BUSINESS STRATEGY MKT3002 51110

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BUSINESS STRATEGY MKT3002 / 51110

• LECTURE ONE
• Introduction to staff
• Unit / Course overview
• Topic Corporate strategy an introduction

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Whos Who?

• Lecturer Jared Young
• Room T418, ext 1288
• E-mail Jared.Young_at_usq.edu.au
• Online chat through msn messenger
• Consultation times
• Other useful (sort of) staff
• Graham Jocumsen room T417, ext 5591

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Whats Where?

• LECTURE FROM NEXT WEEK
• WEDNESDAY 2 TO 4PM ROOM T120
• Tutorial times and rooms
• MONDAY 4PM TO 6PM T122
• TUESDAY 4PM TO 6PM T122
• Consultation times
• Monday, Tuesday and Wednesday 11am to 1pm
• N.B. for preferential treatment, appointments
  preferred (see Jared)

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Unit overview

• Course outline.
• Text materials.
• Assessment.
• Tutorials.
• Class attendance / participation

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Course outline

• Week 1 M. 1 Corporate Strategy an
  introduction
• Week 2 M. 2 Strategic management and
  practice
• Week 3 M. 3 Strategic analysis
• Week 4 M. 3 Strategic analysis (continued)
• Week 5 and 6 Easter Break
• Week 7 M. 4 Resources, competencies,
  strategic
• capability
  
• Week 8 M. 5 Shareholder expectations
  and
• 
  organisational purpose
• Week 9 M.6 Literature review
• Week 10 M.7 Bases of strategic choice

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Course outline (continued)

• Week 11 M. 8 Strategic options Directions and
• methods of development
• Week 12 M. 9 Strategy evaluation and
  selection
• Week 13 M. 10 Organisational structure and
  design
• Week 14 M. 11 Resource allocation and control
  
• Week 15 M. 12 Managing strategic change

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Tutorial program

• Students will find discussions in tutorials to
  greatly assist the successful completion of major
  project.
• Students in Mon Tute have 2 public holidays
• 06/05 (M.6) and 10/06 (M.11 and last teaching
  week)
• These tutes are important and you may want to
  consider turning up to Tuesday tute
• First week of Tutes is in week 2 reviewing
  lecture 1 material i.e.
• 1st Tute week 2 covering lecture 1
• 2nd Tute week 3 covering lecture 2 .etc
• Therefore no tute for last module

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Course Resources

• Text
• Johnson Scholes 1999, Exploring corporate
  strategy, 5th edn, Text and cases, Prentice Hall,
  Sydney.
• Readings
• David, F.R. 1998, Strategic Management, 7th edn
• any strategy text will help - principles remain
• BRW, Financial Review etc. provide background
• Discussion group
• Home page www.usq.edu.au/ancil/fob/b-51110

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Assignment 1 Marketing Major students

• Task Case Study analysis of a real life
  business. This will be the same firm used for
  the research assignment in semester 2 and is
  ultimately considered to be your project
• Due date 31st May 2002 (Friday)
• Weighting 75
• Length 8000 words

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Assignment 1 NON-Marketing Major students

• Task Case Study analysis of a written case
  Singapore Airlines found in your Introductory
  Book.
• Due date 31st May 2002 (Friday)
• Weighting 75
• Length 8000 words

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Assignment 2 Marketing Major students

• Task Primary Data Phase Proposal. Based on
  your strategic analysis, this proposal will lead
  to the research assignment in semester 2.
• Due date 21st June 2002 (Friday)
• Weighting 25
• Length 1500 words

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Assignment 2 NON-Marketing Major students

• NO ASSIGNMENT
• STUDY FOR EXAM

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ExaminationNon Marketing Major students ONLY

• Attempt FOUR (4) out of a possible SIX (6)
  questions.
• 2 hour exam
• 4 questions at 30 minutes per question. Students
  should be able to write 300 to 500 words in 30
  minutes under exam conditions
• The possible questions are already provided so we
  expect good answers
• Weighting - 25

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Module 1 Corporate strategy - an introduction

• Learning outcomes
• Introduce you to the meanings of the key terms
  associated with strategy and strategic management
• Explain the relevance of the different levels of
  strategy
• Describe the differences between strategic
  management and operational management
• Clearly distinguish between strategy fit and
  stretch
• Describe the basic elements of the strategic
  management process

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Key words and concepts

• Strategy
• Corporate strategy
• Business unit strategy
• Strategic business unit
• Operational strategies
• Strategic management
• Strategic analysis
• Strategic choice
• Strategic implementation
• Strategic fit
• Strategy development by stretch

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What is strategic management?

• It is a process Strategic management can be
  defined as the art and science of formulating,
  implementing, and evaluating cross-functional
  decisions in an organisation.
• Strategic planning and the setting of objectives
  differs from tactics, which are individual
  decisions within a strategic framework, which
  enable strategic objectives to be realised.
  Examples?
• Can you think of examples from the military?

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The purpose of strategy

• Strategic business planning aims to develop a
  sustainable, competitive advantage for the whole
  organisation, so that it can achieve its
  objectives.
• Objectives may differ from firm to firm.
• Usually medium to long term. Short term
  strategies based on short term objectives lead to
  long term losses.

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Levels of Strategy

• Corporate strategy
• Business unit strategy
• Operational strategy

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Corporate strategy

• Businesses succeed or fail because of their
  superior strategies rather than sophisticated
  systems or technology (they need to know how to
  utilise these).
• This course doesnt make you an instant expert in
  strategic analysis but provides a framework for
  strategic planning.
• In the real world, you can become a critical
  participant, not just a passive observer. What
  does this mean?

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Stages of strategic management

• Strategic analysis
• Strategic choice
• Strategy implementation

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A BASIC MODEL OF THE STRATEGIC MANAGEMENT PROCESS
STRATEGIC ANALYSIS
STRATEGY IMPLEMENTATION
STRATEGIC CHOICE
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Strategic analysis

• concerns with understanding the position of the
  organisation.
• involves examination on
• External factors eg. PEST, industry factors,
  markets.
• Internal factors eg. Structure, resources,
  goals and objectives.

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Strategic choice

• involves committing the organisation to courses
  of action including resource allocation,
  expanding, diversifying, joint ventures,
  international trade etc.
• is the province of top management - they can make
  decisions and allocate resources
• has long-term effects.

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Strategy implementation

• The process of putting the decision or strategy
  into practice.
• It involves decisions on
• Structural design.
• Key personnel.
• Allocating resources.
• Appropriate control mechanism.
• Cooperation among functional areas.

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Strategy implementation (mainly action)

• Establish short-term objectives.
• Devise policies.
• Motivate employees.
• Allocate resources.
• Develop a strategy supportive culture.
• Create an effective firm structure.
• Strategy structure performance.

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Strategy evaluation (thinking and action)

• the final stage in strategic management which is
  designed to cope with dynamic environments
• internal and external factor changes
• Performance - are strategies working?
• designing corrective action.
• is an ongoing process.

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Strategic fit

• It sees managers trying to develop strategies by
  identifying opportunities arising from an
  understanding of the environmental forces acting
  upon the organisation, and adapting resources so
  as to take advantage of this
• Johnson Scholes 1999, p.23.

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Strategy development by stretch

• It is the identification and leverage of the
  resources and competences of the organisation
  which yield new opportunities or provide
  competitive advantage
• Johnson Scholes 1999,
  p.25.

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Different explanations of the processes of
Strategic management

• Rational planning
• Crafting or logical incrementalism
• Chaos / complexity
• Cultural / institutional
• Ecological / natural selection

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Strategic management in different context

• The small business context
• The multinational corporation
• Manufacturing service organisations
• Innovatory organisations
• Public sector
• Privatised utilities
• Not-for-profit sectors
• Professional service organisations

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Lecture 1 review

• Course outline.
• Course assessment.
• Lecture and tutorial times.
• Tutorial case studies.
• Strategy introduction to corporate strategy.

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Tutorial activities

• Discuss assignment 1 in detail, set up groups
• Discuss differences between fit and stretch.
  come with examples
• Discuss examples of strategic management
  processes
• Read through the Ikea illustration (page 6-7 of
  text) and prepare answers to questions provided
• Then other activities will be introduced each week

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Next week

• Module 2 Strategic management in practice
• (Study book Module 2 - Text Chapters 2)