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Title, Code, Credit Points and Contact Hours Course Description and Learning objectives Course Contents Required Readings Course Evaluation Training schedules
0.1 Title, Code, Semester, Credit Points and Contact Hours Per Week
COURSE CODE AND TITLE SEMESTER CREDIT POINTS
BUS 5021: STRATEGIC BUSINESS MANAGEMENT
1 4
This course is designed for practising managers. It is a course that presents a comprehensive and holistic approach to business management; focuses on the interface between a firm and its environment. The course presents key conceptual, and methodological strategic management issues that are associated with modern corporate management.
Contd
Synthesize theory and practice to assess the efficacy of strategic models and frameworks Critically evaluate implementation and control mechanisms that minimize problems in strategic change Produce creative solutions to strategic problems for organizations facing diverse environmental and organizational constraints, where there is incomplete information and ambiguity
1. Introduction to Strategic Business Management: Scope, meaning, challenges, the need of strategic knowledge in business, strategic management models. 2. Setting the Organisational Direction: Vision, Mission, Objectives, strategies, tactics, performance control and evaluation, necessary corrective measures. 3. Strategic Situation analysis: SWOT (strengths, weaknesses, opportunities, risks and threats), environmental scanning (PESTEL).
Contd
4. Developing Strategies: Hierarchy of strategy corporate, business and functional; Porters generic strategies, Ansoffs strategies, reactive versus proactive situation of a strategy. 5. Strategy Implementation: Business Plan, strategy and structural design, the fits of a strategy (organisation structure, budget, culture, etc). 6. Strategy Control: types of control, control process, measuring performance, management control system, MIS.
Contd
7. Managing a competitive Business Environment: nature of competition, application of Porters Five Forces Framework, Generic competitive strategies.
2.
3.
The expected excel text books Johnson, Gerry and Kevan Scholes (2003), Exploring Corporate Strategy, Fifth edition, Prentice-Hall International, London. Ndunguru P.C., (1999), Strategic Business Planning & Policy, MU Press.
2. 3.
Arthur, A. Thompson and A.J. Strickland (1993), Strategic Management: Concepts and Cases, Fifth edition, Business Publications Inc./Irwin, Homewood Cliffs, Illinois Ansoff, H. I. (1995), The New Corporate Strategy, Revised ed, John Wiley and Sons. Journals on the substantive subject: Harvard Business Review; Journal of business Strategy; LongRange Planning; Strategic Management Journal; Planning Review,; SAM Advanced Management Journal. Ghemawat. P. Strategy and Business landscape: Harvard Business review
2.
3.
Lecturer: Mnzava, J.A. (0659116666); jamnzava@yahoo.com Class Representative: To be selected by the participants, Lets select him/her now. There should be an assistant. Even other participants
Tuesday 4th 17.00-19.00 Environmental Analysis Oct 2011 Wednesday 19.30-21.30 Environmental Analysis 5th Oct 11
19.30-21.30
10.30-12.30 16.00-18.00
19.30-21.30
19.30-21.30
Strategy Implementation
Self Preparation
10.30-12.30
16.00-18.00
Review
Closing and Best Wishes
-Preparation for End of Semester One Examinations -Receiving the Coursework from prospective lecturers 22nd Week: From 20th to Attending and Doing End of 24th February 2012 Semester One Examinations
Definition of SBM Levels of Strategic Management Strategic Management Process Importance of Strategic Management
CORPORATE STRATEGY
Corporate Strategy explores the ways in which a business can develop its activities favorably. It establishes an approach of making decisions about the type of business in which a firm should be involved, the flow of financial and other resources to and from its activities, the relationship of the corporation to key groups in its environment and the ways in which a corporation can increase its return on investment.
BUSINESS STRATEGY
Business strategy occurs at the divisional level and emphasizes on the improvement of the competitive position of a corporations products/ services in the specific industry or markets segment served by the division.
FUNCTIONAL STRATEGY
Functional strategy focuses on the maximization of resource productivity. Functional departments develop strategies in which their various activities and competencies are pulled together for the improvement of performance.
ENVIRONMENTAL SCANNING
The top management scans both the external environment for opportunities and threats, and the internal environment for strengths and weaknesses. Those factors which are most important to the corporations future are referred to as strategic factors.
STRATEGY FORMULATION
Strategy formulation is the development of long-range plans for the effective management of environmental opportunities and threats in light of the corporate strengths and weaknesses. It includes defining the corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines.
CORPORATE MISSION
The corporate mission is the purpose or reason for the corporations existence. A mission may be narrow or broad in scope. A narrow mission clearly limits the scope of the corporations activities in terms of product or service offered, the technology used, and the market served. A broad mission widens the scope of the corporations activities to include many types of products or services, markets and technologies.
OBJECTIVES
The corporate mission determines the parameters of the specific objectives to be defined by top management. The objectives state what is to be accomplished and when. The term goal is often confused with objective. A goal is an open-ended statement of what one wishes to accomplish without being very specific and with no time criteria for completion.
STRATEGIES
A strategy of an organization is a comprehensive master plan stating how the corporation will achieve its mission and objectives. It maximizes competitive advantage and minimizes competitive disadvantage.
STRATEGY CONTINUED
Dictionary definitions tend to emphasize strategy in terms of a military context, such as the science of forming and carrying out projects of military operations. In management terms Koontz and O Donnell describe strategy as a decision about how to use available resources to secure a major objective in the face of possible obstructions such as competitors, public opinion, legal status, taboos and similar forces.
POLICIES
A policy provides guidelines for decision making throughout an organization. It is a broad guidelines which links the formulation of strategy with its implementation.
STRATEGY IMPLEMENTATION
Strategy implementation is the process by which strategies and policies are put into action through the development of programs, budgets, and procedures. The implementation of strategy is carried out by middle and lower-level managers but it is reviewed by top management. It involves the day-to day decisions in the allocation of resources.
Group A: Zain Definition Identification of Opportunities through Environmental Scanning Strategy Formulation: Towers, Zones, Staffs, Structure for communication Implementation: budgets etc Controlling: Integration Conclusion
Group B: TRA Definitions by Cole and others Environmental Scanning was beneficial to TRA-They learned why people do not pay tax Strategy formulation: effective ways to collect revenue, well organized Implementation: there are models, depts have transactional roles to play, Tax charter Controlling: Performance measurements and corrective measures, Suggestion boxes Conclusion
Economic, which regulate the exchange of materials, money, energy and information. Socio-cultural, which regulate the values, morals and customs of society. You can not sell pork in Zanzibar. Tz society value education Technological, which generate problem-solving inventions. E.g. internets, the use of LCDs facilitate training Political-legal, which allocate/give power and provide constraining and protection laws and regulations. If you support CCM you will be favored
COMPETITORS ANALYSIS
Threats of New Entrants Rivalry among Existing Firms Threat of Substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Relative Power of other Stakeholders
2.3.1 STRUCTURE
Simple Functional Divisional Matrix Conglomerate
2.3.3 RESOURCES
A corporations resources are considered in terms of financial, physical, human, organizational systems and technological capabilities. These resources are normally dealt with under functional areas of marketing, finance, research and development, operations, human resources and information.
Strengths
Weaknesses
Internal Analyses
Threats
Opportunities
External Analyses
BCG Model
Market Share
High Low
High
Multiple Businesses
Assessing Parenting Advantage Portfolio Analysis
An enterprise is any entity engaged in economic activity irrespective of its legal form. The word encompasses corporations, small businesses, non profit institutions, government bodies etc. Venture, Operation, Project, Adventure, Undertaking, Programme, Pursuit and Endeavour Readiness to embark on bold new ventures Thus a company is an enterprise and not all enterprises are companies.
GROUP THREE
What is a strategic plan? Is it the same as corporate plan? If not the same explain the similarities and differences. Discuss the main components of a good strategic plan.
GROUP SIX
Critically evaluate the effectiveness of strategy implementation and control mechanisms in any Tanzanian business organization
GROUP SEVEN
Produce creative solutions to strategic problems for organizations facing diverse environmental and organizational constraints, where there is incomplete information and ambiguity
GROUP EIGHT
a.) Differentiate between natural and strategic competition based on comparative analysis of Japan and U.S. b.) What are the prerequisites of strategic competition? c.) Briefly discuss the contributions of economists, industrial organization and business people in understanding the theory of competition?
GROUP NINE
The study of competition, current strategic perspectives, past performance, management excellence, and organizational environment provides insights into information necessary for designating strengths and weaknesses of an organization in a particular product/market. a) Define strengths and weaknesses b.) Why assessment of strengths and weaknesses is considered to be an essential task in the strategic management process? c.) Identify areas of strength for an organization.
GROUP TEN
New challenges presented by economic, competitive, socio-cultural and global environments calls for effective strategic management decisions and market driven business philosophies. Briefly describe the nature and scope of strategic management. Identify and briefly discuss eight priorities implied by the adoption of a market driven strategic business philosophy
GROUP ELEVEN
Identify any case study on strategic management field. Critically analyze the case and consequently suggest some strategic measures.
THE END
change Stability Profit Strategy Pause Strategy Proceed with caution Strategy
Contraction Phase this involves reducing size and costs which is a general cutback in personnel and all non critical expenditures Consolidation it is the development of a program to stabilize the trimmed corporation.
Divestment Strategy
It is appropriate when corporate problems can be traced to the poor performance of an SBU or product line, or when a division or SBU is a misfit, unable to synchronize itself with the rest of the corporation. Dive stature is used to generate cash in the sale which can be used to reduce debt and buy time.
Captive Strategy
It is similar to divestment, but instead of selling off divisions or product lines, the firm reduces the scope of some of its functional activities and becomes captive to another firm. This reduces expenses and achieves some security through its relationship with the stronger firm. An agreement is reached with a key customer that in return for a large number of long-run purchases, the captive firm will guarantee delivery at a favorable price.
Liquidation Strategy
It is used when other retrenchment strategy have failed. It is the most unpleasant and painful strategy, especially for a single-business firm because it means terminating the firms existence.
3.3.2 Differentiation
Differentiation involves the creation of a product/service that is perceived throughout its industry as being unique. The uniqueness can be accomplished through design or brand image, technology, features, dealers, network or customer service.
3.3.3 Focus
Focus is similar to corporate strategy of concentration. It focuses on a particular buyer group, product line segment or geographic market. There is a trade-off between profitability and overall market share.
DISCUSSION QUESTION
Explain the intricacies of organizational strategies and how they impact organizational performance.
Approach
Definition: Complications, hindrances, barriers, environmental determinants Identification of intricacies Intricacies from external environment Intricacies from internal environment Each stage of the strategic management process has got its intricacies Relevant examples are to be provided
Developing an internal organization structure that is responsible to the needs of strategy. Developing the skills and distinctive competencies in which the strategy is grounded and seeing that the organization has the managerial talents, technical know-how and competitive capacities it needs.
Seeing that each organizational unit has the budget and programs to carry out its part of the strategic plan. Getting individuals and organization units to gear their efforts closely to achieving the target strategic objectives.
Motivating organizational units and individuals to accomplish strategy. Creating a strategy-supportive work environment and corporate culture. Promoting a results orientation and a spirit of high performance. Keeping the reward structure tightly linked to strategic performance and the achievement of target objectives.
Establishing strategy-facilitating policies and procedures. Generating the right strategic information on a timely basis Instructing internal controls to keep the organization on its strategic course. Creating fits between strategy and the various internal ways of doing things.
EXERTING LEADERSHIP
Leading the process of shaping values, molding culture, and energizing strategy accomplishment. Keeping the organization innovative, responsive, and opportunistic. Dealing with power struggles, and building consensus. Initiating corrective actions to improve strategy execution.
DISCUSSION QUESTION
Discuss the main problems of strategy implementation in Tanzanian business organizations.
LECTURE 5 STRATEGY EVALUATION AND CONTROL OBJECTIVES define strategic management evaluation; identify suitable types of control systems to use; describe the phases of control cycle; explain how an effective control system can be developed.
DEFINITION
The strategy evaluation system is meant to inform top management of how the system is performing, by relaying what has occurred or what may occur if action is not taken. An evaluation system monitors performance to detect departures from expected performance when it first occurs, rather than waiting until undesirable results have piled up.
Select key variables that will become the major evaluative criteria for determining whether goals have been achieved and strategies appropriately carried out. Set standard for key variables that represent levels of satisfactory performance. Measure performance against standards to detect deviations. Take action either to reinforce correct performance or to correct substandard performance.
Enlist top management support. A clear organizational structure. Establish clear control responsibility. Do not permit control to become an end in itself. The control system should be simple with few controls in number. Communicate the purpose and limitations of control. Encourage employees to participate in the standardsetting process Make controls meaningful, and Customize the control system.
QUESTION THREE
A strategic plan is considered by many business experts as a foundation upon which the organizational success hinges. The plan further serves as a source of reference, a guide and a bargaining tool. Examine the major components of a strategic plan, and explain the importance of each component to the success of a business.
QUESTION FOUR
The current competition in the telecommunication industry has prompted the management of Tanzania Telecommunication Service Ltd to consult you as an expert in strategic management to assist in carrying out competitor and market analyses and then recommend some strategic alternatives. Discuss your work modalities, the main issues and possible strategic alternatives for attainment of sustainable competitive advantage.
QUESTION FIVE
Use the internet to find any current article or paper on Strategic Management. Discuss the paper or the article critically with reference to its contribution to knowledge on strategic business management as well as its usefulness in current Tanzanian business environment. [For non Tanzanian candidates they may refer to their own country]
QUESTION SIX
a. Identify any three authors on Strategic Management. b. Compare and contrast the three identified authors on how they approach the main strategic management issues
Question 7 With relevant Tanzanian examples discuss how the life cycle matrix can be used in identifying and selection of organizational strategies. Question 8 What is Value Chain Analysis? Discuss the relevance of Value Chain Analysis in Strategic Management. (Use relevant Tanzanian examples)
QUESTION NINE
Total quality management, Service Quality and Quality Assurance are now days emphasized as important strategic issues. The experience of the Japanese shows that high product quality creates a sustainable competitive advantage. What are the differences between traditional and Total Quality Management views of quality? Identify three requirements for quality improvement strategy.
QUESTION TWELVE