LEARN. PERFORM. GROW.
Course 1:
Copyright © 2006 AchieveGlobal , Inc.
Introducing Strategy (I)
Strategic Management
Master in International Business
The Faculty of International Business and Economics,
ASE Bucharest
 LEARN. PERFORM. GROW.

AGENDA for Today

Course 1: Introducing Strategy (I)

1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

AGENDA for Today

Course 1: Introducing Strategy (I)

1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Brief Course Contents:

1. Introducing Strategy
2. The Strategic Position
3. Strategic choices
4. Strategy into action

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Detailed Course Contents:

1. Introducing Strategy
2. The Strategic Position (I) – The Environment
3. The Strategic Position (II) – Strategic Capability;
Expectations & Purposes
4. Strategic choices (I) - Business-Level & Corporate-Level
Strategy
5. Strategic choices (II) – International Strategy; Directions
and Methods of Development
6. Strategy into action – Organising for Success; Enabling
Success & Managing Strategic Chance

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Session 1: Introducing Strategy

1. What is Strategy? Why Strategy ? Who sets Strategy?
2. The Strategy Process
3. Strategic Management
4. Evolution of Strategic Approach
5. 2 Main Types of Strategic Approach

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

The Strategic Position (I)

 The Environment
 General analysis - dynamics, predictability, etc
 The Macro-environment analysis - PESTEL Analysis; Scenarios; Porter’s
Diamond
 Industries and sectors analysis – the 5 force framework; key successful
factors
 Market Analysis - SWOT Analysis (Opportunities & Threats); Competitors
Analysis (critical success factors); Customers Analysis (customer matrix)

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

The Strategic Position (II)

 Strategic Capability
 Diagnosing strategic capability – strategic groups (interviews & focus groups)
 Evaluation of resources & Added value – value chain analysis
 Competences analysis - SWOT analysis (Strengths & Weaknesses); key
successful factors
 HR analysis – competences evaluation; performance appraisal (knowledge &
skills)
 Financial resources analysis – financial data & indicators
 Operational resources analysis – systems, policies, processes & procedures
 Expectations & Purposes
 VMV system
 Corporate governance
 Stakeholder expectations – stakeholder mapping

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Strategic choices (I)

 Business-Level Strategy
 Bases of competitive advantage – the “strategy clock”
 Sustaining competitive advantage
 Competition and collaboration

 Corporate-Level & International Strategy

 Product / market diversity
 Value creation and the corporate parent
 Managing the corporate portfolio – the growth share matrix

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Strategic choices (II)

 Directions and Methods of Development
 Directions for strategy development – Ansoff matrix; TOWS matrix
 Methods of strategy development – methods of development matrix
 Success criteria - “must” & “wants” criteria

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Strategy into action

 Organising for Success
 structural types
 systems, policies, processes & procedures
 Enabling Success
 Managing people
 Managing information
 Managing finance
 Managing technology
 Integrating resources
 Managing Strategic Change
 Changing process
 Reacting to change
 Managing successfully difficult situations

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Detailed Course Contents:

1. Introducing Strategy
2. The Strategic Position (I) – The Environment
3. The Strategic Position (II) – Strategic Capability;
Expectations & Purposes
4. Strategic choices (I) - Business-Level & Corporate-Level
Strategy
5. Strategic choices (II) – International Strategy; Directions
and Methods of Development
6. Strategy into action – Organising for Success; Enabling
Success & Managing Strategic Chance

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Evaluation

 60% - final evaluation
 30 % - final project evaluation
 10 % - class activity evaluation
• Exercises
• Individual case studies
• Group case studies

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Course Outcomes

By the end of this course, the participants will…
-> The course is designed to offer the students both the essential frameworks and
the analytical tools to develop a capability for strategic management with due
recognition of growing importance of businesses operating in the context of
international environment.

By the end of this course, the participants will…

-> know and understand …
> The most important theoretical concepts, best practices & skills of strategic analysis of
the corporate
> The most important theoretical concepts, best practices & skills of strategic planning,
developing strategic alternatives and implementing corporate strategy
> Examples of strategic approach within the international business environment
-> be able to analyze a company strategically

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session – key words

 Vision, Mission, Values

 Strategy
 Strategic planning
 Goal
 Strategic plan
 Strategic position
 Strategic alternative
 Strategic choice
 Implementing strategy

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

1. Introductive Session - Participants’ Expectations

 Individual activity – 5 min
 Group activity – 10 min

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

AGENDA for Today

Course 1: Introducing Strategy (I)

1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Enterprise Model: Where Does Strategy Fits?

Society/ Parent
Government The Economy
Community Corporation
Regulations/Policies Economic Conditions Concerns Priorities

The Business Capital

Leadership
Technology Shareholders
Resource People Equity/Dividends
Providers Strategy
Money

Business Processes Market

Customers’
Needs Customers
Suppliers’ (downstream
Products/ Customers
Suppliers Raw industry
Goals/ Information/ Organization Services value chain)
(upstream Material/ Human
Measure- Knowledge Structure/ Culture
industry Component Capabilities
ments Management Roles
value Suppliers
chain)

Issue Resolution

Competitors

(source: Kepner-Tregoe,
Inc)
Copyright © 2006 AchieveGlobal , Inc.
 LEARN. PERFORM. GROW.

What is Strategy?

STRATEGY

Products Markets
Competitive
Advantages

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.
What is Strategy?
What is Strategy?
Strategy: The framework of choices that define the nature
and direction of an organization
> The three legs of the strategy stool:
• Products/services: What will we offer?
• Markets/customers: To whom will we offer our
products/services?
• Competitive advantages: Why will customers buy products /
services from us rather than from others?
> These three legs are the same for:
• Large corporations
• Units within large corporations
• Small businesses
• Government agencies, etc

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Why Strategy?

What are the consequences of not having a specific,

up-to-date, energizing strategy?
What day-to-day decisions should be guided by a
strategy?

 Strategy provides FOCUS

> How will we spend our time?
> How will we spend our money?

 Without a strategy, there is no rudder to your ship

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Who Sets Strategy?

 Who is responsible for an organization’s strategy?
> The top team — it is the their most important responsibility
> Delegating strategy responsibility is abdication
 Who else should provide input to the strategy?
> Those closest to the market (customers and competitors)
> Technology experts
> Creative, futuristic thinkers
> Opinion leaders
> Those who will bear the brunt of implementation
 Who is not responsible for setting an organization’s
strategy?
> A staff function (e.g., the Strategic Planning Department)
> Consultants (Both can provide tools, coordination, facilitation)

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Strategic decisions are about:

 The long-term direction of an organization
 The scope of an organization’s activities
 Gaining advantage over competitors
 Addressing changes in the business environment
 Building on resources and competences (capability)
 Values and expectations of stakeholders

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Definition
 “The long-term direction of an organization”
 “The direction and scope of an organization over the long
term, which achieves advantage in a changing environment
through its configuration of resources and competences with
the aim of fulfilling stakeholder expectations.”

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Strategic decisions are likely to:

 Be complex in nature
 Be made in situations of uncertainty
 Affect operational decisions
 Require an integrated approach (both inside and outside an
organization)
 Involve considerable change

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Levels of strategy
 Corporate-level strategy
• is concerned with the overall purpose and scope of an
organization and how value will be added to the different parts
(business units) of the organization
 Business-level strategy -> Strategic business unit (SBU)
• is about how to compete successfully in particular markets
• SBU – part of an organization for which there is a distinct external
market for goods and services that is different from another SBU
 Operational “strategies”
• Are concerned with how the component parts of an organization
deliver effectively the corporate – and business-level strategies in
terms of resources, processes and people

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.
Strategy and Operations
Strategy and Operations
Strategy (What)
Clear/Right Unclear/Wro
ng
1. Have equaled 2. Have equaled
succes in the succes in the
Effective/ 1 2
Operations (How)

past and will in past, but succes

Efficient the future is doubtful in the
future

3. Have sometimes 4. Have equaled

worked in the past in failure in the
Ineffective/ the short run, but past, and will in
Inefficient 3
increasing 4
the future
competition makes
succes doubtful in
Copyright © 2006 AchieveGlobal , Inc.
the future
 LEARN. PERFORM. GROW.

AGENDA for Today

Course 1: Introducing Strategy (I)

1. Introductive Session
2. What is Strategy? Why Strategy ? Who sets Strategy?

Copyright © 2006 AchieveGlobal , Inc.

 LEARN. PERFORM. GROW.

Thank you!

For more information:

Cosmin Joldeş
cosmin.joldes@achieveglobal.ro

Copyright © 2006 AchieveGlobal , Inc.