of resources They are not easily reversible

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What is strategy? (2/4)

Definitions of strategy The determination of the long-run goals and objectives of an enterprise, and the adoption of course of action and the allocation of resources necessary for carrying out these goals (Alfred Chandler 1962).

Strategy is a pattern in a stream of actions (activities) /decisions (Henry Mintzberg).

Strategy is consistency in behaviour, whether or not intended (Mintzberg, et. al, 2003)

Question: What is the major difference between these two definitions of strategy?

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What is strategy? (3/4) Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value (Michael Porter, 1980) Strategy is the long-term direction of an organisation (Johnson et al., 2017).

It enables the organization to outperform competitors and/or fulfill akeh de expectations through the development and deployment of resources and competency within the changing environment

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What is strategy? (4/4)

I mma , a eg i ab HOW It is a major means to achieving organization's objectives; It is action-oriented; and It is forward thinking. How can we get from the present position to our future position?

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Key elements in the concept of strategy

Strategy: long-term scope and directions

Competitive advantages

Stakeholder satisfaction

Organizational performance

External environment

O ga i a i s resources and skills

Organization purpose and stakeholder expectation

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Level of strategy

Corporate-level strategy It is concerned with the overall purpose and scope of

an organization and how value can be added to different parts of the organization. e.g., Apple Corp, Haier, Google, Lenova Business-level strategy (at SBU level) A strategic business unit (SBU) is a part of an

organisation for which there is a distinct external market for goods or services that is different from another SBU. How should a firm compete successfully in particular

market? e.g., Most SMEs, a division in a large corporation, such as Ikea China, Singapore airline cargo business in Singapore Airlines.

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Corporate

Business

Function (e.g., marketing, HR)

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Le el f a eg (c d)

Functional or operational strategy It is concerned with how the component parts

of an organization deliver effectively the corporate- and business- level strategies in terms of resources, process and people. How should each function of the business

contribute towards achieving the business strategy formed? e.g., marketing strategy, HR strategy,

production strategy, IT strategy.

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Corporate strategy is about domain selection while business strategy is about domain navigation. How do you understand this statement?

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Strategic management

Definition he e di a e a d he c i ga i a i al

ce f mai ai i g a d im i g he fi m performance by managing, that is, enabling, formulating, and realizing, its strategies (Fa j , 2002) SM consists of the analyses, decisions and actions

an organization undertakes in order to create and sustain competitive advantages.

It involves three broad sets of managerial tasks: Strategic analysis, strategic choice, and strategy implementation.

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Strategic management (cont) Strategic position/analysis

External and internal environment of the firm Organization's purpose and stakeholder expectation

Strategic choices/strategy formation Business strategy: How should we compete in those

industries? Corporate strategy: What industries should we compete in? International strategy: international expansion Merger and acquisition (M&A)

Strategy in action / strategy implementation Designing the organization to bring intended strategies to reality; strategic control and corporate governance Leadership and managing strategic changes Practicing strategy

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A model of strategic management - The exploring strategy model

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These three sets of managerial tasks are inter- related

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Strategic management perspective: Its unique focus

Field of study Level of analysis Macroeconomics The economy Microeconomics Industries and markets Strategy Firms and Businesses Finance Investment project Marketing Products and services Organizational behaviour

Individual

Operations management Plants

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Module summary (1)

Strategy is the long-term direction of an organisation. A a eg a eme h ld c e he goals of an organisation, the scope f he ga i a i ac i i ie and the advantages or capabilities the organisation brings to these goals and activities.

Corporate-level strategy is concerned with an ga i a i e all c e; business-level strategy is

concerned with how to compete; and operational strategy is concerned with how resources, processes and people deliver corporate- and business-level strategy.

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Module summary (2)

The Exploring Strategy Model has three major elements: understanding the strategic position, making strategic choices for the future and managing strategy-in-action.

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Preparation for next lecture

Read Chapter 2 for lecture on the macro- environment Read the following illustrations for in-class activities

Ill a i 2.1 BP PESTEL (p.36) Illustration 3.3 Steps in an industry analysis

(p.75) The Australian Department Store Industry (case study materials for class exercise) (can be downloaded from the course canvas).

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Reading for Assignment

Read the assignment guide. Start collecting information on the assigned company (Regis Healthcare https://www.regis.com.au/)

Two very important reports The Royal Commission into Aged Aare

Quality and Safety: The interim report https://agedcare.royalcommission.gov.au/public ations/Pages/interim-report.aspx

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IBISWorld Industry Report

Q8601 Aged Care Residential Services in Australia Which can be downloaded f RMIT Lib a

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