Unformatted text preview: Business Strategy Business Strategy ILRHR 4640 Strategic Leadership Chapters 1 & 2 and Article 1 Dr. Daniel Cohen Key Learning Points Key Learning Points Chapter 1 Foster understanding of what strategic management is (definition) and key characteristics of strategy Ensure deep understanding of what Vision is and why it’s important Explain role strategic leaders have in process Discuss role of stakeholders—particularly their competing interests and the strains they can create Strategic Management Defined Strategic Management Defined The ongoing process companies use to form a vision, analyze their external and internal environment, and select one or more strategies to use to create value for customers and other stakeholders, especially shareholders (Ireland et al P 6) Resources Capabilities Core Competencies Key Concepts Key Concepts (Intromuch more focus in Ch 4) Valuable, rare, difficult to imitate, non Distinctive Competencies Different; Unique substitutable (Jet Blue vs Southwest) Mission Mission The DNA of a company Captures the purpose of the organization A map or blue print that helps a company move successfully in the direction of its vision Example: Google~ “to organize the world’s information and make it universally accessible and useful” Vision Vision A grand goal: 310 years out Quantified success indicator Defines niche/business segment Timeline for execution Example: Leeds University~ “By 2015, our distinctive ability to integrate worldclass research, scholarship, and education will have secured us a place among the top 50 universities in the world” Strategic Leadership\Vision Strategic Leadership\Vision Leaders have the very tough job of defining and redefining the vision as they lead companies forward Review 1988 Preview 2028 They also are charged with finding the human and social capital necessary to move toward the vision Strategic Leadership defined Strategic Leadership defined
~involves developing a vision for the firm, designing strategic actions to achieve this vision, and empowering others to carry out those strategic actions. (Ireland, Hoskisson, & Hitt) Stakeholders Stakeholders Stakeholders are individuals and groups who have a vested interest in a firm’s performance and an ability to influence its actions (Ireland et al) A visionary leader has the challenging task of trying to satisfy all stakeholders, many of whom have competing interests Identify key stakeholder groups Strategic intent: earn above average returns Key Learning Points Key Learning Points Chapter 2 Develop understanding of Strategic Leadership Importance of the concept of vision from leadership perspective Value of human and social capital as it applies to strategy Importance of (and challenges associated with) creating entrepreneurial culture Value of integrity and ethical behavior Role of Top Management Team Role of Top Management Team Charged with developing and implementing strategies that move firm toward vision. According to Ireland et al, heterogeneous top management teams are more effective than homogenous teams. What do firms gain from a heterogeneous top management team? Why are many top management teams homogenous? Value of Human and Social Capital Value of Human and Social Capital Human Capital: Social Capital: knowledge, skills and abilities possessed by workers internal and external relationships that help the firm provide value to stakeholders. Firms now compete with intangible assets rather than with tangible ones. What ramifications does this have for Strategy? Building an Entrepreneurial Culture Building an Entrepreneurial Culture An Entrepreneurial Culture encourages employees to identify and exploit new opportunities Many firms, large & small, talk of building an entrepreneurial culture Why do so many firms, especially large firms, struggle with creating such a culture? Promoting Integrity and Ethical Promoting Integrity and Ethical Behavior Strategic leaders establish standards of behaviors that employees are expected to follow More importantly, they model the behaviors that they would like employees to emulate According to Scnatterly, white collar crime is responsible for 30% of new venture failure The 60 minute and Sleep On It tests Importance of Balanced Scorecard Importance of Balanced Scorecard Controls are necessary to ensure that standards are met and that employees do not misuse firm resources Financial controls ensure that firm remains profitable and solvent Strategic controls evaluate the quality of strategic content without evaluating financial outcomes. Why is this important? Chapters 1 & 2 Chapters 1 & 2 Questions? ...
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- Spring '09
- key learning points