Siam University

. 11
Dr. Nut-tapon Paul Nimmanphatcharin (. )
BB.A., GD.Mgt., MB.Mgt., MBA (Inter Bus), Ph.D. (Mgt)
Faculty of Business Administration, Siam University
235 Petkasem Road, Phasicharoen, Bangkok !"3
#el$ %""2& '5()!!"* FA+ %""2& '5()3,*2, '"()3('
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003

SIAM UNI!"SI#$
Strategic -anagement at
.e/ 0conomy in
University
Siam University
Several research studies have defined strategic management as the 1rocess of setting and accom1lishing goals
through the use of human, technical, and financial resources /ithin the conte2t of the environment varia3les$
Additionally, strategic management as the 1rocess of sharing goals 4 values, strategy, structure, systems, staff,
skills, styles, and succession$ 5o/ever, most of the research maintains that strategic management is driven 3y
the to1 level of an organisation$
#he literature revie/ /ill 3egin /ith the strategic management 1rocess that can 3e vie/ed as containing
similar 1rocesses to a formalised strategic 1lanning system and then focus on environmental and resource
as1ects$ #his 1a1er /ill also continue /ith the develo1ment of cor1orate strategy 3y some tools and
techni6ues$
-any research studies define the strategic management 1rocess in different /ays, 3ut the aim of the 1rocess is
to 3uild a market 1osition strong enough and an organisation ca1a3le enough to 1roduce successful
1erformance des1ite unforeseea3le events, 1otent com1etition, and internal 1ro3lems$
%igure &.'( %i)e tas*s o+ strategic management
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
2
#ask 7
8evelo1 a Strategic
9ision and
Business -ission
#ask 57
0valuating
Performance,
Revie/ing .e/
8evelo1ments and
:nitiating ;orrective
Ad<ustments$
#ask 27
Setting =3<ectives
#ask '7
:m1lementing and
e2ecuting the
Strategy
#ask 37
;rafting Strategy to
Achieve the
=3<ective
Recycle to #asks ,2,3, and ' as
needed
:m1rove>;hange as .eeded Revise as .eeded
Strategic Management at Ne, !conom- in Uni)ersit-
' IN#".DU/#I.N
& S#"A#!GI/ MANAG!M!N#
&.' Strategic management process
Siam University
:t /ould suggest that the strategic management 1rocess as 3eing involved /ith identifying environmental
1ro3lems and o11ortunities and internal strengths and /eaknesses$ #his ste1 is called ?Analysis and
8iagnosis@$ #hen follo/s ?;hoice@, ?:m1lementation@, and ?0valuation@$ #hese three ste1s are concerned
/ith generating alternative solutions to the 1ro3lem, making the strategy /ork 3y 3uilding the structure to
su11ort the strategy and develo1ing a11ro1riate 1lans and 1olicies, and getting feed3ack to determine /hether
the strategy is /orking or taking ste1s to make it /ork$
#he analysis of the environment is a ma<or stage of the strategic management 1rocess, /hich is concerned /ith
1roviding an understanding of the current situation that the organisation faces$ Aet say, the analysis of the
environment the im1act of internal and e2ternal factors is assessed$ #hese influences can 1lay a ma<or role in
the develo1ment of strategies, as they hel1 identify 1otential o11ortunities and threats to the organisation$
0nvironmental analysis can 3e undertaken in three 1arts7 the general environment analysis, the immediate
environment analysis, and the internal environment analysis$
2.2.1 External environment
#he follo/ing discussion /ill cover the t/o ma<or divisions, namely general environment and immediate
environment$
A) General environment
#he general environment, that /hich is outside the university control and ha11ening in the 3roader area can 3e
considered under the follo/ing headings7
P Political ,
! 0conomic ,
S Social ,
# #echnological $
B) Immediate environment
#he immediate com1etitive environment for university is its industry$ :n the industry, the universities need to
e2amine their com1etitors and com1etitive forces that might 3e a direct or indirect influence on their 1roducts
and services$ #he universities /ill get some idea from the e2amination of the general environment

of the
im1act of these factors on the com1etitive environment at the industry level$ :n addition, the im1act could 3est

;onsist of Political, 0conomic, Social>;ulture, and #echnological Factors$

Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
3
&.& !n)ironmental an0 resource anal-sis
Siam University
3e understood 3y focusing on /ho the distinctive actors are and ho/ they 3ehave com1etitively$ Aet say, the
factors in the immediate environment, an organisation might 3e concerned /ith include the role of the
government, state o/ned universitys, com1etitors, 3usiness grou1s %industry&, and multinational cor1orations$
#he characteristics of the immediate environment model into t/o main grou1s B industry activities and the
industry actors$ #he first e2amination concentrates on the 3ig 1icture of the industry, /ith a focus on the siCe
of the industry, characteristics of the industry, the stage in life cycle of the industry, future challenges to the
industry, the market of the industry, and com1etitive forces
2
%the five forces of the industry&$ Secondly, the
e2amination concentrates on the industry actors, /hich are divided into t/o main grou1s B direct actors and
indirect actors$ #he direct actors are 1artici1ants /ho are heavily involved in the industry such as com1etitors,
3uyers, su11liers, su3stitutes, and 1otential com1etitors$ =n the other hand, the indirect actors could 1ossi3ly
3e the government
3
, the general environment factors
'
, and related 3usiness grou1s
5
$ #he e2amination of the
immediate environment is sho/n in figure 2$2$
%igure &.&( !1amination o+ imme0iate en)ironment mo0el
2
.ote that, the com1etitive forces are intensity of rivalry, 3arriers to entry, su3stitution 1ressures, 3argaining 1o/er of su11liers and 3uyers$
3
.ote that, it could 3e the im1act of the government 1olicies to the universities$
'
#he im1act from P0S# factors to the industry$
5
#he related 3usiness grou1 could 3e the enter1rise in other industries /ho doing the 3usiness /ith our industry$
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
'
"oot o+ the In0ustr-
SiCe
;haracteristic
Stage Aife ;ycle
Future ;hallenges
-arket
"oot o+ the In0ustr-
SiCe
;haracteristic
Stage Aife ;ycle
Future ;hallenges
-arket
:ntensity of Rivalry
Bargaining Po/er of Buyers
Bargaining 1o/er of Su11liers
Su3stitution 1ressures
Barriers to 0ntry
Direct Actors
Buyers
Su11liers
;om1etitors
Potential ;om1etitors
Potential Su3stitutes
Dovernment
Direct Actors
Buyers
Su11liers
;om1etitors
Potential ;om1etitors
Potential Su3stitutes
Dovernment
In0irect Actors
Dovernment
Related Business Drou1s
Deneral 0nvironments
In0irect Actors
Dovernment
Related Business Drou1s
Deneral 0nvironments
Siam University
2.2.2 Internal environment
A) Vision and mission statements
:t /ould suggest that the vision of the university should descri3e the 1ur1ose of the organisation$ Aet say,
the vision need not 3e grandiose, 3ut it should 3e an articulate statement a3out /here you /ould like to
see the university in the future.
=n the other hand, the mission statement is a declaration of ho/ the organisationEs customers, 1roducts,
services, markets, and 1hiloso1hy all contri3ute to the achievement of the universityFs vision$
Significantly, an organisationEs o3<ective, strategies and 1erformance measures should then flo/ from its
vision and mission, as sho/n in figure 2$3$
%igure &.2( .34ecti)es strategies an0 per+ormance measures +lo, +rom )ision an0 mission
B) Internal analysis
=nce the e2ternal analysis is com1lete, the strategistFs attention can turn directly to the internal environment
analysis of the university$ #he guidelines as sho/n in figure 2$' /ill assist the university to analyse all of the
internal factors that are involved /ith its 3usiness$ :t /ould suggest that the information from an internal
analysis /ill de1end on the age of the university, its siCe, and the 3readth of its activities$
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
5
ision
Mission
5ong 6term o34ecti)es Strategies
Per+ormance measures
Short 6term o34ecti)es
Strategies
Siam University
%igure &.7( Internal en)ironment anal-sis +or success+ul 3usiness
2.2.3 University situation analysis and techniques
A) !"# analysis
Strategic management involves aligning an organisationEs o11ortunities and threats /ith its strengths and
/eaknesses$
Strengths and /eaknesses /ill 3e generated from internal factors such as, the univeristyFs 1eo1le,
1roducts>services, o1erations and facilities, and so forth$ =n the other hand, o11ortunities and threats /ill 3e
1icked u1 from e2ternal factors like its markets, the environment, and com1etitors$ #hese as1ects are sho/n in
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
"
') 8istor-
&) S*ill an0 "esources
2.1) $ana%ement
=rganisational Structure and SiCe
-anagement Profiles and =/nershi1
-anagement Style and ;ulture
Strategic management
;urrent University Doals
Pro3lem Perceived 3y -anagement
2.2) $ar&etin%
Products and Services
Pricing Policies
Promotion
8istri3ution>Place
-arketing Strategy
Performance -easures
2.3) "'erations
Potential ;lients
Aayout and flo/ lines
06ui1ment
Facility location and SiCe
Process #echnologies
:nformation Systems
Performance -easures
2.() )uality $ana%ement
Guality ;ontrol
Guality Assurance
Guality Accreditation
Performance -easures
2.*) Innovation $ana%ement
Product :nnovation
Process :nnovation
Resource Allocation
R 4 8 ;a1a3ilities
Performance -easures
2.+) ,uman -esource $ana%ement
=rganisation ;ulture
0m1loyee -oral and -otivation
;ommunication and :nformation System
#raining and 8evelo1ment
Re/ard and :ncentive systems
=5 4S -anagement
Performance -easures
2..) /inance
Profit and Aoss Statements
;urrent Balance Sheet
;ash Flo/
Financial Ratio Analysis
Funding Re6uirements
Siam University
figure 2$5$ -any researchers identify that an organisation needs to focus on internal differential strengths and
/eaknesses 3y com1aring themselves /ith com1etitors and key e2ternal o11ortunities and threats$
%igure &.9( I0enti+- strateg- 3- S:.# anal-sis
B) 0ey success 1actors analysis
HSFs are 3usiness as1ects that all universities in the industry must 1ay close attention to in order to achieve
the s1ecific outcomes crucial to market success and the com1etencies and com1etitive ca1a3ilities /ith the
most direct 3earing on university 1rofita3ility$
2) 3rivin% 1orces analysis
=ne tool that might hel1 the university in esta3lishing its 3usiness strategies is 3rivin% and -estrainin%
/orces, sho/n in figure 2$"$
%igure &.;( Dri)ing an0 restraining +orces anal-sis
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
(
I0enti+- the 0ri)ing an0 restraining
+orces.
Determine Strateg-
Decision-ma*ers agree or 0isagree on o)erall
strategies the uni)ersit- is ,illing to commit to
Decision-ma*ers agree or 0isagree on o)erall
strategies the uni)ersit- is ,illing to commit to
,el' Im'acts ,el' Im'acts
,inder
Im'acts
,inder
Im'acts
S:.# Anal-sis Matri1 Mo0el
Strengths
#hreats
Ieakness Internal
%actors
Internal
%actors
!1ternal
%actors
!1ternal
%actors
/onclusion
De)elop Strateg- 3- using S:.# Anal-sis.
=11ortJ
Siam University
3) ustaina4le com'etitive advanta%e analysis
SI=#, HSFs, 8riving Forces, and Business Strategy analysis /ill hel1 the university identify its sustaina3le
com1etitive advantages, /hich are 1articular ca1a3ilities that /ill ena3le the university to maintain a
sustaina3le 1osition against its key com1etitors$ #he university /ill use all these analyses and sustaina3le
com1etitive advantages to esta3lish its ne/ 3usiness strategies to meet the organisationEs visions, missions,
and o3<ectives$ #he related 1rocesses of 3usiness o3<ectives formulation, SI=# analysis, HSFs analysis,
driving force analysis, and environment varia3le analysis are sho/n in figure 2$($
%igure &.<( "elate0 processes o+ 3usiness o34ecti)es, S:.# anal-sis, =S%s, sustaina3le competiti)e a0)antage,
an0 strategies.
#he university management team needs to undertake a 1rocess, /hich /ill allo/ it to assess three key
6uestions through the use of the tools sho/n in figure 2$*$
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
*
General an0 Imme0iate
!n)ironment Anal-sis
Internal !n)ironment
Anal-sis
.pportunities an0
#hreats Anal-sis
Strengths an0 :ea*nesses
Anal-sis
S:.# Anal-sis
Sustaina3le
/ompetiti)
e
A0)antage
Sustaina3le
/ompetiti)
e
A0)antage
Dri)ing
%orces
Dri)ing
%orces
=e- Success %actors
Business>s
.34ecti)es
Business>s
Strategies
Business>s
Strategies
"'tions
2. S#"A#!G$
Siam University
%igure &.?( =e- @uestions an0 tools
3.1 5lannin% techniques
Planning techni6ues are re6uired at each level of the management$ 5o/ever, this 1art analyses the models and
techni6ues that should 3e used to hel1 facilitate decision)makers and analysts %university management teams
or cor1orate level&$
A) #"! technique
#=IS matri2 3uilds on the analysis 1rovided 3y SI=#$ #his is a techni6ue to hel1 management teams
formulate strategy$ =11ortunity, strengths and /eaknesses of the com1anies are identified in the #=IS
matri2$ Aet say, the management teams could 1ossi3ly use internal strengths to take advantage of o11ortunities
and to overcome internal /eaknesses$ #his techni6ue is sho/n in figure 2$,$
%igure &.A( #.:S matri1 +rame,or*
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
,
Strengths (S)
%Aist of internal strengths&
:ea*ness (:)
%Aist of internal /eaknesses&
S. Strategies
%Use internal strengths to take
advantage of o11ortunities&
S# Strategies
%Use internal strengths to avoid
e2ternal threats&
:# Strategies
%-inimise internal /eaknesses and
avoid e2ternal threats&
:. Strategies
%#ake advantage of e2ternal
o11ortunities to overcome
/eaknesses&
#hreats (#)
%Aist of e2ternal threats&
.pportunities (.)
%Aist e2ternal o11ortunities&
:here is the uni)ersit- no,B
(Present)
:here is the uni)ersit- no,B
(Present)
:here 0oes the uni)ersit- ,ant
to 3eB
(5ong-term o34ecti)es)
:here 0oes the uni)ersit- ,ant
to 3eB
(5ong-term o34ecti)es)
8o, 0oes the uni)ersit- get
thereB
(Strategies)
8o, 0oes the uni)ersit- get
thereB
(Strategies)
S:.# Anal-sis
=e- Success %actors
Business long-term o34ecti)es
Business Strategies,
Dri)ing %orces Anal-sis,
Sustaina3le /ompetiti)e
A0)antage
Ans6ered 4y Ans6ered 4y
Ans6ered 4y Ans6ered 4y
Ans6ered 4y Ans6ered 4y
Siam University
:n addition, the management teams are a3le to generate strategies 3y using internal strengths to avoid threats,
/hile minimiCing /eaknesses /ill also hel1 them to deal /ith e2ternal threats$ Finally, Several research
studies conclude that the #=IS matri2 is the com3ination of e2ternal and internal environments in order to
identify 3est strategies, /hich could 3e used in cor1orate and 3usiness levels of the organisations$
3.2 trate%y evaluation
Several studies state that cor1orate strategy evaluation at the /idest level involves seeking ans/er to the
follo/ing 6uestions7
Are the current o3<ectives of the organisation a11ro1riateK
Are the strategies created 1reviously and /hich are currently 3eing im1lemented to achieve these
o3<ectives still a11ro1riateK
8o current results confirm or refute 1revious assum1tions a3out the feasi3ility of achieving the o3<ectives
and the a3ility of the chosen strategies to achieve the desired resultsK
:n conclusion, in sim1le terms the cor1orate strategy evaluation is to analyse the strategies /hich meet the
needs and 1references of the organisation and its key decision)makers and influences B ideally 3etter than any
other strategic alternatives$ At the same time, the cor1orate strategy evaluation also /ill hel1 the management
teams identify the future strategy that could 1ossi3ly 3e im1lemented successfully$
3.3 trate%y im'lementation
Several research studies state that im1lementation incor1orates a num3er of as1ects, some of /hich can 3e
changed directly and some of /hich can only 3e changed indirectly$ Aet say, the ma<or im1lementation themes
concern organisation structure, strategies, 1lanning system, 1olicies, control system, and environmental
conditions$
:t /ould suggest that to 3e successful in strategy im1lementation, university should meet the follo/ing criteria7
;lear res1onsi3ility for the successful outcome of 1lanned strategic change should 3e allocated,
#he num3er of strategies and availa3ility 3eing 1ursued at any time should 3e limited$ #he a3ility of the
necessary resources to co1e /ith the changes should 3e seen as a key determinant of strategy and should
not 3e overlooked,
.ecessary action to im1lement strategies should 3e identified and 1lanned and again res1onsi3ility should
3e allocated, and
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003
!
Siam University
Strategy evaluation or 1erformance measures should 3e esta3lished and a11ro1riate monitoring and
control mechanisms 1ut in 1lace$
#he study of the definition and 1rocess of strategic management and the formulation of strategies for
universities can 3e organised around four ma<or issues$ #hey are firstly /hat the university /ants to achieve
3oth 6ualitatively %mission, vision& and 6uantitatively %s1ecific market and financial)related o3<ectives& during
a strategic time)horiCon$ Secondly, ho/ the 3usiness should 3e 1ositioned$ #hirdly, creating ca1a3ilities calls
for three 3asic forms of strategic investment$ Fourthly, organisation covers not only formal structure, 3ut also
the various 1rocesses and systems /hich /ill govern the distri3ution of 1o/erL rules and 1roceduresL internal
communicationL evaluation and re/ard, coordination mechanisms, and the management of a cor1orate culture
fitting the re6uirements of the region$
Strategic Management at New Economy in University
Dr. Nuttapon Nimmanphatcharin @ 2003

7 SUMMA"$