ENCG - Casablanca

Strategic Management
Theme 1
Syllabus (Opening Speech)- Basic Concepts of Strategy
and Strategic Management.
Mission statement and Vision Statement.
Business Model and Business Planning.

S8/2020

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Course Syllabus and Planning
• Syllabus

• Planning

• Assignement

• Case Study

• Assessment & Evaluation

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Course Overview and Objectives
• To acquire familiarity with the principal concepts, frameworks and
technics of strategic management,
• Understand the mission statement and vision statement,
• Understand the link between the mission, vision and the strategy,
• Understand the notion of Business Model,
• To gain expertise in applying these concepts, frameworks and
tools in order to:
- understand the reasons for good or bad performance by
Enterprises/Organizations,
- generate strategy options for Enterprises/Organizations,
- select the most appropriate strategy,

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 REFERENCES
• 1- Textbook: Pr.Fred R.David. Strategic
Management:Concepts and Cases 13th Ed – 2011.

• 2 - Strategy Safari: The Complete Guide Through

the Wilds of Strategic Management – Prentice Hall
– Pr.Henry Mintzberg- 1998.

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 PART I
• Describe the Strategic Management Process (SMP).

• Explain the need for integrating analysis and intuition in strategic

management;

• Explain Strategic Business Unit and Competitive Advantage concepts;

• Discuss the nature of strategy formulation, implementation, and

evaluation activities;

• Explain why good ethics is good business in strategic management.

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 Chapter(s) in Textbook
• Chapter 1: The nature of Strategic
Management.

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 Opening Speech: Why learning
Strategy and Strategy Management?

Alibaba Express One of the First E-commerce

online site

Fujifilm Strategic change of activity

Kodak Disappeared

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 Opening Speech: Why learning
Strategy and Strategy Management?

Alibaba Express First E-commerce online site

The Impact of having a strategy

Fujifilm Strategic change of activity

The Impact of having no strategy

Kodak Disappeared - Lack of strategy

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 Domain of Strategy ?
• Strategic Competitiveness,
• Concerns managerial decisions and actions which materially
affect the success and survival of enterprises and
organizations;

• Involves the judgment necessary to strategically position a

business and its resources in long-term profits in the face of
irreducible uncertainty and aggressive competition;

• Strategy is the link between a business and its current and

future environments.

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 Terminology and basic concepts
of Strategy
Strategy Metaphor
Strategy as a military art: (Sun Tzu) A strategist (Stratos) is
a senior military officer. He is the commander of a
military unit.
What is Strategy about ?

«... ..The art of combining the action of the Military Forces

to achieve a goal (War) determined by the High
power....»

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 Terminology and basic
concepts of Strategy
Basic Definitions
“…The determination of the long run goals and objectives of
an enterprise, the adoption of courses of action and the
allocation of resources necessary for carrying out these
goals…”
Pr.Alfred Chandler, Strategy and Structure

“….Strategy ?: Art of coordinating and federating coherent

actions according to a sequential logic to achieve
objectives. The strategy acts in a general and global
scope... ”
Pr. Henry Mintzberg, Strategy Safari
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 Terminology and basic concepts
of Strategy
What is the Corporate Strategy (Metaphor:
Enterprise/Organization - Army)?
• The Corporate Strategy is based on the assumption that
competing economic activity is subject to constraints that
are "almost" similar to those of armies (War - Battle -
Combat);

• Like the army's staff, the role of the management team is

to "shape" the decision of the leader / board of directors
by shedding light on market opportunities, potential
objectives and resources.

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 Terminology and basic concepts of
Strategy
Level of Strategy

CORPORATE CORPORATE
STRATEGY HEAD OFFICE

BUSINESS
STRATEGY Division A Division B

R&D R&D
FUNCTIONAL Personnel Personnel
STRATEGIES
Finance Finance
Production Production
Marketing/Sales Marketing/Sales

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 Terminology and basic concepts of
Strategy
Hierarchy of Strategy

Corporate strategy – general direction

(stability, growth, retrenchment)

Business strategy – industry or market segment focus

Functional strategy – functional planning to

support the Corporate and Business strategy.
(technology leader or follower)

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 Terminology and basic concepts of
Strategy
Level of Strategy
• Corporate strategy... defines the scope of the
business in terms of the industries and markets in
which it competes.
– includes decisions about diversification, vertical
integration, acquisitions, new
ventures, divestments, allocation of scarce
resources between business units
• Business strategy... is concerned with how the firm
competes within a particular industry or market... to
win a business unit must adopt a strategy that
establishes a competitive advantage over its rivals.
• Function strategy... the detailed deployment of
resources at the operational level
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 Terminology and basic concepts of
Strategy
Startegy at Top level: Corporate Strategy
• In the context of a Global Policy, Corporate
Strategy, is about the elaboration of a
Philosophy of Action that establishes the
macroscopic objectives and the rules of
engagement including the different force
components.

• It is the level of the General Staff (usually the

Board of Directors) that defines the What ?
and Who ? Questions.
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 Terminology and basic concepts of
Strategy
Strategy at Organizational Level (Business Strategy):
Tactics

• In the organizational context, plan and organize

and coordinate the deployment and chronology of
means in order to achieve the strategic objectives
with the best Efficiency;

• Questions: When? Where? How much it will cost?

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 Terminology and basic concepts of
Strategy
Strategy at Operational Level (Function Strategy):
Maneuver

• In a specific operational context, act with the

best economy of means in order to obtain
the advantage (s) required by the tactical
plan with the greatest Efficacy/Performance;

• This is the context of the local manager.

Questions: How to do things?

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 Terminology and basic concepts of
Strategy
What is the particularity of corporate strategy?

The company strategy aims to formalize and

conceptualize the CONDITIONS OF
ACQUISITION and maintenance of a
COMPETITIVE ADVANTAGE (CA) to gain
PROFITS (image, notoriety, financial etc ...)

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 Terminology and basic concepts of
Strategy
What is the particularity of corporate strategy?

The company strategy aims to formalize and

conceptualize the CONDITIONS OF
ACQUISITION and maintenance of a
COMPETITIVE ADVANTAGE (CA) to gain
PROFITS (image, notoriety, financial etc ...)
Protect, Control and
Strategy maintain Competitive
Advantage.
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Terminology and basic concepts of
Strategy
Strategic Business Unit?
Strategic Segmentation?
Process of dividing the Whole Entreprise into
homogeneous units. These units are called
Activities. Strategically, they are Strategic
Business Unit (SBU).
Srategic
Segmentation SBU
Process
Marketing
Segmentation ?????
Process
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 Terminology and basic concepts of
Strategy
The Design School Strategy Formation as a
(Andrews & Chandler) Process of Conception

Henry Mintzberg, Strategy Safari

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 Terminology and basic concepts of
Strategy Strategic Management
Strategic Process ?
Expectations
Environne- Capacity and
ments intentions

Strategic Organization
1 Diagnosis
Strategy
3 Implementation Strategic Lifts

2 Strategic Change
Choices Management
Orientations
SBU Strategy And growth
development
Corporate Strategy

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 Terminology and basic concepts of
Strategy
Diagnosis/Assessment
Strategic
Expectations Models and Tools
Environne- Capacity and Internal / External
ments intentions

Strategic Organization
1 Diagnosis
strategic
Strategic decisions and choices 3 Deployment Strategic Lifts

2 Strategic Change
Choices Management
Orientations
SBU Strategy And growth
development Strategic implementation
Corporate Strategy And Action Plan for
change management
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 Terminology and basic concepts of
Strategy
Strategic Groups - Lobby
Groups
• Basically it's the Lobbying

• Act for the interest of minority

• Has a hidden structure of influence on the regulator (which

is usually state) regarding the application of the rules.
Influence can be direct or indirect
• The Lobby is Everywhere. We have to deal with it.
A special interest's lobbying activity may go up or down
over time, depending on how much attention the federal
government is giving their issues.

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 Terminology and basic concepts of
Strategy
Strategic Groups - Lobby
Groups
• Examples of Lobbying (Sugar Lobby - USA)

Total Lobbying Expenditures (2018):

$1,245,000
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 Some Jobs related to strategy

• Consultant “organization and strategy”;

• Strategic Business intelligence Consultant;

• Director of Development;

• Director of Strategy / Director in charge of

Strategic Development;
• Business Unit Director;
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« ..Great Leader are Strategist.. »

28
Elon MUSK Jeff BEZOS
TESLA AMAZON

Jack Ma 29

ALIBABA EXPRESS
 Key Learning - Concepts
• Strategy Definition ?
• Strategic Key Concepts: SBU- CA.
• Strategic Management Process?
• Decision Making inside Organizations ?
• Lobby and effects/impacts on strategy
success ?

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 PART II
• Explain the notion of mission and Vision
Statement;
• Understand the link between the mission
statement and the strategy;
• Understand the link between the vision
statement and the strategy;
• Explain the Notion of Business Model and
Business Planning
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 Chapter(s) in Textbook
• Chapter 2: The business Mission and
Vision.

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Terminology and basic concepts of
Strategy
This part will answer the questions:

What is a mission/vision statement?

Why do we need an advising mission/vision

statement?

What are the characteristics of an effective

mission/vision statement?
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 Terminology and basic concepts of
Strategy

« …..Key concepts related to Srategy…… »

Mission Statement ? Vision Statement ?

Business Model ? Business Planning ?

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 Terminology and basic concepts of
Strategy
What is a mission statement?

A mission statement describes….

Who we serve ?
Why Our reason for being and
existing ?
What we strive to achieve ?

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 Terminology and basic concepts of
Strategy
What is a mission statement?

A mission statement articulates…

Our values
Our purpose
Our direction now and in the future

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 TerminologyDeveloping
and basic concepts
an Academic of
Advising
Mission Statement
Strategy
The link between Mission statement and
Vision statement

MISSION STATEMENT

Vision Statement
-Mission statements represents the core priorities
of the organization;
-Advising vision statements drive the intent and
planning for advising priorities;
-Advising vision statements connect to
organization’s vision statement
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 Terminology and basic concepts of
Strategy
Before Strategy: Mission Statement and Vision Statement

A brief description of an entreprise's

fundamental purpose. It answers the
Mission Statement Question, "Why does the business
exist?”

Why Mission Statement is so important ?

1 – The only way of 2 - The mission statement 3- Mission statements is a part
ensuring that everyone definition itself is often the of entreprise's public face, It is
inside the entreprise has result of group consensus often used in marketing.
the same effective efforts. Businesses always include the
understanding of the MS on the website.
business.
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 Terminology and basic concepts of
Strategy
How to define and Write a Mission Statement ??
The Mission Statement should answer key Questions

What does the

entreprise do ? The entreprise purpose

How the Business business operates

How does the entreprise generally. Define Core values and
do it ? Core competencies

Why does the entreprise Explain why the entreprise should do it

do it ?
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 Terminology and basic concepts of
Strategy
Examples of Mission Statement

“To accelerate the “To inspire and “To give people the
advent of sustainable nurture the human power to build community
transport by bringing spirit – one person, and bring the world
compelling mass one cup and one closer together”
market electric cars to neighborhood at a
market as soon as time."
possible." Pr.Karim GASSEMI - ENCG - 40
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 Terminology and basic concepts of
Strategy
Before Strategy: Mission Statements and Vision Statements
An aspirational description of what an
Entreprise would like to achieve or
accomplish in the mid-term or long-
Vision Statement term future. It is intended to serves as
a clear guide for choosing current and
future courses of action.

Why Vision Statement is so important ?

1- The vision statement is 2 - A vision statement is articulating the

about inspiration, the dreams and hopes for the business. It
framework for all Entreprise describes what the entreprise is trying to build
Startegic Planning. and serves as the basics for future actions.

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 Terminology and basic concepts of
Strategy
Examples of Vision Statement

“To build a place

“To create a better “To help people
where people can
everyday life for the around the world
come to find and
many people” realize their full
discover anything
potential”
they might want to
buy online”

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 Terminology and basic concepts of
Strategy
Before Strategy: Business Model vs Business Plan?

Business Model Business Plan

How the Entreprise creates value The forecast evolution of the activity
(Economic, Social, etc.) for different of the Entreprise in time (break-even
stakeholders ? point, evolution scenario, etc ...)

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 Terminology and basic concepts of
Strategy
Business Model Framework
Partners Activities Value Customer Customers
proposition Relationship
Management
how should the
What is the
entreprise
core business
Who are the manage the
(Declining
partners ? What is the relationship What are the
mission
value offered with the segments /
statement)
to the client ? customer ? types of
Resources Channels customers ?
What are the
resources which channel
used by the the entreprise
Entreprise to uses to reach
accomplish its out its
activities? customers ?
Costs Revenues
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 Terminology and basic concepts of
Strategy
Business Planning Framework
Break Event Point
200

180

160

140

120
Values

100 Costs
Revenues
80

60

40

20

0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 year 10

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 Key Learning - Concepts
• Mission and Vision statement Definition ?
• The link between Mission and Vision
statement ?
• The components of Business Model?
• The steps to acheive a smart business
Model?
• The definition of Business Planing ? The link
between Business model and Business
Planning ?
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• Recommeded lectures for the 2 nd
Course.
• Textbook
– Chapter 3: The External Assessment.
– Chapter 4: The internal Assesment.

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