National Defence University Islamabad

Department of Leadership and Management Studies

Spring 2024 Semester, Course Outline
Course Title Strategic Management, course code LMS-347
Course Outline Prepared by Dr Muhammad Isamil Ramay Spring 2022
Revised Dr Muhammad Isamil Ramay Fall 2022- Fall-2023,
Spring 2024, reviewed fall 2024
Pre Requisite Fundamentals of
Management
Time Thursdays LR –30- 10 am to 1 pm -------------------
Credit Hours 3
Class CR Mr. Behram Junior

Course Description:
Strategic management is the management of an organization’s resources to achieve its goals and
objectives. Strategic management involves setting objectives, analyzing the competitive
environment, analyzing the internal organization, evaluating strategies, and ensuring that
management rolls out the strategies across the organization . Strategic management is the process of
setting goals, procedures, in order to make a company or organization more competitive. Typically,
strategic management looks at effectively deploying staff and resources to achieve these goals.
Often, strategic management includes strategy evaluation, internal organization analysis, and
strategy execution throughout the company.
Important: Strategic management extends to internal and external communication practices as well
as to tracking, which ensures that the company meets goals as defined in its strategic management
plan
Understanding Strategic Management
Strategic management is divided into several schools of thought. A prescriptive approach to strategic
management outlines how strategies should be developed, while a descriptive approach focuses on
how strategies should be put into practice. These schools differ on whether strategies are developed
through an analytic process, in which all threats and opportunities are accounted for, or are more like
general guiding principles to be applied.

Business Culture, the skills and competencies of employees, and organizational structure are all
important factors that influence how an organization can achieve its stated objectives. Inflexible
companies may find it difficult to succeed in a changing business environment. Creating a barrier
between the development of strategies and their implementation can make it difficult for managers
to determine whether objectives have been efficiently met. While an organization’s upper
management is ultimately responsible for its strategy, the strategies themselves are often sparked by
actions and ideas from lower-level managers and employees. An organization may have several
employees devoted to strategy rather than relying solely on the chief executive officer ( CEO) for
guidance. Because of this reality, organizational leaders focus on learning from past strategies and
examining the environment at large. The collective knowledge is then used to develop future
strategies and to guide the behavior of employees to ensure that the entire organization is moving
forward. For these reasons, effective strategic management requires both an inward and outward
perspective.
KEY TAKEAWAYS: Companies, universities, nonprofits, and other organizations can use strategic
management as a way to make goals and meet objectives. Flexible companies may find it easier to make changes
to their structure and plans, while inflexible companies may chafe at a changing environment. A strategic
manager may oversee strategic management plans and devise ways for organizations to meet their benchmark
goals.

Learning Outcomes
Strategic Management
1-What is the strategic management process?

The strategic management process is the set of activities that firm managers undertake to put their firms in the
best possible position to compete successfully in the marketplace. Strategic management is made up of several
distinct activities: developing the firm’s vision and mission; strategic analysis; developing objectives; creating,
choosing, and implementing strategies; and measuring and evaluating performance.

Firm Vision and Mission

2-What is the difference between a firm’s vision and its mission?

A firm’s vision is a broad statement expressing the reason for the firm’s existence and what it hopes to
accomplish. The mission statement explains (still broadly) how the firm intends to fulfill its vision—for example,
by stating what products or services the firm will offer or what customers it wants to serve.

The Role of Strategic Analysis in Formulating a Strategy

3- Why is strategic analysis important to strategy formulation?

Strategic analysis produces information that managers need in order to develop appropriate strategies for their
firms. A good strategy should use a firm’s resources and capabilities to stake out a position in the marketplace
that sets it apart from competitors and enables it to successfully compete in the external environment.

4-What are strategic objectives, levels of strategy, and a grand strategy? How are they related?

Strategic Objectives are the big-picture goals for the company: what the company will do to try to fulfill its
mission. These goals are broad and are developed based on top management’s choice of a generic competitive
strategy and grand strategy for the firm. For example, cost-leadership and growth competitive and grand
strategies will require managers to develop objectives for growing the firm in a low-cost way.

Business-level Strategy is concerned with positioning a single company or business unit that focuses on a single
product or product line. The primary business-level strategies are cost leadership and differentiation, as well as
focus, which is combined with one of the other two strategies (focus-cost leadership, focus-differentiation).

Corporate-level Strategy is concerned with the management and direction of multi-business corporations. These
large firms make decisions about what businesses and industries to operate in so they can improve their overall
performance and reduce the risk they would face if all of their operations were concentrated in a single business
or industry. Corporate CEOs use the BCG Matrix to evaluate their portfolio of businesses and use corporate
actions like acquisitions to make significant changes to their companies.

International Strategy can be combined with either of the previous two strategies to incorporate international
operations into a business or corporation. International strategy answers questions of what country or countries
to operate in and how to be successful in foreign operations.

Grand strategies outline an approach to firm growth. The three grand strategies are growth, stability, and
defensive, and a firm chooses one of these approaches in addition to their choice of business-level, corporate,
and/or international strategies. The choice of grand strategy is often dictated by conditions in the business
environment such as recessions or competitor activities.
Planning Firm Actions to Implement Strategies

5-How and why do managers plan? Why are goals important in the planning process?

Managers plan in order to decide what actions the firm will perform in order to achieve a specific goal.
Planning includes decisions about when and how the goal should be accomplished and what resources
will be required to perform the planned action. Planning is one of the basic functions of management,
along with organizing, leading, and controlling. Firms typically have several levels of planning
happening simultaneously: one based on time and another based on detail. The time scale is
expressed in terms of short-term (within the year) or long-term (over a yearlong) planning. Planning
details become more specific as the manager moves downward in the hierarchy of planning levels.
Strategic planning is the responsibility of firm leadership (CEO), while unit or division managers take
the CEO’s broad plans and focus them to be more suitable for their own units (tactical planning).
Operational planning is the frontline manager’s domain—they develop specific action plans for
operational employees so that their work advances the entire firm towards the large-scale strategic
goal. Good goals are specific, measurable, achievable, relevant, and time-bound. These terms can be
remembered by using the acronym SMART. Goals are critical to planning because they focus firm
activities on specific objectives or outcomes.

Measuring and Evaluating Strategic Performance

6-How and why do managers evaluate the effectiveness of strategic plans?

Performance evaluation is to determine if plans have been successful and identify any changes that might be
necessary. This is done both at the end and the beginning of strategic planning because when managers measure
firm activities and progress towards objectives, the information they learn by doing that measurement becomes
part of the analysis they use to develop improved plans and objectives to keep the firm on track to fulfill their
mission and improve their overall performance.

Teaching Methodology

You students are expected to purchase/acquire the main text book and start reading it, and coming prepared to
the class for discussion questions of last week’s lecture and activities. there would be lectures/video clips/ Q & A,
slide show. Articles, case studies and most importantly discussion sessions, all to enhance your learning
experience a worthwhile. Assignments/ projects need to be submitted in time; deadline must be met to get
credit for your work. Some case studies/articles are not mentioned in the outline, they would be provided later.

Text and Reference Books and Additional Readings

Concepts in Strategic Management and Business Policy

By Thomas Wheelen and David Hunger, Perason 13 edition,

Strategic Management by Fred R. David Latest Edition

Local and International case Studies from different sources
Harvard Business Review, Selected Articles by Dr Henry Mintzberg
Important Note:
Important Note:
 75 % attendance is must.
 Be on time and don’t leave during lecture or before class ends.
 Deadline for any assignment/quiz/research project must be met.
 Mobiles must be silent/non visible, and not attended during class,
 Don’t be late for class when break is given during lecture
  Notes and work would be either given in class/emailed or to the CR
 Instructors meeting hours are posted on office, students can meet me during those specified hours
and any collective issue should be conveyed and discussed through CR
 Your (students) active participation would help everyone’s learning

Text/Lecture/PPT/Discussion Activity
1 Course Introduction/Introduction to Sharing course outline
Strategic Management 1st assignment
Study, Phases, Benefits Case study, “Audit”,
What is strategy?
2 Corporate Governance First Assignment due
Role of Board of Directors Text Book Chapter 2
Role of Top Management Mission Vision exercise
Assignment no-2 book review guideline given,
Case Study situation “Fired”
3 Social Responsibility and Ethics in Strategic Class activity Case study, “Frustrated Manager”
management Groups formed projects assigned
Social Responsibility of Decision Makers Profitable and socially responsible
Ethical Decision Making
4 Environmental Scanning and Industry Case for Analysis: “Land of Rivers and Galciers
Analysis at the brink of running dry”
Article for reading: Successful CEO’s and their
strategies
A multiple-choice Quiz-1
5 Internal Scanning Assignment 3 Kinder Care
Organizational Analysis Case Study: Developing New Business Areas
6 Strategy Formulation, Business Strategy
Porter’s Competitive Strategies Case study: Water crises in Pakistan and
Semester project Culture, investigation of a suggested solution
university/public organization
7 &8 Strategy Formulation Case Study: One Belt One Road
Corporate Strategy Quiz no 2
Mid Term
9 Functional Strategy and Strategic Choice
Week 9 Strategy Implementation and Control Strategic Factor Analysis
continue SWOT Analysis
Case Study: CPEC and Pakistan

10 Strategy Implementation Article: Sources of Innovative Opportunity

Staffing and directing Semester project due
Quiz-3
11 Evaluation and Control
12 Strategic Issues in Managing Technology Case study, Apple watch, managing innovation
and Innovation, Presentations start, technology resistance
Feedback on Projects/Discussion
13 Issues in Entrepreneurial Ventures and Presentations
Small Businesses
14 Revision/Presentations/feedback/question Presentations
answer sessions regarding different topics Q&A
Reflection paper due
15 Presentations/Revision Q&A/Discussion
16&17 Final exams
Course Grading/Methods of Instruction
This course uses Email and what’s app for the facilitation of communications between faculty and CR,
submission of assignments, and posting of grades.

Activities in this course include discussion/presentations; textbook and supplemental readings;

individual and group activities; Semester Project, and case scenarios.

Course Assessment
Method of Evaluation/ Assessment Type/ Description of Assessments Marks

Class Participation/Discussion, 5
3 Quizzes/case studies, 15
3 Assignments/business analysis 15
One Midterm Exam 20
1 Project / Reports including Presentation, Would be discussed in class 10
Final Examination 35
•Discussion Participation:

Discussion questions are designed as a means of communication and course participation. You will
bring to class an initial response to the discussion topic by Tuesday of each week in the class, no cover
page.

FOR FULL CREDIT. Students are strongly encouraged to research the questions posed as discussion
and synthesize their opinions in writing. It is highly recommended students include other sources of
information to support their position and not rely solely on the course textbook/reading assignments.

•Papers / Assignments:

There are three (3) assignments assigned in this course. Assignments are due on Tuesday before class.
Group assignment would be announced in the class. Please review the instructions carefully and ask
any question in the class, before you start working on the assigned work.

• Assignment 1 - Paper 1: Short assignment max 5 pages, “Suddenly you are promoted as
manager…

• Assignment 2 - Paper 2: Book Review, guidelines provided

• Assignment 3 – case study analysis, questions will be given from a case study

Quiz-1 Multiple choice questions from part one

Quiz-2 A case review from HBR from SYK Library

Quiz-3 Discussion questions from topics given in outline

Semester Project Investigative research work group project, on culture of assigned organization,
interviews and report

Class Participation discussion questions plus reflection paper

• Student Course Reflection Paper

Near the end of each course, students prepare a reflection of what they have learned and experienced
in the course. This is a personal reflection and does not require references. You should reflect on what
you learned, what was interesting, challenges, what you were able to apply, and how it might impact
your professional career. All reflections are to be done in first person.
Part One: Overview -
1-BASIC CONCEPTS OF STRATEGIC MANAGEMENT
This session sets the stage for the study of strategic management and business policy. It tells how the
field of study evolved out of the integrative concerns of business policy into the more
environmentally-oriented area of strategic management. It also summarizes research supporting the
conclusion that those corporations that manage strategically perform at a higher level than
corporations which do not. It describes a number of triggering events which act to initiate strategic
change in most organizations. A normative model of strategic management is presented as the basic
structure underlying the book. Key concepts/vocabulary are defined and explained as part of the
discussion of the model.

Learning Objectives
Understand the benefits of strategic management
Explain how globalization and environmental sustainability influence strategic management
Understand the basic model of strategic management and its components
Identify some common triggering events that act as stimuli for strategic change
Understand strategic decision-making modes
Use the strategic audit as a method of analyzing corporate functions and activities

Discussion Questions
1.Why has strategic management become so important to today's corporations?

2.How does strategic management typically evolve in a corporation?

3.What is a learning organization? Is this approach to strategic management better than the more traditional
top-down approach?

4.Why are strategic decisions different from other types of decisions?

5.What information is needed for the proper formulation of strategy? Why?

Exercise 1: Evaluate the mission statement of PIA.

Exercise 2: Find the mission statements of three different organizations and tell which is best.

Tasks
Your tasks for this module are:
• Textbook Reading Assignments

• Discussion

• Assignment

2-CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY

This session describes the basic governance mechanisms of the corporation: the board of directors and top
management. These are the people who are primarily tasked with the strategic management process if the
corporation is to have long-term success in accomplishing its mission. The responsibilities of both are described
and explained. The chapter also examines the relationship between business firms and society and presents
issues in social responsibility and ethics. Ethics and ethical behavior are considered in light of the challenge from
moral relativism. The chapter considers stakeholder concerns and presents various responsibilities of business
firms as well.

Learning Objectives
Describe the role and responsibilities of the board of directors in corporate governance
Understand how the composition of a board can affect its operation
Discuss trends in corporate governance
Explain how executive leadership is an important part of strategic management

Discussion Questions
1.Does a corporation really need a board of directors?

2.What recommendations would you make to improve the effectiveness of today's boards of directors?

3. Describe the impact of recent regime change on foreign direct investment in pakistan5. Does a corporation
have to act selflessly to be considered socially responsible?

4. How far should people in a business firm go in gathering competitive intelligence? Where do you draw the
line?

Tasks
Your tasks are:
• Textbook Reading Assignments

• Discussion

• Assignment /case analysis

Part Two
3-ENVIRONMENTAL SCANNING AND INDUSTRY ANALYSIS
This topic and related book chapter examines key aspects of the societal and task environments of the
corporation with special emphasis on environmental scanning, industry analysis, and forecasting.
Environmental scanning is presented as the first part of the strategic management model and a crucial
task for strategic managers. The emphasis is upon monitoring strategic factors and utilizing possible
sources of information. Porter's approach to industry analysis is discussed in some detail. Forecasting
is then addressed in terms of assumptions and basic techniques. Industry scenario
construction/writing is explained.

Learning Objectives
Recognize aspects of an organization’s environment that can influence its long-term decisions

Identify the aspects of an organization’s environment that are most strategically important

Conduct an industry analysis to understand the competitive forces that influence the intensity of rivalry within
an industry

Understand how industry maturity affects industry competitive forces

Categorize international industries based on their pressures for coordination and local responsiveness
Construct strategic group maps to assess the competitive positions of firms in an industry

Identify key success factors and develop an industry matrix

Use publicly available information to conduct competitive intelligence

Know how to develop an industry scenario

Discussion Questions
1. According to Porter, what factors determine the level of competitive intensity among companies?
Briefly describe each factor.
2. According to Porter's discussion of industry analysis, is Pepsi Cola a substitute for Coca Cola?
3. Why is environmental uncertainty an important concept in strategic management?

Tasks
Your tasks for this module are:
• Textbook Reading Assignments
• Discussion
• Assignment /case analysis

4-INTERNAL SCANNING: ORGANIZATIONAL ANALYSIS

The book chapter and lecture complete the section on environmental scanning by examining the
internal environment of a corporation. Often called organizational analysis (to contrast it with
industry analysis), internal scanning is a key part of the resource-based view of the firm—the view that
a company's sustained competitive advantage is primarily determined by its resource endowments.
Following the popular functional approach, the chapter breaks the internal environment down into
the corporation's structure, culture, and resources. The chapter and lecture propose that to the
extent that a corporation's present structure and culture are compatible with present or potential
strategies, they can be considered strengths or weaknesses. Corporate resources are discussed in
terms of marketing, finance, research and development, operations, human resources, and
information systems. The point is made that a corporation's resources include not only measurable
assets, such as buildings and people, but also the skills and competencies of the people within the
functional areas.

Learning Objectives
Apply the resource view of the firm to determine core and distinctive competencies

Understand a company’s business model and how it could be imitated

Assess a company’s corporate culture and how it might affect a proposed strategy

Scan functional resources to determine their fit with a firm’s strategy

Discussion Questions
How can value chain analysis help identify a company's strengths and weaknesses?

In what ways may a corporation's structure and culture act as internal strengths or weaknesses?

How might a firm's management decide whether it should continue to invest in current known
technology or in new, but untested, technology? What factors might encourage or discourage such a
shift?
What kind of internal factors help managers determine whether a firm should emphasize the
production and sales of a large number of low-priced products or a small number of high-priced
products?

Why should information systems be included in the analysis of a corporation's strengths and
weaknesses?

Tasks

Your tasks for this module are:

• Textbook Reading Assignments

• Discussion

• Assignment/quiz/case/articles

Part Three
5-STRATEGY FORMULATION: SITUATION ANALYSIS AND BUSINESS STRATEGY
This topic is the first of three important chapters dealing with the formulation of strategy. Following
the strategic decision-making process introduced in Chapter One, the lecture/discussions emphasize
steps 5(a), situation analysis, 5(b), the review and revision of a firm's current mission and objectives,
and step 6(a), the generation and evaluation of strategic alternatives. Situation analysis is conducted
using S.W.O.T. in the form of generating a Strategic Factors Analysis Summary (SFAS) Table to
summarize a corporation's strategic factors and to help identify propitious niches. Once a
corporation's strengths, weaknesses, opportunities, and threats are identified, strategic managers
should review and revise, if necessary, the mission and objectives before proceeding to developing
feasible alternative strategies. The chapter then presents the TOWS Matrix as one way of generating
alternative corporate and business unit strategies by using strengths to capitalize on opportunities
and/or working around weaknesses to avoid threats. Business strategies are explained in terms of
competitive and cooperative strategies. Competitive tactics are also discussed.

Learning Objectives
Organize environmental and organizational information using SWOT analysis and a SFAS matrix

Generate strategic options by using the TOWS matrix

Understand the competitive and cooperative strategies available to corporations.

List the competitive tactics that would accompany competitive strategies

Identify the basic types of strategic alliances.

Discussion Questions
What industry forces might cause a company's propitious niche to disappear?

What is the value of the TOWS Matrix in strategy formulation? Do you agree with this way of generating
strategic alternatives? Why or why not?

Tasks
Your tasks for this module are:
• Textbook Reading Assignments
• Discussion

• case studies/article/project discussion

6-STRATEGY FORMULATION: CORPORATE STRATEGY

The lecture and related book chapter focuses on formulating strategy at the corporate level.
Corporate strategy deals with the three key issues facing the corporation as a whole: (1) the firm's
overall orientation toward growth (directional strategy), (2) the industries or markets in which the firm
competes through its products and business units (portfolio strategy), and (3) the manner in which
management coordinates activities and transfers resources and cultivates capabilities among product
lines and business units (parenting strategy). Directional strategy is composed of growth, stability, and
retrenchment. Vertical and horizontal integration as well as concentric and conglomerate
diversification are discussed as examples of corporate growth strategies. International entry strategies
are also listed as growth strategies. Portfolio analysis is explained as a technique for managing various
product lines and business units for their maximum cash flow. Corporate parenting is a resource-
based approach which attempts to use capabilities found in various parts of the corporation to
generate synergies across these units.

Learning Objectives
Understand the three aspects of corporate strategy
Apply the directional strategies of growth, stability, and retrenchment
Understand the differences between vertical and horizontal growth as well as
concentric and conglomerate diversification.
Identify strategic options to enter a foreign country
Discussion Questions
Compare and contrast SWOT analysis with portfolio analysis.
What is the value of portfolio analysis? Its dangers?

Tasks
Your tasks for this module are:
• Textbook Reading Assignments

• Discussion

• Q&A session

6- STRATEGY FORMULATION: FUNCTIONAL STRATEGY AND STRATEGIC CHOICE

This topic is the last of three dealing with the formulation of strategy. It reconnects with the resource-
based view of the firm presented in Chapter Three by discussing the importance of core and distinctive
competencies to competitive advantage and corporate growth. The chapter and lecture discusses
functional strategies in the areas of marketing, finance, R&D, operations, purchasing, logistics, human
resources, and information systems. The chapter also provides criteria for deciding if specific
functional activities should be provided internally or outsourced. It discusses strategy selection in
terms of corporate scenarios, attitudes toward risk, external and internal pressures, as well as the
needs and desires of key managers. After presenting ways to improve strategic choice, the chapter
ends with the development of policies to fit the strategy.

Learning Objectives
Identify a variety of functional strategies that can be used to achieve organizational goals and objectives

Understand what activities and functions are appropriate to outsource in order to gain or strengthen
competitive advantage

Recognize strategies to avoid and understand why they are dangerous Construct corporate scenarios to evaluate
strategic options

Develop policies to implement corporate, business, and functional strategies

Discussion Questions
1. How can a corporation identify its core competencies? Its distinctive competencies?
2. What are the pros and cons of R&D leadership versus R&D followership as a functional strategy?
3. When should a corporation or business unit outsource a function or activity?

Part Four STRATEGY IMPLEMENTATION:

7- ORGANIZING FOR ACTION
This is the first of two Lectures and related book chapters dealing with the implementation of strategy.
Evaluation and control, sometimes considered a part of implementation, is discussed in the book as
well as in class. Following the basic management functions of planning, organizing, directing, staffing,
and controlling, the text views strategy formulation as primarily composed of planning activities;
strategy implementation as primarily composed of organizing, directing, and staffing activities; and
evaluation and control as primarily composed of controlling activities. This chapter begins by
specifying who implements strategy and what must be done: programs, budgets, and procedures. The
rest of the chapter emphasizes organizing activities by looking closely at the design of organizations
and jobs. Chandler's proposition that structure follows strategy is explained in terms of stages of
corporate development. The chapter also explains the organizational life cycle and what happens
when corporations go into decline. Building on the discussion of basic organization structures in
Chapter 4, this chapter presents two advanced designs of the matrix and the network (or cluster)
structure. Reengineering and job design are explained as implementation methods. The chapter ends
with a discussion of international issues in strategy implementation.

Learning Objectives
Develop programs, budgets, and procedures to implement strategic change
Understand the importance of achieving synergy during strategy implementation
List the stages of corporate development and the structure that characterizes each stage
Identify the blocks to changing from one stage to another Construct matrix and network structures to
support flexible and nimble organizational strategies
Decide when and if programs such as reengineering, Six Sigma, and job redesign are appropriate
methods of strategy implementation
Understand the centralization versus decentralization issue in multinational corporations

Discussion Questions
How should an owner-manager prepare the company for its movement from Stage I to Stage II?
How can a corporation keep from sliding into the decline stage of the organizational life cycle?
Does structure follow strategy or does strategy follow structure? Why?
Japanese corporations typically involve many more organizational levels and people in the
development of implementation plans than do Pakistani. corporations. Is this appropriate? Why or
why not?

Tasks/Your tasks are:

• Textbook Reading Assignments

• Discussion

• Quiz/case/exercise/project

8-STRATEGY IMPLEMENTATION: STAFFING AND DIRECTING

This is the second of two chapters and lectures dealing with the implementation of strategy. It deals
specifically with staffing the corporation with people having the appropriate mix of abilities and skills
and directing people to use their abilities and skills most effectively and efficiently to achieve
organizational objectives. The chapter explains how a change in strategy is most likely to have a
significant impact on staffing needs. Research is presented on matching the manager to the strategy.
Executive succession issues are dealt with. Downsizing is discussed as a commonly misused way to
implement a turnaround strategy. The chapter also explains how a corporation's culture can be
evaluated and managed to better suit the new strategy. Action planning, Management By Objectives,
and Total Quality Management are presented as useful techniques to coordinate implementation
activities.

Learning Objectives
Understand the link between strategy and staffing decisions
Match the appropriate manager to the strategy
Understand how to implement an effective downsizing program
Discuss important issues in effectively staffing and directing international expansion
Assess and manage the corporate culture’s fit with a new strategy
Decide when and if programs such as MBO and TQM are appropriate methods of strategy
implementation
Formulate action plans

Discussion Questions
What skills should a person have for managing a business unit using a differentiation strategy? Why?
What should a company do if no one having these skills is available internally and the company has a
policy of promotion only from within?
When should someone from outside the company be hired to manage the company or one of its
business units?
How can corporate culture be changed?
Why is an understanding of national cultures important in strategic management?
Does culture follow strategy or does strategy follow culture? Why?
Compare and contrast action planning with Management By Objectives.
What value does a Total Quality Management program have in implementing strategy?
How can MBO help improve the implementation of strategy?

Tasks
Your tasks for this module are:
• Textbook Reading Assignments

• Discussion Q&A

9-EVALUATION AND CONTROL

This part and lecture examines the final segment of strategic management—the evaluation of
performance and the control of work activities. Beginning with a basic five-step feedback model,
measures of corporate, divisional, and functional performance are described. Advantages and
limitations of ROI, ROE, and EPS as performance measures are listed. Economic Value Added (EVA)
and Market Value Added (MVA) are proposed as measures of shareholder value. Responsibility
centers are suggested to pinpoint performance in various parts of the corporation. Benchmarking is
discussed as a way of comparing a company's products, services, and practices against industry
leaders. The chapter also discusses transfer pricing and information systems in controlling
international activities and processes. The chapter also discusses two of the most frequent negative
side effects of the monitoring and measuring of performance activities –a short-term orientation and
goal displacement. Guidelines are presented to help keep the likelihood of occurrence of these
negative side effects to a minimum. Long-term incentive plans are also recommended to better link
compensation to strategic performance. The chapter ends with recommending the strategic audit as a
checklist to use when evaluating overall corporate performance.

Learning Objectives
Understand the basic control process

Choose among traditional measures, such as ROI, and shareholder value measures, such as economic
value added, to properly assess performance

Understand the impact of problems with measuring performance

Discussion Questions
What are some examples of behavior controls? Output controls?

Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are
control and creativity compatible? Explain.

What are the strengths and weaknesses of the strategic audit as a technique for assessing corporate
performance?

Tasks
Your tasks for this module are:
• Textbook Reading Assignments

• Discussion

• project/presentations

Part Five Introduction to Case Analysis

Learning Objectives
Research the case situation as needed

Analyze financial statements by using ratios and common-size statements

Use the strategic audit as a method of organizing and analyzing case information

Appendix B. Guide to Case Analysis

Cases require careful preparation before class. The following is a list of steps to guide your case
preparation.
a. Rapidly read the assigned case and other materials to gain a general understanding of the industry,
the
firm, and the general competitive situation and issues.
b. Carefully review the discussion questions provided for the session for clues as to what issues require
special attention.
c. Carefully re-read the case, taking notes that sort information, facts, and observations under a
number of relevant headings. Use the discussion questions to guide your own thinking about the
issues.
d. Formulate theories or hypotheses about what is going on as you read ("the company loses money
on
small orders"), modifying or rejecting them as new information surfaces ("Table 2 shows that
shipping costs per unit are higher for small orders, but only for long-distance shipments").
e. Perform quantitative analyses, “crunching” whatever numbers are available. It is also very
important
to provide quantitative support wherever possible, particularly when exploring various hypotheses as
to the nature and importance of certain phenomena. (If the requisite data are not available in the
case,
precise descriptions of what data are missing often triggers ideas for making creative use of the
information that is available.) It is usually worthwhile to identify trends in the firm or industry,
preferably with a quantitative measurement. Some of these trends, often very important ones, will not
be flagged in the text of the case.
f. Prepare definitive conclusions before you come to class concerning the issues raised in the
discussion
questions.
g. Bring your detailed notes with you to class to help guide your interventions in class discussions.

10-STRATEGIC ISSUES IN MANAGING TECHNOLOGY AND INNOVATION

This topic discusses the increasingly important role of technology and innovation in modern strategic
management. It emphasizes that strategic managers have an obligation not only to encourage new
product and process development, but to develop a system to ensure that technology is being used
most effectively to result in useful innovations. The chapter describes key issues and techniques under
the headings of environmental scanning, strategy formulation, strategy implementation, and
evaluation and control. Resource allocation and time to market concerns are discussed in addition to
product vs process R&D and technology sourcing. The chapter then describes some of the
characteristics of an innovative entrepreneurial culture and proposes corporate entrepreneurship as a
way to better organize for innovation. It also lists and discusses various measures of R&D productivity.

Learning Objectives
understand the issues around defining ‘technology’, ‘innovation’ and ‘innovation management’

Recognizes the diversity of types of innovation, innovators and innovation settings

Understands the nature and extent of technological change and innovation

Critically assesses and explain key current issues in our understanding of innovation as a field of study.

Discussion Questions
How should a corporation scan the external environment for new technological developments? Who
should be responsible

What is technology research and how does it differ from market research?

How can a company develop an entrepreneurial culture?

How can management's knowledge of technological discontinuity help to improve a corporation's

performance?

Tasks
Your tasks this module are:
• Textbook Reading Assignment

• Group project discussion/feedback

• Discussion/Q&A

STRATEGIC ISSUES IN ENTREPRENEURIAL VENTURES AND SMALL BUSINESSES

This topic summarizes the differences between large established corporations and small businesses
and entrepreneurial ventures in terms of their use of strategic management. The terms "small
business firm" and "entrepreneurial venture" are defined and contrasted. Although many small
companies have a number of reasons for not using strategic management practices, strategic
management is being used successfully by a growing number of them. The chapter emphasizes that
strategic management should be less formal in small companies than in large corporations. A
modified version of the strategic decision-making process is presented for use by entrepreneurial
ventures. The chapter describes important issues for small businesses and entrepreneurial ventures
under the headings of strategy formulation, strategy implementation, and evaluation and control.
Among these are sources of innovations, factors affecting a new venture's success, stages of small
business development, transfer of power and wealth in a family business, and problems with the use
of standard financial analysis techniques.

Learning Objectives
Differentiate between an entrepreneurial venture and a small business
Use the strategic decision-making process to form a new venture
Differentiate between an idea and an opportunity
Identify sources of innovative concepts
List the characteristics of the typical Entrepreneur
Understand the importance of moving through the substages of small-business development
Avoid pitfalls in assessing the financial statements of a small, privately owned company

Discussion Questions
How should a small company engage in environmental scanning? To what aspects of the environment
should management pay most attention?

What considerations should small business entrepreneurs keep in mind when they are deciding if a
company should follow a growth or a stability strategy?

How does being family-owned as compared to publicly-owned affect the firm's strategic
management?

If the owner/manager of a small company asked you for some advice concerning the introduction of
strategic planning, what would you tell her?
Your tasks this module are:

• Textbook Reading Assignment

• Final Exam

• Course Reflection paper