Introduction to Strategy

Sheikh Morshed Jahan, IBA, Univ. Dhaka

Sheikh Morshed Jahan Associate Professor IBA, Univ. Dhaka

1

1. 2.

Understanding Strategy & Strategic Management Planning Strategy

Sheikh Morshed Jahan, IBA, Univ. Dhaka

Part 1

Understanding Strategy & Strategic Management

Sheikh Morshed Jahan, IBA, Univ. Dhaka

 Strategy is the general direction set for the

company and its various components to achieve a desired state in the future.

Strategy is a well defined roadmap of an organization. It defines the vision, mission and direction of an organization. Strategy, in short, bridges the gap between where we are and where we want to be.
Sheikh Morshed Jahan, IBA, Univ. Dhaka 4

A strategy is all about integrating and harmonizing organizational activities with long term perspective to better utilize organizational competencies and scarce resources so as to meet stakeholders expectations.

Sheikh Morshed Jahan, IBA, Univ. Dhaka

Strategy is the direction and scope of an organization over the long term [formulated to] achieve [competitive] advantage in a changing environment through configuration of [organizations] resources and competences with the aim of fulfilling stakeholder expectations.
Sheikh Morshed Jahan, IBA, Univ. Dhaka 6

Good strategy is in the overlap Often, the environment E moves and the organisation does not move - this can be fatal (strategic drift)

Sheikh Morshed Jahan, IBA, Univ. Dhaka

Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education Sheikh Morshed Jahan, IBA, Univ. Dhaka 8

Strategic Management is a way in which strategists set the long-term business objectives and proceed about attaining them. It deals with making and implementing decisions about future direction of an organization.
It is applicable to both small and large organizations as even the smallest organization face competition and, by formulating and implementing appropriate strategies, they can attain competitive advantage.
Sheikh Morshed Jahan, IBA, Univ. Dhaka 9

Strategic Management is a process of crafting ways and means, supported by companys competences and scarce resources, to best attain and sustain unique, value-rich competitive advantages for the company so that stakeholders expectations are met (or exceeded) in the long run.
Sheikh Morshed Jahan

Sheikh Morshed Jahan, IBA, Univ. Dhaka

10

Society Value Creation & Sharing among major Stakeholders VC Members Employees Customers Owners

Time/Maturity
Source: Sheikh Morshed Jahan Sheikh Morshed Jahan, IBA, Univ. Dhaka 11

Part 2 Planning Strategy

Sheikh Morshed Jahan, IBA, Univ. Dhaka

12

While planning a strategy it is essential to consider that decisions are not taken in a vacuum and that any act taken by a firm is likely to be met by a reaction from those affected competitors, customers, employees or suppliers.

Sheikh Morshed Jahan, IBA, Univ. Dhaka

13

Value Chain Members

Customer

Employee

Business
Society at Large

Competitor

Sheikh Morshed Jahan, IBA, Univ. Dhaka

14

 decisions not to be taken in vacuum

Other Stakeholders Expectations

Owners Philosophy, Expectations & Values

Immediate & Distant

Adapted by Jahan, S.M. from Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education

Resources & Competences

Sheikh Morshed Jahan, IBA, Univ. Dhaka

15

Johnson, Scholes & Whittington (2005) Exploring Corporate Strategy, 7th Edition, Pearson Education

Sheikh Morshed Jahan, IBA, Univ. Dhaka

16

How may we relate these concepts and frameworks to the organizations that we have studied so far?

Sheikh Morshed Jahan, IBA, Univ. Dhaka

17