The document discusses strategic competitiveness and strategic planning. It provides details on: - The four steps of strategic planning: environmental scanning, strategy formulation, strategy implementation, and evaluation and control. - Environmental scanning involves analyzing internal strengths/weaknesses and external opportunities/threats through a SWOT analysis. - Strategy formulation includes developing growth strategies like horizontal integration, diversification, and vertical integration as well as competitive business strategies. - Strategy implementation requires properly communicating goals, assembling project teams, and working out operational details.

1. Telecommunications Management Dr. Nurhizam Safie Bin Mohd Satar Dean, School of ICT, Asia e University Kuala Lumpur, Malaysia [email_address] [email_address]

2. Lecture 01 and 02: Foundations of Strategic Competitiveness

3. 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

4. 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.

5. Strategic Planning process Four steps involved in the strategic planning process:- Environmental scanning Strategy formulation Strategy implementation Evaluation and control

6. 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

7. What is SWOT analysis? Analysing the internal strengths and weaknesses of the organisations as well as the external opportunities and threats to the organisations.

8. 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 ,

9. 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 ,

10. Internal environment Core competency Organisational decision making Organisational culture Management-labor relationship Operational Issues Management-subsidiary relationships

11. 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

12. 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

13. 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.

14. 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.

15. 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.

16. 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

17. How are strategies formulated? Strategy formulation: - 1) Planning and growth strategies 2) Competitive business strategy

18. 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

19. 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.

20. 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

21. 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.

22. 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

23. 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

24. 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.

25. 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

26. 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.

27. Working through the Operational Details Project Team Budgeting – managerial document associated with costs Setting Target Dates Operational Support -resources Policies and Procedures – broad guidelines

28. 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.

29. Case Study The Walt Disney Company: A case Study in Vertical Integration and Complementary Assets