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Transcript

  • 1. Current Trends in Strategi c M anagement
    • The New E conomy
    • New Directions in Strategic Thinking
    • Redesigning the Organization
    • New Modes of Leadership
    OUTLINE
  • 2. The Turbulent 21 st Century
    • Collapse of New Economy
    • Dot.com bubble bursts
    • TMT recession
    • Corporate Scandals
    • Enron, WorldCom, Parmalat
    • Jack Welch’s retirement package
    • War
    • Invasion of Afghanistan
    • & Iraq
    • Civil wars in Congo, Liberia, Sudan, Somalia
    Age of Disbelief
    • The Curse of Terrorism
    • Sept. 11, 2001
    • Suicide bombings in
    • Israel, Iraq, Saudi Arabia, Turkey, Afghanistan
    • Fear of Disease
    • SARS, Mad Cow, Bird Flu
    Unstable Currencies US$ declines by >50% against Euro 2002-04
    • Decline of
    • Multilateralism
    • Collapse of Doha round
    • Trade wars between US, EU, China
    • Weakening of UN
    • International
    • competition intensifies
    • China as Workshop of the World
    • Outsourcing to LDCs
  • 3. US Labor Productivity: Annual Changes in Non-Farm Output per Hour Worked, 1990-2006
  • 4. Return on Equity of US Manufacturing Corporations, 1990-200 3 Source: US Bureau of the Census
  • 5. The value of mergers and acquisitions worldwide Source : Thomson Financial Securities Data
  • 6.
    • Key T rends of the 1990s:
    • Quest for shareholder value
    • Adjusting to increased
    • turbulence & more intense competition
    • I nfluen tial S trategy Concepts :
    • Modern financial analysis
    • — shareholder value, economic profit,
    • option theory
    • C ore competences and intangible
    • assets
    • Dynamic ally competiti ve markets
    • —“ hypercompetition”
    • Competitive advantage through
    • alliances, networks, and standards
    • Major Themes of Business Strategy :
    • Cost cutting — squeezing
    • overhead, business process re-
    • engineering, increasing labor
    • productivity
    • Outsourcing / refocusing /
    • divestment
    • Performance m ana g ement and
    • i ncentive alignment
    Directions in Strategic Management Practice —Trends of the 1990s
  • 7. Future Sources of Profit Limits of downsizing/cost cutting Where are future sources of profit? Technology Continued advances in ICT Forces Shaping Company Strategies 2001-04
    • Concepts & Theories
    • Resources & capabilities as
    • basis for competitive advantage
    • Knowledge-based theory
    • of the firm
    • Option theory
    • Complexity theory
    • The Business
    • Environment
    • Uncertainty
    • Stalling of economic
    • liberalization
    • Intense competition
    • Demands of society
    • Social & environmental responsibility
    • Ethics & fairness
    • Quest for meaning
  • 8.
    • STRATEGY
    • Multiple competitive advantages/multiple capabilities
    • Innovation / New Product Development / New
    • Business Development
    • Alliances & networks
    • MANAGEMENT SYSTEMS
    • Knowledge management
    • (incl. best-practice transfer)
    • Redesigning incentive systems
    • Rethinking performance management
    • Capturing human creativity
    Emerging Developments
    • ORGANIZATION
    • STRUCTURE
    • Reconciling flexibility
    • & integration
    • Modular structures
    • Multidimensional structures
    • Informal organization &
    • self-organization
  • 9. The Need to Redesign Organizations THE PAST THE FUTURE Emphasis on control Emphasis on co-ordination Decisions located centrally Decisions located where relevant knowledge exists Simple structures , u nified line of command Multidimensional structures Diffused authority, but clear responsibilities Single performance goal Multiple performance goals Organization by design Self organization
  • 10. Emerging Organizational Forms Process-based Organizing around business processes organizations Organizing around corporate processes - entrepreneurial process - competence building process - renewal process From unitary to parallel Separate coordination structures for structures different processes . E .g. 3M ’s product development structure; separate structures for TQM and change management Project-based organization E.g. engineering cos., consulting firms , also manufacturing cos. e.g. Oticon Network and v irtual E .g. e lectronics in Silicon Valley , c lothing o rganization and packaging equip ment in Italy Organizing for capability Shifting emphasis of organization development design from control to coordination
  • 11.
    • THE LEADERSHIP NEEDS
    • OF ORGANIZATIONS
    • The ability to:
      • build confidence
      • build enthusiasm
      • cooperate
      • deliver results
      • form networks
      • influence others
      • use information
    New Models of Leadership : What Competencies do Top Managers Need?
    • THE REQUIRED
    • COMPETENCIES OF
    • BUSINESS LEADERS
      • business literacy
      • creativity
      • cross-cultural
      • effectiveness
      • empathy
      • flexibility
      • proactivity
      • problem-solving
      • relation-building
      • teamwork
      • vision