27-Feb-23

Fifteenth Edition, Global Edition

Chapter 9
Managing Strategy

Copyright © 2021 Pearson Education Ltd.

1

Week Topics & Assignments Chapters

1 INTRODUCTION Overview
Managers & you in the workplace (Mngmt History) Chapter 1
Making Decisions Chapter 2
2
Influence of External Envir. & Org Culture Chapter 3
3 Managing in a Global environment Chapter 4
Managing diversity Chapter 5
4 Managing Social Responsibility & Ethics Chapter 6
Managing change & disruptive innovation Chapter 7
5 Foundations of Planning Chapter 8
Managing Strategy Chapter 9
Midterm Exam Midterm

ESLSCA Egypt – Dr. Hesham Sadek 2

1
 27-Feb-23

What is Strategic Management

• Strategic management: what managers do to develop the

organization’s strategies

• Strategies: the plans for:

– how it will compete successfully,
– how it will attract and satisfy its customers in order to achieve its goals

• Business model: how a company is going to make money

ESLSCA Egypt – Dr. Hesham Sadek 3

Most business problems fall into 4 categories

M&A Merge & Acquisition

ESLSCA Egypt – Dr. Hesham Sadek 5

2
 27-Feb-23

What is a VISION statement

• A vision statement is like a photograph of your future business. It creates a

mental image of the ideal state that the organization wishes to achieve.

• It is inspirational, aspirational and should challenge employees.

– Inspirational: providing inspiration
– Aspirational: strong hopes

Competitors

ESLSCA Egypt – Dr. Hesham Sadek 6

How to avoid creating a POOR Vision

Avoid:
 Too Much Jargon
 Internal Focus
 Lack of Specificity
 Lack of Clarity
 Lack of meaningfulness
 No Implementation

ESLSCA Egypt – Dr. Hesham Sadek 7

3
 27-Feb-23

How an effective Vision statement should be

 A clear direction and prioritized view for the organization

 About 35 words. It is long enough to clearly describe the vision but
not so long as to be difficult to remember

ESLSCA Egypt – Dr. Hesham Sadek 8

How an effective Vision statement should be

It should be:
 short
 specific to your business
 Clear words are used that are not open to interpretation.
 Keep it simple enough for people both inside and outside your organization
to understand
 It should be ambitious enough to be exciting but not too ambitious that it
seems unachievable.

ESLSCA Egypt – Dr. Hesham Sadek 9

4
 27-Feb-23

Strategic Management Process

ESLSCA Egypt – Dr. Hesham Sadek 10

Three Levels of Strategies

ESLSCA Egypt – Dr. Hesham Sadek 11

5
 27-Feb-23

Examples of Differentiation Strategies

• Quality

• Innovation strategies
– Transfer technology from one division to another
– Invest in R&D
– Improve the process
– First mover: an organization that’s first to bring a product
innovation to the market

ESLSCA Egypt – Dr. Hesham Sadek 12

First mover advantages & disadvantages

As Groups … you tell us

Copyright © 2021 Pearson Education Ltd.
13

6
 27-Feb-23

Typical Objectives of Strategic Management

Profitability
Market share
Human talent
Financial health
Cost efficiency
Product quality
Innovation
Social responsibility

ESLSCA Egypt – Dr. Hesham Sadek 15

Questions for SWOT Analysis

1. Well-developed strategy ?
2. Strong product lines ?
Potential 3. Broad market coverage ?
Strengths 4. Manufacturing competence ?
5. Good marketing skills ?
6. Good materials management systems ?
7. R&D skills and leadership ?
8. Human Resources competencies ?
9. Brand-name reputation ?
10. Cost of differentiation advantages ?
11. Appropriate organizational structure ?
12. Appropriate control systems ?
13. Ability to manage strategic change ?
14. Others ?

ESLSCA Egypt – Dr. Hesham Sadek 16

7
 27-Feb-23

Questions for SWOT Analysis

1. Expand core business ?

2. Exploit new market segments ?
Potential 3. Widen product range ?
Opportunities
4. Extend cost or differentiation advantage ?
5. Diversify into new growth businesses ?
6. Expand into foreign markets ?
7. Apply R&D skills in new areas ?
8. Enter new related businesses ?
9. Vertically integrate forward (eliminating the Middle Man)?
10. Vertically integrate backward (makes the retailors part of them?
11. Overcome barriers to entry ?
12. Reduce Competition among competitors ?
13. Apply brand-name capital in new areas ?
14. Seek fast market growth ?
15. Others ?
ESLSCA Egypt – Dr. Hesham Sadek 17

Questions for SWOT Analysis

1. Poorly developed strategy ?

2. Obsolete, narrow product lines ?
3. Rising manufacturing costs ?
Potential 4. Decline in R&D innovations ?
Weaknesses 5. Poor marketing plan ?
6. Poor materials management systems ?
7. Loss of customer goodwill ?
8. Inadequate human resources ?
9. Loss of brand name ?
10. Growth without direction ?
11. Loss of corporate direction ?
12. Infighting among divisions ?
13. Loss of corporate control ?
14. Inappropriate organizational structure & control systems ?
15. High conflict and politics?
16. Others ?
ESLSCA Egypt – Dr. Hesham Sadek 18

8
 27-Feb-23

Questions for SWOT Analysis

1. Attacks on core business ?

2. Increase in domestic competition ?
Potential 3. Increase in foreign competition ?
Threats 4. Change in consumer tastes ?
5. Fall in barriers to entry ?
6. Rise in new or substitute products ?
7. Increase in industry rivalry ?
8. New forms of industry competition ?
9. Potential for takeover ?
10. Changes in demographic factors ?
11. Downturn in economy ?
12. Rising labor costs ?
13. Slower market growth ?
14. Others ?

ESLSCA Egypt – Dr. Hesham Sadek 19

Exercise for SWOT

• Divide into two groups.

• Do a Mini “SWOT” analysis about ESLSCA “MIBA” Program (Strengths
& Weaknesses). Don’t hold back and state what you wish honestly.
• You have 10 minutes.

ESLSCA Egypt – Dr. Hesham Sadek 20

9
 27-Feb-23

Case Study No. 3

• Creative Deviance – Apple’s org chart

• When you submit your case 1st time … type: Version (1)
• When you rectify your case and submit …. type: Version (2)

ESLSCA Egypt – Dr. Hesham Sadek 21

REFERENCES for Chapter 09

http://www.businessballs.com/swotanalysisfreetemplate.htm

ESLSCA Egypt – Dr. Hesham Sadek 22

10
 27-Feb-23

COPYRIGHT

Copyright 2012 © Dr Hesham Sadek. All rights reserved. Reproduction or translation of

this work beyond that named in Section 117 of the United States Copyright Act without the
express written permission of the copyright owner is unlawful. Requests for further
information should be addressed to Dr Hesham Sadek.

ESLSCA Egypt – Dr. Hesham Sadek 25

11