Strategic Management

1. Strategic Leadership Chapter Thirteen © 2006 by Nelson, a division of Thomson Canada Limited.

2. The Strategic Management Process Chapter 8: Acquisition & Restructuring Chapter 9: International Strategy Chapter 10: Cooperative Strategy Strategy Formulation Chapter 11: Corporate Governance Ch. 12: Org. Structure & Controls Chapter 13: Strategic Leadership Chapter 14: Org. Renewal & Innovation Strategy Implementation Strategic  Actions  Chapter 3: The External Environment Strategic Competitiveness Strategic Mission & Strategic Intent Strategic Objectives & Inputs Chapter 1: Strategic Management Ch. 2: Strat. Mgmt . & Performance Chapter 3: The External Environment Chapter 3: The External Environment Chapter 4: The Internal Environment Chapter 5: Bus.-Level Strategy Chapter 6: Competitive Dynamics Chapter 7: Corp.-Level Strategy Chapter 13: Strategic Leadership Strategic Competitiveness

5. Strategic Leadership and the Strategic Management Process Effective Strategic Leadership and Influences Strategic Intent Strategic Mission Shapes the formation of Successful Strategic Actions Formulation of Strategies Implementation of Strategies Strategic Competitiveness Above Average Returns Yields

9. M anagerial L eaders S trategic L eaders , V isionary L eaders Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Guide knowledge creation by encouraging contradictory capabilities (e.g. individual, group, and organizational tacit & explicit knowledge) Are comfortable handling Short-term day-to-day activities Define boundaries by use of metaphors, analogies & models to allow for a mix of contradictory concepts Manage the paradox created by use of managerial & visionary leadership models Control by social- ization & sharing common norms, values & beliefs Are not dependent on the organisation for their sense of who they are Are future-oriented concerned with risk-taking Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Are comfortable handling Short-term day-to-day activities Want stability & to preserve the existing order Guide without a strategic vision. Constrained by values & by using explicit knowledge Are comfortable handling Short-term day-to-day activities Control by social- ization & sharing common norms, values & beliefs Are future-oriented concerned with risk-taking Are not dependent on the organisation for their sense of who they are Control by social- ization & sharing common norms, values & beliefs Are future-oriented concerned with risk-taking Are not dependent on the organisation for their sense of who they are

10. Factors Affecting Managerial Decisions Managerial Discretion External Environment Industry Structure Rate of market growth Number & type of competitors Political/Legal constraints Product differentiation Employee interaction Organizational Characteristics Resource availability Size and age Culture Interpersonal skills Tolerance for ambiguity Commitment to the firm Aspiration level Self-confidence Characteristics of the Manager

11. Top Management Teams Top management teams are comprised of key managers who are responsible for formulating and implementing the organization’s strategies A top management team must also be able to function effectively as a team in order to implement strategies A heterogeneous team makes this more difficult A heterogeneous top management team with varied expertise and knowledge can draw on multiple perspectives when evaluating alternative strategies and building consensus

13. Effective Strategic Leadership Determines Strategic Direction Developing a long-term vision of the firm’s Strategic Intent Exploits & Maintains Core Competencies Ensure firm’s core competencies are emphasized in strategic implementation Develops Human Capital No strategy is effective unless a firm develops & retains staff to execute it Sustains an Effective Organizational Culture Leaders play a critical role in shaping and reinforcing the firm’s culture Determines Strategic Direction Exploits & Maintains Core Competencies Develops Human Capital Sustains an Effective Organizational Culture Establishing Balanced Organizational controls To create controls balanced between financial and strategic measurements. Establishing Balanced Organizational controls Emphasizaing Ethical Practices Enable those at all organization levels to act ethically when doing what is needed to implement firms’ strategies Emphasizing Ethical Practices

18. Organizational Controls Common Strategic Controls High level of interaction  High level of interaction between corporate headquarters and divisions  Ability to share resources and capabilities among divisions  Open communication between corporate and divisional managers 

19. Ethical Practices Establish & transmit specific goals noting the firm’s ethical standards (e.g., develop / disseminate a code of conduct) Developing an ethical organizational culture: Continuously revise & update the code of conduct, based on inputs from stakeholders Disseminate a code of conduct to all stakeholders to inform them of the firm’s ethical standard / practices Develop & implement methods / procedures to use in achieving the firm’s ethical standards Have explicit rewards to recognize acts of courage (e.g., using proper channels / procedures to report wrongdoing) Create a work environment in which all people are treated with dignity      

24. The Strategic Management Process Chapter 8: Acquisition & Restructuring Chapter 9: International Strategy Chapter 10: Cooperative Strategy Strategy Formulation Chapter 11: Corporate Governance Ch. 12: Org. Structure & Controls Chapter 13: Strategic Leadership Chapter 14: Org. Renewal & Innovation Strategy Implementation Strategic  Actions  Chapter 3: The External Environment Strategic Competitiveness Strategic Mission & Strategic Intent Strategic Objectives & Inputs Chapter 1: Strategic Management Ch. 2: Strat. Mgmt . & Performance Chapter 3: The External Environment Chapter 3: The External Environment Chapter 4: The Internal Environment Chapter 5: Bus.-Level Strategy Chapter 6: Competitive Dynamics Chapter 7: Corp.-Level Strategy Chapter 13: Strategic Leadership Strategic Competitiveness