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CONTEMPORARY STRATEGY ANALYSIS
Prepared by: KUY, Daranita
CHAPTER 16: CURRENT TRENDS IN STRATEGIC MANAGEMENT
Contents:
¤  Introduction
¤  The New Environment of Business
¤  New Direction in Strategic Thinking
¤  Redesigning Organizations
¤  The Changing Role of Managers
1. Introduction
¨  Assess what has changed in the business environment
¨  Discuss about issues that the strategic management is
struggling
Driving
forces
Draw upon
concepts
and ideas
New
Strategic
Thinking
2. The New Environment of Business
The Turbulent of 21st century
Early 21st
March 2000
Sep 11,
2001
Nov 2001
Earthquake,
Iran 2003
Tsunami
2004
Hurricane
2005
Earthquake,
China 2008
2008-2009
Earthquake,
Haiti 2010
Earthquake,
Japan 2011
March,
2012
¤  2012, at least 30 Chinese and Indian firms supplying Android smartphones
under their own brand names
¤  Legitimacy (CSR...)
¨  Long succession of political crisis has been an era of phenomena turbulence
Financial
Crisis
International
ization
Increasing the
competition
New Direction in Strategic Thinking
¨  Key Trends of the 1990s
Ø  Shareholder Value
Ø  Adjust to increased turbulence - Increase intense competition
− − − − − − − − − − − − − − − − − − − − − − − − − − − − − − −>
¨  Influential Strategy Concepts
Ø  Strategic factors that drive profits. Chapter 2
Ø  Hyper-competition −> Competitive advantage through networks, standards, and
alliances
Ø  Option theory (real, growth, abandonment, and flexibility)
Ø  Strategic fit Chapter 1 and Activity System Chapter 6
Ø  Complexity Theory (unpredictability, self-organization...)
3. Redesigning Organizations
¨  BEFORE
Ø  Emphasis on control
Ø  Single performance goal
Ø  Decision located centrally
Ø  Organization by design
¨  NOW
Ø  Emphasis on co-ordination
Ø  Multiple performance goal
Ø  Decision located where
relevant knowledge exits
Ø  Self-organization
¨  Self-Organization
Identity Information Relationship
The Changing Role of Managers:
¨  BEFORE
Ø  Highly-visible
Ø  Individualistic
Ø  Hard-working
¨  NOW
Ø  Guiding organization evolution
Ø  Cultivating identity and purpose
Ø  Emotional intelligence
²  Self-awareness
²  Self-management
²  Social-awareness
²  Social skill
The New Trend of Strategic Management Summary
¨  New Direction in Strategy Thinking
Ø  Complexity Theory (unpredictability, self-organization)
Ø  Option Theory, (real, growth...)
Ø  Capability based structure of organization
o  Team based
o  Project based
o  Process based
Ø  Organizing for adaptability
o  Identity
o  Modularity
o  networks
Ø  Emotional intelligence in leaders
THANK YOU!!!

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Chapter 16

  • 1. CONTEMPORARY STRATEGY ANALYSIS Prepared by: KUY, Daranita CHAPTER 16: CURRENT TRENDS IN STRATEGIC MANAGEMENT
  • 2. Contents: ¤  Introduction ¤  The New Environment of Business ¤  New Direction in Strategic Thinking ¤  Redesigning Organizations ¤  The Changing Role of Managers
  • 3. 1. Introduction ¨  Assess what has changed in the business environment ¨  Discuss about issues that the strategic management is struggling Driving forces Draw upon concepts and ideas New Strategic Thinking
  • 4. 2. The New Environment of Business The Turbulent of 21st century Early 21st March 2000 Sep 11, 2001 Nov 2001 Earthquake, Iran 2003 Tsunami 2004 Hurricane 2005 Earthquake, China 2008 2008-2009 Earthquake, Haiti 2010 Earthquake, Japan 2011 March, 2012
  • 5. ¤  2012, at least 30 Chinese and Indian firms supplying Android smartphones under their own brand names ¤  Legitimacy (CSR...) ¨  Long succession of political crisis has been an era of phenomena turbulence Financial Crisis International ization Increasing the competition
  • 6. New Direction in Strategic Thinking ¨  Key Trends of the 1990s Ø  Shareholder Value Ø  Adjust to increased turbulence - Increase intense competition − − − − − − − − − − − − − − − − − − − − − − − − − − − − − − −> ¨  Influential Strategy Concepts Ø  Strategic factors that drive profits. Chapter 2 Ø  Hyper-competition −> Competitive advantage through networks, standards, and alliances Ø  Option theory (real, growth, abandonment, and flexibility) Ø  Strategic fit Chapter 1 and Activity System Chapter 6 Ø  Complexity Theory (unpredictability, self-organization...)
  • 7. 3. Redesigning Organizations ¨  BEFORE Ø  Emphasis on control Ø  Single performance goal Ø  Decision located centrally Ø  Organization by design ¨  NOW Ø  Emphasis on co-ordination Ø  Multiple performance goal Ø  Decision located where relevant knowledge exits Ø  Self-organization
  • 9. The Changing Role of Managers: ¨  BEFORE Ø  Highly-visible Ø  Individualistic Ø  Hard-working ¨  NOW Ø  Guiding organization evolution Ø  Cultivating identity and purpose Ø  Emotional intelligence ²  Self-awareness ²  Self-management ²  Social-awareness ²  Social skill
  • 10. The New Trend of Strategic Management Summary ¨  New Direction in Strategy Thinking Ø  Complexity Theory (unpredictability, self-organization) Ø  Option Theory, (real, growth...) Ø  Capability based structure of organization o  Team based o  Project based o  Process based Ø  Organizing for adaptability o  Identity o  Modularity o  networks Ø  Emotional intelligence in leaders