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Foundations of Strategic Competitiveness

Foundations of Strategic Competitiveness



Lecture 01 on Telecommunications Management (MBAT622)

Lecture 01 on Telecommunications Management (MBAT622)



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  • Introduce myself – MCMC . Committee for Spectrum Research Group – public university in Malaysia
  • Telecommunication Act 1996 Technology- VOIP Social –download music – RIAA
  • Horizontal – macdonald or multiple system operator of cable TV Diversified – engineering, oil and gas, hospitality mgt, tourism, flight Emphasize on importance of owning most of all of a company’s operational phases. The goal is to create internal synergy and efficiency between a company’s various operating division, Walt Disney, Time Warner and News Corporation Introduce new S & P New mktg an promotion strategy Acquisition of a company Reorganise the company Enter new foreign market
  • Focus – narrow niche

Foundations of Strategic Competitiveness Foundations of Strategic Competitiveness Presentation Transcript

  • Telecommunications Management Dr. Nurhizam Safie Bin Mohd Satar Dean, School of ICT, Asia e University Kuala Lumpur, Malaysia [email_address] [email_address]
  • Lecture 01 and 02: Foundations of Strategic Competitiveness
  • Foundation of Strategic Competitiveness
    • A strategic competitiveness consists of moves to:-
      • Attract customers
      • Withstand competitive pressures
      • Strengthen the company’s market position
    • The objective of a competitive strategy is to generate a competitive advantage , increase the loyalty of customers and beat competitors.
    • A competitive strategy is narrower in scope than a business strategy
  • Strategic Planning
    • A set of managerial decisions and actions that determine the long term performance of an organisation/company.
    • The main role of strategy is to plan for the future as well as to react to changes in the marketplace.
  • Strategic Planning process
      • Four steps involved in the strategic planning
      • process:-
      • Environmental scanning
      • Strategy formulation
      • Strategy implementation
      • Evaluation and control
  • Environmental Scanning
    • The purpose is to monitor, evaluate and disseminate information from both internal and the external business environment to the key decision makers of the organisation.
    • How? By conducting SWOT analysis
  • What is SWOT analysis?
    • Analysing the internal strengths and weaknesses of the organisations as well as the external opportunities and threats to the organisations.
  • External Factors
    • External environment can include a number of different forces which impact the financial performance and operations, including:-
      • Political/legal factors;
      • Economic environment;
      • Socio-cultural factors; and
      • Technological factors
    • ,
  • Examples of External Factors
      • Political/legal factors  Telecommunications Act of 1996
      • Economic environment  global economic recession
      • Socio-cultural factors  illegal downloading of songs
      • Technological factors  implementation of cheap technology (VOIP) : Skype
    • ,
  • Internal environment
      • Core competency
      • Organisational decision making
      • Organisational culture
      • Management-labor relationship
      • Operational Issues
      • Management-subsidiary relationships
  • Examples of internal environment
    • Core competency – a successful company possesses a specialised product process, brand recognition or ownership of talent which enables it to achieve higher revenues and market dominance.
    • Examples : Internet router  Cisco, best customer services –> Dell and innovation  Google and Apple
  • Internal environment
      • Organisational decision making
        • Critical in developing new product and services
        • Meeting product delivery deadline
        • Providing managerial and technical support
        • Coordinating supply chain management
  • Internal environment
      • Organisational culture
      • Is the collection of beliefs, expectations and values shared by an organisation’s members and transmitted from one generation of employee to another.
  • Internal environment
      • Management-labor relationship
      • Union – labour worker association working closely with the organisation to achieve the business mission.
      • Union will negotiate on lay-off, termination of workers, pay rise and comfortable working environment etc.
  • Internal environment
      • Operational Issues
      • Value Chain – the strength and efficiencies in the production and distribution of product and services.
      • Example: purchase a Dell PC from the Internet and received the PC at home.
  • Internal environment
      • Management-subsidiary relationships
        • Ability to properly coordinate and oversee projects and goals throughout a company’s multiple worldwide subsidiaries.
        • Example: when Sony Corporation purchased Columbia Picture Entertainment. In the early years, lost of profit, later recovered through undergo a steep learning curve in managing a foreign subsidiary
  • How are strategies formulated?
    • Strategy formulation: -
    • 1) Planning and growth strategies
    • 2) Competitive business strategy
  • Growth Strategies
      • Horizontal integration
        • Is a growth strategy which allows a business to spread its influence by expanding into different geographic market while maintaining a commitment to its primary business
        • Example : McDonalds
  • Growth Strategies
      • Diversification  GE
      • Is a growth strategy which recognise the value of owning a variety of related and unrelated business
      • A company that owns a diverse portfolio of business is spreading the risk of its investments.
      • One subsidiary lost, the other will cover the lost.
      • Vertical Integration
      • Is a growth strategy which emphasizes the importance of owning most or all of a company’s operational phases.
      • The goal is to create internal synergy and efficiencies between a company’s various operating divisions.
      • Examples: cross-licensing between subsidiaries
      • Walt Disney and Time Warner
  • Strategic Formulation starts with
      • Defining Business mission – where the company wants to be in the next five years.
      • Goals and objectives – are the end result of planned set of activities. They state what is to be accomplished and when. The achievement should be measurable quantitatively.
  • Competitive Business Strategy
      • Introduction of new product or service
      • Initiating new marketing and promotion strategy
      • Implementing the acquisition of company
      • Reorganise the company structure
      • Decision to enter foreign market
  • Importance of competitive scope
      • Cost leadership –ability to produce a product/services at lower cost.
      • Differentiation – ability to provide unique or superior value to the customer in term of product quality, special features
      • Examples : HBO and ESPN
      • Focus – targeting particular demographic or consumer group. Example MTV
  • Strategy implementation
    • Three core processes:-
    • 1. Properly communicating the goals and
    • objectives of the proposed strategy
    • 2. Assembling the project team in order to
    • carry out the strategy
    • 3. Working through the operational details
    • necessary in order to get the job done.
  • Setting Strategy into Motion
      • Top management must put a realistic goals and objectives
      • Explaining the Goals and Objectives of the Strategic Plan in a properly manner.
      • Top- down approach
      • MBO
  • Who Carries out strategic plan?
      • Senior executive leader is responsible for choosing the right people in order to successfully implement the strategy.
      • The right people capable of carrying out the strategy.
      • Attentive to details in assessing the strengths and limitations of a successful team.
  • Working through the Operational Details
      • Project Team
      • Budgeting – managerial document associated with costs
      • Setting Target Dates
      • Operational Support -resources
      • Policies and Procedures – broad guidelines
  • Evaluation and Control
      • Measuring Performance- against the stated objectives
      • Assessing Actual Performance- analysis when and if performance fails to achieve the stated objectives
      • Taking Corrective Actions if needed – may reveal the goals was unrealistic and take necessary corrective actions.
  • Case Study
    • The Walt Disney Company: A case Study in Vertical Integration and Complementary Assets