Lecture 3.pptxEthics, Social Responsibility, and Sustainability

Ethics, Social
Responsibility, and
Sustainability

1. Dr. Muhammad Faisal , Ph.D (HRM), contact : 0333-5377388

2. Strategic Management Textbook Strategic Management: Concepts: Competitiveness and Globalization - 9 th Edition, Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson. Contemporary Strategic Management Case Studies , 6 th Edition, Robert Grant Reference Books Concepts in Strategic Management and Business Policy , 12 th Edition, Wheelen, Thomas L., Hunger, J. David The Blackwell Handbook of Strategic Management , 1 st Edition. M.A. Hitt, R.E. Freeman and J.S. Harrison

3. Strategic Management Whittington (1993)

4. Strategic Management Define the mission . Set objectives . Conduct internal and external environmental scans to assess internal strengths and weaknesses and external opportunities and threats (a SWOT analysis). Analyse existing strategies to determine their relevance in the light of the internal and external appraisal. This may include gap analysis , which will establish the extent to which environmental factors might lead to gaps between what could be achieved if no changes were made and what needs to be achieved. The analysis will also cover resource capability, to answer the question: ‘ Do we have sufficient human or financial resources available now or that can readily be made available in the future to enable us to achieve our objectives?’ Define in the light of this analysis the distinctive capabilities of the organization. Define the key strategic issues emerging from the previous analysis. These will be concerned with such matters as product-market scope, enhancing shareholder value and resource capability.

5. Strategic Human Resource Management Determine corporate and functional strategies for achieving goals and competitive advantage, taking into account the key strategic issues. These may include business strategies for growth or diversification, or broad generic strategies for innovation , quality or cost leadership ; or they could take the form of specific corporate/functional strategies concerned with product-market scope, technological development or human resource development. Prepare integrated strategic plans for implementing strategies. Implement the strategies. Monitor implementation and revise existing strategies or develop new strategies as necessary. Classical Model of strategy formulation is essentially linear and deterministic – each step logically follows the earlier one and is conditioned entirely by the preceding sequence of events. It allows scope for iteration and feedback, and the activities incorporated in the model are all appropriate in any process of strategy formulation.

6. Strategic Management

7. Strategic Management Corporate level strategy is concerned with: Reach ­ defining the issues that are corporate responsibilities; these might include identifying the overall goals of the corporation, types of businesses in which corporation should be involved, and the way in which businesses will be integrated and managed. Competitive Contact ­ defining where in the corporation competition is to be localized. Managing Activities and Business Interrelationships ­ Corporate strategy seeks to develop synergies by sharing and coordinating staff and other resources across business units, investing financial resources across business units, and using business units to complement other corporate business activities. Ansoff introduced the concept of synergy to corporate strategy. Management Practices ­ Corporations decide how business units are to be governed: through direct corporate intervention (centralization) or through more or less autonomous government (decentralization) that relies on persuasion and rewards

8. Strategic Management Business Unit Level Strategy is concerned with: positioning the business against rivals anticipating changes in demand and technologies and adjusting the strategy to accommodate them influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying. Michael Porter identified three generic strategies (cost leadership, differentiation, and focus) that can be implemented at the business unit level to create a competitive advantage and defend against the adverse effects of five forces (i.e. rivalry, threat of substitutes, buyer power, supplier power and threat of new entrants and entry barriers)

9. Strategic Management Functional Level Strategy is concerned with: Business processes and the value chain Strategies in marketing, finance, operations, human resources, and R&D Involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively. Functional units provides input to the business unit level and corporate level strategy, such as providing information on the resources and capabilities on which the higher level strategies can be formulated.