Strategic Purpose Business Level Strategy Corporate Level and International Strategy Strategy Direction and Methods of Developments Organizing for Strategy Success Enabling Strategy Success Managing Strategic Change Understanding Strategy Development Key Learning Points

1. COURSE SUMMARY AND KEY LEARNING POINTS
PRESENTED BY:
 ALEXY ETOOBAN
 BUH DESMOND
 NDAYAM DIEUDONNE
 NKESI KEVIN K.
CAMEROON

2. Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points

3. A strategy is a firm's working plan for achieving its vision, prioritizing objectives, competing
successfully, and optimizing financial performance with its business model. It is a summary
of how a business plans to achieve it goals and improves and sustains it position in the
industry
LEVELS OF STRATEGY
The strategy can be broadly classified into three levels:
Corporate Level Strategy
Growth Strategy
Stability Strategy
Diversification Strategy
 Business Level Strategy
Cost Leadership
Differentiation
Focused Low Cost
Focused Differentiation
Integrated Low
Cost/DifferentiationFunctional (Operational) Strategy
It relates to the functional areas such as production,
marketing, finance, personnel, etc.

4. This chapter is summarized under the following key expectations:
The components of the governance chain of an organization.
Understanding differences in governance structures across the world and the advantages and
disadvantages of these.
The differences in the corporate social responsibility stances taken by organizations and how
ethical issues relate to strategic purpose.
Undertaking stakeholder analysis as a means of identifying the influence of different stakeholder
groups in terms of their power and interest.
Considering appropriate ways to express the strategic purpose of an organization in terms of
statements of values, vision, mission or objectives

5. 1. Corporate Governance
Corporate governance is the system of rules, practices and processes by which a
firm is directed and controlled. Corporate governance essentially involves balancing
the interests of a company's many stakeholders, such as shareholders,
management, customers, suppliers, financiers, government and the community.
Since corporate governance also provides the framework for attaining a company's
objectives, it encompasses practically every sphere of management, from action
plans and internal controls to performance measurement and corporate disclosure
2. Organizational Stakeholders
In the 1980s, a change in companies organizational culture began when internal
and external actors started to demand more from the company's which they used
to acquire goods and services from. Actors wanted companies to reflect their core
values, or the values that were established the moment when the organization was
created; these values also need to reflect the companies organizational culture
3. Stakeholder Mapping
Mapping stakeholders is a visual exercise and analysis tool that you can use to
further determine which stakeholders are most useful to engage with. Mapping
allows you to see where stakeholders stand when evaluated by the same key
criteria and compared to each other and helps you visualize the often complex
interplay of issues and relationships created in the criteria chart above

6. 4. Ethical issues
A problem or situation that requires a person or organization to choose between
alternatives that must be evaluated as right (ethical) or wrong (unethical).
Macro level
Range from laissez faire to shapers of society
Ethical stance of organisation in society
Extent an organisation exceeds its minimum obligations to stakeholders and
society
Corporate social responsibility
Specific ways to exceed minimum obligations imposed by
legislation/corporate governance
Reconcile conflicting demands of stakeholders
5. Culture
Defining Organizational Culture. ... Organizational culture is a system of
shared assumptions, values, and beliefs, which governs how people behave in
organizations.These shared values have a strong influence on the people in
the organization and dictate how they dress, act, and perform their jobs.

7. 6. Cultural web
The culture web refers to the assumptions that are core to a company's culture. Routine behaviors: those
behaviors are performed by the members of an organization when carrying out their activities.They are visible both
internally and externally. It can be very challenging to modify such behaviors.
7. Communication of organizational purposes
Managers need to be effective communicators to achieve positive results in today’s organizations. Some of the
purposes are
Seeking or receiving information, encouragement, control, selling proposals, confrontation. ?Talking to
different levels within the hierarchy – to individuals, to groups, to departments – and externally to customers,
suppliers, vendors, and other professionals?Using both formal communication - Meetings, reports, proposals,
notices;
CorporateValues
Core values, the principles guiding actions
Vision/Mission
Statement of overriding direction and purpose of organisation
Objectives
Statement of specific outcomes to be achieved
Financial, market-based
Sometimes measurable
Relevant

8.  This is all about the vision , what the organization is anticipating to see at the end of the day.
 Considering the BFW case study, success for them would be to have in place a full-fledged
EMS that is in conformance with the ISO 14001
 The BFW had a clear definition of the steps included in the having an EMS that meets the ISO
14001 standards
 The organization absolutely has to be clear on what the journey will looks like.
 Systematic planning(clear vision, mission and define the strategy)
 Monitoring and follow-up
 Review and updates
 Build a culture that supports the strategy, as culture of every organization is like the DNA of
every organization.
1.1 ENABLING SUCCESS

9. THE FOUR KEY RESOURCES FOR SUCCESS
Human resource – as they are the key factors in implementing the strategy
Information – Communicating this strategy to all the stakeholders for better
implementation.
Finances – Available finances to support this strategy not excesses and not limited.
Technology – Involve the right technologies to support the strategy
To wrap it up, champions are managers who take the risk to define their strategy and
understands it fully, involve all stakeholders in its implementation, monitors and
follow-up its implementation and is flexible enough to adjust the plans at every level to
achieve the forecasted success.

10. This topic is about a fundamental strategic choice: what competitive
strategy to adopt in order to gain competitive advantage in a market
at the business unit level.
Definition: Business-level Strategy
An integrated and coordinated set of commitments and actions the firm uses to gain competitive
advantage by exploiting core competencies in specific product markets

11. A strategic business unit (SBU)is a part of an organisation for which
there is a distinct external market for goods or services that is
different from another SBU.
The identification of an organisation’s SBUs helps the development
of business-level strategies since these may need to vary from one
SBU to another.

12. PORTER’S GENERIC STRATEGY
• Overall cost leadership
• Differentiation
focus

13. differentiation strategy

14. focus strategy

15.  ENTRY STAGE
 GROWTH STAGE
 MATURITY STAGE
 DECLINING STAGE
Every business goes through four phases of a life
cycle: startup, growth, maturity and renewal/rebirth
or decline

16. introduction stage
• Strategies:

17. growth stage
• Strategies:

18. maturity stage
• Strategies:

19. decline stage
• Strategies:
• Harvesting
• Consolidating

21. Definition: Corporate-level Strategy
Specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of
different businesses competing in different product markets
STRATEGIES
 Growth Strategy
 Stability Strategy
 Diversification

22. • Corporate-level strategy concerns:
• Product diversification is the primary form of corporate-level strategy

23. • A vertical strategy
• A horizontal growth strategy

24. A stability strategy

25. Diversification strategy is a corporate strategy to enter into a
new market or industry in which the business doesn't currently
operate, while also creating a new product for that new
market.
Forms of Diversification

26. Firms may chose to move from a single- or dominant-business position to a more diversified
position for three general reasons.
First(value-creating), they do this to enhance strategic competitiveness via increased economies of
scope(e.g., by sharing activities and transferring core competencies), market power (e.g., by
blocking competitors through multipoint competition or implementing vertical integration), and
financial economies (e.g., from efficient internal capital allocations and business restructuring).
Second (value-neutral), firms may diversify in response to incentives. For example, they may do so
to respond to advantages from tax law, to overcome a low performance trend, or to balance out
uncertain future cash flows.
Finally (value-reducing), unrelated acquisitions also may be made for managerial reasons(either to
diversify managerial employment risk or to increase managerial compensation). It is important to
note that diversification is not always pursued in an effort to enhance the firm’s strategic
competitiveness; in fact, diversification may have neutral or even negative effects on firm
performance.

27. Meaning:
A careful examination of different elements of the products of a company, which
are used to determine the best possible allocation of the resources of the company.
It could also be seen as a method of categorizing a firm's products according to their
relative competitive position and business growth rate in order to lay the
foundations for sound strategic planning
UsefulTools for Portfolio Analysis Include:
 Nine cell industry attractiveness and competitive
strength matrix
 BCG growth share matrix

28. Nine cell industry attractiveness and competitive strength matrix
Advantages
 Helps to prioritize the limited resources in order to
achieve the best returns.
 Managers become more aware of how their products
or business units perform.
 It’s more sophisticated business portfolio framework
than the BCG matrix.
 Identifies the strategic steps the company needs to
make to improve the performance of its business
portfolio.
Disadvantages
 Requires a consultant or a highly experienced
person to determine industry’s attractiveness
and business unit strength as accurately as
possible.
 It is costly to conduct.
 It doesn’t take into account the synergies that
could exist between two or more business
units.
It is a framework that evaluates business
portfolio, provides further strategic
implications and helps to prioritize the
investment needed for each business unit

29. BCG growth share matrix
BCG matrix (or growth-share matrix) is a corporate
planning tool, which is used to portray firm’s brand
portfolio or SBUs on a quadrant along relative
market share axis (horizontal axis) and speed of
market growth (vertical axis) axis.
The general purpose of the analysis is to help
understand, which brands the firm should invest in
and which ones should be divested.
Understanding the tool
BCG matrix is a framework created by Boston Consulting Group
to evaluate the strategic position of the business brand portfolio
and its potential.
It classifies business portfolio into four categories based on
industry attractiveness (growth rate of that industry)
and competitive position (relative market share).
These two dimensions reveal likely profitability of the business
portfolio in terms of cash needed to support that unit and cash
generated by it.

30. Strategy Direction: A course of action that leads to the achievement of the goals of an
organization's strategy.
A strategic direction includes the central forces that propel your business toward its
intended objectives.Your vision, mission, strategies, tactics and core values all contribute
to the establishment of a strategic direction.
An effective business leader refers to the elements of the strategic direction to generate
synergy and positive morale in an organization.
Importance
A strategic direction is one of the most important forces in a business. It establishes
the structure for internal responsibilities that each department and worker takes on. A
clear vision allows each worker to know the company's purpose and objectives.

31. A strategy could either be offensive/aggressive or defensive in nature
Offensive Strategies
 Product Development
 Market Penetration
 Market Development
 Related Diversification
 Unrelated Diversification
 Forward integration
 Backward Integration
DEFENSIVE STRATEGIES
Retrenchment
Divestiture
Liquidation

32. Allocation of resources and ongoing evaluation of progress toward strategic objectives are key
features of a well-directed company.
Resource Allocation: In strategic planning, resource allocation is a plan for using
available resources, for example human resources, especially in the near term, to achieve
goals for the future.
Employees need the right equipment, tools and training to carry out their assigned roles.
Managers need adequate budgets and authority to direct and motivate the work of subordinates.
Evaluation of company, department and employee goals allows you to monitor and adjust any
facet of the business that isn't moving toward the right targets. Possible changes that result from
ongoing assessment include tactical adjustments and more training.