Strategic Management

Course Introduction and Introduction to Strategic

Management

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Instructor Name | Name of Institution [Link]

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Today’s Agenda – Date Here

• Why Strategic Management

• Introductions
• Syllabus/Course Structure/Expectations
• Strategic Management Introduction

[Link]
Why Strategic Management

• I’m an accountant, IT person, marketing

person… whatever
• Your role always involves _________!
• Your and your company’s goal is always to
achieve __ _____________ _________.

[Link]
Introductions

• Instructor Name
• Office: Phone: (NNN-
NNN-NNNN
• Email:
xxxxxxx@[Link] INSTRUCTOR’S PHOTO HERE
• Office Hours:
Wednesday 8:30 AM –
12:00 PM, or by
appointment

• You (complete form)

[Link]
Course Structure

• Syllabus High Points

• Please read the entire syllabus
• Teams
• Email me if there is someone you do not want to
work with
• Technology policy

[Link]
Course Requirements

∙ Exams (2 @ 15% each) 30%

∙ TCAs (2 @ 15% each) 30%
∙ Class and Preparation Activities 30%
▪Quizzes and homework 15%
▪Class contribution/attendance 10%
▪Current Event Presentation 5%
∙ Case Performance Analysis Presentation 5%
∙ ETS Exam 5%
TOTAL 100%
[Link]
Class Contribution Points
Participation Points

• Good contribution that shows preparation 85 to

100 points

• Attends class but does not participate in discussion

80 points

• Attends class but does not engage in team discussion

60 points

• Excused absences
Absent from are
class, no illnessabsence
excused with documentation, an email
0 from a
potential
points employer regarding specifics about an interview, a letter
from the Dean of Students, etc..

Daily Attendance - Exit Slip

[Link]
Class Schedule

• In Canvas
• Tour Canvas

Trademarked image.

[Link]
Required Course Materials

• Textbook: Free e-textbook, Strategic Management.

▪ PDF version:
[Link]
▪ WordPress version:
[Link]
▪ Print versions available HERE B&W - $8.52 Color -
$22.72

• Case pack: The case pack is also required and can be

purchased online or at the bookstore. The online version is
less expensive.
▪ Please note: there are no used casebooks—the cases
change each semester, so please do not buy a “used”
casebook. It must be the [year] version. [Link]
Course Exam Dates

• Midterm Exam – In Class, Monday/Tuesday,

October 14th/15th

• Final Exam exam – As scheduled during final

exam period

Note: Must get a C- or better or retake the

course
[Link]
Additional Course Notes

• Presentations slides posted after each class day

• Can come to a different section if necessary

• Office Hours

[Link]
 What’s on the Mind of a Functional Manager?

Accounting Finance Real Estate BIT Management Marketing

Majors - created around functions: accounting, marketing,
finance, production and operations, human resource management,
etc…

My Functional Area

Why? Specialization - making you an expert in a specific

area.
Brain © Pupot Nugroho, ID CC BY 3.0 Shapes how you think & how you see the world and the [Link]
A Short Exercise on Functions

“Company profits are down significantly.” WHY?

• Develop a list of 3-5 possible explanations based on
your area of functional expertise (i.e., your major)
to the statement above.
• Consider:
▪Possible causes relating to your area
▪Time horizons your use in your area
▪The unit of analysis – what your function focuses on
You have two minutes to complete this.

[Link]
Functions Exercise Answers

“Company profits are down significantly” Functional

Explanations:
• Possible causes
• Time horizons
• Unit of Analysis
Which is it? Which matters (most)? Which needs
to be addressed?

Brain © Pupot Nugroho, ID CC BY 3.0 [Link]

Outcome of Being Solely Focused on Functionalization

• Very likely conflict over:

▪ Key tasks and issues and priorities
▪ Different ways of seeing the organization

• The specialized training you’ve received does make you an

expert in an area… but at the price of a general view of the
firm overall
▪ This is what the course is about

[Link]
 Changing Perspective from Functional to a Strategic View of Organizations

Accounting Finance Real Estate BIT ManagementMarketing

Which is it?
Which matters?
Which needs to be addressed?
Can any one function alone see the big
picture?
Brain © Pupot Nugroho, ID CC BY 3.0 [Link]
 Changing Perspective from Functional to a Strategic View of Organizations
(CONTINUED)

The General Manager

• Responsible for the firm overall:
new unit of analysis - majors don’t
cover this - extends your area
expertise.
• Analytical & strategic thinking;
identifying and solving problems
• Requires: expertise of all functional
areas + additional tools & concepts +
synthesize into coherent system

[Link]
Brain © Pupot Nugroho, ID CC BY 3.0
 A Short List of Tools & Concepts of Strategy
• Vision, Mission & Objectives • Corporate Level Strategy
• Firm-Environment Interface • Diversification & Scope
• Internal Environment • Vertical Integration
• Resources, Capabilities and • Mergers & Acquisitions
Core Competencies • International Strategy
• Value Chain • Implementation
• External Environment • Functional Level Strategies
• Industry Structure • Strategic Change
• Strategic Groups • Firm Performance
• Market Positioning • Market Share
• Willingness to Pay • ROS, ROA, ROE, ROIC
• Business Level Strategy • Shareholder Value
• Market Entry • Stock Market Returns
• Competitor Analysis & [Link]
 Portion of Time Devoted to
Functional Activities vs.
Management & Strategy CEO

Portion of annual
time spend on V.P. / Upper
Management
Functional Activities
– Accounting, Functional
Area Manager
Finance, Marketing,
Operations, etc.
First Promo-
Managing & tion
Strategy
First Job

[Link]
 Learning Our Model – The Basic Analysis
Framework

Strategic Management & Business

Frameworks & Tools

Symptoms Key Issues List of Criterion

- Phenomenon - Causes need to Alternatives - Rank alts upon
- Problems (?) address - Per issue - Mutually excl?

This is an analytical thinking Recs/Options

- Timelines, costs
process
Must be a collaboration: Review - Responsibilities
- Fallback option
analyses, integrate & synthesize to
understanding and create meaning;
Sense making
[Link]
What’s the Point?

• Functional perspectives & cognitive bias

▪ We look at the same issue from different perspectives.
▪ We interpret the same issue in different ways.
▪ Both typically lead to different conclusions.

• We develop cognitive shortcuts – to deal with repeated exposures

and complexity. These affect our ability detect change.

• How do we overcome these?

• In organizations
• In the course?
[Link]
Overcoming Functionalism and Cognitive Limitations to
Think Strategically?

In Organizations In This Course

• Use cross-functional teams – Same as in organizations plus…
multiple perspectives, are
experts • The case method / pedagogy

• Multiple analytical tools to • The majority of our in-class time will

force different perspectives be spent on discussion of cases. It is a
process: knowing the final answer
• Lots of discussion &
prepares you very little for the future.
integration to reveal different
insights • Focus on thinking – analytical skills
that you can use for any topic

• Class contribution is a very

significant aspect

• Must be prepared to contribute

[Link]
 Studying Business – The Box Exercise
• Studying Business – as opposed to accounting, BIT, entrepreneurship,
finance, management, marketing, etc. Those are your specialization.
1. Pick a business.
2. Explain how the business works, why some firms succeed, why
others fail.
3. Now, think outside the box. Come up with something
original for that business that is economically viable to

Moviecreate
Colacompetitive
Sports advantage.
Under Starbucks Kraft Foods Walt
Theater Wars Drinks Disney
Armour
4. By the end, you’ll understand how many businesses work;
s

General Philips & Arcelor & Blue

understand many boxes
Electric Matsushit Mittal
Costco
Nile
a [Link]
Team Assignments

• I will assign teams of about 5-6 students each,

randomly with diversity across majors.

• Let me know if there is someone you do NOT want

to work with, via email, confidentially.

[Link]
MGT 4394 Course Objectives
• Developing your general management skills that integrate across
functional areas;

• Understanding how firms gain and sustain competitive advantage;

• Analyzing strategic business situations and formulating strategy; and

• Implementing strategy and organizing the firm for strategic success.

Strategic Management & Business
Frameworks & Tools

Symptoms Key Issues Criterion

List of Alternatives
- Phenomenon - Causes need to - Rank alts upon
- Per issue
- Problems (?) address - Mutually excl?

Recs/Options
- Timelines, costs
- Responsibilities
- Fallback option [Link]
What is Strategic Management?

• Strategic Management - an ongoing process used by firms to set an

organizational vision, analyze the external, competitive, and
internal environments, and develop strategies for success

• Four key aspects:

1. Directs the organization toward overall goals and objectives –
commonly statements of vision, mission & strategies
2. Includes multiple stakeholders in decision making
3. Needs to incorporate short-term and long-term perspectives
4. Recognizes trade-offs between efficiency and effectiveness

[Link]
The AFI Strategy Framework

• Analyze (A)

• Formulate (F)

• Implement (I)

• The traditional planning questions:

• Where are we?
• Where are we going?
• How are we going to get there?
[Link]
Recap & Look Ahead

Next Class: See

Today Schedule
• What the course is about: Analytical Topics:
thinking; Perspective of General • Introduction to case analysis
Manager • Quantitative analysis
• What strategic management is • Strategic decision making
• Integrating across functions
• Organizational coherence – • Deliverables
functions, vision/mission/objectives
• How to Conduct a Case
• The performance of the firm as a
Analysis Handout
whole
• How we will learn it - learn content
• Chapter 1
then apply to cases with extensive in- In-class quiz on Chapter 1…
class discussions / class contribution Must bring a laptop!
•

[Link]