A. Direct such SBEs to have their accounts re-audited or were such accounts have been published, to...

a. Direct such SBEs to have their accounts re-audited or were such accounts have been published, to republish them or to include suitable corrections in its accounts for the following year.

SMP

PROCESS

1

Chamara Bandara FCA, ACMA,MBA (USQ - AUS)

Tutorial 01 & 02

Business management is a complex process. It

requires skills, knowledge and experience

Strategic management is a responsibility of the

business management

SMP

2Chamara Bandara

FCA, ACMA,MBA (USQ - AUS)

Strategic Management” has emphasized a

warlike philosophy.

The term "strategic” comes primarily from

the literature on war.

From this perspective,

Business is a battle,

Competitors are the enemy, and

Government makes and enforces the rules

3Chamara Bandara


Luck

Having right mix of products and/or services at the right time

Acquire, develop, and manage resources and capabilities that

provide competitive advantages

Manage relationships with a wide range of organizations, groups,

and people that have a stake in their firms

(Stakeholders)

4Chamara Bandara


5Chamara Bandara


Rf 01;page 12 (1.3)

Why do firms succeed or fail? Why do firms have varying levels of

performance?Strategic management finds solutions for above

questions

People use strategic management concepts and techniques to reach higher levels of performance

Chamara Bandara FCA, ACMA,MBA (USQ - AUS) 6

organizations of all types and sizes continually face

changing situations

Being able to cope effectively with these uncertainties in

the external and internal environments and achieve

expected levels of performance is a real challenge

However, this is where strategic management comes in

strategic decision makers examine all the important aspects

in order to determine the most appropriate decisions and

actions

7Chamara Bandara


In the past, the topics of ·strategy and strategic management

became major research thrusts in many business schools across

the United States and elsewhere

By the early 1970s,in the field of business policy and how they

should respond to them

Then, in May 1977, a major conference was held at the

University of Pittsburgh

8Chamara Bandara


Strategic management is a process through which

organizations

analyze and learn from their internal and external

environments,

establish strategic direction,

create strategies that are intended to move the

organization in that direction,

and implement those strategies,

all in an effort to satisfy key stakeholders.

9


10Chamara Bandara


Strategic thinking involves the

generation and application of unique

business insights and opportunities

intended to create competitive

advantage for a firm or organization

11Chamara Bandara


1) Traditional Perspective

2) Resource – Based View

3) Stakeholder View

12


Comparison - Refer the tutorialPage 6 (Table 1)

13Chamara Bandara


Situation Analysis

Evaluation of the external environment and the organization

Strategic Direction

Creation of organizational mission

and goals

Strategy Formulation

Development of strategies to take

advantage of strengths and opportunities or

overcome or neutralize weakness and threats

Strategy Implementation

Development and execution of

implementation plans, including organizational

design, control systems, and management

Rf 01;page 7 ( 1.1)

Large firms (influencing firms) This basically an argument that firms may choose their environments. They may compete in a given environment.

Oras an alternative,

they may attempt to influence the environment This process is called “Enactment”.


1)“Enactment ’’- Broad view

Enactment- a firm can influence its environment

Characteristics

They do not have to submit to existing forces in the

environment.

They can create their environments through strategic

alliances with stakeholders, investments in leading

technologies, advertising, political lobbying, and a

variety of other activities.

15Chamara Bandara


Smaller firms (non-influencing firms) limited in their ability to influence some components of their

environments.

Example:

A small firm may have a difficult time influencing

national government agencies and administrators.

Characteristics

band together into trade groups to influence government.

form alliances


• The environment is the primary determinant of the best strategy- This

is called “Environmental Determinism”.

• good management is associated with determining which strategy will

best fit environmental, technical, and human forces at a particular

point in time

Characteristics

• Align the skills and other resources of the organization with the needs

and demands of the environment can be a source of competitive

advantage.

17Chamara Bandara


Managers plan to pursue an intended strategic course.

In some cases, strategy simply emerges from a stream

of decisions.

Managers learn as they go.

18Chamara Bandara


An emergent strategy is one that was not planned or

intended.

According to this perspective, managers learn what

will work through a process of trial and error.

19Chamara Bandara


When Honda executives decided to market a small

motorcycle, they had no idea it would be so successful. In fact, the prevailing wisdom was that small motorcycles

would not sell very well. But Honda executives broke the rules and made the

decision to market a small motorcycle. As sales expanded, they increased marketing, and

ultimately captured two thirds of the American motorcycle

market.

20


"Why do some firms persistently outperform

other firms?“ Ability to develop distinctive competencies in particular areas

Capabilities of general management

Have "high quality" general managers

Effective leadership

although leaders are an important source of competence for an

organization, they are not t he only important resource that makes a

difference.


Having superior resources

Example

Farmer with the most-fertile land has a sustained performance advantage

over other farmers

various skills and abilities possessed by firms can lead to superior

performance

coordinates the activities of numerous groups and individuals, and as a

bundle of productive resources

a wide range of skills and resources can influence competitive

performance

22Chamara Bandara


Financial Resources :all of the monetary resources from which a firm can draw

Physical Resources :plants, equipment, location s, and access to raw materials

Human Resources :pertains to the skills, background, and training of

managers and employees, as well as the way they are

organized

Organizational Knowledge and Learning

General Organizational Resources :firm reputation, brand names, patents,

contracts, and relationships with external stakeholders.

23Chamara Bandara


24Chamara Bandara


Rf 01;page 10 (1.2)

The most important role of a manager becomes that of

acquiring, developing, managing, and discarding resources.

Superior Resources not easy to substitute.

If a particular resource is also costly or impossible to imitate, then the

competitive advantage may be sustainable. A sustainable competitive

advantage may lead to higher-than average organizational performance

over a long time period.

25Chamara Bandara


A core competency is a concept in management theory originally advocated by two business authors, C. K. Prahalad and Gary Hamel.

It fulfills three key criteria: It is not easy for competitors to imitate

It can be reused widely for many products and markets

It must contribute to the end consumer's experienced benefits and the value

of the product or service to its customers

26Chamara Bandara


Initiative and Creativity

Plans work and carry out tasks without detailed instructions;

makes constructive suggestions;

prepares for problems or opportunities in advance;

undertakes additional responsibilities;

responds to situations as they arise with minimal supervision;

creates novel solutions to problems;

evaluates new technology as potential solutions to existing problems.

27Chamara Bandara


Judgment

Makes sound decisions;

bases decisions on fact rather than emotion;

analyzes problems skillfully;

uses logic to reach solutions.

28


Cooperation/Teamwork

Works harmoniously with others to get a job done;

responds positively to instructions and procedures;

able to work well with staff, co-workers, peers and managers;

shares critical information with everyone involved.

29Chamara Bandara


Quality of Work

Maintains high standards despite pressing deadlines;

does work right the first time;

corrects own errors;

regularly produces accurate, thorough, professional work.

30Chamara Bandara


Reliability

Personally responsible;

completes work in a timely, consistent manner;

works hours necessary to complete assigned work;

is regularly present and punctual;

arrives prepared for work;

is committed to doing the best job possible;

keeps commitments.

31Chamara Bandara


Support of Diversity Treats all people with respect; values diverse perspectives;

participates in diversity training

Opportunities; provides a supportive work environment for the

multicultural workforce;

shows sensitivity to individual differences; treats others fairly without

regard to race, sex, color, religion, or sexual orientation;

recognizes differences as opportunities to learn and gain by working

together;

values and encourages unique skills and talents;

seeks and considers diverse perspectives and ideas.

32


Job Knowledge/Technical Knowledge

It demonstrates knowledge of techniques, skills, equipment,

procedures and materials

Applies knowledge to identify issues and internal problems

works to develop additional technical knowledge and skills

33Chamara Bandara


Communication

Writes and speaks effectively, using conventions proper to the

situation;

states own opinions clearly and concisely;

demonstrates openness and honesty;

listens well during meetings and feedback sessions;

explains reasoning behind own opinions;

asks others for their opinions and feedback;

asks questions to ensure understanding;

exercises a professional approach with others using all appropriate

tools of communication;

uses consideration and tact when offering opinions.

34Chamara Bandara


Customer Service

Listens and responds effectively to customer questions;

resolves customer problems to the customer’s satisfaction;

respects all internal and external customers;

uses a team approach when dealing with customers;

follows up to evaluate customer satisfaction;

measures customer satisfaction effectively;

commits to exceeding customer expectations.

35Chamara Bandara


Problem Solving

Anticipates problems; sees how a problem and its solution will affect other units; gathers information before making decisions; weighs alternatives against objectives and arrives at reasonable

decisions; adapts well to changing priorities, deadlines and directions; works to eliminate all processes which do not add value; willing to take action, even under pressure, criticism or tight deadlines; takes informed risks; recognizes and accurately evaluates the signs of a problem; analyzes current procedures for possible improvements; notifies supervisor of problems in a timely manner.

36Chamara Bandara


Flexibility

Remains open-minded and changes opinions on the basis of new

information;

performs a wide variety of tasks and changes focus quickly as

demands change;

manages transitions from task to task effectively;

adapts to varying customer needs.

37Chamara Bandara


Organization

Able to manage multiple projects;

able to determine project urgency in a practical way;

uses goals to guide actions;

creates detailed action plans;

organizes and schedules people and tasks effectively.

38Chamara Bandara


Staff development Works to improve the performance of oneself and others by

pursuing opportunities for continuous learning/feedback;

Constructively helps and coaches others in their professional

development;

Exhibits a “can-do” approach and inspires associates to excel;

develops a team spirit.

39Chamara Bandara


Innovation

Able to challenge conventional practices;

adapts established methods for new uses;

pursues ongoing system improvement;

creates novel solutions to problems;

evaluates new technology as potential solutions to

existing problems.

40Chamara Bandara


The existing strategy models were not particularly

helpful to managers who were trying to create new

opportunities during a period of such radical change.

It was developed as a direct response to the concerns

of managers who were being buffeted by increasing

levels of complexity and change in the external

environment


In summary

It envisions the firm at the center of a

network of constitutes called

stakeholders; firms can gain competitive

advantage though superior stakeholder

management

42Chamara Bandara


Advantages

Relative to a model that includes only a few

stakeholders, it more accurately depicts the

complicated nature of the management task by

enlarging the group of relevant constituencies to

which managerial attention is drawn.

This accuracy is important so that

managers understand the many forces that

influence organizational behavior and success.

43Chamara Bandara


Consideration of a broader group of stakeholders during the

strategic management process can help prevent an organization

from being surprised by a dissatisfactory stakeholder.

Examples By looking at a new strategy from the perspective of a union can

help a company prevent a strike.

By considering the needs of a local community can prevent bad

press, lawsuits, and adverse legislation.

.

44Chamara Bandara


Third, the stakeholder model provides more choices when

selecting strategic options

Example

An organization that has fostered excellent

relationships with many stakeholders has more

options to consider when difficulty is

experienced and success.

45Chamara Bandara


• Stonyfield Farm, Inc. (Londonderry, New

Hampshire) was in trouble when the company

that manufactured its yogurt went bankrupt

• Stonyfield responded with an innovative

recovery plan that involved several key

stakeholders, including employees, suppliers,

a government agency, stock holders,

managers, and customers


Example (Contd.)

First, the company ran its product-development plant on a seven-

day, three-shift schedule to maintain volume until a new plant could

be built. This required the sup port of employees, which

management fostered through weekly meetings

Due to financial strain during construction, workers were asked to

take lower wages with the expectation of future bonuses. The

company instituted flexible-time scheduling, improved benefits,

increased training, and participative decision making in an effort to

maintain good relationships with employees

47Chamara Bandara


Example (contd.)

• After the new plant was opened, the company was still

strapped for cash, resulting in a small marketing budget

• The company decided to involve their customers directly,

and created a "Moo Patrol" program, complete with a

newsletter and an "Adopt-a-Cow" program for children.

• These efforts resulted in a growth rate of more than 60

percent in some customer groups, and the introduction of

several new product lines to be distributed nationally

48Chamara Bandara


Reference

1) Jefferey S.Harrison,

Strategic Management of Resources and Relationships,

United States of America

2) Core competency,

http://en.wikipedia.org/wiki/Core_competency,

Viewed 25, 09,2013

3) Description of competencies,

http://wdrs.fnal.gov/elr/competencies_04.pdf,

viewed 25,09, 2013

49Chamara Bandara


Date post:	30-Dec-2015
Category:	Documents
Upload:	marcia-barker
View:	214 times
Download:	0 times

A. Direct such SBEs to have their accounts re-audited or were such accounts have been published, to...

Documents