Strategic Management Training Workshop for University College Jamoum Faculty Members, Umm Al Qura University

Assoc. Prof. Yousery Nabil M. K. Elsayed
PhD; M.Sc.; M.Sc.; B.Sc. (Hons.)
College of Business
Strategic Management by Dr. Yousery Nabil M. K. Elsayed
1

Welcome!
Thank you
for attending
2

Contents
• Welcoming
• Getting started
• About the Trainer
• About You
• Introduction to Strategic
Management
• How to have a strategic
approach for your life
• Strategic Planning
Marketing Series by Assoc. Prof. Yousery Nabil M. K. Elsayed 3

Getting Started
• Welcome to Strategic Management Training workshop
– About the trainer
– About the Participant
– Training Facility Orientation
– Ground Rules
Image Source:
http://www.gadsdenhealth.org/PICS/Healthy_Start_Logo.JPG. accessed on 7 July 2010.

About the Trainer
(Ph.D.; M.Sc.; M.Sc.; B.Sc. Hons)
• Head of the Training Unit, College of Business, Umm Al
Qura University.
• Head of Active and Interactive Learning Center, College
of Business, Umm Al Qura University,
• Founder and Former Head of Tourism and Hotel
Management Department, and Head of Active &
Interactive Learning Center, College of Business, Umm
Al Qura University, KSA
Strategic Management by Dr. Yousery Nabil M. K. Elsayed 5

About the Trainer
• Associate Professor, College of Business, Umm Al Qura
University, KSA.
• Associate Professor, Helwan University, Egypt.
• Former Visiting Scholar, Purdue University, USA.
• Former Lecturer, Cardiff School of Management, UK.

• Trainer and consultant in various organizations like:
- Ministry of foreign Affairs (Egypt)
- Ministry of Higher Education (Egypt)
- Ministry of Education (Egypt)
- Ecoman corporation (Egypt and UAE)
- Masters (Egypt)
- Arabic Association for Business Administration, Arab
League. Strategic Management by Dr. Yousery Nabil M. K. Elsayed 7
About the Trainer

• Trained managers in leading organizations like:
- Mobily
- Shell Petroleum Development B.V.
- Nigeria Liquefied Natural Gas company;
- Nigerian National Petroleum Corporation;
- Sabec
- Safola Group.
- Maaden
- Qatar Petroleum Company
- MARAFIQ Company.
- Ministry of Tourism and Sport of the Republic of Kazakhstan
8
About the trainer

• PhD. 2009. Cardiff School of Management, UWIC, UK.
• M.Sc. 2004. Euro Arab Management School, Granada,
Spain.
• M.Sc. 2003. Helwan University, Egypt.
• B.Sc. 2000. Excellent Honour. Helwan University, Egypt.
• Resident Manager of the Faculty Tourism Hotel, Egypt.
• Assistant General manager of Helwan University
Hostel, Egypt.
9
About the trainer

Strategic Management by Dr. Yousery Nabil
M. K. Elsayed
10
Introduction
• Introduce yourself

What you want to achieve
from this training?
Image Source:
http://2.bp.blogspot.com/_p1S5PCy_rGk/Scp5vSRcNNI/AAAAAAAAAPs/wHh82iQ-
aJU/s320/active+participant+award.png. accessed on 7 July 2010.-
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M. K. Elsayed

Expectations
• What do you expect to
learn from this training?

PHONES
Please turn to silent
Refreshments
When & Where?
FIRE
How to exit the building
Domestics
13
M. K. Elsayed

Ground Rules…
Please
• Feel free to ask questions at anytime
• At the end of today’s training, write your comments
on a blank piece of paper. Please do not write down
your name.
• Do not forget to hand in your fruitful comments to
the trainer.
14Strategic Management by Dr. Yousery Nabil M. K. Elsayed

Task
• Look at the following pictures, and try to
answer the following questions:
1- What is the strategy?
2- How to be a strategic manager?
15
M. K. Elsayed

M. K. Elsayed
16
Image Source: http://www.adelphigroup.com/perspectives/strategic-planning/ Accessed on 27th of Sep 2011
1st Picture

M. K. Elsayed
17
Mage Source: http://www.thomasgroup.com/Services/Change-Management/Strategic-Alignment.aspx /
Accessed on 27th of Sep 2011
2nd Picture

M. K. Elsayed
18
Mage Source: http://www.indiamart.com/ab-insurance/services.html Accessed on 27th of Sep 2011
3rd Picture

M. K. Elsayed
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Image Source: blog.frontierstrategygroup.com . Accessed on 27th of Sep 2011
4th Picture

M. K. Elsayed
20
Image Source: strategems-llc.com . Accessed on 27th of Sep 2011
5th Picture

M. K. Elsayed
21
Image Source: vision 2030 website
6th Picture

Strategy
• Strategy means “the art of the general”
(Encyclopedia Britannica, 2003).
• “it is an art of war and your goal is to win”
22
M. K. Elsayed

Strategy
• Eriksson (2005) highlighted the following
phrase to reflect the meaning of strategic
management:
“Know the enemy and know yourself, and you
can fight a hundred battles with no danger of
defeat”.
23
M. K. Elsayed

Task
• Why we need to design
or develop a strategy?
Picture source:
http://mindwerx.com/portal/images/stories/sky_images/question_mark_cloud_i
stock.jpg
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M. K. Elsayed

Why we need it?
- Quality reasons (e.g. King
Saud University, KSA)
- Saving money
- Having successful
management practices
- Saving time
- Major projects, it is crucial
to have a strategy(Eriksson,
2005)
- Etc.
Image Source: http://greenbudget.files.wordpress.com/2009/02/save
_money1.jpg. accessed on: 8 July 2010 25
M. K. Elsayed

Or in brief:
• “To provide the best possible chance that the
employer’s objectives will be at least
satisfactorily achieved and if possible
exceeds.”
(Moreledge, et al.; 2004:34)
Image Source: http://www.charterwells.co.uk/img/own/optimise.jpg accessed on: 8 July 2010 26
M. K. Elsayed

Business Strategy
• Further, the strategy should help the project
manger to handle the stakeholders and the
conflicting interest that may occur in the
project.
• If feasible the strategy should allow as much
flexibility as possible for the client when
favorable, not putting the fulfillment of the
requirements in danger.
(Eriksson, 2005)
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M. K. Elsayed

Business Strategy
• The procurement strategy
should also assist in
optimising the total system
performance and reduce the
cost of ownership.
(Source: Eriksson, 2005)
Image Source
http://www.corporatecontracts.com/images/reduce_cost.jpg. accessed
on: 8 July 2010
28
M. K. Elsayed

Business strategy
• To conclude:
It helps in:
- Handling stakeholders conflict
- Flexibility of the system to fulfill the project
requirements
- Optimizing the total system performance
- Reducing the cost of ownership, etc.
- Managing the project as efficient as possible
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M. K. Elsayed

Factors have to be considered in
formulating a strategy
• Available resources
− Money
− Time
• Competence assets available (e.g. Customers;
suppliers)
(Source: Eriksson, 2005: 45)
30
M. K. Elsayed

Factors have to be Considered in
Formulating a Strategy
• Market conditions
− Degree of competition
− Economic situation (e.g. economic recession or
economic boom)
Image Source http://
http://www.freefoto.com/images
/04/03/04_03_3---Stock-
Market-Prices_web.jpg.
accessed on: 8 July 2010
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M. K. Elsayed

Factors have to be considered in
Formulating a Strategy
• Impact on the core business
− A central part, e.g. effects the end-product
directly
− A support system, e.g. not critical for the
quality of the end-product
• Degree of innovation (technology)
− Development
− Delivery and assembly of products
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M. K. Elsayed

The most important factor in my
point of view is
33
Image Source
whatisinnovation.com.
accessed on: 27 sep 2011

How to have a strategic approach
for your life

35
Task
• Write your strategic aim for whole
your life
• Write a long term / strategic objective
for the upcoming 5 years in your life.
• For Each long term objective/ strategic
objective, you will write short term
objectives
• For each short term objectives you will
develop an action plan.
• Based on previously written steps, you
will revise your daily activities and you
will delete any activity that contradicts
with your mission, vision, long term
objectives and short term objectives or
your action plan

Strategic Planning
M. K. Elsayed
36

Strategic Planning
• Environmental Scanning (e.g. PESTEL & SWOT)
- Do not ever forget to identify your competitive
advantage.
• Mission
• Vision
• Long Term Objectives
• Short Term Objectives
• Action Plan
• Continuous development and updating
M. K. Elsayed
37

Strategic choice I: strategic advantage
and the competitive positioning and
Critical Success factors (CSFs)
M. K. Elsayed
39

M. K. Elsayed
40
Gaining and sustaining competitive
advantage
• “Company competitiveness can be defined as:
the ability of a firm to design, produce and/or market products and
services that are superior to those offered by competitors, taking into
account the price and non-price qualities.”
(Ambastha and Momaya, 2004 cited in Golob and Podnar, 2007)
“Company gains competitive advantage by offering consumers lower
prices than competitors for similar products
or by providing more benefits that justify higher prices.”
(Kotler et al., 1998: 259-260)
• “Meeting customer needs on time every time is a route to achieving
and sustaining competitive advantage and staff training is a tool”
(Burden and Proctor, 2000)

M. K. Elsayed
41
Task
• Work in groups and list
three Saudi companies
that have competitive
advantages

To Compete Effectively
• Draw up a business plan
• Determine what is to be
sold or what service is to
be delivered
• Have a good quality
website design
• Ensure Security
• Set appropriate delivery
times
• Create a brand
• Ensure good customer
service
(Combe, 2006)

M. K. Elsayed
43
To Compete Effectively (Cont.)
• Promote the website
• Pricing
• Define terms and conditions of sale
• Ensure scalability of technology
(Combe, 2006)

44
First mover advantageThe benefits associated with first
movers are:
• The ability to amass a critical mass of
customers
• Developing distinct business models
to exploit the advantages of the
internet for trading.
• Gaining economies of scale through
exploiting network externalities.
• Building customer loyalty through
brand recognition
• Building in switching costs to the
website
• Building relationships with customers
electronically
(Combe, 2006) Strategic Management by Dr. Yousery Nabil M. K.
Elsayed

M. K. Elsayed
45
First mover advantage (Cont.)
• Influencing the industry
infrastructure
• Refining the value proposition and
adding value to customers
through innovation
• Managing both physical and
virtual value chain for competitive
advantage
• Build an understanding of
customers and their buying habits
via the internet
• Become a learning organisation
• Establishing partnerships with key
industries players ahead of
competitors.
(Combe, 2006)

M. K. Elsayed
46
Generic strategies
• Differentiation
• Cost leadership
• Focus

M. K. Elsayed
47
Differentiation
• Physical attribute
differentiation
• Service differentiation
• Personnel
differentiation
• Location differentiation
• Image differentiation
(Kotler et al.,1998)

M. K. Elsayed
48
Differentiation
• Creating a strong brand
• Real world promotional
programmes
• Easy sites navigation
• Creating an online
community
• Offering customization of
products or services
• Offering personalization of
products or services
• Real-time merchandising
( Kombe, 2006)

M. K. Elsayed
49
Differentiation
• Offering valuable ordering
applications
• Quick order processing
• Providing order status
information
• Developing incentives to
repeat purchases
• Offering excellent customer
service
• Creating loyalty
programmes
• One-to-one marketing
techniques.
( Kombe, 2006)

M. K. Elsayed
50
Cost leadership
“An organization that adopts a cost
leadership strategy strives to be
the lowest cost producer in the
industry”
(Combe, 2006: 310)
• Focusing on broad market to gain
economies of scale.
• Minimising customer acquisition
costs
• Creating a community of buyers
to gain network economies
• Minimising the risk of first time
purchasing by ensuring secure
transactions
• Outsourcing.
(Combe, 2006)

M. K. Elsayed
51
Cost leadership
• Minimising the cost of servicing
customers
• Imitating successful business
models and web applications
• Limiting the product range
• Selling products with low
distribution costs
• Investing only in technology that
further helps to reduce costs.
• Minimising staff numbers
• Advertising solely through the
internet.
(Combe, 2006)

M. K. Elsayed
52
Cost leadership

M. K. Elsayed
53
Focus
• “A Focus strategy is when an
organization seeks competitive
advantage through cost
leadership or differentiation in a
broad market segment or narrow,
well defined market segment of
customers” (Combe, 2006: 313)
• Internet allows firms to:
- target market segments more
closely.
- Tailor the marketing of their
products and services to the
needs, wants and aspirations of
particular group.

M. K. Elsayed
54
Integrating generic strategies
• To appeal to more
segments.
(Kotler et al., 1998)
• To make it more difficult for
rivals to duplicate or imitate
the activities that generate
the competitive advantage.
(Combe, 2006)

M. K. Elsayed
55
To sustain competitive advantage
• The eight factors that underlie sustained
competitive advantage are:
(1) a competitive strategy based on capability and
distinctive value
(2) focused strategic positioning
(3) structural alignment of facility and operations
(4) alignment of the human-resources strategy
with the strategic position
(5) distillation of strategic positioning into day-to-
day operations
(6) alignment of brand franchisee, and owner
(7) balance between innovation and wisdom
(8) growth by operational and financial muscle.
(Dubé and Renaghan, 1999:27)

Competitive Advantages
from Strategic Point of view
M. K. Elsayed
56

M. K. Elsayed
57Cited in Graf , 2008:73

M. K. Elsayed
58
Cited in Graf , 2008:75

competitive methods in
multinational companies
M. K. Elsayed
59

M. K. Elsayed
60

61
Cited in Graf , 2008: 82
M. K. Elsayed

Critical Success Factors
(CFSs)
M. K. Elsayed
62

5 Steps Approach to CFSs
• Freund (1988) proposed a 5-step approach to
CSFs:
• 1. Identify the success factors necessary to the
attainment of the overall corporate objectives;
• 2. Determine the related CSFs for each business
unit’s functional area. Only five to ten CSFs should
be retained at each level
( Graf , 2008: 71)
M. K. Elsayed
63

3- Develop strategies that leverage strength and
prevail over weaknesses in each CSF;
4. Develop lists of key performance indicators to
monitor the performance on each CSF; and
5. Establish processes and procedures to monitor
performance and provide timely feedback.
( Graf , 2008: 71)
M. K. Elsayed
64
5 Steps Approach to CFSs

Source: Graf, 2008: 94
65
M. K. Elsayed

66
Source: Graf, 2008:95
M. K. Elsayed

M. K. Elsayed
67
Task
• Work in groups and try
to identify the critical
success factors and
value drivers for the
followings:
• Altayar Travel
• Saudi Airlines

68Source: Graf, 2008:96Strategic Management by Dr. Yousery Nabil
M. K. Elsayed

69Source: Graf , 2008:100)Strategic Management by Dr. Yousery Nabil
M. K. Elsayed

Task
• Summarize what you learnt today
Image Source:http://jos76.files.wordpress.com/2008/01/question.jpg. accessed on
8 july 2010
70
M. K. Elsayed

Questions Time
• Thank you for being with me today
and please feel free to ask any
questions.
Image Source: http://www.fun-
questions.com/files/Fun%20Questions%20Group. accessed on 8 July 2010 71

M. K. Elsayed
72
References
• Burden, R. and Proctor, T. (2000). Creating a sustainable competitive
advantage through training. Team Performance Management: An
International Journal (6) 5/6. MCB University Press . pp. 90-96.
• Combe, C. (2006). Introduction to E-Business: Management and Strategy.
Elsevier Ltd.
• Dubé, L. and Renaghan, L. M. (1999). Sustaining Competitive Advantage.
Cornell Hotel and Restaurant Administration Quarterly.(40) 6. SAGE
Publications. PP: 27.
• Golob, U. and Podnar, K. (2007). Competitive advantage in the marketing
of products within the enlarged European Union. European Journal of
Marketing. (41) 3/4. Emerald Group Publishing Limited. pp. 245-256.
• Kotler, P., Bowen, J., Makens, J. (1998). Marketing for Hospitality and
Tourism. Second Edition. Prentice Hall, Inc.

M. K. Elsayed
73
References
• Graf, N. S. (2008). Industry critical success factors and
their importance in strategy. cited In: Pizam, I. (Editor in Chief).
Olsen, M. and Zhao, J. (eds.). Handbook of Hospitality Strategic
Management. Elsevier.
• Sander Allegro, S. and De Graaf, R. (2008). Innovation and
Strategy Implementation: the Key Challenge in Today’s
Competitive Atmosphere. In: I. Fazan (Editor)in Chief). M. Olsen
and J. Zhao (eds.). Handbook of Hospitality Strategic
Management. Elsevier.
• Eriksson, M. (2005). PROCUREMENT OF COMPLEX TECHNICAL
SYSTEMS: STRATEGIES FOR SUCCESSFUL PROJECTS. PhD thesis.
Royal Institute of Technology, Sweden.

Online contact details
• Feel Free to contact me online at:
yousrynabil@yahoo.com
74

Useful Websites
• http://208.68.138.205/srsapp/search?q=Procu
rement+Entity%27s+Market+Impact&ds=ndlre
p&rep=ndl.
• www.slideshare.com
• scholar.google.com
• books.google.com
• Pdfsearchengine.net
75

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