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LECTURE 1:

How organisations develop and maintain competitive advantage? (refer to pg 3)

How external factors will affect and influence the organisation formulation of strategies and decision making?

Internal environment to shape its competitive edge

 Climate
 Value
 Culture

Strategic management process that looks into swot analysis and the formulation of strategies to sustain and maintain competitiveness

1. How are business decisions made using various tools and techniques to remain competitive?
2. How managers use problem solving strategies and critical thinking skills in real life situations?
3. How different area of business (marketing, finance, HR) support the vision and mission?
4. How managers implement successful planning?
5. How managers manage business organisations in the dynamic global environment?

Productive, committed, optimal

Find competent & qualified

Optimise labour productivity

Key to business management is to maximise productivity

Attend courses and learn new things

LinkedIn – say something unique about yourself (gain self-awareness)

Flexibility to be deployed in various job, consulting line (wide range of knowledge, organisation behaviour, Principle of management,
accounting, strategic management)
Willing to work and knowledge
Analyse how managers use problem solving strategies and critical thinking skills
World economic forum
Need to embrace change
Always understand What’s in it for me (WII FM)
Languishing: lose/lack vitality, grow weak
Ready for new job
Collective leadership – new leadership style must emerge
Find for internship
Soft skills?
Coordination, communication, Role delegation, planning, think out of the box, ask for help, remain calm under pressure, read and listen to
instructions carefully, time management, strategise, spend time reading and noting down the project requirements and see how you plan
to tackle
Use ethical theory taught
Mothership – send ppl for course! This will get u a D.
Understand the different type of motivation, long term motivation to change the way u think/outlook on things to do it better.

Quantitative management, contemporary approaches, OB part of management research

Manage people working from home

Must be able to adapt to change, move to other country to work, MNC are setting up company at developing countries

Learn about powerAI

Managers need to know how to Monitor performance, implement change

Manager mindset – need to be able to take risk, handle disturbance, allocate resources, negotiate

Elective course – negotiation

Frindge benefit – not always about the pay

Dare to talk about change, you must also dare to embrace change
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LECTURE 1

4 function of management (POLC):

Planning, Organising, Leading, Controlling org resources (POLC)

1. Planning
a. Identify and select appropriate organizations goals and course of action
b. Develop strategies for achieving high performance
c. 3 steps in planning: goals, strategies, resource allocation
2. Organising
a. Structuring working relationships so organisational members interact and corporate to achieve organisational goals
b. Organising people into departments according to the kind of job specific task they perform lays out the lines of
authority and responsibility btw individuals and groups
c. Best organise resources, particularly human resources
3. Leading
a. Managers articulate clear organizational vision for employees to accomplish
b. Energize and enable employees so everyone understands the part he/she plays in achieving organizational goals
c. Uses power, personality, influence and persuasion and communication skills to coordinate people and groups so that
their activities and efforts are in harmony
4. Controlling
a. Task of managers to evaluate how well an organization has achieved its goals and to take any corrective action
needed to maintain or improve performance
i. Manager monitors the performance of individual, department and organisation as a whole and to see if
they are meeting the desired performance standards

Who Is a manager?
A manager is someone who:

 Mentors, guides, directs, and monitors employees.

 Optimizes human and other resources efficiently and effectively. (able to work around possible limitations)

 Performs management functions and roles (decisional, interpersonal, informational).

 Seeks to achieve competitive advantage for the organization.

Key Point
Even knowing what managers should do does not guarantee success; managers need specific skills:

1. Technical Skills: ability to perform Specialized task that involved certain method or process (e.g., accounting, finance).

2. Conceptual & Decision Skills: Ability to see the “big picture,” identify and resolve problems, and understand how different parts
of the business and environment fit together.

1. Look into the overall objectives and strategy of firm

2. Interactions among different parts of the organisation

3. Role of business in its external environment

3. Interpersonal & Communication Skills (People Skills): Lead, motivate, and communicate effectively.
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Managerial Roles

Role managers take can be classified into 3 categories:

A. Decisional Roles

1. Entrepreneur: Initiates new ideas, projects, or programs.

2. Disturbance Handler: Manages unexpected events or crises.

3. Resource Allocator: Decides where resources (budget, personnel, etc.) go.

4. Negotiator: Reaches agreements with other parties (e.g., suppliers, unions, customers).

B. Interpersonal Roles

1. Figurehead: Symbolizes the organization’s mission and values.

2. Leader: Trains, counsels, and mentors’ employees to achieve high performance.

3. Liaison: Links and coordinates people or groups inside and outside the organization.

C. Informational Roles

1. Monitor: Gathers and analyses information from internal and external sources/environment.

2. Disseminator: Shares information to positively influence people inside and outside the organisation attitudes/behaviours.

3. Spokesperson: use info and speaks on behalf of the organization to internal and external stakeholders.

Managing in the New Competitive Landscape 21st century

Modern managers must address:

1 Globalization: Talent and competition can come from anywhere.

2 Technological Change: The internet and digital tools transform how and where work is done.

o Reduce cost, speed up productivity

o Speed up globalisation

o Improve decision making

o Facilitates design of new produce and services

3 Cultural Diversity & Knowledge Workers: Teams are often multicultural, highly educated, and expect meaningful work and
respect.

4 Managing for Competitive Advantage: Gained by excelling at:

o Innovation (new products/services, new ways of doing things)

o Quality (high standards, reliability, customer satisfaction)

o Service (responsive to customers’ needs)

o Speed (rapid execution, first-to-market)

o Cost Competitiveness (keeping costs low while maintaining quality)

o Sustainability (long-term focus on environmental, social, and financial performance)

Eg. South Korea POSCO (metals) “Most admired: technical innovations, sustainability practices, global footprint” and Norway
Statoil/Equinor (number 1 in petroleum refining)
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LECTURE 2:

Organizations operate as open systems (Input and resources from external environment, produced output distributed to external
environment), interacting with the environment, constantly exchanging resources and outputs with the external world.

 These environments can be divided into:

o Macro environment (broad external factors)

o Competitive (industry) environment (factors specific to the organization’s business activities)

o Internal environment (culture, climate, values, etc. within the organx ization)

 Open system two way interaction:

o environment affects the way organisation conduct buiz

o organisation can affect the environment by their actions

o manager must stay abrest of external developments

Why It Matters for Strategy

 External forces (e.g., economic conditions, regulations) can “change the rules of the game,” forcing organizations to adjust.

 Internal factors (e.g., leadership style, employee behavior) shape how an organization responds to outside pressures.

 Strategic managers must monitor these environments to identify opportunities, mitigate threats, and align internal capabilities.

Organisation must differentiate btw the macro environment and the competitive environment

- Macro-environmental factors: broad external developments that affect all industries and organizations
o e.g., overall economic growth, demographic shifts, social norms, new government policies), and
- Competitive-environmental factors: industry-specific forces
o e.g., direct competitors, suppliers, customer preferences within a particular market).

Type of environment (Macro) “considered an external factor”

1. Key Domains

o Economic Factors: Interest rates, inflation, exchange rates, labor market dynamics, consumer demand.
o Technological Factors: Innovations, internet, digitalization.
o Legal-Political Factors: Regulations, government policies, taxation, intellectual property laws.
o Demographic Factors: Population size, age distribution, urbanization.
o Social Factors: Cultural norms, societal values, trends in consumer behavior.
o Ecological Factors: Sustainability concerns, carbon taxes, environmental regulations.

2. Global Interconnectedness

o Economies are globally linked (e.g., currency fluctuations, capital flow).

o Government actions (monetary policy, spending) influence inflation, employment rates, and consumer purchasing
power.

3. Managerial Implications

o Forecasting and scenario planning become critical when dealing with evolving external factors.

o Changes in macro-environmental variables may require shifts in strategy (e.g., adopting new technology or
complying with environmental standards).
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The Competitive (Industry) Environment

1. Porter’s Five Forces Model

1. Threat of New Entrants

 To overcome threats from new entrants, Barriers to entry can be created: imposing capital requirements,
brand loyalty, patents, government policy, cost disadvantages (since existing may enjoy economic of
scale).

 High barriers → lower threat; low barriers → higher threat.

2. Bargaining Power of Buyers

 Buyers can pressure firms to lower prices or demand higher quality/service.

 The internet makes product and price comparisons easier, strengthening buyers’ influence in many
industries.

3. Threat of Substitute Products/Services

 Substitutes can cap prices and profits; firms must innovate or differentiate to stay competitive.

4. Bargaining Power of Suppliers

 Suppliers may raise input costs or limit supply.

 Firms dependent on few suppliers are more vulnerable.

5. Rivalry Among Existing Competitors

 Intense rivalry (e.g., price wars, heavy marketing) squeezes profitability.

 Rivalry is shaped by industry growth, number of competitors, and differentiation.

2. Implications for Strategy

o Analyzing these forces helps managers devise strategies to navigate or influence competition:

 Differentiation or cost leadership to tackle strong rivalry.

 Building brand loyalty or investing in unique technology to raise entry barriers.

 Diversifying supplier base to reduce supplier power.

USE Porter’s Five Forces Model to explain the five competitive forces that shape strategy!
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Environmental Uncertainty

1. Environmental Uncertainty

o Stems from:

 Complexity: The number and variety of factors (competitors, technologies, etc.).

1. If an industry has many competitors that go to market in very different ways (e.g., different
technologies, business models, product offerings), it becomes harder to predict how they will
behave.

2. The greater number of varying strategies leads to higher complexity and more uncertainty for
anyone operating in that space.

 Dynamism: The pace and unpredictability of change.

1. Refers to how fast and unpredictably an industry’s environment changes.

2. In high-growth industries, new technologies or products rapidly emerge and customer

demands shift quickly; therefore, these industries experience frequent, sometimes radical
shifts (i.e., high dynamism).

3. Industries that evolve slowly and steadily (e.g., a mature, stable market with few product
changes) have lower dynamism and are thus more predictable

o High complexity + high dynamism = high uncertainty

2. Methods to Manage Uncertainty (approaches)

o Environmental Scanning

 Actively searching & collecting information from external environment—particularly not widely or readily
available information.

 Managers then organize, analyze, and synthesize this data into competitive intelligence

1. (actionable insights to navigate uncertain conditions)

 To address important issue: We ask qn such as:

1. Who are our current competitors, are there few or many barriers to entry to our industry,
what substitutes exist for our product or service, is the company too dependent on powerful
suppliers and buyers?

2. E.g., tracking consumer trends, monitoring competitor moves, staying informed on regulatory
changes.

o Scenario Development

 Managers envision various possible future outcomes by combining different factors into best-case, worst-
case, and in-between scenarios.

 Scenarios help managers plan contingencies—what steps to take if certain outcomes arise.

 They must be updated regularly based on new information

o Forecasting

 More precise than scenario development, forecasting uses past data to project future trends (e.g.,
economic conditions, market demands).

 Multiple forecasts (short-term, medium-term, etc.) can reduce uncertainty, though accuracy depends
heavily on the quality of data and the models used.
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 Forecasting not approprieate for settings such as new tech or macro environment policy or surprise
events (since past data cannot account for that) be less reliable in radically changing contexts (e.g.,
emerging technologies or new policies).

o Benchmarking

 Compares internal processes and performance against industry best practices or a recognized industry
leader.

 Benchmarking teams analyze similarities and differences to identify performance gaps.

 The goal is to implement improvements to at least match (or surpass) the industry’s best-in-class
performance.

The Internal Environment

1. Organizational Culture

o A shared set of assumptions, values, and beliefs that guide how people behave.

o Can be:

 Weak Culture: Lots of disagreement or ambiguity about values.

 Strong Culture: Widespread agreement and commitment to core values.

o Visible in mission statements, common practices, norms, symbols, rites, ceremonies, and day-to-day behaviors, way
people dress, interact with each other and with customers and the qualities of employees valued by managers.

2. Competing Values Framework

o Cultures differ based on emphasis on flexibility vs. control and internal vs. external focus:

1. Group Culture (internal + flexible)

 Emphasizes affiliation, trust, tradition, and teamwork.

 Leaders act as facilitators and mentors.

2. Hierarchy Culture (internal + control)

 Bureaucratic, emphasizes stability, rules, and formal procedures.

 Compliance is achieved through policies and enforcement.

3. Rational Culture (external + control)

 Goal-oriented, focuses on productivity and efficiency.

 Rewards tied to achieving set objectives.

4. Adhocracy Culture (external + flexible)

 Values innovation, risk-taking, and entrepreneurial activity.

 Leaders and team members are adaptable and forward-thinking.

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3. Organizational Climate

o Refers to the patterns of attitudes and behavior that shape people’s day-to-day experiences at an organisation.

o Often easier to measure than culture (e.g., surveys about trust in leadership, perceptions of communication).

o Climate and culture both influence how employees act and how effectively the organization responds to external
challenges.

 Might include clear performance standards, frewquent conflict, great trust in leaders, open
communication btw supervisors and employees.

6. Practical Takeaways for Managers

1. Regularly Scan and Analyze

o Stay informed about macro changes, industry shifts (Porter’s Five Forces), and internal morale/culture.

2. Adapt and Align

o Adjust strategies to capitalize on opportunities (e.g., new tech) or mitigate threats (e.g., new competitor).

o Ensure internal culture and climate support the strategic direction.

3. Use Frameworks Wisely

o Tools like Porter’s Five Forces, scenario analysis, and the competing values model guide strategic thinking but must
be applied contextually.

4. Balance Short-Term vs. Long-Term

o Pressures from shareholders and markets can push for quick results, but sustainable success often requires long-
term investment and ethical leadership.
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5. Foster a Supportive Internal Environment

o A strong, well-aligned culture can drive engagement, innovation, and agility in uncertain conditions.

Resources:

Ppl, knowledge and experience, machinery, raw materials, computer and tech, patent, financial capital, loyal customers

Organisation performance increase in direct proportion to increase in efficiency and effectiveness

Effectiveness is a measure of the approprieateness of the goals that manages and selected for the organisations to pursue

Organisation are effective when Manages choose appropriate goals and then achieve them
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Do not try to justify bad behaviour with ethical reasoning. If its morally and ethically wrong then
its wrong

Part 1: 160 & below

- Don’t pick geopolitical issue, if not you are not able to solve it
- Identification & Root cause
- Ref for facts stated

Part 2: explain and elaborate, don’t justify behaviour as correct practices

- Health. Stats, data to justify

- ~360& below
- Understand and Evaluate using ethical theory taught
- Ref and link back to ethical system
- Supporting evidence/ref

Part 3: 280 words

- Training and education (too general) (new and improvised manner of doing it)
- Try ur best not to suggest impractical stuff that needs more than 1 year to see results
- Use published successful methods, cite and make some modification
- Coherent and address issue

Don’t need intro and conclusion, go straight into the issue, data and root cause. Short and
sweet, don’t need flowery language

Whats In It For Me (

Organisation culture:

1. Schein’s 3 level
a. Level 1: observable artifacts ()
b. Level 2: Espoused values ()
c. Level 3: Assumption & belief ()

2. Competing Value Framework

a. External focus
b. Internal focus
c. F
d.
3. Issue might come from either of the upper or due to these:
a. Leadership style
b. Business model
c. Strategies front

wherever you go: Analyse root cause, collect data,

From VUCA to BANI

Don’t ask question, tell them. They only use top 10%

Risk management, control / trip plan