how to compete in a chosen market

Role of CG?
1-Purpose: monitor the
parties who controls and
use the resources on
behalf of the owners
2-Objective: contribute to
the Accountability and
performance in creating
long term value for
shareholders
3- Risk Management
4-Establishing Internal
Controls

1- increase shareholders' power

& interest at the expense of the others
Stakeholder groups
2- Short-termism
3- Managers tends to be
RISK AVERSE (taking lower risk)
 PSPV
Four Elements of Mission:
1-Purpose
2-Strategy
3-Policies and standard of
Behaviors
4-Values

Characteristics of Mission
Statement:
1-state the purpose
2-state the areas of business
3-defining the org. culture
4-Guide to Strategy and
objective/Goals of the
organization

Judge effectiveness of a Corporate

Mission Statement:
1- enough to impact upon
individual's Behavior
2-reflect the COMPETITIVE
ADVANTAGE and recognise the
STRENTHS & WEAKNESS
3-is it ATTAINABLE/REALISTIC
4-it FLEXIBLE to changing
environment.
Role in Strategic Planning
Process:
1- Set Plan and derived
Goals/Objectives
2-acts a Yardstick to
judge the Plans
3-Helps in implementation
of strategy by developing
a corporate culture in org
4- establish ethics
framework
Market share

Market leadership relates to Market share of organization

Expension in the product range 1-Market leadership
2-Coverage
shift position in market 3-Expension
4-Positioning
extending the org's Market
 1- Labour productivity
2- Capital Productivity
3-Quality objectives
4-use of Latest
Technology/Innovation

/Innovation too.
1- Rational Evaluation as per
financial consideration/Criteria
2-Satisfactory performance
3-Sequential Attention
4-Bargaining & Negotiation
5-Use of Power
6-Priortizing
 e.g Minimum Wage to employees

d) Bargaining power of Stakeholders (Customers/Suppliers)

Minimal Effort
keep communicating

Key Players
Keep them
-Strategies must be Acceptable to them
Satisfied
-Regular Communication
-must have confidence in Management
 *Same as of ways for dealing CONFLITING GOALS*
3S'E except, Side Payments

Competitive advantage
can build or lost in
Market & non-market
Environment

Non-market/Political
Environment consists of:
-Government, Interest
groups, NGOs and Public

Types of Political Activity:

1-Lobbying
2-Election funding
3-Petition
4-Coilition Building
1-Integrity
2-Objectivity
3-Professional competence
and due care
4-Professional behavior
5-Confidentality

(S-SAIF)

Objecitivity, Integrity and Profession Behavior

Professional competence and due care

Objectivity and integrity

Professional behavior and Objectivity

Objectivity, Integrity and confediantiality

Code of Ethics

blowing
Taking care of the
expectations of the other
stakeholder other than
shareholders into org's
stated purposes.
This stance argue that org's
performance depends on:
1-Economic
2-Social
3-Environmental

society benefits from org'

activities is more important
than financial & other
interests of the stakeholders.
 i.e the organization has responsibilities to other stakeholders as well
not just act as earning machine for shareholders.

CSR emphasis fair-trade

PRDA

developing strategy so that the company-

1-uses resources at the rate that allowing replenishment of existing resources that the needs of the current
generation can be met without compromising the needs of the future generation, and
2-emission of waste are confined to the level that it absorbed by the environment.
 refers to profit
refers to Planet
refers to People

1-Fair and beneficial

business practices
2- Considering well-being
of the labor, corporate,
society and other
stakeholders too.
-do No harm or curtail to
natural Environment
-Managing non-renewable &
energy resources
-Reducing waste and
Profit earned by emission
company and
economic benefits
enjoyed by Host
society

Question:

answer:

Chapter# 03
1- The Planning horizon will be shortened
2- Strategies may be more conservative (management are unlikely to risk anything new)
3- Emergent strategies may be encouraged, instead of planned strategies. Advocates of emergent strategies
argue they are more appropriate to periods of uncertainty because of their adaptability to changing
circumstances.
4- Increase information requirements
5- Firms may follow multiple Strategies
Limitation of
Game Theory:
critics of game theory argue that its value to strategic management is limited because it focuses on only a small fraction of the strategy
process. For example, it does not provide any insight into the development of the competitive resources or capabilities of an organisation.
Equally, it does not provide any useful guidance as to how to actually implement whatever co-operative strategies may have been
negotiated.
 SCOP_CU

CHAPTER# 04
SVA- Strategic Value Analysis
Bull Whip effect is the feature of Push System

1-Facilities
2-Inventory
3-Transportation Drivers of Supply Chain performance
4-Information
5-Sourcing
6-Pricing
Chapter# 05
1- It will take longer time to grow organically
2- In new markets there is lack of access to key supplier and customers which establish players have.
3- The firm has to bear all risk of any new product development or market entry strategies.
E.g: is there need to compliance of LABOUR LAWS and ENVIRMENTAL PROTECTION.
(Philip Kotler Entry Matrix)
Why many
Acquisition
& Mergers
Fails?
MCQ
Methods of Divestment:
Sales as going concern, Assets are liquidated, Demerger, Management buyout (MBO), Management buy in (MBI)
Chapter# 08
 Product differentiation  Product identity
 Price differential  Product acceptance by wholesaler and retailers
 Customer Loyalty  Barriers to entry
 Longer life cycle  Enter unfamiliar market or introduce new product
1- Key Customer Identity
2- Customer History
3- Relationship of customer to product
4- Relationship of customer to Potential market
5- Customer attitudes and behavior
6- Financial Performance of customer
1-Subject Oriented: Data warehouse is organized around majors Subjects such as Customers, Suppliers, Products
and Activity.
2-Integrated: Data must be consistent in format and codes used.
3-Time-Varient: Data is organized by time and stored in time slices.
4-Non-volatile: Date can’t be change only load and retrieval options are made.
Independence of Location:
Industry Structure:

Integration:

Interactivity:

Individualization:

Intelligence:
Chapter# 09
Implementing and managing change is often an integral part of strategy implementation. MCQ
(Organizational growth as a series of 5 Phases)
 Change
Management
definiation

The management of change starts with an understanding of two main considerations:

(a) The type of change required (b) The wider context of the change
 This is to change the nature of the problem.

(Change Kaleidoscope refers to Context of Change)

1-Scope how much of an organization is going to be affected by the change. A single division or department, or the
whole organization?
2-Time Available Organizations in crisis have little time, but those looking at longer-term strategic development
normally have more time to change.
3-Preservation The preservation of some organizational characteristics and resources may be required.
4-Diversity of general experience, opinion and practice is likely to ease the change process: homogeneity in these
factors is unlikely to do so.
5-Capability can be analyzed at three levels: MCQ
– Individual: are individuals able to cope with the transition they will have to undertake?
– Managerial: do managers have the ability to help their staff through the transition process?
– Organizational: does the organization as a whole have sufficient resources with the knowledge and ability required
to manage the types of change required?
6-Capacity to undertake change depends on the availability of resources, particularly finance, IS/IT, and management
time and skill.
7-The degree of workforce readiness for change will affect its success. Readiness may be contrasted with resistance
to change.
8-The power to effect change may not be sufficient to overcome determined resistance among important
stakeholder groups
These attributes can also be remembered using the 3Cs.
· Concepts e.g. knowledge and ideas for innovation and technology.
· Competences e.g. skills to operate to a very high standard.
· Connections e.g. ability to form fruitful relationships. E3 Kit MCQ 9.1
Chapter#10
Risk controlling Techniques/Methods





Public relation consultants might be used to protect reputation of the organization in case of any adverse event
occurred and create adverse publicity.
Examples: