Master II Management Financier
Mr Xavier LEPERS
Johnson G., Scholes K., Whittington R. (2006), Exploring Corporate Strategy, Prentice Hall, 7th edition. Barney J. & Hansen W (2006) Strategic J W. (2006), Management & Competitive Advantage, Pearson Education. Garrette B, Dussauge P & Durand R (Coord), Strategor, 5ème édition, Dunod, 2009.
Chapter 1: Introducing Strategy
Chapter 1: Introducing Strategy
From competition to hypercompetition (R.D’Aveni, 1994): a new environment for firms Globalization and strategy Differents organizational behaviors (diversifications, alliances, innovations,…) Focus : Dell (from B to B informatic industry to B to C electronic industry) How are strategies built ? How are they implemented in organizations ? 4
What is Strategy ?
1.1. The characteristics of strategic decisions:
Long term decisions (strategic vision) Are concerned with the scope of organisations’ activities (activities frontiers, geographical f ti hi l frontiers, organisational f ti ) i ti l frontiers) The acquisition of a competitive advantage The search for strategic fit with business environment Creating opportunities by building on organisation’s resources and competences 6
The characteristics of strategic decisions
Complexity and dynamic vision (anticipate competitive game) Strategic decisions are likely to influence operational level Strategic decisions are affected by values and expectations of stakeholders They reflect an integrated approach of the organisation. 7
A definition of strategy
Strategy : is the direction and scope of an organisation over the long term, wich achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholders expectations. Value as a key concept in strategic management (nalebuff & Brandenburger)→to determine firm position compared to competitors. 8
1.2. Three levels of strategy in organisations
1) Corporate level strategy : is concerned with the overall purpose and scope of an organisation and how value will be added to the differents parts (b i th diff t t (business l levels) l ) 2) Business level strategy : is a part of an organisation for wich there is distinct external market for goods or services.
How to determine SBU?
To a specific SBU is associated specific CSP (critical success factors). Key questions to set up SBU : Customer group : who’s buying ? Customer need : for doing what ? Technology : how to produce? Distribution channel : how to reach customers ? Determine SBU = set up a strategic segmentation
Focus on Bic Group.
And the last one…
3) Operational strategies Are concerned with how the components of an organisation deliver effectively the corporate and business level strategies in terms of resources, processes and h d human resources. The integration of operational decisions and strategy is therefore of a great importance.
Key Elements of Strategic Planning Process
2.1 Three anchors of strategic management (synthesis scheme)
The strategic position
Globality et complexity… The Environment The strategic capability : understanding strengths and weakenesses Core competences = competitive advantage Stakeholders Influence Mass merchandising exemple 14
At business level : based on generic strategies (low price, differentiation, focused differentiation)
At corporate level : directions and methods of development (specialisation, diversification, organic Internationalisation
Strategy into action
Innovation and Entrepreneurship Managing change Organisation and structure Governance and firm’s culture G d fi ’ lt
2.2. Strategic management in different contexts
1) the small business...