BIS2018 – Management Information Systems

Week 1: Strategic Management Principles

Georgios A. Dafoulas
Computer Science Department
Faculty of Science an Technology
Middlesex University
Agenda

• The strategic management process

• Establishing a company direction
• Industry and competitive analysis
• Strategic leadership
The strategic management process
Strategic management defined

• Strategic management is the identification, selection and

implementation of an organisation’s long- term goals and objectives.
• Strategic analysis starts with the definition of a mission for the
organisation. This explains why the organisation exists and provides the
context against which strategies will be formulated.
• Mission statements usually contain high-level criteria that can be used
to evaluate strategies as they are designed and implemented.
• All strategic analysis must take account of the organisation’s changing
external environment (often described using the acronym PESTLE) and
its capacity and capability to implement the strategy. Tools commonly
used for different aspects of this analysis include the Boston Grid and
Ansoff’s Matrix.

Source:
https://www.apm.org.uk/body-of-knowledge/context/setting/strategic-management/
 The five tasks of strategic management

• These five components describe what we mean by the term strategic

management.

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Difference between vision and mission
statements

• According to Alessio Bresciani

Source:
https://www.alessiobresciani.com/foresight-strategy/whats-the-difference-between-a-mission-statement-and-vision-statement/
Difference between vision and mission
statements
Area Mission Statements Vision Statements
Time 1 – 5 years 5 years + (long range)
Operates in…. Present Desired future / preferred future
Metaphor Compass North star
In two words Purposeful activity Inspirational future
Provides Focus/direction for action Mental image/picture of ideal
Verb Doing Seeing
Helps solve for the organisation… What (it does), Who (it does it for), Why (it does it)
How (it does it)
Relates to… Head (still can be emotional) Heart (still can be rationale)
Why useful Filters what’s important; Provides enduring inspiration what
defines what customers and the organisation
markets will be targeted; will contribute in the world and
differentiates a business from its deeper meaning
competition;
unifies toward an aligned goal
Connects the organisation to… How will we get there Where we are headed (and why)
How mission and vision relate to What the organisation does to Inspiration for the actions taken in
each other move toward the vision the present, through the mission
Focus words Purpose, target, goal, objectives Dreams, hopes, fears, picture,
vibrant
Length Often short Often short but can be long or
written in paragraph form

Source:
https://www.alessiobresciani.com/foresight-strategy/whats-the-difference-between-a-mission-statement-and-vision-statement/
Examples of vision and mission
statements

Disney

Mission Statement
“To be one of the world’s leading producers and providers of entertainment
and information. Using our portfolio of brands to differentiate our content,
services and consumer products, we seek to develop the most creative,
innovative and profitable entertainment experiences and related products in
the world.”

Vision Statement
“To be one of the world’s leading producers and providers of entertainment
and information.”

Source:
https://www.alessiobresciani.com/foresight-strategy/whats-the-difference-between-a-mission-statement-and-vision-statement/
Examples of vision and mission
statements

NASA

Mission Statement
“Drive advances in science, technology, aeronautics, and space exploration
to enhance knowledge, education, innovation, economic vitality and
stewardship of Earth.”

Vision Statement
“We reach for new heights and reveal the unknown for the benefit of
humankind.”

Source:
https://www.alessiobresciani.com/foresight-strategy/whats-the-difference-between-a-mission-statement-and-vision-statement/
 Strategic management concepts

• Strategic objectives relate to outcomes that strengthen an

organisation’s overall business position and competitive vitality.
• A company’s strategy consists of the competitive efforts and business
approaches that managers employ to please customers, compete
successfully, and achieve organisational objectives.
• A strategic plan consists of an organisation’s mission and future
direction, near-term and long-term performance targets and strategy.
• Strategy implementation concerns the managerial exercise of putting a
freshly chosen strategy intro place.
• Strategy execution deals with the managerial exercise of supervising
the ongoing pursuit of strategy, making it work, imprioving the
competence with which is executed, and showing measurable progress
in achieving the targeted results.

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Strategic approaches to preparing for
future market conditions

• Question: can you come with examples of organisations that follow

these approaches?

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Managing the strategy execution
process

• The following principal aspects are necessary for strategy execution:

– Building an organisation that can carry out the strategy.
– Allocating the necessary resources for implementing the strategy.
– Establishing strategy-supportive policies.
– Motivating people so they can pursue the strategy objectives.
– Tying the reward structure to the achievement of the targeted results.
– Creating a company culture and work climate necessary for the strategy
implementation.
– Installing information, communication and operating systems that enable personnel to
carry out their roles.
– Instituting best practices for continuous improvement.
– Exerting the internal leadership needed to drive strategy implementation.

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Four forms for crafting strategy

• Chief architect approach – the CEO or owner assumes the role of the
chief strategist or entrepreneur.
• Delegation approach – delegating to trusted subordinates.
• Collaborative (team) approach – a manager enlists the assistance and
advice of key peers and subordinates to reach consensus about the
strategy.
• Corporate intrapreneur approach – top management encourages
individuals and teams to develop and champion proposals.

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Establishing a company direction
 Basic strategy concepts

• Business strategy – concerns the actions and the approaches crafted

by management to produce successful performance in one specific line
of business.
• Functional strategy – concerns the managerial game plan for running a
major functional activity or process within a business – R&D, production,
marketing, customer service, distribution, finance, human resources, and
so on.
• Operating strategy – concerns how to manage front-line organisational
units within a business (plants, sales districts, distribution centres) and
how to perform strategically significant operating tasks (materials
purchasing, inventory control, maintenance, shipping, advertising
campaigns).

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Strategy-making pyramid for single-
business company

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Strategy-making pyramid for
diversified company

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Identifying the overall corporate
strategy of a single-business company

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Identifying the overall corporate
strategy of a diversified company

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
 Factors shaping the choice of
company strategy

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Industry and competitive analysis
 A company’s macroenvironment

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Porter’s five forces

Source:
https://www.business-to-you.com/porters-five-forces/
Porter’s competitive strategies

Source:
https://www.business-to-you.com/porters-five-forces/
 How strategic thinking and strategic
analysis lead to good strategic choices

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Strategic leadership
 Principles of Strategic Leadership

Source:
Thompson, A.A. and A.J. Strickland. 2003. Strategic Management: Concepts and Cases. McGraw-Hill College. 13th ed. ISBN 978-0072443714.
Find your strategic leaders

Source:
https://www.youtube.com/watch?time_continue=2&v=dpesXYfK6hA
 Guiding principles for bridging the gap
between strategy design and delivery

Source:
https://www.brightline.org/principles/?utm_source=google&utm_medium=ppc&utm_Campaign=1058277762&utm_keyword=strategy%20and%2
Principles of organisational culture

Source:
https://www.strategy-business.com/feature/10-Principles-of-Organizational-Culture?gko=1f9d7
What is corporate culture?

Source:
https://www.youtube.com/watch?time_continue=1&v=gficoigz1xs
Conclusions

• The strategic management process

• Establishing a company direction
• Industry and competitive analysis
• Strategic leadership
Resources

• What is strategic management (https://www.apm.org.uk/body-of-knowledge/context/setting/strategic-

management/)
• What's the Difference Between a Mission Statement and Vision Statement
(https://www.alessiobresciani.com/foresight-strategy/whats-the-difference-between-a-mission-
statement-and-vision-statement/)
• Stages and Types of Strategy
(https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/stages-and-types-of-strategy/)
• Porter's Five Forces explained with examples (https://www.business-to-you.com/porters-five-forces/)
• 10 principles of strategic leadership (https://www.strategy-business.com/article/10-Principles-of-
Strategic-Leadership?gko=af52a)
• Guiding Principles (https://www.brightline.org/principles/?
utm_source=google&utm_medium=ppc&utm_Campaign=1058277762&utm_keyword=strategy%20and
%20management&utm_content=315234288947&gclid=EAIaIQobChMIs9TkuPj55AIVBLDtCh3XVA23E
AMYASAAEgLPj_D_BwE#principle-2)
• Strategic Management for Principles of Management (https://www.youtube.com/watch?
v=FwSy7BzEML4)
• 10 Principles of Organizational Culture (https://www.strategy-business.com/feature/10-Principles-of-
Organizational-Culture?gko=1f9d7)
Questions

?
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