STRATEGIC MANAGEMENT - Wright State University

slipalaskaManagement

Nov 20, 2013 (3 years and 6 months ago)

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1

STRATEGIC MANAGEMENT,
TERMS & CONCEPTS,
BUSINESS ETHICS

Those actions (or by default,
inactions) which determine the
long term future of an
organization.

2

THREE KEY QUESTIONS

1. Where is the organization
today?

2. Where do we want it to be in
the future?

3. What needs to be done to get
there?

3

CHARACTERISTICS OF
STRATEGIC ACTIONS AND
DECISIONS


Infrequent


Consequential


Precedent
--

and policy
--

setters


Multifunctional

4

SOME EXAMPLES


Miller Beer and Philip Morris


Lockheed and the Electra

5

HIERARCHY OF STRATEGY


Corporate


Business


Functional


Ideally, these play together

Realistically, there’s often
conflict

6

SOME EXAMPLES OF
CONFLICT


Clara Peller and Wendy’s


Ford, Kawasaki, and social
responsibility

7

WHAT
IS

THE PURPOSE OF A
BUSINESS?


Profit?


Revenue?


Jobs?


Meet society’s needs?


Something else?

8

JAMES INVESTMENT
RESEARCH, INC.

Firm Objectives


Provide highest quality service to our clients


Good performance


Lots of communications


Provide economic or such other advice/assistance as possible


Provide good work environment for our employees


Compensate staff at high levels


Stable and growing client base


Low expenditures except for salaries


High firm profits to be shared with employees


Technological leadership in investment research


State of the art equipment


Emphasis on innovation and creativity


Strong professional reputation of the firm and its personnel


Honesty and integrity


Competence


Quality of work

9

THE CONCEPT OF
STAKEHOLDER


Old view: maximize stockholder value


New view: one maximizes stockholder
value over the long run by balancing the
benefits to all stakeholders:




customers



neighbors

employees



stockholders




management



vendors




government



competitors







& more . . .


Some examples . . .

10

STRATEGIC DECISION
MAKERS


Boards of Directors


Senior management


Roles, skills, tasks

11

BOARD OF DIRECTORS


Elected by shareholders


Mission:


Protect interests of owners


Hire
--

and fire
--

top management


Approve management initiatives


Trends:


Codetermination


Board responsibility


Board activism


Strong owners, e.g., mutual funds

12

MANAGEMENT TASKS
DIFFER WITH LEVEL

Supervisor


Manager



CEO

Technical

Interpersonal

Conceptual

13

STRATEGIC PLAN: A VITAL
TOOL


Seven parts:


Evaluate current performance


Scan external environment: Identify
opportunities and threats


Scan internal environment: Identify
strengths and weaknesses

14


SEVEN PARTS (cont.)


Analyze strategic factors: SWOT


Develop and select alternative
strategies


Implement the strategy


Evaluate and control the strategy

15

BUSINESS ETHICS


Is this just something taught in schools?


Some real life cases:


Ford’s Pinto


Manville’s asbestos


Financial houses: Barings, Saloman Brothers


Tobacco


Handguns


International Fabricating Corporation


Impacts? Financial? People?

16

WHY BE ETHICAL?

1. Moral reasons

2. Self
-
interest

3. Financial well
-
being

4. Retain autonomy

17

AN ETHICAL MODEL


From
The Power of Ethical
Management
, by Peale and
Blanchard:

1. Is it
legal
?

2. Is it
balanced
?

3. How does it make you
feel

about
yourself?

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MOVING FROM INDIVIDUAL
TO CORPORATE

1. Hire correctly

2. Set standards

3. Model, or “What you can learn

from your dog.”

4. Talk

5. Institutionalize into decision
-


making

6. Reward, and sanction