CPA Program—professional level

Global strategy
and leadership

Segment Concept Map

Semester 2 2010

Author: Delyth Samuel

Published by Deakin University on behalf of CPA Australia Ltd, ABN 64 008 392 452

© CPA Australia Ltd 2010

The contents are for general information only. They are not intended as professional advice, for that you should consult a
suitable qualified professional. CPA Australia Ltd expressly disclaims all liability for any loss or damage arising from
reliance upon any information in these papers.
 SEGMENT CONCEPT MAP

CPA Global Strategy and Leadership – Segment concept map

The following diagram shows how the study materials in Global Strategy and Leadership fit
together in an overall concept map, with strategy and leadership concepts applying
throughout. Strategy is an iterative process and this is reflected by the double-headed arrows.

Module 1: An introduction to strategy and

leadership

Module 2: Understanding the external Module 3: Understanding the internal

environment environment

 What’s needed to be  How the organisation is performing

successful in the industry
 Opportunities showing future
growth and profitability
 How the organisation is placed
relative to competitors
against its strategy
 Gaps or mismatches with the
external environment, capabilities
and stakeholder requirements
 The organisations key capabilities

Module 4: Product and market

development
Module 1 and 6: Strategy and leadership

Market Product
penetration development

Market Diversification
development

Module 5: Making strategic choices

External Internal
consistency consistency

Feasibility Competitive
advantage

Module 6: Leading and implementing strategy

Implementing Structures Managing Managing Types and

strategy and systems resistance and across roles of
change cultures leadership

GLOBAL STRATEGY AND LEADERSHIP

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SEGMENT CONCEPT MAP

Module 1: An introduction to strategy and leadership

Module 1 provides the introduction for the whole segment and focuses on setting the scene
for strategy, leadership and ethics in a global context.

Most of the content in Module 1 is revisited in subsequent modules. This module in general
provides context for what is covered in Modules 2 to 6. However, there are some important
concepts and models and it should be remembered that these should be considered as an
overlay to the content of Modules 2 to 6.

Some key questions you should be able to answer using the concepts, models and
approaches described in Module 1 include:

Key questions Concepts/Models/approaches that can Revision

be used to answer the key questions required?
What are the ways strategy can be  Processual
developed?  Rational
 Evolutionary
 Systemic
What’s included in a strategy  Defining organisational purpose (Where
development process and strategic are we going?)
planning?  External and internal environment
analyses (What is the gap between
where we are now and where we want
to be?)
 Formulating and implementing strategy
(How do we get there? And what are
the financial aspects of value creation?)
What are the three levels of strategy?  Corporate
 Business
 Functional
What kinds of leadership style and  Situational
approaches are there?  Transformational
 Transactional
How does ethics and corporate social  The classical view
responsibility influence strategy?  The socio-economic view

GLOBAL STRATEGY AND LEADERSHIP

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SEGMENT CONCEPT MAP

Module 2: Understanding the external environment

Module 2 provides an approach to understanding the external environment within which the
organisation operates. Understanding how an industry has developed and the key trends
driving its growth and profitability are critically important in the development of strategy.
Equally important is the need to understand what it takes to succeed in the competitive
environment. With this knowledge, it is then possible to evaluate the organisation’s
performance and determine what the organisation needs to do to be competitive – the subject
of Module 3.

Some key questions you should be able to answer using the concepts, models and
approaches described in Module 2 include:

Key questions Concepts/Models/approaches that Revision

What is the “industry” of analysis? How can it
be defined? How broad or narrow is it?
What’s the typical way products or services
in this industry get to the customer? Who are
all the different types of organisations
involved? Where does my organisation sit
within this chain?
What are the industry segments? Are any
growing faster than others? Are any declining
more quickly than others?
What stage of the industry life cycle is the
industry in? How well developed/established
is the industry? Are all the segments in the
industry at the same stage of the life cycle?
What have been the key factors influencing
past growth in the industry and what is
expected to drive future growth?
What are the forces that determine the
profitability of the industry? What therefore is
the current and expected profitability of the
industry? How are the forces changing and
so will the industry be more or less profitable
than today?
Who are the customers for the products
and/or services of the industry? How are they
defined?
On what basis do providers in the industry
compete? What are the key success factors
for them to be able to successfully compete?
can be used to answer the key required?
questions
 Industry definition
 Industry value chain
 Industry segmentation
 Historical data analysis
 Industry life cycle stages (start-
up, growth, maturity, shake-out,
decline or renewal)
 Historical data analysis
 TEMPLES (technology, economy,
markets, politics, law,
environment, society)
 Porters five forces of industry
competitiveness (suppliers,
buyers, industry rivals, potential
entrants, substitutes)
 Linking markets to industries
 Customer market segmentation
 Industry definition
 Value chain
 The basis of competition
 Industry key success factors
 Industry segmentation
 Competitor analysis worksheet
 Strategic groups

Note that some of the models and concepts provide input into answering more than one
question.

GLOBAL STRATEGY AND LEADERSHIP

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SEGMENT CONCEPT MAP

Module 3: Understanding the internal environment

Module 3 provides an approach to understanding how the organisation is performing in terms

of factors within its control and in the context of the remote industry environment within which
it operates.

Assessing performance requires both a baseline from which to determine relative

performance with identified competitors, and also a goal for where the organisation wants to
be. This then makes it possible to identify any gaps in performance between the current and
desired performance.

An organisation also needs to understand what its capabilities are – i.e. what it’s good at.
With the information about an organisation’s performance and its capabilities in the context of
the remote environment, it is then possible to develop and evaluate options for what the
organisation might be able to do to address any gaps in performance.

Some key questions you should be able to answer using the concepts, models and
approaches described in Module 3 include:

Key questions Concepts/Models/approaches that can be Revision

If the organisation is a corporation,
what is the corporation trying to
achieve?
Who are the organisation’s key
stakeholders, and what are their
expectations of performance?
At the business unit level, what is the
organisation’s existing strategy?
What needs to be measured to
determine organisational
performance?
How is the organisation performing?
What is the organisation good at?
What capabilities does it have? Does
anything it does provide a unique
competitive advantage?
Where is the organisation not
performing relative to where it wants
to be?
used to answer the key questions required?
 Corporate strategy
 Key stakeholder requirements
 The five questions (5Qs) approach to
business strategy analysis (growth,
products/services, customer/geographic
markets, generic strategy, desired
industry position)
 The shareholder vs the stakeholder view
 Performance measures
 Benchmarks
 The balanced scorecard (financial,
customer, internal and learning and
growth)
 SWOT analysis (strengths, weaknesses,
opportunities and threats)
 Strategic capabilities
 Gap analysis

Note that some of the models and concepts provide input into answering more than one
question.

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SEGMENT CONCEPT MAP

Module 4: Product and market development

Module 4 provides an overview of some of the business options that organisations have to
achieve their strategy. In particular, Module 4 explores in detail what is required for the
product and market development options including the capabilities required to implement
these options and the various options for new market development that is available.

Some key questions you should be able to answer using the concepts, models and
approaches described in Module 4 include:

Key questions Concepts/Models/approaches that Revision

What are the key growth options available to
the organisation? What are the risks
associated with each option? What’s the best
order for them to be done in?
What is new product development and what
is needed to be successful in new product
development?
What is new market development and what is
needed to be successful in new markets?
What are the key accounting issues
associated with different geographic
markets?
What are the different ways an organisation
can enter new geographic markets?
What are the various pros and cons of the
different market entry modes? What’s
needed to be successful for each?
can be used to answer the key required?
questions
 Ansoff product/market matrix
(market penetration, product
development, market
development, diversification)
 SWOT analysis (strengths,
weaknesses, opportunities and
threats) (refer back to Module 3)
 Strategic capabilities (refer back
to Module 3)
 Stages of the new product
development process
 Intellectual property protection
 Key success factors for new
product development
 Objectives of market entry
 Assessing market attractiveness
 Market development resources
 Key success factors for new
market development
 Accounting issues in new market
entry (foreign exchange, multiple
accounts, reporting dates, IT
systems, business standards,
taxation, transfer pricing)
 Common modes of entry
(licensing, franchising, joint
ventures, strategic alliances,
mergers and acquisitions,
Greenfield operations)
 Common modes of entry
(licensing, franchising, joint
ventures, strategic alliances,
mergers and acquisitions,
Greenfield operations)

Note that some of the models and concepts provide input into answering more than one
question.

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SEGMENT CONCEPT MAP

Module 5: Making strategic choices

Module 5 provides the models and concepts for deciding what an organisation should do –
i.e. making strategic choices - to achieve its stated strategy, taking into account the external
environment it operates in (Module 2), its performance in the industry it operate within
(Module 3) and the growth options available (Module 4).

Some key questions you should be able to answer using the concepts, models and
approaches described in the module include:

Key questions Concepts/Models/approaches that can be used to Revision

How do you prioritise the
options available in terms of
size and potential
organisational impact?
How do you evaluate options
in the context of fit with the
organisation’s overall portfolio
of activities?
How do you assess the risks
inherent in the possible
options and their
implementation?
How do you decide from the
shortlist of options developed
which are the best strategic
fit?
How do you make
recommendations about what
to do?
answer the key questions required?
 Product and market evaluation criteria (size and
value, growth, profitability, distribution access,
value proposition, capabilities, resources,
capacity, service, risks)
 Portfolio considerations
 Risk assessment (understanding risk, types of
risk)
 Quantifying costs and benefits and what-if
analysis
 Rumelts criteria (external consistency, internal
consistency, feasibility and competitive
advantage)
 Making recommendations to key decision
makers

Note that some of the models and concepts provide input into answering more than one
question.

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 SEGMENT CONCEPT MAP

Module 6: Leading and implementing strategy

Module 6 focuses on leadership and the implementation of the strategic options that have
been selected for an organisation to achieve its stated strategy and the expected
performance and other benefits to its key stakeholders that successful implementation should
deliver.

Some key questions you should be able to answer using the concepts, models and
approaches described in the module include:

Key questions Concepts/Models/approaches that can be used to Revision

Why does strategy
implementation fail?
What needs to be planned for to
successfully implement
strategy?
How can you manage and
monitor the performance of
strategy implementation?
What’s different when
implementation involves people
from different countries?
How should the organisation be
structured for implementation?
What’s the role of the leader in
strategy implementation?
What type of leadership is
required at different stages in
the organisational life cycle?
What style of change
management is required for
different scales of change?
Why does leadership sometimes
fail?
What are some of the key
causes of resistance to change
and what can leaders do to
overcome them?
answer the key questions required?
 The challenges of implementing strategy
 Failing the 3Cs (communication, commitment and
coordination)
 Paralysis by analysis
 Politics and resistance
 Environmental uncertainty
 McKinsey 7-S model (shared values, strategy,
style, staff, skills, systems, structure)
 The eights S’s model (strategic performance as
the additional S)
 The balanced scorecard (you can also refer back
to Module 3 for this model)
 Managing across cultures
 Hofstede’s cultural dimensions (power distance,
individualism vs. collectivism, masculinity vs.
femininity, uncertainty avoidance, long-term vs.
short-term)
 Types of organisational structures (central vs.
decentralised, mechanistic vs. organic systems)
 Hierarchy of leadership (level 1 to level 5)
 Change management matrix (refer also Module 4
for Ansoff revision)
 The organisational life cycle and strategic
leadership styles
 Transformational leadership
 Strategic change matrix for leading organisational
change (Dunphy and Stace) (fine-tuning,
incremental adjustment, modular transformation,
organisational (corporate) transformation)
 The role of leaders in strategic analysis
 Strategic leadership failure
 Overcoming resistance and cementing change in
an organisation (technical, political and cultural
reasons)

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